Train Manufacturers Are About to Make A Ton of Money
Jul 12, 2024 · 9:39
California's 2030 ban on locomotives over 23 years old and its 2035 zero-emission mandate will force railroads to replace 15,000 engines at $7.5 million apiece — a $112 billion windfall Wabtec, the market leader since buying GE's railroad division in 2018, is best positioned to capture. Rival Progress Rail, a Caterpillar company, sued Wabtec as a monopoly in 2023 as both race to build replacement technologies. Battery locomotives are capped at 800 miles per charge and cost up to $10 million, while hydrogen trains, proven in Germany, aren't expected at freight scale for 5 to 10 years. California's Clean Air Act exemption lets it set national emissions standards, and one locomotive's batteries equal 120 Tesla Model 3s, straining grids and tight copper and lithium supply chains.
