Railroad Equipment

SIC 3743

Industry report:

This classification covers establishments primarily engaged in building and rebuilding locomotives (including frames and parts not elsewhere classified) of any type or gauge and railroad, street, and rapid transit cars and car equipment for operations on rails for freight and passenger service. Establishments primarily engaged in manufacturing mining cars are classified in SIC 3532: Mining Machinery and Equipment, Except Oil and Gas Field Machinery and Equipment. Repair shops owned and operated by railroads or local transit companies that repair locomotives or cars for their own use are classified in various transportation industries. Establishments primarily engaged in repairing railroad cars on a contract or fee basis are classified in SIC 4789: Transportation Services, Not Elsewhere Classified; and those repairing locomotive engines on a contract or fee basis are classified in SIC 7699: Repair Shops and Related Services, Not Elsewhere Classified.

Industry Snapshot

The railroad equipment manufacturing industry was still recovering from a downturn in the national economy during the early years of the first decade of the 2000s, which resulted in revenues decreasing by more than 25 percent between 1999, when the industry shipped goods valued at $10.35 billion, to 2003, when the industry reported shipments of approximately $7.51 billion. In 2004, orders for rail cars and locomotives were up significantly. This growth cycle continued into 2005, leading to the highest backlog of orders since the late 1990s. Despite the renewal in the industry, the high cost of steel held down profit margins and limited the net incomes of suppliers in the late 2000s. However, the industry included 234 companies with combined annual revenue of $13.6 billion in 2008. The railroad equipment manufacturing industry experienced yet another downturn in 2009 and 2010 as demand for railcars dwindled. Still, even in a down market the industry continued investing heavily in research and development in search of new technology.

According to the Railway Supply Institute, there were 11 states with more than 650 railway supply firms that operated over 800 facilities employing nearly 90,000 workers generating revenues of nearly $23 billion in 2011. Illinois and Pennsylvania held the majority of market share with a combined 237 firms, 288 facilities, 47,300 employees, and $15.4 billion in sales.

Organization and Structure

The nation's freight railroads carry more than one-third of all intercity ton-miles of freight. Their rails are used for all commuter rail traffic and for Amtrak's long-distance passenger traffic, except for the Northeast corridor, which Amtrak owns. The railroads rely upon suppliers to provide equipment, supplies, many services, and the research and development required to help them improve productivity.

Railroad equipment manufacturers sell products not only to the railroads, but also to leasing companies, manufacturing concerns, farmers, and other entities that use the rails for the transportation of their commodities.

Unlike flatcars and boxcars, which are purchased or leased by the railroads, rail tank cars are owned primarily by chemical manufacturers and other manufacturers, such as food and fabricated metal products/machinery companies, that use the rails to transport goods on a regular basis. Rail market share already suffered attrition at the hands of the trucking industry and other transportation sectors. Since 1945, the railroads' share of the freight business by ton-miles has dropped almost in half (to 42 percent by the mid-2000s), while the truckers' share has climbed from 5 percent to more than 28 percent. The railroads account for 10 percent of total intercity freight revenue, and trucks account for 80 percent.

The rail industry is the transport method of choice for commodities that are not "time-sensitive," such as nonperishable products, and for goods that are transported less than 500 miles. For short-haul food shipments, trucks have captured most of the traffic in the freight market. Intermodal transportation, where manufacturers use the railways to transport their goods for a leg of the journey via trailers and containers and then switch to another form of transport such as trucks or ships, has increased.

Intermodal loading has almost doubled in capacity since 1980, and in 2003, the intermodal sector hit a record high volume of 9.9 million containers employed on U.S. railroads. In 2004, intermodal traffic accounted for approximately 18 percent of Class I railroad revenues. In the first half of the first decade of the 2000s, coal continued to be the single most important commodity within the railroad industry, accounting for 44 percent of tonnage and 21 percent of Class I railroad revenues.

Industry Representation
The Railway Progress Institute (RPI), originally founded as the Railway Business Association in 1908, is the international trade association of suppliers to the nation's freight railroads and rail passenger systems. Headquartered in Alexandria, Virginia, it has more than 100 members. The association's objectives are threefold: to support and promote a strong nationwide free enterprise system of railroads for the United States; to support and promote rail rapid transit and light rail systems in major metropolitan areas; and to represent and further RPI members' interests.

