Exclusive Report - Canadian Railway Observations LACHINE Qc, December 18, 2007 On November 14th, the integrated rail products and services provider GLOBAL RAILWAY INDUSTRIES Ltd., www.globalrailway.com, announced that they had completed the acquisition of the company’s wholly owned subsidiary, CAD Railway Industries Ltd. (Better known by local railfans as “CAD”), and on December 11th was awarded a 5-year $101.5 million contract, to remanufacture the fleet of 53 VIA Rail Canada locomotives. The CADRAIL contract will overhaul the 53 remaining VIA F40PH-2's in the 6401-6458-series. (Five are now retired from the fleet following wrecks), and the project began in late December. On December 18th, Marc Chouinard and I were invited by Mr. Stuart Rosen of CADRAIL to tour the facility, and do a complete report for CRO. When we arrived Mr. Rosen was understandably very pleased and proud that CAD was awarded this contract from VIA, and was very excited and anxious to walk us around his facility. Mr. Stuart Rosen, Sales Manager-North America for CAD               First, a little history … Privately owned CANADA ALLIED DIESEL was founded in Lachine, Quebec in 1968 for the original purpose of supplying fuel injection parts for various diesel engines, CAD has since grown to be an established world enterprise. Under their new name CADRAIL (CAD Railway Industries Ltd), they are now publicly owned www.cadrail.ca. CADRAIL provides parts, service and technical expertise to clients world-wide that use locomotives, marine engines and power plants. Early on, the company recognized the need in the after-market for ALCO, GE and EMD engine components. It was not long until CAD became a leading supplier of diesel engines and related components. CAD has established a comprehensive analysis and testing capability in house. The company has at its disposal a long list of analytical equipment through its ESDC division. This list contains a Clark hardness tester, a Zygo laser measuring instrument and computer controlled items such as a computer-controlled Measuring Machine (CMM), and a Spectro material analysis system for ferrous, copper and nickel based materials. Functional testing and calibration systems include fuel injection, turbochargers, water pumps, lube oil pumps and pressure relief or regulator valves. CAD is also capable of testing complete ALCO, MLW, GE, GMDD and EMD engines up to 7000 h.p. www.cadiesel.com/index_en.htm.         Computerized Engine Test Centre, their multi engine test bed Some of the contracts CADRAIL have completed over the years have included: Modification and complete refurbishing of 99 newsprint boxcars including conversion of existing double sliding doors to a single 10' plug doors. Modification of 170 existing 50' boxcars from 70 tons to 100 tons by modifying and strengthening the under-frame and substitution of heavier trucks. Modification of 26 trailer flat cars from 60'-0" to 46'-7 " over strikers for transportation of ISO containers, change of trucks to a 1000mm gauge and full blasting and repainting. Repairs and full reconditioning of 24 stainless steel coaches and a Skyline car damaged in VIA derailments. Complete reconditioning of 5 passenger rail diesel (Cummins) car. Complete refurbishment of 29 Bi-Level Coach cars for GO-Transit. Complete refurbishment of 3 locomotives to an SW-1001, and a complete refurbishment of 15 GO-Transit F59PH locomotives. Over the years CADRAIL's primary competitors were GEC-ALSTHOM, (AKA ALSTOM) which was located at the former CN AMF Pointe St-Charles shops, and PROGRESS RAIL who had acquired a small section of the CP St-Luc Diesel Shop. GEC-ALSTHOM concentrated on the SD40-2 rebuilding market for leasing companies such as the FIRST UNION RAIL CORP (FURX SD40-3's), and for commuter railroads locomotives such as the CALTRAIN F40PH-2CAT's. Another competitor was GE Canada who had a large plant in Montreal's east end. They were primarily occupied with the BURLINGTON NORTHERN's cabless B30-7AB unit rebuild initiative and closed the plant soon after completion of the contract. In the late 1990's the trend changed, and the Class One railroads made a strong push to buy new locomotives and the locomotive Leasing and remanufacture market subsided. Both PROGRESS RAIL and later ALSTOM decided to go solely into freight car refurbishing and repair, which was less profitable or lucrative, and these companies eventually left Montreal in the late 1990's. CADRAIL stayed competitive by not being tied down to one manufacturer or contract. They were equally adept at handling an MLW engine change-out , GMDD locomotive mid-life overhaul or railcar repairs.         