U.S. Transportation Secretary Ray LaHood has announced a $54.6 million loan to Kansas City Southern Railway Company (KCSR) for the purchase of 30 new General Electric ES44AC locomotives.

These diesel-electric locomotives, built in Erie, Pennsylvania, will help KCSR meet increasing economic demand, and are more energy-efficient and produce significantly less carbon emissions than the locomotives they are replacing.

The locomotives will be deployed throughout KCSR’s system to accommodate the increased demand for shipments of coal, chemicals, grain, sand, stone, gravel, plastics, metals, and automobiles.

The loan is from the Federal Railroad Administration’s Railroad Rehabilitation and Improvement Financing (RRIF) Program.