by metrarider
Hambone wrote:Ok, how can the cost of a brand new locomotive be cheaper than just overhauling an existing unit? All you have to do is gut it, put in new components. No new steel, everything is still there.Cost of purchase of a new loco is more than a rebuild, but operational costs will be lower in the newer locomotives. At some point an old loco costs more in lost time and maintenace/operational costs such that it becomes uneconomical to continue operation. Otherwise all transit agencies would be running their E&F units 10 rebuilds later. I might add the 40C's have been rebuilt 2 or 3 times already.
I regularly drive my 69' vw bus to the end of the earth, still solid, still runs like a champ. Of course it's on it's 3rd engine, but what the hell?
Someone clue me in!
So new locos generate more HP (can haul more coaches), generate HEP at lower RPM (using less fuel), use less fuel under load, have lower emisions, meet more stringent crash protection requirements, require less maintenace (hopefully!) etc etc
Since controlling operational cost is a major factor for commuter agencies such as metra, where they have mandated operational cost recoveries, and capital expendeture comes from a different bucket, spending capital (when available) to lower operational cost is nessesary.