Short line for sale in 1994

Trains Magazine General Discussion
1

http://www.inc.com/magazine/19940101/2749.html

Inc. magazine ran an article about a short line for sale in 1994. They posted the name of the contact as well as a phone number if someone was interested in buying. Maybe the business climate has changed since then but it appears to me that money talks; this business about being one of the “elite” few who are able to buy into the biz sounds like a lot of nonsense.

2

A few thoughts:

  1. 1994 was a long time ago. It doesn’t seem like it sometimes, but when one starts thinking about it, a lot has really changed since then.
  2. I don’t think I’d be very keen to invest in something as big as a railroad (even a small shortline) based off of what inc.com has to say on the matter.
  3. The “elite” you mentioned has a lot of experience in the area, and gave a very good rundown on the state of the industry. Is there some reason why you’re on a personal crusade here?

Just my [2c].

3

I remember reading this ad err…article. The railroad in question was grossly overvalued and the owners knew well that a change in the rules was pending (deprescription) which would end their sweet deal with the boxcar leasing and the primary source of their profits. The cars were nearly at their 40 year limit as well.

So, sure, you could have purchased that little line and lasted for a little while, perhaps. It has indeed been a LONG time since 1994 in the short line world and much has changed. You might still find some small operator willing to sell these days, but chances are good others will have been there before you in numbers for any decent opportunities.

But, you are still missing my point that the source of the best and most numerous short line starts, the Class 1 railroads have not only turned off the tap, they are in the process of soaking up the water as well. So, no, there isn’t always an elite, but there are plenty of well qualified operators out there with chekbooks ready looking for that next opportunity. How will you compete with them?

LC

4

Hindsight being 20/20 and all, where is this line today, and just how rich did the folks who bought it in 1994 get?