In 2002, Union Pacific's Mike Iden announced he was bringing diesel locomotive technology into the next century with a new type of train: a locomotive that would have a diesel engine, electrical generator and a cooling radiator in one compact module called the Genset. During the last decade, Genset locomotives were gradually introduced into the U.S. freight railroad industry. They are marketed as reducing fuel consumption and air pollution. Despite their track record, widespread use has remained minimal because Gensets are six times more expensive than a rebuilt traditional diesel locomotive. Their capital value over time remains to be seen.
A locomotive's large diesel engine generates power for the electric motors which drive standard trains; consequently, they are the source of high CO2 emissions. Starting and stopping such an engine is time consuming and a lengthy ordeal, which produces further pollution. A Genset train has multiple engines called generator sets, which have the capacity to start up and shut down instantly. This process entails reductions in both emissions and fuel consumption.
Many critics questioned the Genset's ability to deliver the same performance as older diesel locomotives. To date, their fears have remained unfounded. The diesel engines of the Genset are started and stopped on a rotating basis by a computer. Consequently, the driver is rendered redundant. Many fear that if rail passenger services went fully automated, no experienced professional would be available in case of an emergency. Supporters of Genset suggest that automated trains already operate on an error-free basis in cities around the world. The biggest problem posed to the Genset's future is the capital cost needed to run the trains.
Global rail markets indicate Gensets will have an increasing presence between 2015 and 2020. They are considered a strong investment because of their cost effectiveness. The new diesel locomotive emission regulations scheduled to become law in North America in 2015 will render the old diesel locomotives obsolete. North America's biggest railroad, Union Pacific, has pioneered the use of the Genset and plans to purchase over $5 billion of them. The growing railroad industries in India and China may also become major investors in Genset locomotives by 2020, according to a report by Pike Research.
