In late 1956, the Panama Canal Company awarded R.G. LeTourneau, Inc. a contract to significantly modernize how ships are pulled through the Panama Canal. This is the first major modernization since 1914. LeTourneau was asked to build two prototype machines at a cost of $650,000. These prototypes would be used for one year. If acceptable, the Panama Canal Company would order 25 additional units at a cost of over $4MM.
In July 1957, LeTourneau had the first prototype locomotive and test tug ramp in operations at the Longview, TX plant. The ramp simulated the wall and grade that the locomotive would need to climb during operations at the Canal. Later than year (November), two electric locomotives were released for shipment – the LT Electric Locomotives.
The long boom seen in the following three images was used to send a cable to an approaching ship. The tires seen within the images were used as a cushion between the locomotive and the ship.
Still frame from a video by Don LeTourneau shot at the Longview plant, of the tug that was to pull ships through the Panama Canal.