Shortline Sammie Wrote:
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> 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

Yeah I'm not sure if its $550 per day or just days they use it. I would imagine they are getting some subsidy from the state for the cost of the genset because they were forced to use it by Novato. There must be some break for them because this unit is a demonstrator and they are planning on purchasing the unit last I heard.

John Williams (CEO or whatever title he gives himself) of NWP has stated and planned for up to a couple years of running in the red knowing it will take time for customers to invest in a spur ad the railroad after 15 of terrible or no service.