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Old 05-28-2011, 09:16 AM   #12
Bryan Jones
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Join Date: Dec 2002
Location: Brooks,KY
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Originally Posted by troy12n View Post
I'm guessing it's because they give EMD a token order or 2 every few years to use as leverage (to get better pricing) when they buy more units from NS.

They have orders on the books for ES44AC and SD70ACe. They are buying more of the GE product which should speak volumes. I have no idea why they would just order 25 AC EMD units per year over 4 years, it makes no sense. But NS does this sort of stuff, their first few SD70 orders were all very small as well. One of them was only 10 units I think.

Current orders for NS involve 25 SD70ACe's per year over a 4 year period. Equally they have ordered 25 ES44AC's per year for the next 4 years. Both EMD and GE contracts call for a total of 100 locomotives each. They ordered 25 EMD units per year for the same reason they ordered 25 GE's per year. No token orders.

Before either of these orders were placed NS ordered 42 ES44AC's from GE during late 2010. NS was quite power short and GE able to deliver the units in a nearly immeadiate time frame. These units came nearly 2 years after the initial order for 24 ES44AC's which were the first AC traction units ordered by NS. NS was able to take near immeadiate delivery of these units in Fall 2008 after signing the contract due to the fact that the materials were already in the pipeline for a CSX ES44AC order which was canceled. These 24 units were a true token order for NS and the performance of these ES44AC's finally convinced the railroad to shift to AC traction.

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