In 1992, the Rail Supply and Service Coalition (RSSC) was formed to act as a lobbying group to Washington and state governments. The group consists of the National Railroad Construction and Maintenance Association, the Railway Engineering-Maintenance Suppliers Association, the Railway Supply Association, and Railway Systems Suppliers Inc. The coalition actively represents the interests of its member groups to further their bargaining position on federal and state issues affecting the industry.

Background and Development

The railroads were one of the nation's first big businesses. These companies had intricate networks of lines that gave inland points access to navigable waters that they joined to the seaboard. They also linked farms and villages to the growing industrial cities, opened millions of acres of land to cultivation, provided the means to ship raw materials and finished goods quickly and inexpensively, and created billions of dollars in capital for reinvestment in the nation's economy.

At the outset of the 1830s, the steam locomotive made its arrival. On Christmas Day of 1830, the Best Friend of Charleston, the first locomotive built for sale in the United States, made its maiden run. The nation's rail system grew rapidly during the next several decades. The lines largely served cities along the Atlantic coast. New England and the mid-Atlantic states had more than 50 percent of the total track mileage in the United States. U.S. railroads, however, did not have a uniform track gauge (distance between the rails). This confusion of gauges necessitated expensive and inefficient transshipment of goods where lines of different gauges intersected.

Early Advances
Throughout this period, the companies constantly improved tracking and rolling equipment. The first railroads were built on tracks of iron straps or bars fastened to wooden rails that were attached to blocks of stone embedded in the earth. The iron straps often broke loose under the weight of the passing trains and damaged the bottom of the cars. In response to this, the iron T-rail was developed and wooden ties replaced the stone underneath the rails. A roadbed surface covered with crushed stone or gravel supported the track. Most of the engines originally were imported from England, but Philadelphia jewelry manufacturer Matthias Baldwin entered the business in the 1830s, and soon other locomotive builders emerged in the Northeast. Passenger cars that were once nothing more than stagecoaches with railroad wheels quickly evolved into more spacious, comfortable accommodations. Diminutive four-wheeled freight cars were replaced by longer and heavier eight-wheeled cars with greater carrying capacity. Thus, the railways spawned auxiliary enterprises in T-rail manufacturing, locomotive works, and car and wheel shops, and gave impetus to the lumber industry that furnished the wooden ties.

During the 1840s and 1850s, there was a proliferation of railroad construction. By 1860, many short railway lines were consolidated through the mergers of regional railroad companies. The federal government supported this expansion through land grants and other forms of financial incentives to railroad companies. Land grants became the major form of financial assistance offered to railroad companies to encourage the development of railroads to the West in advance of settlement. Revelations of corruption and bribery caused public opinion to demand an end to such assistance. By the 1870s, most direct federal aid to the railroads had terminated, and most state and local support was stopped within the next decade. Nevertheless, government aid was relatively small in comparison to investment by private capital in the form of stocks and bonds in rail companies. With the continued growth of the railway industry, companies that provided needed equipment to that industry remained prosperous.

By 1880, carriers had standardized their gauge to 4 feet, 8 inches as the railroads established transcontinental operations. Railroad companies required standardized coupling devices, car trucks, bills of lading, and classification of products to facilitate the interchange of railroad traffic further. Large locomotives and freight cars with increased carrying capacities required that steel rails be implemented in place of the iron rails. The steel rails provided a smoother, safer, and faster track and lasted much longer than wrought iron, saving the railroads significant maintenance costs. Thousands of men lost their fingers to the link-and-pin couplers that had long been utilized to connect railcars. The couplers were replaced by more effective automatic safety couplers. Similarly, the hand brake system that required men to run along the top of cars to set the devices was replaced by an air brake system mandated by federal law in 1893.

The railroad industry continued as the primary transportation mode throughout the first half of the twentieth century in the United States. Throughout the 1920s and 1930s, the railroads generally improved and modernized their operations. New steam locomotive designs were introduced by the major builders, including Baldwin, Lima, and the American Locomotive Company. These designs increased efficiency, raised average speeds for passenger and freight trains and reduced the need for double-headed trains and pusher locomotives in mountainous terrain. Capital improvement programs were begun that increased freight car capacities, length of freight trains, and the net tonnage capable of being carried by the average train. Many of the infrastructure systems installed at this time remained for many years as well. The rise of the automobile and air transportation, however, dramatically affected the fortunes of rail lines and affiliated industries.

