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    Within CP Rail, the Transportation Department determines the need for motive power. Its job is to be certain the tools are available that allow the railway to operate competitively and profitably in Canada's transportation marketplace. The Mechanical Department is charged with the selection of motive power to meet the needs of Transportation and with ensuring equipment is properly maintained and able to perform assigned tasks. Over the past few years, both departments became aware that the motive power fleet was increasingly unable to meet the demands placed upon it to provide the levels of dependable service required by CP Rail's customers. Yard power in particular was a problem with outdated low-horsepower units unable to perform to today's standards, too many units out of service becoming increasingly expensive to repair and growing numbers of road units being brought in to alleviate yard problems.
 
    To put the problem into perspective and to suggest solutions, the Transportation Department, in 1977, undertook an exhaustive survey of the locomotive fleet. The study confirmed the ominous obsolescence of the fleet, that increasing numbers were becoming unserviceable and impossible to maintain. This, plus the pressures created by increases in traffic, meant more and more units were being brought in off the line to fill the power gap in the yards - as many as 130 road units were performing yard duty at one time - with consequent shortages in other areas. New power units were being acquired with no planned approach to retiring older units. The conclusion was that CP Rail faced serious attrition within the older segment of its locomotive fleet which in turn could have major implications on available power and on financial investment.
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