In the early 1990's the company disposed of much of CN's retired MLW S13, RS18, RSC14, and a few of their remaining GMDD-built A and B units. Since then units from CP, VIA, HELM, NREX, RPRX, NBEC, OCR, KCS, UP, BNSF, GRS, GO, QNS&L, US ARMY, QGRY and even more CN units have made there way to CADRAIL. In fact many Montreal railfans will admit, driving by the facility on Autoroute 20 from the late 80’s up to present day has always been interesting to see just what’s in there!         CN 2538 & 4765, US Army GG20B 6004 In this arial view of CAD, just to the east, the CP mainline south is on the right, with the interchange full of cars. There is a three track storage yard on the right of the facility, and the CN interchange is just south, out of view at the bottom of the photo. The largest building in the center with several access points is for constructing and repairing RAILPOWER switchers. The building above is one of the areas where the VIA units will be rebuilt, and the track north of it, that parallels Autoroute 20, is where they shuffle the locomotives they are currently working on. The longest building to the West is used for repairing and repainting locomotives and rail cars, and on our visit it was filled with Canadian grain cars under repair, and wreck damaged CN locomotives. As well, in January we witnessed VIA F40PH-2 6402 being dismantled in preparation for its rebuild in this building. It has three different rail entrances and interesting track layout inside. During our visit on December 18th, the following locos on hand at CAD: CN GE's 2251, 2253, 2538, 2597 and GMs 4765, 5244, UPY RP20CD 896 (a six-axle GEN SET being constructed on the frame of ex-NREX/UP SD40-2 4298), UPY RP20CD 897 (another GEN SET under construction with ex-NS trucks) , 2302, 2304 (and many more outside) VIA F40PH-2's 6402, 6443, 6452, 6454, 6457. Others locomotives included ROBERVAL & SAGUENAY (Super-7) B23-S7 #50, RPGP RP20BD 0009, BNSF modified GG20B 1211, US Army GP9 1876 & US Army GG20B 6004, RTEX U18B 404 & 407 (ex-MEC), CAD RS23 2001 (ex-CP 8024) , CAD (test bed) ex-VIA LRC 6918, Virginia Railway Express 226 and many others. UPDATE: We have now clarified the UNION PACIFIC six-axle GEN SETS UPY 896 and 897 are being constructed at CADRAIL-Lachine, Quebec from the RPRX SD40-2 frames of UP 4298 which is UPY 896, and UPB 4265 which is now UPY 897.         ROBERVAL & SAGUENAY (Super-7) B23-S7 #50, ex-VIA LRC 6918, Virginia Railway Express #226 New details on the $100 million VIA F40PH-2 CAD contract - The GMDD-built F40PH-2 locomotives account for 70 percent of VIA Rail’s locomotive fleet and the first of the group have arrived at CAD. The CAD VIA F40PH-2 project includes a complete overhaul, and when they are complete, their hoods will have been extended all the way to the rear of the frame. The units will receive installation of new parts that will allow the units to be more environmentally friendly. The F40PH's will also get a new modular relay system, cruise control, improved cab heating and ventilation, a new micro-processor, electronic fuel monitoring and a VIA Renaissance livery repaint. The HEP in the VIA F40's will also be modified by adding a separate HEP diesel generator to avoid the engine always running in the 8th notch. The body will be extended out over the walkway, eliminating the side step access to the back door. This marks a big change from the CAD prototype locomotive VIA 6400 released last year. This also makes the 6400 a one-of-a-kind unique unit! This is an intelligent modification as it will cut down and fuel costs and reduce noise.         The yard on December 18, 2007 Work has begun on VIA F40PH-2 6402 is to be the first, and as mentioned above, in January we witnessed 6402 being dismantled in preparation for overhaul. (see photograph of it their material cases) The others on-site include 6443, 6452, 6454, 6457 and maybe following in no particular order. CRO has learned that even though they will be quite different from the prototype 6400, VIA will officially retain using the class GPA-30d, as 6400 is now tagged. This rebuilt locomotive can no longer really be called an F40PH-2, but we will leave that to the pundits. (In my opinion, F40PH-3m has a nice ring to it! - ed) To see the current status of all the VIA F40 units, please visit Marc's website at http://www.myrailfan.com/tables/list_F40.aspx. All the parts of VIA 6402 are identified and stored in cases for inspection and replacement. Rebuild of 6400 at CAD, courtesy of VIA Rail Canada         CRO wishes to extend a thank you to Mr. Stuart Rosen and the employees of CADRAIL for the warm reception, answering our many questions, and for making our visit a facinating experience.