CPKC Orders 65 Locomotives, Part of $800M+ Fleet Upgrade

CPKC orders 65 new EMD SD70ACe-T4 locomotives from Progress Rail, part of an $800M+ investment. This boosts fuel efficiency and modernizes their North American network.

January 23, 2026 1:38 am

🛑 Key Takeaways:

CPKC has ordered 65 new EMD® SD70ACe-T4 Tier 4 freight locomotives from Progress Rail.
The order is part of CPKC’s ongoing, multi-year >US$800 million investment in US-built locomotives from both Progress Rail and Wabtec.
The new units feature an AI-powered energy management system certified by the EPA to deliver a 12.3% efficiency gain, advancing CPKC’s fleet modernization and fuel economy goals.

CALGARY, AB – Canadian Pacific Kansas City (CPKC) has announced an agreement with Progress Rail to purchase 65 new EMD® SD70ACe-T4 Tier 4 freight locomotives. The order is a key component of CPKC’s multi-year commitment to invest over US$800 million in American manufacturing to renew its locomotive fleet. The first 30 units are scheduled for delivery in the second half of 2026 from Progress Rail’s plant in Muncie, Indiana.

Category	Specification / Detail
Model / Technology	EMD® SD70ACe-T4 / Tier 4 Emissions Standard
Total Quantity	65 units
Buyer	Canadian Pacific Kansas City (CPKC)
Manufacturer	Progress Rail (a Caterpillar company)
Manufacturing Location	Muncie, Indiana, USA
Delivery Schedule	30 units in H2 2026
Related Investment	Part of a >US$800 million multi-year fleet renewal program

Operational & Technical Details

The new locomotives represent the latest generation of EMD Tier 4 units. They offer an estimated 5% to 7% improvement in fuel economy compared to first-generation Tier 4 models. A key feature is the integration of Progress Rail’s Talos™ energy management system. This AI-powered system is certified by the U.S. Environmental Protection Agency (EPA). It is proven to deliver a 12.3% efficiency gain. The technology aims to improve overall reliability and serviceability for CPKC’s mainline operations.

Market Impact Analysis

This order reinforces CPKC’s dual-sourcing strategy for its fleet modernization. The railroad is simultaneously acquiring new Tier 4 units from both Progress Rail and its primary competitor, Wabtec. This approach mitigates supply chain risk and fosters a competitive pricing environment between the two leading U.S. locomotive manufacturers. The total US$800 million+ investment program underscores a significant capital commitment to enhancing fuel efficiency and reducing emissions across CPKC’s North American network, which connects Canada, the U.S., and Mexico.

FAQ: Quick Facts

What is the main value of this contract?

The specific value for this 65-unit order has not been disclosed. It is part of a larger, multi-year >US$800 million investment program by CPKC to renew its locomotive fleet with units from both Progress Rail and Wabtec.

When is the expected delivery date?

CPKC expects to take delivery of the first 30 locomotives in the second half of 2026. The delivery schedule for the remaining 35 units has not been announced.