Dieselisation
Dieselisation took place largely because of the tremendous reduction in operating costs it allowed. Steam locomotives require large pools of labour to clean, load, maintain and run. They also require extensive service, coaling and watering facilities. This was their biggest inferior measure as compared to the diesel locomotive in the number of ton-miles or passenger traffic miles either could run. Diesels could and did have a significantly higher initial price per unit-horsepower delivered. However, their far greater range between fueling stops, the absence of water stops, and the much higher unit availability between inspection repair and maintenance stops, were far better than steam. Diesels simply required significantly less time and labour to operate and maintain. Diesel power was also more scalable to power requirements, owing to the control systems that allowed multiple units to be controlled by one operator. "Double header" steam power required a crew for each locomotive. Initially, diesel locomotives were less powerful than the typical steam locomotives. Between the late 1930s and the late 1950s the power available with diesel locomotive engines roughly doubled, although the most powerful steam locomotives ever built still exceeded the power of the most powerful diesel locomotives from the late Twentieth Century.
Diesel locomotive
GM, seeing the success of the custom streamliners, sought to expand the market for diesel power by producing standardized locomotives under their Electro-Motive Corporation. In 1936 EMC's new factory started production of switch engines. In 1937 the factory started producing their new E series streamlined passenger locomotives, which would be upgraded with more reliable purpose-built engines in 1938. Seeing the performance and reliability of the new 567 model engine in passenger locomotives, EMC was eager to demonstrate diesel's viability in freight service.