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<< Rail News Home: Mechanical

12/6/2006    Mechanical

Rail News: Mechanical

Railpower reaches contract settlement with customer over switcher order

Yesterday, Railpower Technologies Corp. announced it reached an agreement with an undisclosed customer to terminate a contract for 35 Green Goat® locomotives. Railpower will receive about $1.1 million and the customer will return three Green Goats that already had been delivered.

The deal represented the majority of Railpower’s third-quarter contract losses totaling $21 million. With the settlement, the company’s contract losses will decrease by $18.7 million in the fourth quarter, Railpower said.

“This settlement will allow us to focus on expanding sales of and delivering our RP-series road switcher locomotives,” said President and Chief Executive Officer José Mathieu in a prepared statement.

Of the company’s 113-unit order backlog, 105 units are RP-series locomotives, which are designed to reduce fuel consumption up to 35 percent and reduce certain air emissions by about 80 percent compared with a conventional switcher. Railpower offers the RP20BH two-engine hybrid and RP20BD three-engine diesel locomotives, which, depending on power requirements, can operate on battery alone, one engine or a combination of battery and engine.

Contact Progressive Railroading editorial staff.