By 1940, the heyday for railroads was over, and many of the railroads were in receivership. Industries that long counted the railroad companies as their primary clients suffered accordingly. The Railroad Credit Corporation was created to aid the carriers, but the problems surpassed this emergency type of legislation. The entry of the United States into World War II temporarily alleviated this problem and brought much needed liquidity to the railroads. During this time, the Offices of Defense Transportation coordinated the operations of the railroads. Between 1942 and 1945, the railroads moved more freight each year than they had since 1918, although they did so with fewer freight and passenger cars, locomotives, and employees. The vast increase in traffic produced record profits for the railroads and allowed them to reduce their debts and establish financial health.

Rise of the Diesel
By 1945, many of the carriers had switched to locomotive fleets with diesel engines. The Electro-Motive Division of General Motors developed separate locomotive units for freight service that were adopted by several railroads. Diesel locomotives cost far more than steam power locomotives to acquire, but operational savings came quickly. The diesels did not need the vast amounts of water that steam locomotives required, a significant factor in parts of the West where water was scarce. Diesels also required far less maintenance, had a high level of availability, were fuel efficient, and could operate for many miles without needing service. The diesel also was less harmful to railroad tracks than the steam engine and when placed in reverse could act as a dynamic braking system. This saved the railroads millions of dollars in freight car brake shoes. By 1955, carriers had spent $3.3 billion for 21,000 diesel locomotives from Electro-Motive, American Locomotive Company, Fairbanks-Morse, and Baldwin Locomotive Works. These manufacturers provided the carriers with a wide range of diesel products to choose from for passenger and freight service.

The revolution in transportation opportunities available to the public, however, made these railroad advancements seem insignificant. The internal combustion engine placed the automobile in the hands of virtually every family. As a result, the long-distance passenger train almost died. The diverse railroad-reliant industries also suffered from the emergence of airlines, which provided speedy service between major cities. Pipelines, barges, trucks, and intercoastal shipping companies carried a large percentage of commodity products as well.

By the 1960s, the rail industry as a whole was in a state of decline. In 1971, Congress created the National Railroad Passenger Corporation, known as Amtrak, to operate virtually all of the nation's remaining rail passenger services. In 1976, the federal government created the Consolidated Rail Corporation (Conrail) to salvage Penn Central and other bankrupt lines in the Northeast. Several carriers prospered by focusing on long-haul freight lines and piggyback trailer traffic.

The railroads survived by scrambling for market share, often establishing services for special product niches. Carriers introduced unit trains dedicated to one cargo, such as coal, wheat, sulfur, or chemicals, which moved in continuous runs from the production site to docks, generators, or factories. The unit trains often utilized specially designed equipment to accommodate the transport of different commodities such as grain or liquid chemicals, resulting in reduced freight rates. Railroads also established "run through trains" that stopped only for crew changes and retained the locomotives of the original carriers. To succeed, the carriers acquired pipelines, barge lines, and trucking companies and invested in airfreight forwarding to obtain a total intermodal position.

Dieselization, the utilization of new technologies, the introduction of new services, the renewed emphasis on marketing, and the end of money-losing passenger business failed to prevent a massive restructuring of the nation's railroads. The Staggers Act of 1980 provided significant relief for the railroads in rate development as the federal government moved into an era of deregulation. This brought giant mergers, massive line abandonment, and shrinking locomotive and equipment fleets. Railway managers in an era of deregulation continued line rationalization, sought new technologies, and placed a major emphasis on marketing transportation.

The railroad equipment manufacturers that supply the nations' railroads with cars and track and other equipment recovered slowly from the lean decade of the 1980s. Capital expenditures by the railroads for equipment contracted, going from $2.3 billion in 1980 to $995 million in 1990 for a decline of 58 percent. Moreover, carriers were not purchasing new locomotives; 70 percent of locomotives in operation in 1990 were more than 15 years old, with another 15 percent constructed prior to 1984. The number of freight cars in service dropped as well, falling almost 30 percent between 1980 and 1990, from 1.7 million to 1.2 million.

