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$50 million per mile?

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$50 million per mile?
Posted by Murphy Siding on Tuesday, December 30, 2014 10:13 AM

     A story in the news section  http://trn.trains.com/news/news-wire/2014/12/utah-drops-plan-to-build-new-oil-field-railroad   says that a Utah oil railroad proposal has been dropped.  It would have been a 100 mile, $5 billion project.  That's $50 million per mile!  The article mentions 2.4% ruling grade, an 8 mile tunnel and several dozen bridges.   Can this be right?  Can a rail line cost $9470 per foot?

       The good news, I suppose, is that the folks involved figured out it didn't make economic sense to pursue this before spending a gazillion dollars.

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Posted by Murphy Siding on Tuesday, December 30, 2014 10:14 AM

Miracle of miracles- I somehow managed to get the link to light up. Cool

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Posted by Deggesty on Tuesday, December 30, 2014 10:50 AM

Murphy Siding

     A story in the news section  http://trn.trains.com/news/news-wire/2014/12/utah-drops-plan-to-build-new-oil-field-railroad   says that a Utah oil railroad proposal has been dropped.  It would have been a 100 mile, $5 billion project.  That's $50 million per mile!  The article mentions 2.4% ruling grade, an 8 mile tunnel and several dozen bridges.   Can this be right?  Can a rail line cost $9470 per foot?

       The good news, I suppose, is that the folks involved figured out it didn't make economic sense to pursue this before spending a gazillion dollars.

 

Norris, thanks for posting this. I saw the news that the planners woke up to reality several days ago, and intended letting us all know--but by the time I moved over to my desk I had other things on my mind.

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Posted by diningcar on Tuesday, December 30, 2014 10:53 AM

A new RR line through very rough topography can be very expensive construction. Then you add the ROW acquisition costs along with the litigation and its associated delays; the time value of money and necessity to be able to pay your bills on time comprise probably 85% or more of the $50 million.

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Posted by tree68 on Tuesday, December 30, 2014 11:03 AM

I would opine that the bulk of the cost would have been tied up in that eight mile tunnel and other engineering challenges.  Grading roadbed and laying track would be much less as a part of the overall project.

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Posted by cx500 on Tuesday, December 30, 2014 11:43 AM

In difficult terrain it sounds to be in the ballpark.  CPR's Rogers Pass Project from 30 years ago cost $500-600 million dollars for 21 miles of new alignment.  Nearly half the distance was in two tunnels (1 and 9 miles respectively).  However with various bridges and retaining walls the open section cost close to the same as the tunnels.  Factor for 30 years of inflation and the number looks pretty comparable.

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Posted by BaltACD on Tuesday, December 30, 2014 11:48 AM

Tunnels and Bridges have never been cheap!

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Posted by mudchicken on Tuesday, December 30, 2014 12:53 PM

Add to that that the San Pete and Thistle entries to the old DRGW Marysville Sub are roaded over or cut-off entirely, so there it goes. Johnny can always hope the Vernal extension happens (nobody ever quite got there yet, although Horace Sumner had Tom Milner survey a line in that direction from the D&SL railhead at Craig. Moffat was out of $$$ and died shortly thereafter.)

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Posted by Deggesty on Tuesday, December 30, 2014 2:00 PM

I don't comprehend why MC's 11:54 (MT) post does not appear in my Trains forums website, but I did get it in my email.

As to David Moffat's desire for the Denver and Salt Lake Railroad to reach Salt Lake City, it would be just as prohibitively expensive, relatively, today as it was when he ran out of money. As it is, it is 108 miles, by US 40, from Craig, Col., to Vernal, Utah. I doubt that a decent railroad could be built in that distance. Having driven from Carig to Vernal once, in 1974, I do not remember much of the road; I only remember that it is mountainous.

