A computer simulation technique has been used to study and evaluate the potential for the application of hybrid locomotives to heavy haul operations on two typical track routes in Australia. The study envisages typical pit-to-port operations with large altitude changes. The train energy usage and the energy created by dynamic braking are analysed based on the simulation results. It is shown that the locomotives operate at an average power that is much less than full power. It is found that there is potential for hybrid heavy haul locomotive applications. Suggested methods and concept designs are proposed. Sizing of the energy storage system when it contained batteries, super-capacitors and flywheels was carried out for comparison purposes. The merits and problems with each concept are discussed.