First Look: Cando Rail & Terminals’ Battery-Electric Switcher
The company, which provides specialized rail operating services and owns a network of multi-purpose rail terminals, developed the switcher through its Li-Ion (Lithium-Ion) 2025 project. The project involved retrofitting a legacy, non-tier-compliant diesel-electric locomotive with a lithium-ion battery propulsion system.
Cando selected nickel manganese cobalt (NMC) batteries. “Although this style of battery has a lower energy density compared to other Li-Ion batteries, they provide many advantages over more energy intense battery chemistries,” it reported. “These advantages include thermal runaway protection, packaging that prevents self-ignition, and firefighting measures that can be accomplished using standard Class ABC extinguishers. The selected batteries also mitigate the need for specialized training, equipment, or additional measures to protect operators, first responders, or the public in the event of a failure or fire.”
The new locomotive was “purpose-built” for industrial and closed-loop switching operations; eliminates harmful emissions; reduces noise; and supports Canada’s net-zero climate goals, according to Cando. The company said it is expected to cut up to 470 tons of CO₂e per year and decrease energy costs by 60% and maintenance needs by 40%. CTV News, which attended the unveiling event, reported that the new locomotive “was operationalized in Manitoba to withstand minus 40 C weather” and its range is load dependent. Its charging station was installed in January (pictured below).
Through Emissions Reduction Alberta’s (ERA) Industrial Transformation Challenge, the government of Alberta in 2023 contributed C$2 million to the project, which was estimated to cost C$4 million.
Phase 1 of field testing was completed in Winnipeg earlier this year, according to Cando, which reported it will continue to test the switcher at Southlands Terminal “and finalize commercialization plans in early 2026.” It noted that the retrofit model “offers a viable transition path for Canada’s fleet of industrial locomotives, including more than 2,000 switchers currently in operation.”
Cando has a fleet of 110 diesel-electric locomotives, “but over the next few decades said the plan is to swap them out” with the new units, according to CTV News. Additionally, Cando’s aim is “to have a manufacturing plant in Alberta to help develop a fleet of battery-operated locomotives in the next five to ten years,” the media outlet reported.
“This project reflects our continued commitment to safety, innovation and environmental leadership,” Cando Chief Operating Officer Paul Duncan said. “By investing in battery-powered technology, we will be reducing emissions in our operations while creating a scalable solution for cold weather climates that can transform industrial rail switching operations across our network.”
“Had the privilege to provide remarks at Cando Rail & Terminals unveiling of its new electric powered locomotive for a first kind pilot in Canada,” Emissions Reduction Alberta CEO Justin Riemer reported via LinkedIn. “This ERA funded project marks an important step toward electrifying industrial rail switching in closed loop operations. This is our second locomotive project having also funded CPKC’s first of kind hydrogen locomotive (now they have 7). The coolest thing is that Cando’s locomotive has the ERA logo on it. Congrats to Cando for getting it done! Thank you President Brian Cornick and team.”
Meanwhile, the Canada Infrastructure Bank (CIB) on Sept. 10 reported reaching financial close on a C$100 million loan to Cando to double the capacity of its CN-served Sturgeon Terminal, which is an Alberta-based multi-purpose rail hub. Cando announced the expansion project in 2024.
The facility, which opened in 2020 and currently operates at capacity, provides storage and staging, haulage, and transloading services to support the transport of Canadian-made goods for export east and west and onward to global markets, according to CIB.
The new Sturgeon West Terminal will add up to 3,700 new railcar storage and staging spaces.
CIB reported that Cando anticipates the terminal will create up to 50 new full-time local jobs once operational, on top of 60 existing jobs, and contribute C$22.3 million annually to the region’s GDP. Terminal construction is under way, with operations expected to begin in late 2026.
“Expansion of the Sturgeon Terminal opens up more opportunities for Alberta businesses to connect their products to global markets,” CIB CEO Ehren Cory said. “Building this infrastructure will create local jobs, help keep the Western Canadian economy competitive, and expands supply chain capacity well into the future.”
“As Cando Rail & Terminals works to expand capacity at our rail terminal in Alberta’s Industrial Heartland, support from partners such as the CIB enables us to provide access to increased transportation and logistics solutions to our customers at an accelerated pace,” added Brian Cornick, President and CEO of Cando. “The majority of the value-added products produced in the Heartland are shipped to national and global consumers by rail. Cando’s investment, combined with the financing from the CIB will increase market access and allow industrial facilities in the Heartland to concentrate on their core business. World-class rail infrastructure will further enhance the competitiveness of Sturgeon County and Alberta’s Industrial Heartland for petrochemical, downstream energy, and heavy industrial investment.”
