The E3 was the fourth model in a long line of passenger diesels of similar design known as EMD E-units.

Compared with passenger locomotives made later by EMD, the noses of the E3, E4, E5, and E6 cab units had pronounced slants when viewed from the side.

The 567, which was specifically designed for railroad motive power applications, is a mechanically aspirated, two-stroke 45-degree V-type with 567 cubic inches (9,290 cm3; 9.29 L) displacement per cylinder, and remained in production until 1966.

Two direct current generators, one per engine, provide power to four traction motors, two on each truck, in an A1A-A1A arrangement.

In January 2013, NCDOT transferred ownership of the engine to the NC Department of Cultural Resources, Spencer Shops parent organization.