Norfolk Southern Orders 96 SD70M-2 to SD70ICC Conversions

NORFOLK, VA – Norfolk Southern has confirmed a fleet modernization agreement with Progress Rail, a Caterpillar company, to rebuild 96 of its EMD SD70M-2 locomotives. The contract covers the conversion of the units from DC to AC traction, with deliveries of the newly designated SD70ICC models scheduled to run from 2027 through 2029.

What Does This Contract Cover?

The agreement entails a comprehensive rebuild of 96 locomotives to enhance power, reliability, and tractive effort. Each unit will be equipped with a remanufactured 16-cylinder EMD 710 engine rated at 4,300 horsepower, meeting Tier 2+ emissions standards, and will feature an AC traction system based on Progress Rail’s Individual Axle Control (IAC) technology. The modernization is projected to enable three SD70ICC locomotives to perform the work of four legacy SD70M-2s, significantly improving asset utilization and fuel economy.

Key Contract Data

How Does This Compare to Similar Contracts?

This large-scale modernization program is a common capital-management strategy among Class I railroads to improve fleet performance without the higher cost of new units. The project is directly comparable to Wabtec’s extensive modernization programs, through which Norfolk Southern has previously converted over 1,000 of its older GE Dash 9-44CW (DC) locomotives into AC44C6M (AC) models. Both the Progress Rail and Wabtec rebuilds focus on converting aging DC traction platforms to modern AC standards to achieve significant gains in tractive effort and reliability. Unlike more experimental fleet strategies like CPKC’s hydrogen locomotive program, this contract focuses on deploying proven technology for immediate, system-wide efficiency gains. The multi-year structure provides predictable investment cycles, similar to long-term asset upgrade agreements in other transport sectors, such as Seatrium’s fleet repair contract with Royal Caribbean. (Source: Wabtec, Seatrium)

Editor’s Analysis

This modernization program is a direct response to persistent economic pressures in the freight sector, particularly high fuel costs and the need for greater operational efficiency amid softer freight volumes. With the national diesel average recently exceeding $5 per gallon, the business case for improving fuel economy and asset utilization becomes critical. (Source: Logistics Management, 2026). By increasing locomotive pulling power, NS can reduce the number of units required per train, which directly lowers fuel consumption, crew costs, and maintenance liabilities for hauling the same tonnage.

FAQ

Q: Why is NS converting locomotives from DC to AC traction?
A: AC traction motors provide superior all-weather adhesion and higher sustained tractive effort, allowing locomotives to pull heavier trains and perform better on steep grades. The conversion also reduces unplanned maintenance for traction motors, increasing the fleet’s overall availability and reliability.

Q: What is the total cost of this 96-locomotive retrofit program?
A: The total capital investment for the program was not disclosed by Norfolk Southern or Progress Rail. However, modernization programs generally cost significantly less than purchasing new Tier 4 locomotives, which can exceed $3 million per unit.

Q: Will these retrofits change the locomotive’s emissions rating?
A: Yes, the remanufactured EMD 710 engines will be certified to Tier 2+ emissions standards. This is an improvement over their original configuration but does not meet the stricter Tier 4 standards required for brand-new locomotives manufactured today.