What kind of expense is involved with acquiring new or used railroad cars or locos?
I’ve been in model railroading for years and read most every publication available to the general public, and I’ve never heard/read how much a new GE or GM locomotive cost to buy or lease. Same goes for cars new and used. Most modelers create their own little railroad empire and often say that his/her railroad run on a shoestring and must purchase old first and second generation diesels and old shabby cars. But what kind of money would a small short line have to pony up to equip their railroad. I understand any values would be ballpark figures, but it would be nice to be in the park.
Our local shortline, CRANDIC (Cedar Rapids and Iowa City) has some used diesel locomotives for sale on their web site:
http://www.crandic.com/equipment/
I was surprised at the prices - $112,000 to $125,000 - somehow I thought they would be higher. Gee, maybe I’ll make them an offer!
As a retired shortline executive who has also been involved in startup proposals, here is what you are looking for: New GM or GE loco: $1.3 million to $2.2 million (AC costs significantly more than DC). Used GM loco $100,000 to $500,000. Rebuilt GM loco $500,000 to $1 million. Used Alco’s or GE’s $50,000 up. Freight cars start at around $65,000 and could go as high as $150,000.
Most short lines lease them from GE Railcar, who will offer the cars free to the short line and then collect the car hire payments from the other railroads, subject to a minimum guarantee.
I ahve been retired for two years, so there may have been some changes. For example, right now, the carbuilding business is literally in the toilet, so prices may have gone down. Used locomotive prices vary widely by demand - it is an auction market like crude oil.
Thanks for the information.
If you want to read the saga of an individual that did buy a surplus,about to be scrapped, GP9 go to http://www.trainweb.org/sp5623/
Very interesting.