The Iron Ore Co. of Canada (IOC) is investing over $25 million in its rail transport equipment to purchase seven new locomotives.

The investment, which will considerably increase IOC's transport capacity, centers on the purchase of new AC-4440 locomotives from General Electric at a cost of US$2.4 million each. The new locomotives will have superior traction to the Dash-4400 models in the existing IOC fleet, thus improving reliability, reducing maintenance, and facilitating the hauling of more cars. The locomotives, which are manufactured in Erie, should be shipped to Sept-Iles by mid-September and in operation no later than December.

IOC’s railway links the Labrador City region with its port facilities in Sept-Iles, and its trains are used mainly to move iron ore pellets and concentrate to the port in Sept-Iles. The trains also transport merchandise, materials and employees and provide a link between the Wabush mine and Sept-Iles. Normally there are three locomotives in a train composed of 210 to 240 cars, each with a capacity of 100 tons. IOC's fleet currently consists of 36 locomotives and roughly 1150 cars. The IOC railway is 418 km long, with six or seven trains on the line at any given time. It takes an average of 48 hours to make the round trip.

The Iron Ore Co. of Canada (IOC) is the largest manufacturer of iron ore pellets in Canada and generates over $600m revenue. It operates a mine, concentrator and a pelletizing plant in Labrador City, Newfoundland and Labrador, as well as port facilities located in Sept-Iles (Quebec). IOC has about 1700 employees and celebrates its fifty years of operations in 2005. IOC's major shareholder and operator is Rio Tinto, the world's third largest mining company.