PAR GP40-2Ws (MEC 500 Series)

[gokeefe]

There are times when I simply don't understand PARs motive power strategies. They always seem to be operating as if they are cash poor but anecdotal evidence and other information seems to suggest otherwise. If I were to evaluate their intentions starting from 0 I would say they're holding out for the right offer from a Class I interested in acquisition. I dare say they would be looking for something well north of $500 million and perhaps closer to $1-2 billion.

[BowdoinStation]

MEC 500 has been on the shelf since 2006 too, may be in better shape for a transplant than the 513 ? After seeing the 518 and 519 up close, those GP40-2W's clean up very nice..

[newpylong]

Looks can be deceiving. I can personally tell you that they are not raking in the money. They own a lot of land and have a lot of employees to pay. Running a railroad is not cheap.

If the price is right they would sell but they are not actively trying to sell. They want to run a railroad.

[MEC407]

I wonder if whoever is bankrolling the 500 rebuilds (Helm?)...

It was reported that GATX Locomotive Group is the partner in this project.

[KSmitty]

Looks can be deceiving. I can personally tell you that they are not raking in the money. They own a lot of land and have a lot of employees to pay. Running a railroad is not cheap.

If the price is right they would sell but they are not actively trying to sell. They want to run a railroad.

Good points!

The important thing to remember is that even the biggest and best class ones make about $0.30 profit for every $1.00 revenue. Pan Am, due to its status as a terminating road has to handle more switch crews, higher terminal time and other costly process that a class I running mostly unit trains and IM is free from. Add fuel, property taxes (in ME, MA and NY state...thats one BIG bill!) and other "doing business" expenses. They are no doubt making money, says 30+ years of history, but its important to keep in mind the fact that their operating ratio is most likely higher than 80%.

It was reported that GATX Locomotive Group is the partner in this project.

Thank you, I knew it was someone, couldn't remember who. Might also explain why all the GATX/GMTX locos have been in for contract work...

[CN9634]

Looks can be deceiving. I can personally tell you that they are not raking in the money. They own a lot of land and have a lot of employees to pay. Running a railroad is not cheap.

If the price is right they would sell but they are not actively trying to sell. They want to run a railroad.

Good points!

The important thing to remember is that even the biggest and best class ones make about $0.30 profit for every $1.00 revenue. Pan Am, due to its status as a terminating road has to handle more switch crews, higher terminal time and other costly process that a class I running mostly unit trains and IM is free from. Add fuel, property taxes (in ME, MA and NY state...thats one BIG bill!) and other "doing business" expenses. They are no doubt making money, says 30+ years of history, but its important to keep in mind the fact that their operating ratio is most likely higher than 80%.

It was reported that GATX Locomotive Group is the partner in this project.

Thank you, I knew it was someone, couldn't remember who. Might also explain why all the GATX/GMTX locos have been in for contract work...

Any corporate margin that net net around 5% - 8% is pretty good.

[Mikejf]

I would not count the 507 out just yet. Even though it suffered a fire, it can be fixed, as long as someone wants to pay for it

[MEC407]

Photo by Don Barber: http://photos.nerail.org/s/?p=214284" onclick="window.open(this.href);return false;

[MEC407]

From SeacoastOnline:

Fire Chief Jeff Buxton said crews responding to a locomotive fire Tuesday night had to be careful battling the blaze that consumed the engine because "water and electricity don't mix."

"You have to be careful where you put the water so your firefighters don't get electrocuted," Buxton said.

The chief said when firefighters from Newfields and Newmarket responded to the fire in an idle Pan Am Railways train engine that was left running near the Route 108 bridge they initially tried to use a dry firefighting chemical to put it out.

But the fire had consumed the engine and Buxton said there simply wasn't enough of the dry chemical extinguishers to extinguish the fire.

"We ended up putting a lot of water on it, but we used the ladder truck so no one had to hold the hose," Buxton said Thursday afternoon.

Read the rest of the article at: http://www.seacoastonline.com/apps/pbcs ... -1/NEWSMAP" onclick="window.open(this.href);return false;

[Mikejf]

I have also been told of a small electrical problem with the electric cab heater in the 518 (If I remember the number). The conductor kept smelling something hot or burning and then noticed the smoke coming from the heating unit. It was shut down using the circuit breaker. This could be the same cause that started the fire on the 507

[p42thedowneaster]

Wouldn't you think there would be enough waste heat from the prime mover to keep things warm using a heat exchanger? I suppose...its just another thing to to freeze up, but still.

[Mcoov]

I'm under the impression that cab heaters were retrofitted to these units. GP40s operate(d) everywhere, including places where a heater would make no sense at all (Arizona). Adding a heat exchanger would be much more expensive and invasive than simply sticking an electric space heater in.

[newpylong]

They all come from the factory with the space heaters on the old EMDs. They are nothing more than heating elements with fans.

[MEC407]

518 seems to be running well in this video by "dcarpine28" -- and its factory-original Nathan K3L horn sounds just about perfect:

http://www.youtube.com/watch?v=dnhM_BaXeCQ" onclick="window.open(this.href);return false;

[KSmitty]

518 seems to be running well in this video by "dcarpine28" -- and its factory-original Nathan K3L horn sounds just about perfect:

http://www.youtube.com/watch?v=dnhM_BaXeCQ" onclick="window.open(this.href);return false;

Video doesn't show it, but recent pictures I've seen show 518 soaked in oil. For a newer paint job its FILTHY! Does sound good though.