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Posted by Paul_D_North_Jr on Wednesday, December 31, 2014 9:52 PM

So bring back the Uintah Railway - 3 ft. gauge, 66-degree [91.8 +/- ft. radius] curves, 7.5% grade - Shays and simple articulated steam locos, etc.* - what's not to like ? Smile, Wink & Grin

* http://en.wikipedia.org/wiki/Uintah_Railway 

See also: http://utahrails.net/utahrails/six-county.php 

http://www.udot.utah.gov/uintabasinrail/index.html 

http://www.udot.utah.gov/uintabasinrail/library.html 

http://www.udot.utah.gov/uintabasinrail/faq.html

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Posted by mudchicken on Thursday, January 1, 2015 1:28 AM

Tom Wigglesworth and the Colorado Midland found a saner way in 1886, but ran out of $$$$.

 

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Posted by Paul_D_North_Jr on Thursday, January 1, 2015 6:04 AM

Good thing Utah "looked before they leapt" into a deep pit of expenditures (not quite bottomless . . . ) - that's what competent consultants (HDR in this instance) are for.  Cost a lot of money for all the studies and EIS so far, but that's small change compared to the estimated cost and possible overruns . . . Whistling

Although, while not looking worthwhile right now, if/ when the price of crude oil ever gets back up to the $150 per bbl. range again, it might be economically feasible.

The way these price/demand-supply cycles work, if they started now, it might be completed by the time that happens !

Or, to paraphrase what someone else said about another railroad not too far away: "Gentlemen, either we built this line 100 miles too far, or 100 years too soon." (San Francisco financier Darius Ogden Mills, July 12, 1883, of the Carson & Colorado - 300 miles/ 300 years instead, as quoted in American Narrow Gauge Railroads by George W. Hilton, 1990, pgs. 438-440; see also: http://www.daytonnvhistory.org/cc_history_llc.pdf , pg. 2).

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Posted by erikem on Saturday, January 3, 2015 12:02 PM

Paul,

Thanks for posting that link to the Dayton History website, it was an interesting read and brought back a lot of memories. One disagreement with the pdf was that the V&T was more of an active shortline railroad as opposed to being a "tourist road" (e.g. see The Silver Short Line by Wurm and Demorro).

Memories include seeing some of the C&C rolling stock by the Nevada state Capitol building when I lived in Carson City. I was amused when an ad for a model of one of the cars said it was parked next to the Governors Mansion, which I went by twice a day on my way to/from the Jr High in 7th grade - we had moved to San Diego when the ad appeared. The familiy travels between Southern California and Carson City almost invariably took us through the Owens Valley.

More recent memories involved a camping trip along the C&C ROW between Keeler and a few miles north of Montgomery pass. This was with some OERM buddies after we finished the building for housing Ward Kimball's 3 ft gauge collection, where several of the cars were from the C&C. I would have loved to take a ride over the Montgomery pass line, but the abandonment took place 16 years before I was born.

In terms of difficulty, the San Diego & Arizona line was a bit closer to the proposed Utah line, especially if it was kept entirely within the US.

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Posted by locoengineer on Monday, January 5, 2015 5:49 PM

Generally the cost is $1 million a mile. depending of course on the grade and route.

 

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Posted by Paul_D_North_Jr on Monday, January 5, 2015 9:09 PM

That's usually the figure for the track structure only - rail, ties, ballast, and fasteners/ accessories (maybe the subballast, too).  It does not include the earthwork / grading (clearing, cuts and fills), culverts, bridges over or under, tunnels, special grade crossings of roads or other railroads, signaling, service and support facilities, etc., etc. - nor the 'soft' costs such as engineering, permits, legal, financing, etc. 

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Posted by diningcar on Monday, January 5, 2015 10:04 PM

And lets not ignor the Right of Way acquisition costs including, at times, legal costs and delays because of reluctant sellers.

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Posted by Boyd on Tuesday, January 6, 2015 2:26 AM

Plus you gotta buy a few engines and cars,,, otherwise your building a bumpy unoffidial bike path.

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Posted by BaltACD on Tuesday, January 6, 2015 7:26 AM

When CSX reinstalled double track on the railroad between Sherwood, OH and Pine Jct, IN to facilitate the ConRail acquisition in the late 1990's - the cost was approximately $2M a mile of track that was reconstructed and the crossovers that were installed - this was track & signalling to permit 79 MPH passenger operations.  The reconstruction did not have any land acquisition costs or the necessity to build an significant bridges or tunnels.

