Eight mill. per motor? Yikes! Wouldn't it be cheaper to buy some QJ 2-10-2's from the Chinese? Amtrak trains would be a heck of a lot more colorful! Besides you know what they say: "Call it transportation and people go 'ho-hum'. Call it a RIDE and you have to fight them off!"
The locomotives will be capitalized in locomotives under Property and Equipment. The capitalized amount will include the cost of the equipment. less any discounts, as well as transportation and insurance costs, until Amtrak accepts delivery of the locomotives. Training costs and interest costs will also be capitalized. It appears that Amtrak will own the locomotives, at least initially, given the loan from the FRA, but it may subsequently organize a sale and leaseback.
The maintenance facility probably will be capitalized in Right-of-way and other properties. The cost of constructing it, i.e. labor, materials, and overheads, along with make ready training costs and interest associated with the construction will be capitalized.
The time frames and costs appear reasonable, but one would need a lot more detail than Amtrak makes available to draw a final conclusion.
"Amtrak projects that improved ticket revenue from more reliable locomotives can fund the debt service payments to repay this loan." This strikes me as a bit of a stretch. I would like to see the methodologies that Amtrak used to make this projection. As a rule, going out more than a couple of years on a revenue projection is dicey at best.
I'm not sure that maintenance costs are being capitalized. Including a facility, training and parts in the upfront cost does not appear out of line. Note that Amtrak's own labor costs and the cost of maintaining the facility are not included.
Amtrak announced full financing for 70 Electric motors for the NEC by a RRIF (Railroad Rehabilitation & Improvement Financing) loan from the FRA. Total amount is $562.9M consisting of $465.9M for the motors and $97M for maintenance facilities, training, and 10 (?) yrs of spare parts. Operations are expected to begin in 2013. Note; Amtrak has already listed the down payment for this and the 130 Single level cars into their monthly performance report for April.
Works out to ~~$8.04M per unit. Appears to this poster that as much maintenance costs as possible are being including into capital costs. SAM1 how does that strike you?
The motor model is to be called an ACS-64 (Amtrak Cities Sprinter) and will be built by Siemens Mobility mailly in Sacremento but some work in Norwood, Oh and Alpharetta, Ga. Top speed listed as 125 MPH on NEC and 110 on Keystone route. Other specifications were not noted but we should soon find out.
As has been posted there has been several volage problems lately on the NEC from NYP - WASH. A review of monthly reports of Sep 2010 shows regular capital program of Freq converters of $2.2M and substations of $5.3M. ARRA funds FY 2010 for Mutuchen,Jericoh, Ivy City, Lamokin freq converters $116.4M. Transformers and substations of $21.1M.
FY 2011 projections thru Sep Regular budget converters $3.9M substations $8.6M. ARRA funds $123.5M for converters. Transformers $17.2M.
Appears that this work on converter stations and substations (transformers as well) is in anticipation of additional power requirements by 2013 for Amtrak, NJ Transit (ALP-45s -46s) some Septa and Marc.
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