QUOTE: Originally posted by XG01X Check out http://www.sircrail.com and how they got started
QUOTE: Originally posted by Big_Boy_4005 I'm not sure of the numbers, but owning railroad equipment takes big bucks. A single car has to be over 100K, so if you had a few million, you could own a small fleet. I would imagine that it is something like the apartment rental business, and vacancies kill. Time is money. If you win the lottery, buy railroad stock, it's easier. [swg] Cars can be as cheap as $1,000 in running condition, used. New cars are expensive, but you don't need new cars to get into the business. Don't expect big profits in car leasing though... Do you think you are ready to compete with the likes of GATX, and others? It isn't just competition from other leasing companies, but also from the RRs themselves that makes this business difficult. If a RR has a choice of using their car or yours who's do you think they'll load?!?
QUOTE: Originally posted by jhhtrainsplanes Let me add a few more questions to this topic, please. [:)] How about insurance? Policies are available through RR insurance brokers. How about needed repairs? The car owner pays for the repairs performed by RRs under the AAR Car Service rules. Private car owners are required to pay railroads for such repairs. They can have work done by private cars shops as well. What about keeping track of the car (s) and knowing where they are? It depends on the car type and use. Cars can be restricted by service or station. If they are unrestricted they are known as "free runners" This is often the case with standard boxcars such as RBOX cars. Cars can be traced by their UMLER information (AAR computer) through most major railroad websites.
QUOTE: Originally posted by macguy Hello, I was just curious about what it takes to buy a railcar or railcars and lease them out to railways. A large sum of money and a knowledgable, well connected staff. Do you purchse the railcars brand new from a railcar manufacturer then lease them out? This is one way, but given the high cost of new railcars this is quite rare. Some larger leasing companies like CIT have used this route. Not recommended for beginners. What kinds of prices do you pay for new railcars? Varies significantly depending upon the type of railcar and number ordered and incentives offered by the builder. Do people buy used cars and lease them out? Yes. Do a lot of people do this? A fair number. Most have leasing companies, but there are a few individuals. A lot of Doctors and dentists lost a LOT of money buying up railcars in the 70s when loose rules could bring large earnings. This market dried up when the rules tightened. How do you get paid for the use of your car? Car owners are paid by each railroad a daily/mileage fee known as "car hire" and formerly known as "per diem" Is this a fairly common thing that's done by individual people who just own one or two cars? No. Any info or webpage links would be helpful, I was just reading about this somewhere and it peaked (piqued?)my curiosity.
QUOTE: Originally posted by macguy QUOTE: Originally posted by Big_Boy_4005 Tisk tisk, the railroads must have been doing it a different way for a long time, since they have been operating way longer than computers and the internet have been around. Certainly into the 70's it was done with paperwork. When did the first optical car scanners come along? Remember those red and blue stripes on those black plates? Surely it's not still done long hand, must be computerized by now. I think in the old days there was more point to point stuff, not much travel all around the place like the North American box car pools do it now.
QUOTE: Originally posted by Big_Boy_4005 Tisk tisk, the railroads must have been doing it a different way for a long time, since they have been operating way longer than computers and the internet have been around. Certainly into the 70's it was done with paperwork. When did the first optical car scanners come along? Remember those red and blue stripes on those black plates?
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QUOTE: Originally posted by CSSHEGEWISCH Investing in free-running boxcar fleets was quite the rage in the mid to late 1970's, with per diem payments being the major source of income. Unequipped boxcars carried the reporting marks of various short lines and were free runners under the car service rules in effect. I'm not sure of all the particulars but the whole concept went bust after a couple of years.
Larry Resident Microferroequinologist (at least at my house) Everyone goes home; Safety begins with you My Opinion. Standard Disclaimers Apply. No Expiration Date Come ride the rails with me! There's one thing about humility - the moment you think you've got it, you've lost it...
QUOTE: I know that at one time in the past cars needed to be returned to their home road, but I'm not sure when that practice ended.
QUOTE: Originally posted by Big_Boy_4005 Sorry if I was a little down on your business concept there. I have had my own "model railroad" business which failed in the past. I lost about a half million dollars in the process. I have also owned apartment buildings in real life, and understand the problems there. Combine a general knowledge of railroads with that business experience, and you get, THE DEVIL'S ADVOCATE, me.
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