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Posted by cx500 on Tuesday, January 6, 2015 10:40 AM

To add on to Paul North's comment, I rather suspect that while the one million dollars per mile is a useful starting point for the "track only" part, I believe it is mostly used for secondary tracks.  Lighter rail (often 2nd hand) and relatively easy logistics for getting material and manpower to the site.  Turnouts will be an extra cost item.  It assumes the trackbed is ready and waiting.

The number is very useful for bringing a dose of reality to folks casually thinking of adding tracks into their facility.  They are used to having road infrastructure provided at minimal or no cost.  Rail access sounds "nice to have" in the concept stage.  When faced with real cost, the actual expected use is revisited and often found to be minimal.

If the desire is still to build rail access, then a serious effort will be made to produce a more accurate estimate.  That costs time and effort on the part of somebody (often the proposed contractor) so he wants to weed out the naive requests early.

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Posted by jarodlan on Tuesday, January 6, 2015 2:38 PM

What about the BNSF Abo Canyon double track project. Anyone knows of any figures for that? Being only a few miles, the cost per mile would still be an indication.

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Posted by diningcar on Tuesday, January 6, 2015 3:16 PM

jarodlan, good thought but will be a complicated response if the correct total cost can be obtained.

First there was substantial delay and expense because of resistance by a few interests. The legal fees for this may not be attainable; and any costs attributable to mitigating settlements with some of these interests may be sealed. The 'time value' of the dollars spent in this permitting process should also be added.

The costs associated with constructing this second track in very difficult terrain while keeping the current adjoining track operating in what can be 100 trains per day on this southern Transcon makes this project very unique. Its cost(s) are not likely to be comparable to anything like the project which began this discussion.  

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Posted by mudchicken on Tuesday, January 6, 2015 6:32 PM

$85 Million to $118 Million for Abo Canyon, depending on who's bragging about a 4.5 - 8.0 mile long project......IIRC, there is a huge new mountain that looks like a loaf of bread to the north of the canyon containing the waste material excavated from the cuts and widening of the original grade named for SP Location engineer Abo that died there long before ATSF finagled the 1905-1908 Belen Cut-Off.

Mudchicken Nothing is worth taking the risk of losing a life over. Come home tonight in the same condition that you left home this morning in. Safety begins with ME.... cinscocom-west
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Posted by Paul_D_North_Jr on Tuesday, January 6, 2015 9:14 PM

mudchicken
[snipped - PDN]......IIRC, there is a huge new mountain that looks like a loaf of bread to the north of the canyon containing the waste material excavated from the cuts and widening of the original grade . . .

Yep - at about these Lat./ Long. coords.: N 34 26.358' W 106 27.500'  Use an oblique view such as Bing Maps' "Bird's-Eye view" or similar on Google Earth to see it better than just a straight-down aerial or satellite view. 

Mischief Some day far in the future aliens will wonder what it is, or think it was an early 21st century burial mound . . . Smile, Wink & Grin

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Posted by David1005 on Tuesday, January 6, 2015 9:38 PM

i believe that the second main on the UP Sunset line is costing about $10 million a mile. No land cost and easy grading. Lots of crossovers and new signaling on both tracks. Work is being done under traffic.   They seem to be doing about 25 miles a year. 

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Posted by vbeach on Tuesday, January 13, 2015 1:25 AM

This is an interesting discussion to me because here in Va. Beach, Va., the City bought the NS right-of-way running from Norfolk to the the resort area and have been discussing running light rail on it.  The cost figures being kicked around are in the range of $400Million and this is for about 12 miles along the line that NS ran freight trains on just a few years ago and that track is still there although it needs to be upgraded.  The line is straight and flat with one bridge structure that is still there.  Why should that be so much more expensive?

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Posted by BaltACD on Tuesday, January 13, 2015 10:55 AM

Urban area will probably cause multiple utility relocations for a electrically powered light rail operation as well as governmental spearheading of the project as opposed to private investment money.

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Posted by samfp1943 on Tuesday, January 13, 2015 11:45 AM

BaltACD

Urban area will probably cause multiple utility relocations for a electrically powered light rail operation as well as governmental spearheading of the project as opposed to private investment money.

