Conductor From "The Polar Express" Wrote:
-------------------------------------------------------
> Amtrak is far from being broke. It can always
> come up with the money for whatever "pet project"
> seems to be on the front burner at the time.
> Cases in point: (1.) When Ed Ellis wanted to turn
> the long hauls into mixed trains, wasn't it
> amazing that Amtrak could instantly come up with a
> large fleet of insulated boxcars and refrigerator
> cars? Where did THAT money come from? ....


An important point to understand is that Amtrak can obtain
commercial financing (loans) for equipment that has general
market value. Therefore, it is simpler for Amtrak to obtain
financing for engines than it is for passenger cars. Why?
Because engines are engines, and aside from the HEP generators
and the gearing, these engines can be used in general revenue
service by other railroads. So, theoretically, if something
happened to Amtrak, this equipment could be sold off and much
of the value recovered.

The same was probably true when Amtrak was trying to make money
with carrying express goods. The equipment -- boxcars and
RoadRailer units -- all had commercial value. I doubt if
Amtrak bought all of the equipment outright with cash. Rather,
it probably was able to obtaining financing or leases to get
the equipment. When Amtrak got out of the head-end express
business, that equipment could be sold off or returned to the
leasing entity.

(A substantial portion of the fleets of major railroads is not
owned outright but rather is either financed over multiple years
or leased. And the fact that the equipment carries the railroad's
colors and logos is not necessarily an indication of outright
ownership.)

Long-distance passenger cars are another matter, as there is a
limited market for these, should Amtrak not be able to pay for
them. Even commuter rail cars are easier to finance because
there is a market for such used equipment, with multiple commuter
operations around the country, all of which are not likely to go
out of business at the same time. And well-maintained railcars
can be rebuilt and operated over many years.


The above comments are based on reading lots of material on Amtrak's
financial situation and discussions with railroad officials over
many years. These included officials at Amtrak and from freight
railroads.

I hope this helps.

-- Ernest