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Cost of upgrading Rail
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[quote]QUOTE: <i>Originally posted by PNWRMNM</i> <br /><br />FM <br /> <br />Does that mean you are withdrawing your assertion dated February 21 of "$30 billion (I presume you mean incremental investment here) for HAL"? <br /> <br />Mac <br />[/quote] <br /> <br />No, I'll stick with it as a basis for discussion. It's a number based on the estimated $7 billion needed to upgrade shortlines to 39 tons per axle, and is an estimate based on the percentage of Class I track relative to shortline track (70% and 30% respectively). <br /> <br />Even though railroads were using 130 lb + rail as the 35 tons per axle cars were introduced (and frankly as the 33 ton per axle cars were the standard) as a continuation holdover from the heavy steam engine days, there was still a host of mainline upgrades going on regardless to prior rail weight. You're from the PNW Mac, you remember all the upgrades to the Spokane-Pasco and Stampede Pass lines in the 1980's and 1990's, right? What about the UP and the Washy line, which seems to be in a perpetual state of upgrading. <br /> <br />There's two things to consider regarding these upgrades: <br />1. The number one reason for them is HAL. <br />2. How much could be saved if 130+ lb rail could be replaced with 115 lb rail during these upgrades? How many more miles can be relaid if 115 replaces 136? If you have one million tons of steel to work with, you can make about 165 miles of track using 115 but only 140 miles of track with 136 (about a 15% difference). At a million a mile, that 25 extra miles translates into $25 million saved per 1 million tons of steel.
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