In 1996, the Railway Progress Institute (RPI) worked with the Department of Transportation (DOT) to recognize the supply industry's issues as the DOT began to work on legislation reauthorizing the Intermodal Surface Transportation Efficiency Act (ISTEA). 1997 to the end of the decade were busy years for the railway supply industry with the reauthorization of ISTEA being on top of the agenda. The railways' steady return to health helped equipment manufacturers supporting the industry climb out of a prolonged slump.

A major problem facing the railroad industry as it moved into the new century was designing equipment able to handle larger payloads more efficiently. The American Railway Car Institute reported that builders delivered 75,704 new cars in 1998, the most delivered since the 1980s. The average cost per car was $63,000, putting the freight car market at a value of almost $5 billion. High-level production continued through 1999 because of utilization of the new technologies, new services, renewed emphasis on marketing, and the restructuring of the nation's railroads. The industry consulting firm Economic Planning Associates calculated 2000 to 2005 production levels between 55,000 and 60,000 cars each year. This stability was a welcome change from the inconsistent cycles of the early 1990s.

The increase in production caused existing companies to merge and new companies to begin. One such merger was that of Motive Power Industries Inc. and Westinghouse Air Brake Company in 1999. This merger was called a "merger of equals" creating a "one-stop shop" for locomotive and freight car components and services. First quarter net sales for 1999 were $107.3 million for Motive Power Industries Inc. and $191.2 million for Westinghouse Air Brake Company. A new company named Clinton County Economic Partnership began making container cars for bulk commodities and waste products in 1999. The company also manufactured mill gondolas in their plant, a former freight car manufacturing facility in Renovo, Pennsylvania.

The upturn in equipment manufacturing was reflected more in subtle design changes to existing technology, as well as car types that provided the shipper with rapid loading and unloading capabilities, sanitary cleanout, and a large carrying capacity. The three major types of cars in demand were covered hopper cars, intermodal cars, and tank cars. Most of the design changes in the late 1990s occurred in the manufacture of tank cars and were caused by concerns about environmental safety and product liability. Changes in the tank car design included sloping bottoms, improved heater systems, better gates and hatches, new kinds of insulation, and better interior coating. These changes helped protect the product from contamination while serving to insulate the tanker from corrosion.

Railroad equipment manufacturing, like many sectors of the leisure and travel industry, was negatively affected after the terrorist attacks on the United States on September 11, 2001 and the subsequent recession. Travel was down nationwide, which subsequently had a great effect on this sector. After a 1999 high of approximately $10.4 billion in shipments, followed by $9.7 billion the next year, shipments in 2001 decreased significantly with some $8.6 billion in shipments.

The large demand for freight cars and record deliveries of 1998 and 1999 came to a screeching halt as the new millennium began. Freight car demand declined dramatically, with a 25 percent drop to 55,791 railcars being delivered in 2000, according to the American Railway Car Institute. An estimated 35,000 new cars were delivered in 2001, a 37 percent decrease and the lowest number of deliveries reported in nearly a decade. Prices for railroad equipment remained relatively unchanged.

According to the Association of American Railroads (AAR), there were 19,745 locomotives in service in 2001, compared to 20,029 in 2000. Freight cars in service operated by Class I railroads numbered 499,860 in 2001, a decrease from 560,154 in service the prior year. There were more than 1.3 million freight cars in service in the United States that year, carrying an average of 64 tons per car. There were 121,013 miles of road operated in 2001, compared to 120,597 in 2000, and 97,817 miles of road operated less trackage rights, compared with 99,250 in 2000.

The railroad equipment industry endured a downward trend in the early 2000s through 2003. Although locomotives in service actually increased to 20,773 during that year, freight cars in service by Class I railroads fell to 467,063, a decrease of 17 percent since 2000. However, as the economy started to rebound, the railroad equipment industry began to experience a recovery during the second half of 2003 that lasted into the next few years. By 2006, the number of Class I freight cars in service was 475,416. However, 2007 saw a decrease of more than 15,000 units to a total of 460,172.

Railroad freight volume hit record highs during 2006, and the scramble to meet the growing need for capacity in the mid-2000s was evident in the orders for new freight cars. Railroads and fleet owners ordered 91,466 new freight cars during 2006, up significantly from 17,714 cars in 2002. Deliveries during 2006 were 74,943, compared to 17,714 cars in 2002. The large jump in orders resulted in an increase in backlogs, up from 33,967 cars at the end of 2003 to 85,826 cars at the end of 2006, which was the highest backlog since 1979. Increased demand for ethanol was evident in large orders for tank cars and covered hoppers, and a jump in orders for aluminum coal cars reflected a strong coal market.

