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Re: Mccon job offers to buy Mt Hood SLRG to run out of cash by October
Author: Smart
Date: 09-02-2020 - 14:22
Shortline Sammie Wrote:
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> 3.2 million is INSANE! We looked at it right after
> Hood River County placed the lien on it a year ago
> and when you consider track condition, grade
> crossing signal maintenance and FRA bridge
> inspection requirements along with operating on
> the switch back our value came up between $722,000
> and $812,000 especially since you have to come up
> with motive power.
>
> Dick Samuels
> Oregon Pacific Railroad
If I recall correctly, when the founding group wanted to sell in 2008? they were asking $800,000. As part of my due diligence, I compared the revenue per mile (at least what I could find) to industry standards and found the MHRR was significantly below industry standards. Ellis's group did increase freight traffic and got into a lot more special events with the passenger side, so I assume they increased the revenue somewhat, but I wonder enough to make the railroad profitable? I thought it would be a real stretch to make it work, so I did not put in offer for it.
-------------------------------------------------------
> 3.2 million is INSANE! We looked at it right after
> Hood River County placed the lien on it a year ago
> and when you consider track condition, grade
> crossing signal maintenance and FRA bridge
> inspection requirements along with operating on
> the switch back our value came up between $722,000
> and $812,000 especially since you have to come up
> with motive power.
>
> Dick Samuels
> Oregon Pacific Railroad
If I recall correctly, when the founding group wanted to sell in 2008? they were asking $800,000. As part of my due diligence, I compared the revenue per mile (at least what I could find) to industry standards and found the MHRR was significantly below industry standards. Ellis's group did increase freight traffic and got into a lot more special events with the passenger side, so I assume they increased the revenue somewhat, but I wonder enough to make the railroad profitable? I thought it would be a real stretch to make it work, so I did not put in offer for it.
