Caterpillar 2011 Annual Report Download - page 29

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Energy & Power Systems 29
WHAT THE WORLD NEEDS | 2011 YEAR IN REVIEW
Chairman’s
Message
Construction
Industries
Customer &
Dealer Support
Financial Products &
Corporate Services
The Caterpillar
Foundation Leadership Performance
Resource
Industries
Energy &
Power Systems
For nearly two centuries, trains have been moving freight and
people. Today’s modern rail industry continues to do so in an
increasingly efficient and sustainable manner. Since 2006,
Caterpillar has invested approximately $2 billion to grow its
presence in the global rail and transit business. Progress Rail’s
2010 acquisition of Electro-Motive Diesel (EMD) is the latest
step in Caterpillar’s expansion into the rail market.
Caterpillar’s 2006 acquisition of Progress Rail provided an extensive
range of cost-effective solutions for a broad spectrum of railway
customers. Progress Rail is one of the largest providers of rail
and transit products and services in North America, including
locomotive upgrade and repair, railcar remanufacturing, track-
work, rail repair and replacement, signal design and installation,
parts reclamation and recycling.
EMD was a natural choice when Caterpillar and Progress Rail
looked to expand further in the rail market. EMD offers a diversified
product portfolio that complements the Progress Rail portfolio.
EMD designs, builds, maintains and services a full range of
locomotives, including passenger, freight, mining and switching
locomotives, and has the largest installed base of diesel-electric
locomotives in the world.
EMD locomotives are often specifically tailored for the markets
they serve. The GT38AC locomotive, for example, was designed
for mining customers such as PT Kereta Api Indonesia. Hauling
heavy coal trains, it packs a powerful EMD engine into a small
package suited to the track and tunnels found in Sumatra. Another
example is the SD70ACe/lci locomotive in use by BHP Billiton Iron
Ore. This massive mining locomotive hauls iron ore in the harsh
heat and sand environment of Australia’s Pilbara region.
Caterpillar, Progress Rail and EMD each bring their own strengths
in advanced technologies to offer leading products to the industries
they serve. Progress Rail has state-of-the-art facilities in the
United States, Canada, Mexico and the United Kingdom, as well
as innovative recycling and salvage processes to provide total
life cycle solutions to our customers. EMD has upgraded factories
with the latest equipment and significantly increased investment
in research and development as it has expanded its global product
portfolio. Finally, Caterpillar’s engine expertise and advanced
technologies research provide a platform upon which Progress
Rail and EMD can further enhance locomotive performance.
On Track
The combination of Caterpillar,
Progress Rail and EMD is going
to take us far via rail.