Diesel locomotive
Diesel locomotives offer significant operating advantages over steam locomotives. They can safely be operated by one person, making them ideal for switching/shunting duties in yards (although for safety reasons many main-line diesel locomotives continue to have 2-man crews: an engineer and a conductor/switchman) and the operating environment is much more attractive, being quieter, fully weatherproof and without the dirt and heat that is an inevitable part of operating a steam locomotive. Diesel locomotives can be worked in multiple with a single crew controlling multiple locomotives in a single train — something not practical with steam locomotives. This brought greater efficiencies to the operator, as individual locomotives could be relatively low-powered for use as a single unit on light duties but marshaled together to provide the power needed on a heavy train. With steam traction a single very powerful and expensive locomotive was required for the heaviest trains or the operator resorted to double heading with multiple locomotives and crews, a method which was also expensive and brought with it its own operating difficulties.
Diesel locomotive
The first regular use of diesel–electric locomotives was in switching (shunter) applications, which were more forgiving than mainline applications of the limitations of contemporary diesel technology and where the idling economy of diesel relative to steam would be most beneficial. GE entered a collaboration with the American Locomotive Company (ALCO) and Ingersoll-Rand (the "AGEIR" consortium) in 1924 to produce a prototype "boxcab" locomotive delivered in July 1925. This locomotive demonstrated that the diesel–electric power unit could provide many of the benefits of an electric locomotive without the railroad having to bear the sizeable expense of electrification. The unit successfully demonstrated, in switching and local freight and passenger service, on ten railroads and three industrial lines. Westinghouse Electric and Baldwin collaborated to build switching locomotives starting in 1929. However, the Great Depression curtailed demand for Westinghouse's electrical equipment, and they stopped building locomotives internally, opting to supply electrical parts instead.