How much does a boxcar cost
Bryan Cates
I have often wondered how much money a typical train Boxcar costs? I
realize there are a lot of different sizes but what is the low and the high
dollar range?
Please send me an e-mail response with the answer, my address is
"bca...@gvn.net" Thank you for your help!
Eric Jackson
In article <01bd40f9$c2518a40$6e8a3fd1@bryan>,
I think that the figure of about $80,000 comes to mind,
of course thats for a new one. From what I understand
if they are 40 years old they are worth only their
weight in scrap metal as the government does not let
rail roads use them for longer than that in interchange
service.
Tim O'Connor
Eric Jackson wrote:
>>> Bryan Cates <bca...@gvn.net> wrote:
>>> I have often wondered how much money a typical train
>>> Boxcar costs? I realize there are a lot of different
>>> sizes but what is the low and the high dollar range?
> I think that the figure of about $80,000 comes to mind,
> of course thats for a new one.
A 57 foot mechanical reefer in 1967 cost a LOT of money,
somewhere around 50 to 60 thousand. In today's dollars,
that would be around $300,000. If you're wondering why
no one is ordering any new RPL's, that is why.
I've seen prices around $60,000 for current generation
coal cars and covered hoppers. I would guess your basic
unequipped boxcar would be similar -- but no one is
buying those either. Eric is probably pretty close with
the $80,000 figure for hicube 50 foot paper boxcars.
A brand new GP40 diesel in 1966 was about $150,000. Now
a new 3,000 horse diesel would cost 10 times that much.
Which explains why the used loco market is so healthy.
The average freight car load only earns about $1,000,
and the cars are loaded an average of only about 15
times per year. Loose cars, like boxcars, are loaded
even less than that.
If a boxcar earned $2,000 per load and carries 15 loads
per year, it would generate $30,000 in revenue. But out
of that all expenses must be paid -- BEFORE you factor
in amortization of that asset. If you operating ratio
is 70, then your profit before taxes is $9,000. But
now you must factor in the depreciation of the boxcar,
the locomotives, and all your track and facilities.
Big railroads like UP earn less than 10% return on their
capital per year, and that is only because their boxcars
are OLD and already depreciated. If they owned nothing
but NEW boxcars, they'd be in even worse shape.
Byron Hartt
Try 2 dollars a pound and you will not be far off.
Bryan Cates <bca...@gvn.net> a écrit dans l'article
<01bd40f9$c2518a40$6e8a3fd1@bryan>...
> I have often wondered how much money a typical train Boxcar costs? I
> realize there are a lot of different sizes but what is the low and the
high
> dollar range?
Byron Hartt
On second thought the 2 dollars a pound is in canadian dollars.