Locomotive Leasing

Would a railroad, whether a class I, II or III lease an engine to a customer so they cuuold switch within their facility if the customer does not want the railroad to do it.

Why not? As long as the RR doen’t need the locomotive and it fits the customer’s needs. Anything can happen or be done if needed or warrented or wanted.

It is frequently done - what the terms are, I have no idea.

The in plant switching is something that the carriers charge for - from the customers side, leasing the engine and doing their own switching is more economical than paying the carrier intra-plant switching charges.

As info - a customer is allowed one spotting of a car in their normal freight charges. All moves to other spots in the plant beyond the initial spotting would accrue a intra-plant switch charge.

Could the plant go with HLCX or FURX for an engine rather than BNSF/UP etc. Anyone know if that would be the less expensive route?

Depends on the plant, the plant’s needs, the engine, the engine size, the application, the deal that can be arranged between the leasee and the leassor. And who had a bad time at breakfast that morning.

There are several advantages to doing so (being able to move cars whenever you want) and several disadvantages (you must buy/lease the tracks and you are responsible for maintenance on them and a locomotive, which may not be your thing) . I recall the big Cargill plant in Bloomington IL, on the remaining 2 miles or so of the former Jacksonville district (and the main reason the main yard and yard engine were there at all) did so in the late 80s, ICG and then a regional switched it twice a day, each time bringing in around 5-7 cars and leaving with the same number. Cargill bought the tracks in their plant and the end of the main line, rebuilt several tracks and extended what was left of the main about half a mile, and then leased an antique switch engine from RELCO, an Alco S1 I think (that I recall had a freehand-painted cardinal on the side from a previous leaser). It meant they could spot cars themselves anytime they wanted, and didn’t have to wait for ICG or the regional to rebuild some tracks closed due to derailments. One of the plant employees ran the engine.

Red Trail Energy here in Richardton has two locomotives. The first one they leased was far too small, so they leased a different one hand had it painted red with their name on it. After awhile they leased a second locomotive in the old BN Green.

They have more than 4 miles of track that they laid and it is switched by BNSF off the old NP mane lion.

They are as you say responsible for their own tracks, and the leasing company does the major maint and insp on the locomotives. The do have to hire an engineer to move them about.

It is their responsibility to have the cars ready for movement by the railroad, but the railroad of course always inspects them before moving them. If it is a few cars, the conductor does the inspection, if there are many cars, they will send a car knocker out to do the inspections.

ROAR

Customers are normally responsible for track maintenance for all track beyond the clearance point of their switch that connects to the carrier. Be that 200 feet or 10 miles and 100 switches within the confines of the plant area. There are numerous outfits that perform track maintenance - for a fee.

And does the person running the engine have to be a certified engineer?

Also depends on what’s in the railroad’s ‘stable’, and what the customer needs. For example, low-HP 4-axle end-cab switchers or GP units are far moe plentiful from leasing outfits than from Class I’s.

On private property the only qualifications required are those of the private property owner. The leasee is responsible for any damage that occurs to the leased engine.

Only times I can recall my outfit leasing out engines - it was just for short term emergency situations. Either an industry’s/shortline only engine went belly up on them, or a new outfit needs to switch its customers before their own power is delivered. Stuff like that. I can’t imagine it is cheap.

I’ve also seen where an industry’s engine craps out on them, a local crew will do the intra-plant switching for them. Again, I’m sure it costs a pretty penny, but you gotta pay to play.

Helm leasing, GATX, EMD, (the old power by the hour guys) LLPX, lots of companies lease locomotives on both short and long term leases…railroads do lease their power, but as a rule they tend to try not to, the abuse a plant subjects the power to is outrageous…although the PTRA will lease a crew and locomotive as a package deal.

In privately owned railroads that don’t haul people, the engineer can be anyone who figures out how to move the locomotive…although OSHA, depending on the commodity, may require the engineer to have some training.