BNSF have sold ten brand new SD70MACe built last month to BHPBilliton Iron Ore of Port Hedland in Western Australia. These locomotives in BNSF colors but without numbers and logos went dirrect from EMD plant in London Ont to a port for export following construction. These ten locomotives part of an order for 30 locomotives will be added to an order for some 200 locomotives to be built later in the year. BHPBIO negiotated with BNSF to purchase these locomotives even though BHPBIO have SD70MACe locomotives on order from EMD for delivery this year their iron ore exports are expanding rapidly and required further locomotives imediately.
BNSF in a little financial trouble, or did EMD screw up on the order?
Phil
I’d bet that the Australian outfit was more desperate than BNSF, so some negotiation went on. BNSF will still get their locomotives, just a little later than originally planned. Had the whole thing occured a little sooner, they probably wouldn’t have been in BNSF paint.
I’ll agree with Larry, this makes sense.
With the slowing economy BNSF has pushed back the delivery of the final 35 units of the 200 unit order into the 1st quarter of 2009 anyway so this diversion of 10 already built locomotives isn’t a hardship.
BNSF has already recvd some of their order,dont know how many but they have been seen here around Temple,Ft. Worth area…
[#ditto] Yep, a little bit of “let me give the Aussies your units now and we will give you x% discount on the same number of new units later” has likely taken place…making everybody happy, I’ll bet.
bhp is a very large company… if it wants to purchase locomotives it has the money to get what it wants …also with the expansion of the system it would be foolish for emd to let them purchase from GE
Guess BNSF will have to bring 16 - 18 SD40’s out of storage for a while.
Numbers are BNSF 9166, 9167, 9184 thru 9191. Builders numbers 20066862-037, 20066862-038, 20066862-055 thru -062. BHPBIO purchased these locomotives from BNSF direct bypassing EMD. They will be numbered 4324 thu 4333 for BHPBIO.
This additional information makes this a stranger situation then ever before…why would BNSF deliberately sell needed motive power (new power at that) to another company unless they make a profit on it and truly could do without the power for a while due to available “surge fleet” units in storage and a downturn in traffic? Any other guesses out there?
Interesting, the pictures I have seen show them not fully painted, although the picture did not show all of them. They had only the Orange paint applied, the first color painted. So at least these locomotives hadn’t been delivered yet, it’s possible that the two lowest numbered locomotives had been delivered. Without an agreement with EMD the shipment overseas of the locomotives would have some affect on their warranties.
BHP bought some SD70ACe’s a while back, but they were called “SD70ACe/lc’s” (lc = low clearance, I believe), built slightly modified so they could get under the ore chutes. They were the first ACe’s to be built with an isolated cab. I know the new BNSF units have the isolated cab, but I wonder if they have the same clerance preferances that BHP’s first ones did?
This is a very interesting move. I’ve never heard of something like this happening before. BNSF does have quite a few of the new SD70ACe’s out and about, I’ve already seen two new ones.
Overall rail traffic has been down for over a year. I suspect BNSF is like most other Class I’s with power currently in storage. I would expect BNSF to complete taking delivery of this order during the 3rd Quarter of this year so as to have it available for the anticipated 4th Quarter surge in traffic that historically occurs.
Here is what they look like fresh from London Ontario, Cn…
When did Scheinder buy the BHP that is what they look like. Pumpkin trucks on rails. Sorry the OTR driver in me LOL.
Maybe but probably not, economic downturns usually see lots of engines going into storage not coming out of it. Remember also that SD70MACe’s are far more economical to operate than lashups of older locomotives that would be needed to haul the same loads, so when BNSF figured they didn’t need them (assuming the above logical and realistic ideas are in fact what happened) then this is overall a money-saving move for BNSF. Why then would they bring older engines that are more expensive to operate out of storage to replace engines that weren’t needed to begin with yet?
Cheers!
~METRO
BHP Billiton have 24 SD70 ACe/lc units but the first unit 4300 was dismantled to provide spare parts. This was much cheaper than buying a spare engine, alternator and other components.
The restriction in clearance was the No 1 Car dumper which was obtained from the Oroville dam construction, along with 150 gondola cars. This line used the very first U25Cs built and did not require to fit current locomotives.
All locomotives up to the GE AC6000 class were built to fit the No 1 dumper, but the SD70 ACe/lc, despite their modifications did not fit through No 1 dumper. The modifications apparently mainly affected the radiator, and one unit was inadvertantly run part of the way through No 1 dumper with the cab trailing (there were automatic train stop warnings that were overidden by the driver). The radiator made it, but the handrail above the inverter boxes was damaged. The loco was stopped before the cab reached the dumper frame.
The BHPB cab is apparently not very different from the standard SD70 ACe, but the number boards are in the nose, saving a couple of inches on top of the cab.
I understand that No 1 dumper has been modified to give more clearance so it might be possible for standard SD70 ACe units to fit through now.
The newest dumper, No 4 on Finucane Island, across the harbour from No 1 at Nelson Point will definitely take the "lc&quo
Here’s the original SD70ACe/lc’s - http://www.railpictures.net/viewphoto.php?id=207438 - quite a difference. The paint scheme seems a little more original.
Does anyone know approx when these 10 units will arrive in Pt Hedland or when they were shipped.I work for BHP driving their Ore trains and i already knew about the 13 units on order with EMD due later this year or early 2009,though this order only came up in conversation a week or so ago.Apparently some of our current SD70’s have been travelling around with equipment on top to check the clearances for these new units.They will be an interesting and welcome sight due to constant loco failures,mainly with our Dash8 units.