VIA Rail Canada and CAD Railway Industries Ltd. Sign $100 Million, 5-year Contract to Rebuild 53 F-40 Locomotives



    Contract impacts 70% of VIA's locomotive fleet, strengthens reliability
    and further improves environmental performance

    MONTREAL, Dec. 11 /CNW Telbec/ - VIA Rail Canada announced today that it
has entered into a 5-year contract valued at over $100 million with CAD
Railway Industries Ltd. (CAD) to rebuild its fleet of F-40 locomotives. The
program involves stripping locomotives down to their shells and rebuilding
them using the latest technology.
    This project is a key component of the recently announced Government of
Canada capital investment plan to improve the sustainability and reliability
of Canada's passenger rail system.
    Beginning this month, car bodies will be repaired while the components of
each system will be thoroughly inspected, and new systems will be installed to
meet today's environmental as well as safety standards. In fact, VIA expects
to see a reduction of greenhouse gas (GHG) emissions of up to 12% once the
work has been completed, and this in addition to a GHG reduction of 13% since
1990.
    This program is one of the first to be announced following a significant
capital investment from the federal government. "We are extremely pleased to
announce that CAD Railway Industries Ltd. is our first partner following the
Government's investment," explained Paul Côté, President and CEO of VIA Rail
Canada. "By rebuilding 70% of our fleet of locomotives, CAD will help us reach
our goals of increasing reliability while decreasing maintenance costs. It is
one of the many steps we are undertaking to modernize our fleet while ensuring
all locomotives are in compliance with safety, environmental and other
regulations, all as a means to providing our customers with the best travel
experience."
    CAD will begin the work this month. The first rebuilt locomotives should
be ready by March 2009 and the project should be complete by 2012. "We are
excited to work on a key part of Canada's passenger rail infrastructure for
VIA Rail," explained Fausto Levy, President of CAD Railway Industries Ltd.
"The value CAD brings to this project is not only measurable in reduced
maintenance costs and improved reliability of the locomotive: our work will
also have a local impact by creating more than 90 new jobs in the area."
    The Honourable Lawrence Cannon, Minister of Transport, Infrastructure and
Communities, expressed his satisfaction with the announcement: "The Government
is pleased to see that the investment we have made in VIA Rail Canada is
already being put to excellent use. We look forward to the rollout of the
rebuilt F-40 fleet along with other improvements to Canada's passenger rail
service over the next five years. The improved reliability, safety, and
frequency of these locomotives will benefit all Canadians."
    "North American railroads and commuter systems today are making
significant capital investments in the remanufacturing of their locomotive,
freight car and passenger railcar fleets to meet volume demands, fuel
efficiency targets and new environmental and emission standards. We are
delighted that Global Railway's subsidiary, CAD Railway Industries Ltd., has
been selected by VIA as the locomotive remanufacturer for one of the largest
passenger rail infrastructure investment programs in recent Canadian history,"
said Terry McManaman, Chairman, President and CEO, Global Railway Industries
Ltd. "Once the F-40 locomotive renewal program is complete, VIA Rail will have
one of the most reliable and fuel efficient fleets of diesel locomotives of
any passenger rail operator in North America," said McManaman.
    "CAD Railway Industries Ltd. will itself embark on an infrastructure
expansion program as a result of being awarded the F-40 remanufacturing
contract. This expansion will position CAD as the largest re-manufacturer of
locomotives in Canada and as a major competitor in locomotive remanufacturing
in North America," said Fausto Levy, President of CAD. "We expect that
approximately 450 person-years of additional employment will be created at
CAD's facility in Lachine, Québec, over the total term of the VIA contract".
    VIA is currently completing plans for a number of other projects that
will improve its equipment, stations and infrastructure across its Canada-wide
network.

    About VIA

    As Canada's national passenger rail service, VIA Rail Canada's mandate is
to provide efficient, environmentally sustainable and cost effective passenger
transportation services, both in Canada's business corridor and in remote and
rural regions of the country. VIA serves more than 450 communities with a
network of inter-city, transcontinental and regional trains. Increasingly
travellers are turning to train travel as a hassle-free and cost-efficient
alternative to congested roads and airports as well as a more environmentally
responsible way to travel.

    About CAD Railway Industries Ltd.

    Based in Lachine (Montreal), Quebec, CAD Railway Industries Ltd. is an
international re-manufacturer of locomotives, rail cars, power generation
units and components. CAD Railway is a wholly-owned subsidiary of Global
Railway Industries Ltd. (TSX:GBI) an integrated rail product and service
provider for the locomotive, railcar and track & signal railway markets in
North America. Global Railway Industries shares are listed for trading on the
Toronto Stock Exchange (TSX) under the symbol "GBI".

    PLEASE SEE PHOTO TO FOLLOW ON CNW

    
                         Shot List / Feuille de route
                                   "B-Roll"
                               Via Rail Canada
                                 05/10/2007

    09:59:00:00 - 09:59:30:00 -          Colorbar
    09:59:30:00 - 09:59:40:00 -          Tape slate / Panneau
                                         d'identification de la cassette
    09:59:50:00 - 09:59:55:00 -          Sequence 1 slate /
                                         Panneau d'identification séquence 1
    09:59:58:00 - 09:59:58:02 -          Colorbar
    10:00:00:00 - 10:00:33:24 -          F-40 Locomotive: prototype exterior
                                         view /
                                         Locomotive F-40 : prototype vue
                                         extérieure
    10:00:33:25 - 10:00:36:25 -          Black
    10:00:36:26 - 10:00:41:26 -          Sequence 2 slate /
                                         Panneau d'identification séquence 2
    10:00:41:27 - 10:00:44:27 -          Black
    10:00:44:28 - 10:01:52:29 -          F-40 Locomotive: prototype in
                                         maintenance center /
                                         Locomotive F-40 : prototype au
                                         centre d'entretien
    10:01:53:00 - 10:01:56:00 -          Black
    10:01:56:01 - 10:02:01:01 -          Sequence 3 slate /
                                         Panneau d'identification séquence 3
    10:02:01:02 - 10:02:04:02 -          Black
    10:02:04:03 - 10:02:47:06 -          F-40 Locomotive: prototype interior
                                         view /
                                         Locomotive F-40 : prototype vue
                                         intérieure
    10:02:47:07 - 10:02:50:07 -          Black
    10:02:50:08 - 10:02:55:08 -          Sequence 4 slate /
                                         Panneau d'identification séquence 4
    10:02:55:09 - 10:02:58:09 -          Black
    10:02:58:10 - 10:03:50:00 -          VIA 1 class / Classe VIA 1

    

    /NOTE TO PHOTO EDITORS: A photo accompanying this release is available on
    the CNW Photo Network and archived at http://photos.newswire.ca.
    Additional archived images are also available on the CNW Photo Archive
    website at http://photos.newswire.ca. Images are free to accredited
    members of the media/




For further information:

For further information: Catherine Kaloutsky, (514) 871-6215, (Cell):
(647) 228-1127


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