Does Rebuilding Locomotives Beat Buying New?
Ever check out the list prices of brand-new main line diesel-electric locomotives? They are expensive, about $3 million each. Are you mesmerized by the horsepower quoted? Nah! You want tractive effort. Hauling heavy, long freight trains is the North American business model. You need to purchase tractive effort.
There are cheaper capital outlay ways to buy locomotives. The lower-cost option involves stripping down older units that have good frames and rebuilding them as upgrades. It usually begins by selecting a locomotive that is about 20 years old.
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