So You Own a Railcar...

In theory I just inherited a small company.

  1. 50 “Plate C” and “Plate F” 50’ boxcars (25 of each type)…

  2. 50 of the 4,427 cu ft, 3 bay covered type. Half are lined, half are not.

  3. On my property (adjacent to a Class 2 served by 3 Class 1’s at the Class2’s interchange points) I have several tracks large enough to accomodate up to 50 cars and a trackmobile to move things around independant of the Class 2.

The company I inherited used to have contracts to haul commodities with about half of it’s fleet of cars in captive service between two points. Those contracts are now expired and the entities the contracts were with are no longer around. The other half of the cars were on standby at the home facility. All cars are serviceable and have 10 years of interchange life left. The previous owner’s goals were to increase utilization of the fleet to 80%.

Now what?

Uh, sell?

Do you know any shippers that might find the cars useful? I you friends with any Class 2 railroad executives. or Class 1 or whatever? Personal friendships may prove useful to maximumize your income on whatever deal you can arrange.

Cut the 4427s down into 2-bay cars, put them into frac sand service. Or see if you could run them as is.

Sell the boxcars.

With cars having only 10 years left, not too many options.

Scrap & run - you know nothing about the business you inherited.

Contact one of the rail brokers that advertise in Trains and see what they will do from ‘as is’ ‘where is’ point. Assuming you know very little of the railroad business, don’t second guess or you’ll end up in a money pit. You can also deal on the sale of the rail and ties for salvage. Take lots of pictures, save a spike or two for the family and maybe a few old ties to line the driveway then sell it all, you’ll sleep better at night.

4 W’s and how > Research exhausively leave no stone unturned… The potential is there for whatever you decide…

I myself would seek as much knowledge as possible… There is nothing wrong with creating a shortline…

If not possible then seek Sterling or some other business to devest yourself of everything and walk…

Good Luck; Wish I was in your shoes … A son of a railway man retired in Canada…

Read the first two words of the original post: “In Theory.” To me, this means that the OP is just playing a “What if” game and has not inherited anything at all, especially not railroad rolling stock.

cacole is correct. I was hoping to spark a bit of a conversation from the perspective of a person who has interest in making what fell in their lap work - but with not much knowledge of how to do that.