Purchasing Rail Line

Trains.com General Discussion (Trains.com)
1

I have been looking at expansion plans for Amtrak and Metra (Chicago Commuter RR) and I decided to mess around with some expansion plans of my own.

After looking on some of the forums on here I have deducted that the cost/mile to purchase track (good condition, decent amount of traffic currently) would be between $150,000 and $300,000 per mile. I am looking at about a 130 mile stretch between Joliet, IL and Peoria, IL via Ottawa. Track is owned by CSX and Iowa Interstate.The section in question also has connections to Metra owned track as well as: Union Pacific; Canadian National; Illinois Railway; Iowa Interstate; BNSF; Toledo, Peoria, & Western; maybe one or two more as well (according to a 2012 IDOT map).

So, purchase estimations are $1,950,000 and $4,550,000…

In saying all of that, does anyone know how much money could be brought in from immediately after purchase, leasing trackage and/or haulage rights along that stretch?

2

Better raise your estimate. Your original guess would get you 15 miles, maybe.

Then there’s the little detail that the people who own it probably don’t want to sell. Even if you show up with an armored truck loaded with $50M worth of gold bars, if it’s already being operated at a profit the CSX and Iowa Interstate folks would laugh you out of the building.

The only practical way to buy an operating rail line is the way Warren Buffet did it. Buy the whole railroad. Got several BILLION you don’t have a better use for?

Sorry to be the pin-pusher for this dream balloon.

Chuck

3

Well thanks for the honesty. I really had zero idea how much it would cost…