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NRE & the Ease of Lease

It’s understandable if freight operations find the task of obtaining new locomotive equipment daunting. With seemingly as many options in technology, size, duty and power in locomotives as there are miles of railway in the U.S., it can be hard to know what to buy, what it should cost, what to do if problems arise and — certainly not least of all — how to fit new equipment into a budget. It’s important to buy or lease from a company that will not only be a supplier, but a partner — ready and able to not only help customers choose the right equipment and financing options, but also to be there when service is needed or questions arise.

Fortunately for clients around the U.S. and around the world, that partner is NRE. The national leader in locomotive technology, NRE is committed not only to providing clients with the most efficient, cutting-edge and environmentally friendly engines on the market, but also to providing cost-effective financing options for clients to access the equipment they need. Through its locomotive leasing program, NRE provides a flexible, customizable financing program that can meet the needs of clients of any size.

Does NRE have the inventory? Check. With a fleet that includes SW100s, SW1200s, SW1500s, MP15ACs, GP9s, GP10s, GP38s, GP40s, GP50s, SD38s, SD40-2/3s and SD60s, NRE has the right 4- or 6-axle locomotive for any freight company’s loads, from short line to long haul. Specs range from 18 ton per axle for general purposes to 34 ton per axle special duty locomotives, with power availability from 500 horsepower per unit to 3,600 horsepower per unit.

NRE also specializes in the industry’s most environmentally friendly technology.

“NRE is one of the nation’s leader’s in Green Locomotive re-power conversions and is an OEM for new Tier 3 and Tier 4 GenSet locomotive technology,” said Gerald Cochran, Senior Executive Account Manager at NRE. “These units are available for leasing in a range of fourand six-axle units, from 700 horsepower up to 3,600 horsepower. NRE has been producing these types of units for the past several years, beginning in 2006 with Tier 2.”

NRE also knows that every client is nothing if not unique. There’s no one-size-fits-all solution. With worldwide leasing capability, NRE’s broad shoulders and know-how ensure the independence and flexibility needed to build a leasing package that best fits a client’s usage and budgetary needs. Companies can choose either short- or long-term leases and can take the worry out of day-to-day operations with full-service, full-maintenance leases.

Just looking for a cost-effective way to upgrade what you already have? You’re still in luck. NRE’s unique conditional sales agreements is a flexible sales/leaseback option. NRE purchases the client’s locomotives; modifies, upgrades or rebuilds according to need; and then leases the equipment back to the company.

NRE’s financial team can also build direct or third-party lease and sublease agreements through banks, railroads and shippers. Whatever a company’s needs, NRE representatives will custom-design a lease or sales agreement quickly and efficiently. And when a company leases through NRE, they do so with the confidence that they are working with a strong ally with not only the size, but also the leading technology, to ensure that they’ll receive the best locomotives and service in the industry.

View Locomotive Leasing Brochure

Right-Hand Manufacture: NRE Power Systems

As a global leader in locomotive manufacture and service, NRE has several locations in the U.S. and abroad that help carry out their mission. Among the most important branches is NRE Power Systems, located in Houma, Louisiana. NRE Power Systems is a vital partner of the main branch in not only building the best vehicles that travel by land, but also those that sail the seas.

Bryan Chaisson Jr., V.P. of Operations at NRE Power Systems, said that his division is a key partner for NRE facilities.

“NRE Power Systems helps with overflow on locomotive engine rebuilds from the northern facilities,” said Chaisson. “And NRE Power Systems also assists in the research and development that keeps our parts compliant with the very stringent EPA regulations.”

NRE also carries out multiple missions in its own right, including providing quality parts, sales and worldwide service to the marine and industrial diesel engine markets — all while also offering comprehensive automation control and electrical power systems services. NRE Power Systems’ wide and flexible range of services includes marine propulsion, drilling applications, power generation, engine control panels, system alarms, fire alarms, and parts and sales. Among the specific offerings Chaisson lists are:

  • Parts, sales, and service on EMD, GE, Cat, ALCO, Scania, Perkins, and Kohler engine and products.
  • New and used marine and industrial generators.
  • On–site block welding and machining.
  • Custom building of engine alarm and control panels.
  • 24/7 service and parts sales.

In true NRE spirit, at NRE Power Systems, the customers’ needs are always top priority, which earns them not only new business, but also a large group of loyal, repeat customers.

“What makes NRE successful is our mindset that our customer’s problem is our problem,” said Chaisson. “Our repeat business comes from never turning down a repair, no matter when we receive the call.”

Helping NRE Power Systems to offer outstanding customer service is their location, which gives them a unique ability to access inventory and meet customers’ needs quickly.

“NRE keeps an extensive inventory strategically placed at our service locations on the inland waterways and Gulf of Mexico. This allows us to keep our customers downtime to a minimum,” said Chaisson.

NRE Power Systems is also proud of being an important member of the marine transportation industry. Just as NRE holds a leading position in new technology and equipment in the locomotive industry, NRE Power Systems is an innovator in the marine industry, proudly unveiling new technology at the Workboat Show in November 2016.

