ERG Supports Study on Benefits of Retiring Locomotives Early

ERG recently completed a study for Environment and Climate Change Canada on early locomotive retirement. The study considers the feasibility of requiring fleets to retire locomotives early to accelerate the introduction of higher-tier engines that emit fewer pollutants and are more energy efficient. For the study, An Analysis of Potential Application of "In-Use Useful Life" Rail Regulation in Canada, ERG assumed a 40-year lifespan for locomotive equipment and compared it to retiring locomotive equipment at 23 years. Under a 40-year attrition rate, the Canadian locomotive fleet would reach the more energy-efficient Tier 4 level by 2055. If early retirement is introduced, however, the fleet would reach Tier 4 sooner—by 2040. The study also included an economic assessment that analyzed the cost of the initiative, fuel savings, and reduction in carbon emissions associated with newer lower emitting and more fuel-efficient locomotives.