With Dofasco's successful demonstration of a tilting system, additional contracts were offered to build a prototype train.
The name LRC was carefully selected to define the project's goals bilingually: a lightweight train, operating at high speeds, and providing a more comfortable ride than existing trains.
Alcan of Montreal won the contract for the aluminum passenger cars and the carbody of the locomotive, while MLW developed the new diesel-electric system.

The companies had predicted that the development of the prototype would cost $2.48 million, and the government provided half of that under the PAIT agreements.
The project overran the budget by $77,000, which the companies supplied out-of-pocket.
The prototype coach was completed in 1971 and started testing with conventional locomotives.
By the summer of 1972, it had seen 5,000 mi (8,000 km) of service, and a few relatively minor problems cropped up.
Issues with the tilting mechanism were studied by a group at SPAR and McMaster University, and several fixes incorporated into the design.
By that point the prototype locomotive was 85% complete.

During this period, CN executives started expressing concerns about the cost of the equipment, while their engineers stated a preference for electrically powered tilting in place of the hydraulic system.
Dofasco stated that such a change would be impractical, upsetting CN.
In response, CN requested a series of additional tests, delaying their decision on ordering the design.
This was also likely a response to the problems encountered on the Turbo, which had been rushed into service for Expo '67 before rigorous testing had worked out its problems.

With the PAIT funds exhausted in 1972 and the launch customer delaying its orders, the project went into a lengthy hiatus period where little progress was made.
To continue testing without an order from CN, the consortium was forced to turn to the TDC for additional funds.
It was not until July 1973 that an additional $460,000 was released to finish the locomotive and start testing.
A four-phase program was envisioned to bring the LRC to production.
The first two phases would have the coach running on normal mainline service through April 1973 as part of Phase 1 and runs at higher speeds in Phase 2 through to July 1974.

Testing was further delayed due to a railway strike in Canada, which led the consortium to explore moving the high-speed tests to the U.S.'s High Speed Ground Test Center in Pueblo, Colorado.
Although a deal was arranged in January 1974, testing continued in Canada.
Later that year the consortium learned that the U.S. was considering foreign designs for service with Amtrak, so the contract was revived and the LRC prototype was sent for a six-week period starting in November 1974.
The tracks it ran on included butted and welded rail, concrete and wooden ties, and was originally designed to test low-speed urban transport designs at speeds up to 80 mph (130 km/h).
During the testing the train covered 35,000 km (22,000 mi) at speeds of up to 200 km/h (120 mph), and routinely took corners designed for 65 mph (105 km/h) at 105 mph (169 km/h).
In one all-day test it averaged 98.6 mph (158.7 km/h) including three 10‑minute stops to change crews.
The testing was considered a great success by everyone involved, although Amtrak eventually purchased locally made versions of the Turboliner.

With Phase 1 and 2 complete, additional funding was provided in 1975 to complete the last two phases.
Phase 3 started with the LRC entering service on the Toronto-Sarnia portion of the Corridor, replacing the existing Tempos, running on the Tempo's existing schedules and lower speeds.
The locomotive ran for another 100,000 km (62,100 mi) in these tests, and the coach 80,000 km (49,700 mi).
Simultaneously the last phase, Phase 4, had to demonstrate high speeds on Canadian rails, not test sites.
On 12 March 1976 on a stretch of CN line outside Farnham, Quebec, the prototype reached 208 km/h (129 mph).
With those tests successfully completed, the LRC had passed the entire four-phase testing program a
With Dofasco's successful demonstration of a tilting system, additional contracts were offered to build a prototype train. The name LRC was carefully selected to define the project's goals bilingually: a lightweight train, operating at high speeds, and providing a more comfortable ride than existing trains. Alcan of Montreal won the contract for the aluminum passenger cars and the carbody of the locomotive, while MLW developed the new diesel-electric system.
The companies had predicted that the development of the prototype would cost $2.48 million, and the government provided half of that under the PAIT agreements. The project overran the budget by $77,000, which the companies supplied out-of-pocket. The prototype coach was completed in 1971 and started testing with conventional locomotives. By the summer of 1972, it had seen 5,000 mi (8,000 km) of service, and a few relatively minor problems cropped up. Issues with the tilting mechanism were studied by a group at SPAR and McMaster University, and several fixes incorporated into the design. By that point the prototype locomotive was 85% complete.
During this period, CN executives started expressing concerns about the cost of the equipment, while their engineers stated a preference for electrically powered tilting in place of the hydraulic system. Dofasco stated that such a change would be impractical, upsetting CN. In response, CN requested a series of additional tests, delaying their decision on ordering the design. This was also likely a response to the problems encountered on the Turbo, which had been rushed into service for Expo '67 before rigorous testing had worked out its problems.
With the PAIT funds exhausted in 1972 and the launch customer delaying its orders, the project went into a lengthy hiatus period where little progress was made. To continue testing without an order from CN, the consortium was forced to turn to the TDC for additional funds. It was not until July 1973 that an additional $460,000 was released to finish the locomotive and start testing. A four-phase program was envisioned to bring the LRC to production. The first two phases would have the coach running on normal mainline service through April 1973 as part of Phase 1 and runs at higher speeds in Phase 2 through to July 1974.
Testing was further delayed due to a railway strike in Canada, which led the consortium to explore moving the high-speed tests to the U.S.'s High Speed Ground Test Center in Pueblo, Colorado. Although a deal was arranged in January 1974, testing continued in Canada. Later that year the consortium learned that the U.S. was considering foreign designs for service with Amtrak, so the contract was revived and the LRC prototype was sent for a six-week period starting in November 1974. The tracks it ran on included butted and welded rail, concrete and wooden ties, and was originally designed to test low-speed urban transport designs at speeds up to 80 mph (130 km/h). During the testing the train covered 35,000 km (22,000 mi) at speeds of up to 200 km/h (120 mph), and routinely took corners designed for 65 mph (105 km/h) at 105 mph (169 km/h). In one all-day test it averaged 98.6 mph (158.7 km/h) including three 10‑minute stops to change crews. The testing was considered a great success by everyone involved, although Amtrak eventually purchased locally made versions of the Turboliner.
With Phase 1 and 2 complete, additional funding was provided in 1975 to complete the last two phases. Phase 3 started with the LRC entering service on the Toronto-Sarnia portion of the Corridor, replacing the existing Tempos, running on the Tempo's existing schedules and lower speeds. The locomotive ran for another 100,000 km (62,100 mi) in these tests, and the coach 80,000 km (49,700 mi). Simultaneously the last phase, Phase 4, had to demonstrate high speeds on Canadian rails, not test sites. On 12 March 1976 on a stretch of CN line outside Farnham, Quebec, the prototype reached 208 km/h (129 mph). With those tests successfully completed, the LRC had passed the entire four-phase testing program a
LRC (train)