Sean Graham White reported in his Jan-Feb 2022 Loco Notes that BNSF will purchase 103 C44-9W's that are 2022 lease returns (The lease will expire). These engines are twenty to twenty five years old, but BNSF needs the power and they apparntly are in good mechanical condition. I wonder what the cost for these engines will be. Does anyone have any ideas as to the cost per unit.
QUOTE: Originally posted by TheJGuy Railroads are some of the best ways to spend money in the stock market. I own a share of UP for like $91 and NS for like $60. Both railroads are beating Advance Auto Parts in the stock market !!
QUOTE: Originally posted by edbenton mike your prices are low a 737 goes for 77 million and a 767 is 155-185 million a 777 tops out at 225 million a 747 is 240 million fully loaded
QUOTE: Originally posted by traintownofcowee Railroads must be one the most richest companies in the world. Prices of locomotives, rolling stock, track, stations, buildings, m.o.w. equipment, equal a lot of cash! Owning a railroad isn't easy. Makes ya wonder how they did it then, and what if we can do it know? You should play Railroad Tycoon 3 to see what its like! [:)][8D][:D][^][?][:O][8)][|)][:P][;)][alien][X-)][%-)][(-D][swg][{(-_-)}]
Never too old to have a happy childhood!
QUOTE: Originally posted by doghouse Zardoz, how much for a candy apple red paint and a set of twice pipes?
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Originally posted by ndbprr Due to tax law and general bookkeeping requirements most railroads do not buy their engines. They lease them from companies that own them. I have an MBA and the logic is way beyond my understanding but there is a financial advantage to operating in this manner. I'm missing your point here - Can you enlighten me ? I would have thought (probably mistakenly) that leasing rather than buying outright would avoid an uneven bottom line over the course of the lease ?? Reply doghouse Member sinceMay 2005 From: Where it's cold. 555 posts Posted by doghouse on Saturday, February 4, 2006 8:29 PM Zardoz, how much for a candy apple red paint and a set of twice pipes? Reply zardoz Member sinceJanuary 2003 From: Kenosha, WI 6,567 posts Posted by zardoz on Saturday, February 4, 2006 4:46 PM It also depends on the options selected. DVD player costs about $300 due to anti-vibration housing Wide-screen tv costs about $2000, for the same reasons Leather recliners are included if you get both the dvd and tv On-Star is not available on anything except a GM product Airbags and anti-lock brakes are not available Convertible top costs over $10,000 (not available in Canada) Glasspak exhaust system not available in California Reply Anonymous Member sinceApril 2003 305,205 posts Posted by Anonymous on Saturday, February 4, 2006 4:37 PM I THINK A NEW SD70MAC COST ABOUT 2.2 MILLON Reply Edit traintownofcowee Member sinceJune 2005 From: Franklin, NC 166 posts Posted by traintownofcowee on Saturday, February 4, 2006 3:11 PM Railroads must be one the most richest companies in the world. Prices of locomotives, rolling stock, track, stations, buildings, m.o.w. equipment, equal a lot of cash! Owning a railroad isn't easy. Makes ya wonder how they did it then, and what if we can do it know? You should play Railroad Tycoon 3 to see what its like! [:)][8D][:D][^][?][:O][8)][|)][:P][;)][alien][X-)][%-)][(-D][swg][{(-_-)}] Take a Ride on the Scenic Line! Reply samfp1943 Member sinceJune 2003 From: South Central,Ks 7,170 posts Posted by samfp1943 on Saturday, February 4, 2006 12:45 PM QUOTE: Originally posted by ndbprr Due to tax law and general bookkeeping requirements most railroads do not buy their engines. They lease them from companies that own them. I have an MBA and the logic is way beyond my understanding but there is a financial advantage to operating in this manner. So a railroad may have 100 million dollars in lease payments per year rather than a capital expenditure of 100 million dollars. As the engines get bigger the expenditure stays the same so figure they are willing to spend so many dollars per horsepower rented. The leases typically last fifteen years at which time both companies have to start anew lease since the engine is fully depreciated. It will be interesting to see how many of these monsters wind up in the scrap yards at the end of their leases since shortline and class 2's have very little usage for them. To get to your original question probably more than a million dollars per engine out the door in the paint of your choice subject to gadgets and doodads specific to your railroad. Just a little dip in the convoluted sea of tax law, not only do a lot of corporations do leasing deals on their equipment, they fund[ and/or control] the subsidiaries that do the leasing. It is mostly about taxes and insurance liabilities. The layering provided by the introduction of a second party in such deals protect the major player against the eventuality of a "legal situation" that might arise in the case of an accident. Not to mention the advantages of the tax write-offs for expenses of operation of said equipment. Off topic: In some cases, large corporations that are 'self-insured' hire another firm to administer their liability, thus ducking some exposure to the risks of malactions by their officers, employees or equipment, thus some expenses can be charged of as operational expenses for doing business . Reply 12 Join our Community! Our community is FREE to join. To participate you must either login or register for an account. Login » Register » Search the Community Newsletter Sign-Up By signing up you may also receive occasional reader surveys and special offers from Trains magazine.Please view our privacy policy More great sites from Kalmbach Media Terms Of Use | Privacy Policy | Copyright Policy
Take a Ride on the Scenic Line!
QUOTE: Originally posted by ndbprr Due to tax law and general bookkeeping requirements most railroads do not buy their engines. They lease them from companies that own them. I have an MBA and the logic is way beyond my understanding but there is a financial advantage to operating in this manner. So a railroad may have 100 million dollars in lease payments per year rather than a capital expenditure of 100 million dollars. As the engines get bigger the expenditure stays the same so figure they are willing to spend so many dollars per horsepower rented. The leases typically last fifteen years at which time both companies have to start anew lease since the engine is fully depreciated. It will be interesting to see how many of these monsters wind up in the scrap yards at the end of their leases since shortline and class 2's have very little usage for them. To get to your original question probably more than a million dollars per engine out the door in the paint of your choice subject to gadgets and doodads specific to your railroad.
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