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[quote user="CMStPnP"] [quote user="Sam1"] In 2009 Amtrak's average cost per gallon of diesel was $1.85.  In 2013 its average cost of diesel was $3.32 per gallon.  This is an average increase of 79.5 per cent over the period covered. Over the same period of time the CPI increased by approximately nine per cent.  Amtrak uses fuel hedges to smooth the cost of its fuel, where it can, and does not pay the rack rates.  The dramatic run-up in its fuel costs is explained in part because several of its advantageous fuel hedges expired.  The same thing happened to Southwest Airlines, as well as a number of other transport companies. [/quote] Except that the locomotives for the Heartland Flyer do not burn Diesel Fuel they burn a tallow fat by product from a Cattle Slaughtering firm in Ft. Worth. Further, isn't most of this equipment past it's Accounting recognized "useful life".    If so, why do you keep mentioning Depreciation? [/quote] The numbers re: diesel were a rebuttal to a comment made by Payne re: Amtrak's diesel costs.  I did not say anything about diesel in the Amtrak Texas analysis.   Presumably Amtrak is paying for the tallow fat by-product. In any case, Amtrak does not set out the fuel cost per train. Irrespective of what its two P42 locomotives burn, in FY13 the Hearland Flyer lost 24 cents per passenger mile, compared to 15.3 cents per passenger mile in FY09.  Restated in constant dollars, the loss in FY09 was 16.7 cents per passenger mile. It had the fifth highest loss per passenger mile of the 28 short distance trains, which had an average loss per passenger mile of 8.9 cents before capital charges. Amtrak uses straight line depreciation for all of its assets. Locomotives, cars, and other rolling stock are depreciated up to 42 years. It appears that the three Amtrak trains serving Texas still wear some capital charges (depreciation and interest), although the amounts probably are small.   On my recent trips on the Eagle, I have seen three cars and one locomotive that were rebuilt with ARRA funds. Whenever equipment is rebuilt, as long as the outlays for the rebuild meet the relevant accounting rules, the cost is capitalized,and the depreciation life cycle is adjusted. Amtrak capitalizes all equipment overhauls, which means that the depreciation life is extended. The rebuilt equipment, at least, is wearing some depreciation. Although I don't have access to Amtrak's property records, I was able to obtain information from another source regarding the capitalized cost of the equipment on the trains serving Texas. Taking a conservative approach, I estimated the capital charges for the Texas Eagle, for example, as 38 basis points of the Total Costs Excluding OPEBS.
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