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This paper presents the development of a new top-of-rail lubrication system that uses precise computer control and an environmentally friendly lubricant to produce significant energy savings and other economic benefits for railroads. The system and lubricant evolved over a period of five years from analytical solution, design and prototyping, to production, field-testing and demonstration. Based on extensive field-testing, energy savings of 15% and a 2% increase in productivity can be achieved by railroads using this system.