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Short Line Investment?
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[quote]QUOTE: <i>Originally posted by edblysard</i> <br /><br />Good so far... <br />Interchange points, single yard or multiple points? <br />Last bridge inspections were done when? <br />And next ones are due? <br /> <br />6 locomotives and 4 T&E...guessing two trains a day working as a turn plus a twice weekly coal drag.... <br />What is the current debt load, and last, why is current owner getting rid of it? <br /> <br />Ed <br /> <br />[/quote] <br /> <br />Interchange points are at a runaround and a small yard respectively. You are correct two crews. Probably 1-2 jobs daily depending upon coal flows. <br /> <br />Locomotives were projected at six for two reasons. One is there is a local currently that spends a great deal of its time shuttling woodchips and cardboard between a couple of plants. This would likely be one or both 4 axle units. As to the six axles there is the coal. The thought with the six axles is they are cheap now and good protect power and there is a significant possibility of pooling power with one of the Class 1s which would take 2 units off the property for a week at a time. This can create a very favorable horsepower hours situation and will help avoid downtime due to locomotive failures. The offlline move is longer than the online for these coal trains and as such these units should quickly pay for themselves. Also, not all the locomotives are needed immediately. You'd probably want 2 4axles and 2 6 axles to start and grow from there. <br /> <br />Owner is seeking to abandon part of this property to salvage rail. The short line makes sense only if you get the entire line. The purchase price represents a slight discout on the NLV. <br /> <br />LC
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