Then when the Class 1's are short on power they buy new ones. It doesn't make sense if these engines are sitting her idle. Are these engines wore out to the extent they are useless?
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| Posted by Jrry on December 7, 2022 | |
Dale,
You make a good argument. But, Class I railroad engines put on a lot more miles in a shorter amount of time. The shelf life of a Class I is much shorter than Class III. Thus, more use means more maintenance. The cost / benefit would be to send the ''pre-owned' engines to a class III for recycled use. The short lines could run the engines back and forth for 5-10 miles a day and have minimal breakdowns and lower costs. Many short lines pay competitive wages, thus lower payroll than a Class I union shop. All of these and other considerations go into the decisions to get a brand new shiny engine at very attractive lease rates or purchase for cash from the mfr.
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And of course there is the write off on new engines which makes better sense. Another factor to consider the modeling world seems to follow the trends big railroads make. And because of all the fallen flags there is little to choose from.
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