TTX/Leased units

[Anonymous]

Is it just me or are railroads starting to use leased equipment more and more.I've seen it on CN using ttx well car out of all the well cars I've seen 5 where CN aswell even on the local short line CRLE cars are hanging around.And a second point is why would CN retire a SD40-2 have Alstrom rebuild it then lease it back from them.

[Anonymous]

I see a lot of those TTX units down at roberts bank in Delta, BC.

In fact, generally speaking, there are usually more TTX units than any other units on the intermodal trains.

As far as all the leasing goes it will always come down to dollars. If CN is retiring a loco having Alstrom rebuild it then leasing it back from them, then believe me CN has done the paper work, and found that it is a better deal to do it that way.

Chances are, depending on the details of the lease, if the engine breaks down, CN just hands it back over to Alstrom and they deal with all the repair work and getting the engine going again. CN basically just leases the units runs the hell out of them, then when they break them down send them back over to Alstrom. If this is going on, then CN also saves money because they don't have to hire as many mechanics and run as many loco repair shops on their lines.

Believe me, even if it seems silly CN has thought it out, and chances are really good they are probably saving a bundle.

[Anonymous]

Thanks it makes sense that way and I know what you mean about ttx cars everywhere.

[Anonymous]

Does anyone know when TTX started leasing cars? I tried some searches, but the only info I can find is at Hoovers, and they charge for it. I am not cheap, but I don't want to know everything about the company, just the years in business.
Tim

[tomnoy3]

One of the reasons youre seeing so many, is that the entire common stock of TTX is owned by US and Canadian railroads.

-Tom

[dehusman]

Many engines are not owned, but long term leased. It depends on the financial arrangements and the amortization. Its often cheaper to sell a unit, let somebody else rebuild it and then lease it back for 5 years than rebuild the unit yourself.

Dave H.