more stupid questions

[Anonymous]

#1- How do Railroads figure horsepower-hours owed?

#2- If an overseas customer ships a container to say Port of LA but it has to go through 2 or more carriers by rail how is the shipping rate divied up?

#3- Why do Railroads lease locos- is it based on needed power when business is high or trying out a model before purchasing outright?

#4- How do Railroads figure a loco has paid for itself- say a Dash-9?

[CSSHEGEWISCH]

Short-term leasing is usually just for getting extra power when business is good or when too much of your own power is unserviceable (see MILW in the 1980's).

Long-term leasing is an alternative to direct ownership of the locomotive and is not an uncommon practice in the transportation business. This is usually driven by tax or other financial considerations.