Kansas City Southern to Buy 50 GE Locomotives

   By Colin Kellaher

Kansas City Southern (KSU) on Thursday said its U.S. and Mexico rail units will acquire a combined total of 50 new locomotives from General Electric Co.'s (GE) GE Transportation unit.

The locomotives, to be delivered during 2019, will be produced at a GE plant in Fort Worth, Texas. The value of the order, which includes GE's Tier 4 Evolution Series locomotives, wasn't disclosed.

"With the North American rail market improving and freight volume up roughly 5% in 2017 and expected continued growth in 2018, the advanced locomotives will help KCS deliver on its expected future growth, while driving operational efficiencies across the KCS network," Kansas City Southern said.

GE in May agreed to merge its railroad business with Wabtec Corp. (WAB) in a deal valued at roughly $11 billion after examining options for its transportation division, which has struggled with falling profit and sales in recent years.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

June 21, 2018 09:50 ET (13:50 GMT)

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