Locomotive Leasing/Loaning Mixed Roads

[Isambard]

Looking out our club windows on the CP and CN mainline tracks just across the lane, we've seen a number of interesting loco consists this past week, one in particular being a CN triple-headed freight, the consist being CN leading then CP followed by BNSF (green and orange). Unfortunately being a steam guy I don't know the types, they all look the same to me.

What are the leasing/loaning arrangements that the roads and leasing companies have that allow the easy movement of locos from one to the other - e.g. standing or ad hoc agreements, agreed rates, power by the hour, pay dollars or repay hours by loan the other way etc. Who has responsibility for routine and major maintenance and cost? Where these locos cross borders e.g. U.S./Canada/Mexico what are the customs and tax implications? Is there a clearing house for what must be a a very substantial level of activity? 

 

 

[nbrodar]

Short terms leases between roads are tracked by horsepower hours.   These leases can be handled with dollars, but are usually paid with return horsepower hours. Routine maintenance is the responsibility of the leasing road.  Units are normally returned to the owning road for major maintenance. 

Short term leases involving leasing companies can be tracked by straight time or horsepower hours.   These leases are settled with dollars.  Responsibility for maintenance is covered by the lease agreement.  Usually, routine maintenance is covered by the leasing road.

Each road has a section within it's Power Bureau that handles leasing agreements, and tracks horsepower hours and other costs.

Nick