“During this year’s event we had a good three-day good event,” said Chaisson. “We met and talked with many new customers in the marine and drilling market.

“At this year’s boat show, NRE unveiled its new 710 Tier 3 EPA Electronic upgrade kit,” Chaisson continued. “This kit was co-designed with Interstate Mcbee. NRE-Automation is also constantly upgrading panel systems to keep up with regulation changes and technological improvements. We have currently designed shaft tact and fuel monitoring systems that will keep our customers compliant at an affordable price.”

Chaisson summed the philosophy of NRE Power Systems up with a simple, but powerful, statement.

“At NRE Power Systems, we pride ourselves on 24/7 quality service with minimal downtime. We are family, and we treat our customers as part of our family.”

Bigger, Better, More Powerful

In April, NRE finalized the acquisition of HKEC Components, a Maryland-based manufacturer of power assembly components. The purchase brings powerful new capabilities and opportunities under the NRE roof.

With a long history in the industry that includes thousands of sales of emissions power assemblies to U.S. Class 1 railroads, HKEC brings not only an existing broad customer base, but also greater efficiency, to NRE.

“HKEC had unique product configurations,” said Cullen Burdette, general manager at NRE Hagerstown. “NRE will blend the HKEC emission solution with the already robust NRE emission solutions into a system that is compliant and very fuel efficient.

“NRE now has the in-house capability to produce new power assembly components, rather than buying from a vendor,” Burdette added. It’s a new ability that will save NRE and its customers both time and money, lowering prices and shortening lead times.

The HKEC acquisition adds to an already robust and efficient facility at NRE Hagerstown. A fully integrated vertical manufacturer, NRE Hagerstown pours its own castings from iron manufactured in its Weston, West Virginia, facility. Raw materials are 97 percent or more recycled scrap materials. With the addition of HKEC capabilities, Burdette says, “NRE Hagerstown has the facilities and equipment in place to scale very quickly.”

In addition to processes and operations, the purchase brings an outstanding team of HKEC staff to NRE. These new members bring some 30 years’ experience in manufacture and remanufacture of power assemblies and power assembly components to NRE.

Already a world leader in the rail equipment industry, NRE just keeps getting bigger — and better.

NRE Sales Service

Independent Axle Control

The U.S. economy is driven by railroads. Class 1 railroads represent 94 percent of total freight revenue, with more than 23,000 locomotives in operation. All Class 1 locomotives are diesel electric locomotives, and they consume 10 million gallons of diesel fuel per day — accounting for 7 percent of all diesel fuel consumed in the U.S. Fuel costs represent, on average, 23 percent of the operating expenses of Class 1 railroads.

 

Challenges facing Class 1 railroads are moving more freight for less money; ensuring on-time, reliable service; and moving toward more environmentally friendly operations. To address these issues, railroads can purchase new locomotives, which offer lower emissions and more power. But the cost of acquisition is high, and many of the newest locomotive models actually provide more power than many freight haulers need.

NRE offers a better solution for both the environment and a railroad’s bottom line through its Independent Axle Control (IAC) system. This easily applied, tailorable retrofit can give an existing locomotive fleet the top technology, reduced emissions and power performance of the newest locomotive models, all with a minimal investment and a short ROI. Since many of the best candidates for IAC retrofit are locomotives that are 25 to 30 years old and due for rebuild, a railroad opting for IAC can essentially turn its existing, aging fleet into a brand-new, state-of-the-art fleet that can compete and even surpass the newest locomotive models for power and efficiency.

As opposed to equipping AC Traction systems, IAC is minimally invasive. Locomotives are outfitted with a new microprocessor control system and new IAC motor controllers (“choppers”) on each axle. Railroads opting for NRE’s IAC retrofit can retain, refurbish or replace all other equipment as they wish, including cabins, consoles, high-voltage cabinets, excitation control hardware and existing traction motors. But these additional upgrades are optional; for the IAC system to work, all that NRE needs to install is the microprocessor control system and the choppers. Even wheel diameters don’t have to be precisely matched. Everything behind the electrical cabinet remains the same, and “bolt on” packages are possible with many locomotive types.

 


NREX 4321 featuring the IAC on the NRE test track in Silvis, Illinois.

 

So how does it work? Simply put, with the IAC system, power in = power out. The choppers constantly manage the current supplied by the generator to the motors. Hundreds of times per second, the choppers switch on — connecting the generator directly to the motor — and switch off — allowing current to flow through the motor. When a wheel slips, the IAC system instantaneously cuts power to the slipping wheel while simultaneously boosting power to the other wheels so that there is no horsepower or speed loss. Wheel creep and rail adhesion is optimized for each axle, without the need of traction motor speed probes. IAC-equipped locomotives offer higher performance due to higher adhesion.

