AN agreement has been entered into between CBH Group and Progress Rail for the co-operative to acquire seven EMD standard gauge locomotives, more than doubling its standard-gauge locomotive fleet.
CBH opened a competitive Request For Proposal (RFP) process for the purchase of standard-gauge locomotives to expand and strengthen its current rail fleet, which consists of 25 locomotives and 572 wagons.
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This is the first of three RFP processes, with new narrow-gauge locomotives and wagons contracts scheduled to be announced in the second quarter of 2023.
Progress Rail is a subsidiary of Caterpillar and is one of the largest providers of locomotives for the global rail industry.
CBH chief executive officer Ben Macnamara said it was a significant step in the plan to expand the co-operative's rail fleet.
"We are pleased to partner with Progress Rail to acquire new standard gauge locomotives," Mr Macnamara said.
"It is the first significant rail fleet investment CBH has made since purchasing 25 locomotives and 572 wagons in 2012.
"Our rail fleet is a key asset for the co-operative and expanding our existing train sets is a strategic priority that is critical to lift our monthly export capacity to three million tonnes by 2033 or sooner.
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"By investing in our supply chain network, and in particular our outloading capacity, we are ensuring we can deliver tonnes to customers when needed and therefore returning value to Western Australian growers."
Progress Rail senior vice president Colin Kerelchuk said the company was excited CBH had selected Progress Rail for the expansion of its locomotive fleet.
"We are committed to supporting the Australian rail industry through best-in-class products and services, and with more than 100 employees in Western Australia, we are ready to support the CBH team," Mr Kerelchuk said.
Under the terms of the deal, the locomotives will be operational by November 2024.
