Saline Branch (&AA boxcar) likely to remain just as they are

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GP30M4216
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Saline Branch (&AA boxcar) likely to remain just as they are

Unread post by GP30M4216 »


NYCMan
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Re: Saline Branch (&AA boxcar) likely to remain just as they

Unread post by NYCMan »

Shortlines, like Watco, are notoriously good about attracting customers who want to store railcars. With new FRA requirements for tank cars, there are going to be thousands upon thousands of tank cars that need to be stored for extended periods. 4 miles of track can hold somewhere around 320+ railcars for storage. While storage rates vary, I've heard of rates ranging from $5/day to $10/day for car storage. At 320 cars, that works out to $1600 - $3200 per DAY or $48000 - $96000 per MONTH. That ain't chump change.

An old rule of thumb (leastwise, so articles in Trains magazine have said in the last couple of years) in the railroad business is that a railroad needs 100 cars per mile per year at an average of $250 per car to break even. That is $25000 per year. Just in car storage, alone, Watco can do almost double the "break even" and not even worry about a single revenue haulage load.

Raildudes dad
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Re: Saline Branch (&AA boxcar) likely to remain just as they

Unread post by Raildudes dad »

Tanks command a premium especially if they are placarded loads. Empties go for less and empty gons and hoppers can "command" $1 or $2. The box pictured looks like it might be a storage "facility" for MOW or signal supplies.

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