A hybrid energy railway vehicle system having a traction motor with a dynamic braking mode of operation for dynamically braking the traction motor and for generating dynamic braking electrical energy and an electrical energy storage system that is in electrical communication with the traction motor and that stores dynamic braking electrical energy generated by the traction motor. The system also has a hybrid energy railway vehicle with a plurality of wheels wherein the traction motor has a motoring mode of operation for driving one of the wheels in response to electrical input energy. A converter selectively provides stored electrical energy from the energy storage system to the traction motor as electrical input energy for driving one or more of wheels. The hybrid energy railway vehicle is optionally equipped computer readable medium having computer executable instructions for controlling the operation of the hybrid energy railway vehicle and a processor configured to control the operation of the railway vehicle as a function of at least one of a plurality of operating modes.