Re: Can you pay the bills with inbound loads?
Author: Shortline Sammie
Date: 11-13-2011 - 18:58
Juppo Wrote:
-------------------------------------------------------
> Appendage Wrote:
> --------------------------------------------------
> -----
> > All this grain is inbound traffic, right?
> Correct
> > me if I'm wrong (as if I need to ask), but I
> > thought there was very little revenue in
> handling
> > inbound loads that originate on another line.
> Can
> > the NWP make a living handling a couple dozen
> > inbounds per week?
> >
> > 20 years ago, I lived in Novato, and could
> watch
> > the train from my living room. It was 30-60
> cars
> > on a daily basis. Yes, I counted them. Grain
> was
> > always a big part of the traffic base. The
> reason
> > it looks bigger now ("solid grain trains") is
> > because the other traffic- outbound lumber,
> > primarily- is gone.
>
> This is true about the inbound only traffic. This
> is why they need the lumber company who is going
> to use the Standard Structures spur in Windsor to
> start shipping out trans-loaded lumber. It would
> only be a few cars per week, but they would be
> making a lot more money on even 3 outbound lumber
> loads per week. (I have heard estimates of as
> many as a dozen loaded centerbeams per week out of
> Windsor, but lets keep it conservative!) The
> last train the ran on Thursday was 10 cars of
> grain. If they can keep that up they should be
> covering operating costs plus a little extra.
>
> I was having trouble finding the correct
> information on the NWP Company website about
> pricing for inbound vs. outbound loads, but it
> looks to be around $150-$200 per inbound car+$75
> per day after 2 days for unloading. This could be
> wrong though.
On this or another forum it was stated that the lease on the Railpower unit is $550 per day, whether they use it or not. How can they even think about breaking even after paying the crews, railroad retirement, fuel , track maintenance PLUS the locomotive lease?
I'm sure that they have to share the division of revenue that the UP absorbs with the Cal Northern..can't imagine that the total revenue per car doesn't exceed $400 per car split between the two carriers.
Making a small fortune in the shortline business requires starting out with a larger one!
This business plan doesn't pencil out in my book!
Dick Samuels
www.oregonpacificrr.com