Canadian Pacific: Rise of the Leasing Agent |
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 On the afternoon of 5 February 1992, photographer Ken Perry captured two CP SD40-2s and two UPRR remotes leading a coal empty eastward. |
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Canadian Pacific, beginning early in the 1960s, had turned what had once been a short-term
locomotive "borrowing" experience into a decades-long motive power strategy. Coincidentally,
Precision Engineering Co., a long-time manufacturing company, entered the locomotive leasing and
rebuilding business during the same period. Precision's timing was excellent; the demand for new
locomotives and/or reliable used horsepower was on the rise - especially at CPR. Firmly
established by 1970 as an industry leader, PECo changed its name to Precision National and
developed a working relationship with CPR that lasted for a few years.
Several potential PNC competitors (including a number of major financial institutions) took
note of the second-hand locomotive market's strength, as well PNC's succes, and by the
close of the 1980s, the railroad industry was a buzz with third-party locomotive suppliers
and leasing agents. From a railroad manager's perspective, locomotive leasing reduced the
corporation's annual capital spending, lowered yearly cost of aging equipment maintenance/
repair, and enhanced locomotive availability by some factor of 'X'. . . And let's not forget
cash flow and tax advantages.
There is very little documentation delineating the yearly growth of the locomotive leasing
industry, but given the expanding ranks of alphabet companies (e.g. AEX, BUGX, CEFX, FURX,
etc . . .) during the 1980s, 1990s and 2000s; it appeared substantial. Of the early newcomers,
Helm Financial (HLCX / HATX) was the more aggressive marketer and widely known. Before long,
the third-party supplier had become an important resource in achieving Canadian Pacific's,
as well as other railroad's locomotive leasing needs.
This final look at CPR motive power leasing (from 1975 to present) will be appreciably
compressed, and it will reflect the railroad's shifting emphasis from second-hand and rebuilt
four-axle power to newer six-axle freight haulers. Additionally, it will highlight some of
CPR's evaluation and testing of new locomotive technology from various builders/suppliers.
THANKS FOR LOOKING. |
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Bruce Chapman, Doug Hately, Bill Linley, Ken Perry and Bruce Mercer provided photos and info that contributed to the development of this overview, as well as Parts 1 through 3. The |
data compilation work by John Read (deceased) is also appreciated and acknowledged.
* * * Photo Gallery * * *
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Leasing Companies |
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CEFX AC4400CW #1002 shown here while at Port Coquitlam, British Columbia diesel facilities on 11 December 2001. (Andy Cassidy photo) CEFX locomotives:
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Still attired in UP's armour yellow and mist gray colors, CITX SD40M-2 #2783 (ex-SD45) stands ready at CP's Port Coquitlam facilities on 27 December 2009. (Mark Forseille photo) CITX locomotives:
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EMDX SD70ACe #7205 is part of a 5-unit consist leading CP Train #141 through Willis, Michigan on 17 March 2021. (R. Craig photo) EMDX locomotives:
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GCFX SD40-2 #3054 (ex-CPR SD40 #5608) was photographed at Port Coquitlam on 28 June 2008. The loco wears the silver and green of prior First Union Rail. (Mark Forseille photo) GCFX locomotives:
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Attired in GATX's blue with three-white band scheme, GSCX SD40U #2783 stands ready at CP's Port Coquitlam facilities on 9 May 1997. (Mark Forseille photo) GSCX locomotives:
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GMTX GP38-2 #2663 was photographed on 22 March 2001 at Smith Falls, Ontario. The 2663 was the third-unit out on eastbound Train #666. (Bob Heathorn photo) GMTX locomotives:
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HLCX GP40-2 #4302 (ex-New York Central #3095) was upgraded to GP40-2 specification and received a fresh coat of Helm's corporate attire; it was seen at Smith Falls, Ontario in January 1988. (Robert Heathorn photo) HLCX locomotives:
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Built in 1974, HATX SD45-2 #913 originally wore the colors of Seaboard Coastline as #2056; the loc was spotted at Smith Falls, Ontario during the 1990s. (Photographer unknown / Robert Heathorn collection) HATX locomotives:
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The rounded cab corners of this four-axle geep is a partial clue to its lineage; it was built in 1985 as EMD GP60 Demonstrator #7. The ex-demo spent several months on the CP system during 1997. (Larry Larson photo at St. Paul, Minnesota on 28 November) Leased LLPXlocomotives:
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CP #5742 and MPI #9017 at Kanaka Creek jn Maple Ridge, British Columbia on 10 April 1991. (Ken Perry photo) Leased MKC /MPI locomotives:
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Seriously now. How long has it been since you have seen a clean-looking tunnel motor, and an ex-Southern Pacific at that. (Robert Heathorn photo) Leased NREX locomotives:
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A rebuild "Plum" SD40-2 occupies the point position as CP train 309 departs south at Glendale, Ny on 11 March 1991. (Steve Carlson photo) Leased PLM locomotives:
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Railroad Lessors |
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ACR #188 at CPR's Agincourt Yard (Toronto), Ont. (Don Kalkman photo on 12 October 1987.) Leased Algoma Central locomotives:
