FOR RELEASE: January 28, 2011
 

EMD and Ferromex sign locomotive purchase agreement




La Grange, Illinois and Col. Bosques de Las Lomas, Mexico
Electro-Motive Diesel (EMD) and Ferrocarril Mexicano, S.A. de C.V. (Ferromex) announced today the signing of a purchase agreement for 44 new SD70ACe locomotives. This represents the first new order for locomotives Ferromex has placed since 2006.

"We are very pleased that Ferromex has selected the highly reliable and energy-efficient SD70ACe as it expands its operational capacity," said Billy Ainsworth, Chief Executive Officer of EMD. "We look forward to working with Ferromex and providing the highest quality products and services to support its current and future growth."

The SD70ACe meets EPA Tier 2 emissions standards and will enable Ferromex to interchange locomotives with railways in the United States and Canada. The Ferromex locomotive will also feature radial trucks, distributed power and the EMD Q-cab for operator comfort.

"The 44 new EMD SD70ACe locomotives are a very positive addition to Ferromex´s fleet," said Rogelio Vélez CEO of Ferromex. "In tests run by our company, the EMD locomotives demonstrated very high and consistent performance and fuel efficiency. These new locomotives will help Ferromex cope with very significant volume increases, which in 2010 were close to 20 percent, versus 2009 and most importantly, already 12 percent higher than 2008 volume, a record year for Ferromex. Our locomotive needs will continue to be significant over the next several years and we look forward to continuing to develop our business relationship with Electro-Motive Diesel."

The 4,300 traction horsepower SD70ACe locomotive incorporates the highly reliable EMD two-stroke 710 engine. EMD launched the model in 2005 for freight applications in North America and around the world.

EMD will begin delivering the new SD70ACe locomotives to Ferromex in April 2011. The contract also includes a 15-year locomotive maintenance agreement. This is the second order by Ferromex of the SD70ACe model. Upon completion of delivery, Ferromex will operate a total fleet of 59 SD70ACe locomotives.

About Electro-Motive Diesel
Founded in 1922, Electro-Motive Diesel, a subsidiary of Progress Rail Services, a Caterpillar Company, is an original equipment manufacturer of diesel-electric locomotives. Headquartered in LaGrange, Illinois, with additional facilities in London, Ontario, EMD designs, manufactures and sells diesel-electric locomotives for all commercial railroad applications and has sold its products in more than 70 countries worldwide. The Company is the only diesel-electric locomotive manufacturer to have produced more than 72,500 engines and has the largest installed base in both North America and worldwide. In addition to its manufacturing activities, EMD has an extensive aftermarket business offering customers replacement parts, maintenance solutions, and a range of value-added services. The Company is also a global provider of diesel engines for marine propulsion, offshore and land-based oil well drilling rigs, and stationary power generation. Additional information may be found at www.EMDiesels.com.

About Ferrocarril Mexicano, S.A. de C.V.
Ferrocarril Mexicano (Ferromex) formed by Grupo Mexico and Union Pacific, began operating in February of 1998. The company has invested in 12 years $ 1, 728 million dollars in infrastructure, locomotives, freight cars, technology and Intermodal and automotive terminals. With more than 8 thousand kilometers of tracks, Ferromex represents the largest coverage in the National Railway System. It connects the main cities in the country as well as five points on the border with the United States, four sea ports on the Pacific Ocean and two more on the Gulf of Mexico. Additional information may be found at www.ferromex.com.mx


 

EMD Media Contact:
Sonya Travis
(708) 387-5850

Ferromex Media Contact:
Leonor Torres
(5255) 5246 3882