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The Diesel Engine is a blue recoverable diesel locomotive from advtrains_freight_train. It is often nicknamed the 'shunter' due to its lower speed of 36 km/h (when compared with the Industrial train engine which has a speed of 72 km/h) and the fact that when broken it will drop itself, allowing you to use it more easily than most trains to shunt stuff around.
It may be handy to remember the exhaust pipe is at the 'front' of this locomotive.