The tractive effort of an IAC-fitted locomotive surpasses all conventional DC locomotives, with adhesion capabilities approaching the latest AC traction locomotives and surpassing all conventional DC locomotives. This makes IAC technology especially effective in low-speed service, since tractive effort is higher at starting speeds. With more work being done more quickly and with less power, railroads may be able to reduce the number of units in use with IAC technology — doing more with less. And IAC provides individual traction motor cut-out — if one motor fails, locomotives retain more than 83 percent of tractive effort at 100 percent horsepower, so there’s no difference in performance.

Superior rail adhesion is only part of the IAC story. With conventional DC traction technology, the generator is connected directly to the traction motors. As locomotives go into motion, they’re pulling thousands of amps out of the generator, losing a large amount of energy to heat loss, and burning fuel without actually getting any work done; generators are only working efficiently at speeds of 50 mph or faster. The IAC system operates at minimal generator current at all times. At low speed, IAC generator current only goes up to horsepower, meaning that at starting speeds only a few hundred amps are being pulled from the generator. An IAC-equipped locomotive only pulls full current from the generator when operating at full horsepower. With IAC efficiency improvement, more power is delivered to the rail, decreasing fuel burn over conventional DC locomotives at speeds up to 60 mph — at nearly all speeds below 60 mph, IAC technology is more efficient than any conventional DC traction locomotive.

Because IAC installation is low impact, railroaders can maintain their relationships with trusted, established suppliers. The minimally invasive retrofit means there’s minimal risk of problems. IAC offers air-cooled technology, real-time and remote diagnostic tools to minimize downtime, and state-of-the-art locomotive control.

IAC technology provides lower fuel consumption and higher productivity with your existing assets. NRE can give your locomotive fleet not only a new lease on life, but also top technology for tomorrow.

Showing Our Strengths Around the World

As the largest independent locomotive manufacturer on the planet, NRE presents their capabilities to the world through meetings, workshops, conferences and trade shows.  In the past few months, sales representatives have traveled from Minnesota to Mexico, Australia to Texas, showcasing products and exploring new opportunities.

 


Preshow booth set up at the 2015 AusRAIL PLUS held in Melbourne, Australia.

 

NRE recently attended the Exporail Mexico 2016 and discussed their innovative and industry defining products and services with NRE International Sales Representative, Adalberto DeHoyos, who presented a breakout session on the NRE N-ViroMotive Locomotive.

 


NRE Sales Representatives at Exporail Mexico 2016.

NREX 107 Underway

The railroad industry is leading the charge for greener transportation, and NRE is leading the railroad energy in reaching that goal. In August, NREX 2015 was the first switcher locomotive to be awarded certification from the California EPA for achieving Tier 4 emission standards.

Part of NRE’s N-ViroMotive product line, a group of ultra-low emitting four- and six-axle road and switcher locomotives, the NREX 2015 features state-of-the-art technology, including self-contained power plants and electronic control systems that manage all engine, alternator and traction motor functions. This provides power-on-demand control that maximizes fuel efficiency, minimizes emissions and prolongs locomotive life. All N-ViroMotive units are Tier II certified by the U.S. Environmental Protection Agency and recognized by the California Air Resources Board as Ultra-Low Emitting Locomotives.

 


NRE placing the 700-horsepower Scania engine in the new NREX 107 locomotive for the first time at the Mt. Vernon, Illinois facility.

 

To achieve California EPA Tier 4 verification, the NREX had to undergo an arduous, 3,000 locomotive-hour test. Development of the NREX was initiated in 2012, and by 2013 NRE was already conducting revenue service testing at a working railroad, which has already ordered a second NREX unit for 2016 delivery, the all new NREX 107.

Gredelj starts delivery of locomotives for Ivory Coast and Israel

The Gredelj rolling stock company and the US National Railway Equipment Company (NRE) have started a delivery of the first of four locomotives for the Sitarail company in the Ivory Coast and an additional two of six diesel locomotives for Israel, the Croatian company said on Monday.

The locomotives intended to haul large freight trains on non-electrified railway lines for the Israeli state railways were despatched on Monday for Israel.

The deal represents the continuation of long standing cooperation between NRE and Gredelj which has provided a large number of new, overhauled and upgraded locomotives which have been delivered around the globe.

“Our objective and desire and hope is for new markets,” Gredelj’s bankruptcy trustee Pero Hrkac said. He added that 78 engines had been constructed by Gredelj, 36 since bankruptcy proceedings were launched.

“I consider this to be a great success and proof of our ability and quality to produce and repair rolling stock and of our competitiveness on a demanding foreign market. I am particularly pleased that each new and successful project shows and proves our ability and the desire of our American partners to continue cooperation,” Hrkac said.

He underscored that the locomotives, rail cars and trains are constructed and adapted for several varied rail tracks – narrow, wide and standard and for train hauling, passenger and freight transport around the world, from Argentina to Guinea and even Saudi Arabia.

“Gredelj starts delivery of locomotives for Ivory Coast and Israel” Dalje, web. 27 July. 2015.