The rising cost of steel during the mid-2000s put a damper on railroad car manufacturers' net incomes. For example, industry leader Trinity Industries reported a net loss of $3 million on revenue of $627 million during the fourth quarter of 2004, noting that steel and material cost increases pushed down earnings during the fourth quarter by an estimated $17 million. Because materials are significant cost factors in railroad car manufacturing, with approximately 70 percent of the cost of a tank car in materials, the high price of steel was expected to continue to affect the industry adversely. Companies have been taking steps to compensate, such as writing clauses into order contracts that stipulate price based on actual material costs.

Despite materials problems, according to the AAR, the growth cycle within the industry was expected to continue through the remainder of the first decade of the 2000s. Among its predictions, the AAR expected coal carloads to increase from 6.6 million in 2003 to 7.5 million by 2009; grain from 1.1 million to 1.2 million; chemical from 1.5 million to 1.7 million; and auto industry carloads from 1.2 million to 1.3 million. Intermodal units also were expected to increase, from 9.9 million to 12.2 million units by 2009.

Legislation that would potentially allow increases in truck sizes and weights, as well as legislation that would increase regulation of the rail industry, loomed as possible negative factors on the industry in the late 2000s. Implementation of either of these changes, coupled with increased railway congestion and capacity limitations, were expected to seriously impact railroad equipment companies, as they would have the likely collective result of decreasing rail traffic.

However, because the average age of the cars in service was nearing 20 years during the mid-2000s, the railroad equipment industry was expected to benefit as railroads add capacity and replace aging equipment. In fact, from 2007 to 2008, revenue increased from $13.3 billion to $13.6 billion.

Current Conditions

Despite economic strain and a lack in car orders, the railroad equipment manufacturing industry was committed to furthering the industry. One survey conducted by the Railroad Supply Institute of 28 railroad equipment suppliers found that out of 16 locomotive manufacturers, five indicated expenditures totaling more than $5 million per year on research and development and another six shared they were spending more on investment in new technologies. When it came to freight car manufacturers' research and development expenditures, only three out of the 20 who responded spent over $5 million annually considering the projected new car builds. Unfortunately, over half admitted to spending less than $500,000 between 2005 and 2010.

The AAR reported 397,730 freight cars in service in 2010, a decrease compared to 416,180 in 2009 and 23,893 locomotives. Freight cars in service operated by Class I railroads totaled 539,815 as of January 1, 2011. There were 1.30 million freight cars in service in the United States in 2010, slightly lower than the 1.36 million in 2009. There were 168,851 miles of road operated in 2010, down from 169,082 reported in 2009, and 138,624 miles of road operated less trackage rights in 2010, compared to 139,118 in 2009. In addition, Class I railroads took delivery of 259 locomotives and 181 rebuilt locomotives, as well as 5,864 new and rebuilt freight cars and 8,438 used freight cars. The bulk of new freight car deliveries were covered hoppers.

Writing for Progressive Railroading, president of Rail Theory Forecasts L.L.C. Toby Kolstad projected delivery of at least 22,000 rail-cars in 2011, an increase of almost 50 percent over 2010, including most car types. He also predicted that there were plenty of large covered hoppers, used to move grains and dried chemicals like fertilizers, in storage to meet demand in 2011, but added, "Also, demand for small-cube covered hopper cars--which can transport industrial sand used in hydrologic fracturing of shale rock formations-- has exceeded the supply of surplus cement cars that could be cleaned for such purposes, and orders for new equipment have increased significantly. Overall, we expect about 10,000 covered hoppers to be delivered in 2011." In addition, 2011 tank car deliveries were expected to reach a little more than the estimated 4,500 units for 2010. In contrast, demand for box cars, flat cars, and gondola equipment would remain relatively flat.

