14 March 2005
Canadian Pacific Railway
to Acquire First Hybrid Locomotives
Canadian Pacific Railway
(TSX/NYSE: CP) announced the purchase of 35 Green Goat® Series hybrid locomotives over
a four-year period from RailPower Technologies Corp. (TSX-P) of Vancouver.
Under the agreement, seven of CPR's yard locomotives will be converted in 2005 to
low-emission, quiet hybrid locomotives using hybrid technology and used at CPR's Calgary
operations as part of more rigorous long-term testing. Another 28 Green Goats would be
converted over the following three years if the first hybrids meet performance guarantees, as is usual
with new technology, and if the technology performs well in further testing in adverse winter
conditions.
"The Green Goat® performed well in our first round of testing, last year,"
Neal Foot, Senior Vice-President of Operations for CPR, said. "We need to do more
testing in strenuous conditions to prove the hybrid's robustness before taking delivery of the
others."
A three-month demonstration trial of a Green Goat® by CPR in Vancouver,
Calgary, and Moose Jaw in 2004 showed the fuel, emissions, and operational benefits of RailPower's
hybrid locomotives.
RailPower President and CEO, Jim Maier, said. "This is a strong endorsement of our hybrid
technology by a leading Class 1 railroad. CPR did extensive trial work with the Green
Goat® in various locations. This order also provides a powerful impetus as we expand
our sales efforts in North America and provides a solid foundation for our order book through
2008."
CPR's yard fleet consists of approximately 220 low-horsepower locomotives built in the
1950s. Replacement components are becoming increasingly difficult to source. The addition of the Green
Goat® is the latest in CPR's ongoing commitment to modernizing its yard and road
freight locomotive fleet with more fuel efficient, environmentally friendly, and powerful locomotives.
CPR has one of the youngest fleets of road freight locomotives in North America.
"The Green Goat® technology offers potential for a cost-effective
solution to renewing CPR's yard locomotive fleet," Foot said. "Our studies indicate
operating cost savings approaching $4 million annually should we acquire all 35 Green
Goat® hybrids. In addition, the capital cost is significantly lower than acquiring new
locomotives and is competitive with acquiring used conventional locomotives."
Operating cost savings would be generated by lower maintenance requirements and fuel consumption, as
well as higher productivity. CPR tests indicate the Green Goat® is as much as 60
percent more fuel-efficient than conventional yard locomotives with a commensurate
reduction in greenhouse gases. The hybrid uses plug-and-play modular components that can
be quickly replaced in the field, minimizing in-shop repair time and increasing fleet
utilization.
The Green Goats will be assembled by ALSTOM at Calgary shops leased from CPR.
Financial terms of the acquisition were not disclosed.
About the Green Goat®:
Powered by batteries that are charged by a small diesel genset, the Green Goat® is
significantly quieter than diesel locomotives. It meets the U.S. Environmental Protection Agency's
Tier 2 standards for particulate matter in exhaust emissions, which came into force in 2005. RailPower
Technologies said its Green Goat® reduces smog-causing oxides of nitrogen
(NOx) and diesel particulates by as much as 90 percent, compared with conventional yard locomotives.
In a separate development, RailPower has been notified by California's Air Resources Board
("CARB") that it has approved the company's application for its Green Goat®
locomotives to be given the designation of Ultra Low Emission Locomotive ("ULEL"). The Green
Goat® hybrid switcher is the only locomotive to be given this designation and is the
cleanest locomotive operating on North American railroads. CARB, established in 1967, is a department
of the California Environmental Protection Agency. CARB's mission is to promote and protect public
health, welfare, and ecological resources through the effective reduction of air pollutants.
About RailPower:
RailPower is headquartered in North Vancouver, BC. Its main engineering and manufacturing base is in
Erie, Pennsylvania, where its wholly-owned subsidiary, RailPower Hybrid Technologies
Corp. is located.
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