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UPDATE 1-Canadian National orders 70 high-power locomotives

Wed Oct 21, 2009 10:58am EDT

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* Financial terms of deal not disclosed

* To buy 35 high-power locos from GE Transportation

* To buy 35 locos from Electro-Motive Diesel

* New locos more fuel-efficient, less polluting

Oct 21 (Reuters) - Canada's biggest railroad, Canadian National Railway (CNR.TO) (CNI.N), said it ordered 70 high -horsepower locomotives from GE Transportation, a unit of General Electric Co (GE.N), and Electro-Motive Diesel Inc.

The company did not disclose any financial terms of the transaction.

Canadian National will buy 35 ES44DC locomotives from GE starting in the fourth quarter of 2010, and 35 SD70M-2s from Electro-Motive Diesel beginning in January 2011, the company said in a statement.

The new locomotives are 15 percent to 20 percent more fuel efficient than the ones they will replace and will comply with the latest locomotive exhaust emission requirements, Canadian National said. Canadian National shares, which have gained more than 11 percent in the past three months, were down C$1.22 at C$53.82 Wednesday morning on the Toronto Stock Exchange. (Reporting by Krishna Chaithanya in Bangalore; Editing by Unnikrishnan Nair)



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