 

Been reading back in this Thread, and in particularly, the ABO Canyon Project Costs from $85 million to $116 million, total costs for this project.  As was previously mentioned..BNSF suffered some legal expenses with the Project from Local types who were afraid that they were being 'infringed upon(?)'. 

To build anything in the enviornment of today's society, with its burden of Regulations, and their EIS statements; legal expenses are as much a part of the compleation of large projects. Costs can mean abandonment (and subsequent remediation?) or huge,over-runs to get to the finish. 

 When one of these projects is authorized, does the 'Team' include legal counsels, as well as engineers?  Does the initial costing of a project contain projections for legal expenses also?  Is there a formula for that sort of calculation?

 

 

 


 

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Posted by Paul_D_North_Jr on Tuesday, January 13, 2015 7:15 PM
  • vbeach
    This is an interesting discussion to me because here in Va. Beach, Va., the City bought the NS right-of-way running from Norfolk to the the resort area and have been discussing running light rail on it.  The cost figures being kicked around are in the range of $400Million and this is for about 12 miles along the line that NS ran freight trains on just a few years ago and that track is still there although it needs to be upgraded.  The line is straight and flat with one bridge structure that is still there.  Why should that be so much more expensive?
  • Track upgrading as mentioned  
  • Adding 2nd track or passing sidings
  • Stations
  • Utility relocations for all of the above (per BaltACD)
  • Drainage improvements for the tracks and station - occasional even minor flooding won't be tolerated as much
  • Cars & locomotives
  • Signaling both tracks/ sidings, plus new grade crossing signaling, including for pedestrians
  • Service facilities for the equipment
  • Electrification
  • Etc.
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    Posted by Paul_D_North_Jr on Tuesday, January 13, 2015 7:38 PM

    samfp1943
    [snipped - PDN] . . . When one of these projects is authorized, does the 'Team' include legal counsels, as well as engineers?  Does the initial costing of a project contain projections for legal expenses also?  Is there a formula for that sort of calculation? 

    6% to 16% of the project's 'hard' costs (actual construction) is common for these 'soft' costs - legal and engineering - 'depending on':

    • Unusual engineering work, such as a large bridge or tunnel, extensive aerial structures, poor soil or groundwater conditions, relocations of major roads or other facilities, etc.
    • Fees for financing bond issuance and/ or loans and grants and special legal counsel for same
    • Special legislation / laws / ordinances at the state or local level
    • Special or difficult permits, such as for wetlands, Coast Guard for bridges over navigable waterways, changes to major roads ("Highway Occupancy Permits"), etc.
    • Unanticipated / extra costs of right-of-way acquisition and related work, such as building demolition, when the property owner disputes the right/ power to do same, and/ or the amount of "just compensation"  
    • Environmental issues (contaminated sites) in the way of the project
    • This is a biggie: Claims and disputes for extra money, more time, or about quality/ quantity of the items of work, etc., by any of the many contractors and subcontractors on the project, or a defaulting contractor (performance bonds).  Also, if there is an insolvency/ bankruptcy by a major one, dealing with those claims and payments is an added burden (mechanic's liens or payment bonds, etc.).  Likewise, a major failure/ accident/ injury or defect in the work can add time and money to fix the problem and get to completion (insurance claims).
    • Labor disputes and provisions, such as "project agreements" for all the unions on the job.

    For example, for land development and subdivisions, Pennsylvania law allows the local government to add 10% for these kinds of costs (engineering, inspection, and legal) for an escrow account, letter of credit, or performance bond, etc., to the estimated cost of the work - which is supposed to be fully engineered and ready-to-build at that point - subject to adjustment later on for actual expenditures, and a refund of any left-over amounts. [Pennsylvania Municipalities Planning Code, Section 509 (f) ]. 

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    Posted by vbeach on Wednesday, January 14, 2015 2:08 AM

    The project in Va. Beach would extend the light rail line that Norfolk already had built to the west edge of VB along the previous NS right-of-way.  They already have the light rail cars in use along with the maintenance facilities for them.  The existing crossings in VB already have the signals that NS installed and some of the 12 mile stretch has sidings in place and a fair amount of the track was in use by NS up to just a few years ago for freight trains.   

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