According to the AAR, U.S. rail shipment levels (excluding grain and coal) grew 7.9 percent to 4.6 million carloads in the first quarter of 2011. Intermodal shipments also increased eight percent over 2010. Railroad operators planned to invest heavily to support ongoing efforts by the U.S. government to fuel U.S. manufacturing exports that reached levels not seen in over two decades in the first quarter of 2011 as well. In fact, the AAR reported freight railroads planned to spend $12 billion in 2011 for expansion of rail tracks, recruiting of 10,000 workers, as well as other projects to support the huge global demand in freight volume going forward. Writing for Area Development, Dean Barber, president and CEO of Barber Business Advisors indicated in July 2011 that "�some industry observers predict rail activity could double by the middle of the century, when the U.S. population is expected to grow by more than 100 million."

Industry Leaders

The 50 largest companies account for nearly 90 percent of revenue. Trinity Industries Inc., based in Dallas, Texas, continued to lead the railroad equipment industry in the 2000s. Trinity produced a wide range of railcars, including railroad tank cars, gondola cars, intermodal cars, and hopper cars. In 2001, Trinity had merged with Thrall Car Manufacturing Company of Chicago Heights, Illinois, a leading manufacturer of freight cars, including intermodal equipment, auto racks, aluminum coal cars, center beams, coiled steel, pressured differential, plastics, and wood chip cars. In 2008, Trinity reported revenues of $3.88 billion with 13,070 employees. The company's revenues plummeted to $2.15 billion for 2010 before rebounding to $3.07 billion in 2011, an increase of 42.7 percent over 2010. The company provides about 30 percent of manufactured railcars. Trinity employed 13,390 workers as of December 31, 2011.

Greenbrier: GE Transportation Systems and Electro-Motive Diesel (EMD) are the only two major U.S. locomotive companies. FreightCar America Inc. (formerly Johnstown America Corp.) became an independent maker of railcars after being sold by former parent company Johnstown America Industries Inc. With production operations in Johnstown, Pennsylvania, and Danville, Illinois, the company, which is headquartered in Chicago, has been making railcars since 1901. It is credited with designing a new, more efficient two-platform car. About 95 percent of FreightCar's production is aluminum-bodied coal cars. Other products include coil steel cars, flatcars, intermodal cars, mill gondola cars, and motor vehicle carriers. The company reported 2008 sales of $746 million and employed 875.

Research and Technology

The U.S. intermodal rail system is undergoing significant change through the use of information technology. Carriers are going high-tech with innovative electronics equipment and computers designed to improve tracking of shipments and make the railroads increasingly user friendly for commodity transfer. Information technology changes are proposed for nearly every aspect of the railroad industry.

Automated Equipment Identification
This program mandates that all railroad equipment be outfitted with electronic identification tags that allow each freight container to be identified by a trackside laser scanner. This system will track freight container shipments among multiple carriers and eliminate the need for railroad staff to visually identify containers and manually type in shipment information.

Computer Systems
Railroads are working together to create a single computer hardware package that allows customers to communicate with all their carriers. In addition, railroad locomotives are being outfitted with computers that communicate via wireless technology with the railroad's mainframe or central computer. It is hoped that data radio technology will improve shipment information and increase operational efficiency and productivity.

On-Board Locomotive Diagnostics
Electro-Motive Division's Functionally Integrated Railroad Electronics (FIRE) and GE's Integration Hub (IHUB) support multiple systems from multiple vendors to help standardize the industry.

EPA Emissions
Electro-Motive Division and GE Transportation Systems are working to develop equipment to meet EPA standards without affecting fuel efficiency and horsepower on locomotives.

In addition to innovations in information technology, changes in the industry's traditional hardware such as locomotives, freight cars, air brakes, and couplers have taken place or are undergoing redesign. For example, high strength, lightweight materials are providing the industry with the ability to ship more products at one time. Locomotives are bigger and faster.

After six years and $200 million, GE Transportation Systems unveiled its new Evolution Series locomotives in 2002, which reportedly had the same horsepower as existing locomotives but used less fuel and reduced emissions by 40 percent. The new models reached production two years ahead of the deadline for tougher emissions standards issued by the EPA.

Quebec-based Bombardier, with its Bombardier Transportation Division, was the world's largest producer of railway equipment. The company launched its JetTrain locomotive in 2002, a non-electric 150-mph passenger train reported to be faster, lighter, quieter, and more environmentally friendly than its diesel competitors. The development was expected to signal the onset of high-speed rail across North America not served by electrified tracks. The trains boast jet engines, as opposed to the diesel engines found in most current rail equipment, that are one-tenth the size and 38,000 pounds lighter than diesel engines of equal power.

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