CALGARY, Dec. 6, 2011 -- Canadian Pacific (cp:TSX) CP has announced that 61 new high horse power GE Evolution (EVO) Series AC locomotives have been brought into service and that the railway has initiated a program to modernize its low and medium horsepower yard locomotives.

The new EVO locomotives, which are currently in transcontinental service on priority series trains, will increase capacity, enhance service reliability, further the company's long train strategy, reduce emissions, and contribute to the company's 1-2% annual fuel efficiency improvement target.

CP also expects delivery of an additional 30 EVO locomotives in the first quarter of 2012.

Through Progress Rail Services' Electro-Motive Diese (EMD) subsidiary, CP will also begin to modernize a portion of its low and medium horsepower locomotive fleet. The remanufacture of these locomotives, which will begin in 2012 and take place over the next several years, supports yard fluidity and yard dwell reduction goals, and reduces fuel consumption and ongoing maintenance costs.

Refreshing its locomotive fleet to reduce costs, capture efficiencies, and create capacity for growth is a key element in CP's plan to position the franchise to achieve an annual operating ratio in the low 70s in the next three to four years.