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ATSF GP39-2 #3615 & 3600 at ---- on 18 January 1988. (A.W.Mooney photo) Leased ATSF locomotives:
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B&O GP38 #4809 at Hamilton, Ontario in June 1984. (Eric Clegg photo) Leased B&O locomotives:
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BAR #86 at Madawaska, Maine in September 1975 (photo by: Bruce Chapman, Don Marson or Kevin Day?) Leased BAR locomotives:
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 CN agreed in April 1987 to lease 30 RS18s to the CP; the locos were not to operate west of Thunder Bay and primarily assigned to work and local trains. The CN units were maintained at St. Luc (Montreal); and they were equipped to operate as lead units. Both photo above were taken by Doug Hately at Bowmanville, Ontario: CP #4742 in May and #1808 on June 24. Leased CN locomotives:
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At one point, Chessie System had as many as forty GP38s and GP40s leased to the Canadian Pacific, and they could be found in all types of freight service. Two Chessie units trail on an eastbound merchandizer near Ballantyne, Ontario in October 1983. (Eric Clegg photo) Leased C&O locomotives:
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CMNW GP40 3517 (ex-WP 3517) at St. Luc on 2 December 1987. (Bruce Chapman photo) Leased CM&W locomotives:
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 Leased Conrail locomotives :
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Kennecott #106 at Agincourt (Toronto) on 18 December 1985. (Bill Grandin collection) Leased KCC locomotives:
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Ex-N&W hi-nose SD40-2 #1647 splices a pair of CP EMD six-axle that are leading a westward train near Saddle Rock bridge on 6 February 1992. (Ken Perry photo) Leased N&W locomotives:
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CP #5910 and QNSL #205 cross the Chatham diamond in 1986. (Bruce Mercer photo) Leased QNS&L locomotives:
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CP Train #503 with CP #5411 and leased SOO #788 roll through Plymouth, Michigan on 16 February 1979 enroute to Chicago. (R. Craig photo) Leased Soo locomotives (via Helm):
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Four GO units on a year-long lease lead a Canadian Pacific intermodal train at Dorion, QC in Nov. 1978. (Ron Visockis photo) Leased GOT locomotives:
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From the "So you think you've seen everything" department comes a shot of VIA Rail #6438 in freight service at Newtonille, Ontario. (John Reay photo on 4 September 1989) Leased VIA Rail locomotives:
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Demonstrators, Proto-types & Test-beds Evaluated By CP |
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Four Bombardier HR616s were tested on CP during May & June 1983. The railroad was evaluating thebuilder's ZWT (Zero Weight Transfer) trucks. Spotted in Windsor, Ontario, BMBD #7003 & 7004 wore CP's 7000 series numbers to siginfy them as test units. (Ken Annett photo / R. Craig collection) Ex-CNR locomotives used in Tests:
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Concurrent with the evaluation of three Union Pacific GE C40-8CWs, the BCR also loaned CP two GE C40-8Ms for testing purposes in early 1991. The performance of these five units were probably instrumental in CP's first order for GE motive power a few years later. (Duane Cooke photo at Coquitlam) Locomotives used for CP evaluation:
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Three General Electric B32-8 test beds (painted in Burlington Northern colors) rolled through Lethbridge, Alberta while being demo'd on CP in May 1985. (Doug Wingfield photo) Locomotives used for CP evaluation:
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General Electric demo'd their new C32-8s on both CN and CP between March and June 1986 prior to the six-axle freighters being delivered to buyer Conrail. They are seen here headed for Toronto, Ontario. (Doug Page photo / John Eull collection) Conrail locomotives used for CP evaluation:
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 NS SD60s #6628 & 6627 featured the locomotive builder's latest wheel-slip technology and Canadian Pacific borrowed the two EMDs to evaluate the system during May 1986. Bruce Chapman's photo at St. Luc is on the left and John Ross photo (Bruce Mercer collection) at Campbellville is on the right. NS locomotives used in CP tests:
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Canadian Pacific played host to EMD's GP22ECO #7102 demonstrator during September 2008. The re-powered geep which featured the builder's new 710 prime mover was showcasing the performance advantages of the "new" model. (Mark Forseiles photo at Port Coquitlam, BC.) Locomotive used for CP evaluation:
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A Kansas City Southern of Mexico GP22ECO spent two weeks on CP being evaluated in yard service and assigned to road trains. The time spent appeared to be good a investment in that CP ordered more than a hundred of the ECOs. (C. Van Steenis photo at Calgary, Alberta) KCSM locomotive used for CP evaluation:
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CP borrowed three UP units to evaluate the overall operation, performance and handling of General Electric locomotives prior to potentially placing an order for GEs. Class lights were added temporarily. (Duane Cooke photo at Coquitlam, BC in February 1991) Test locomotives
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Use these links to review the Parts 1, 3 & 3 of the Canadian Pcific's Leasing practices since 1964:
Photo: CP/UP jointly leased 40 CEFX SD9043Macs (#100-139) for use on run-through trains between the Pacific Northwestern U.S and Alberta, Canada. CEFX #132 was photographed at Marshall Canyon, Washington in June 2001. |
