PAR Locomotive Fleet - General Discussion

Deadline at Waterville is down to the 52, 51, and several of the GP40s that have been dead for years. Several more of the GP9s are by the shops, and PAR 1/2 were outside, coupled together elephant style.

Does the amount of locomotive leasing which PAR engages in represent a long term business plan or more of a reactive/band aid approach towards their depleted power? Is it cost effective in the long term to continue leasing and not invest in bigger used or newer power which many of the leased units seem to represent? Is the volume of leasing by PAR comparable to other regionals?

I think that's an excellent question. The Helm SD40-2s have been sent back to Helm, but PAR is still leasing several GPs and a switcher/slug set from GATX. It remains to be seen if PAR will lease more SD40-2s from someone else (either a leasing company or a friendly connection like Norfolk Southern), or if they'll try to purchase more SD40-2s outright (more difficult and more costly than it was a few years ago), or if the answer is "none of the above."

NRGeep wrote:Does the amount of locomotive leasing which PAR engages in represent a long term business plan or more of a reactive/band aid approach towards their depleted power? Is it cost effective in the long term to continue leasing and not invest in bigger used or newer power which many of the leased units seem to represent? Is the volume of leasing by PAR comparable to other regionals?

Leasing is an easy way to quickly acquire needed power, with much lower up front costs than an outright purchase. They have more important things to do with their money. You can lease power economically, but I don't think you can lease ties, rail and rock and MOW stuff is getting priority over locomotive purchases.

Over the long term, depending on the circumstances leasing can be competitive, or not. Generally though, I think you'll find the long term cost of owning an SD40 is less than the long term cost of leasing an SD40, especially so as the locomotive market recovers as it is now.

Leasing is common from the largest railroads to the smallest. Class I's use lease companies for the "surge fleet." They lease as needed to pick up slack when traffic booms, and don't have to pay for idle assets when traffic falls. The smallest shortlines operate with leased power in many cases because the upfront costs of acquiring a quarter million dollar asset are too much. For comparison Pan Am has 15 or 16 leased locomotives and a total operating fleet (with leased units) of roughly 90 (~16%). I don't have the specific numbers for P&W, but I know they have at least a couple leased SD60's, in their much smaller fleet. CM&Q is operating with 5 or 6 B23's they purchased outright, and 15 or so leased units. VRS runs with no leased units. Pretty much any regional in G&W's control won't have leased power, G&W's philosophy is to own it all.

KSmitty wrote:VRS runs with no leased units.

I believe VRS is currently leasing a few GP38-2s from GATX. I've seen several pictures of them on the NERAIL photo archive. In the past they've also leased SD70Ms and SD90MACs (neither of which performed very well, from what I've heard).

According to Fritz Gerhardt's file on the VRS operations
in the VRS/Rutland Yahoo Group, last updated in 2013,
the VTR roster showed three leased GP38-2 locomotives:

GMTX 2189, LLPX 2334, GMTX 2663.

VRS also has two leased GATX GP38-2 locos, #2208 and #2215
currently in use.

Dick H wrote:According to Fritz Gerhardt's file on the VRS operations
in the VRS/Rutland Yahoo Group, last updated in 2013,
the VTR roster showed three leased GP38-2 locomotives:

GMTX 2189, LLPX 2334, GMTX 2663.

VRS also has two leased GATX GP38-2 locos, #2208 and #2215
currently in use.

Thanks much for the info. I know they had leased some stuff in the past, but didn't know they currently had anything.

3 units in their relatively small fleet makes them a comparatively similar user of leased power.

Not sure which thread to put this in... but... get your pics of the NS SD40-2s while you can, they will be gone soon.

Prepare for some interesting additions to the PAR fleet, a mix of 9 SD and GP units from LTEX. More to come later.

Lots of the deadline will be scrapped/moving in part of this deal to LTEX, including some old GP7/GP9/GP40 components/units. Cleanin' house up in Waterville...

^Good, but I hate to see the GP9s go.

PAR has 3 retired GP9s and and 8 retired GP40s.

Seven NS SD40-2s will be returned. 1 one was returned in August.

Still on the roster:

#500 has been oos for 8 years.

#513 has been oos for 12 years.

I wonder if these will be retired/scrapped/rebuilt?

Thanks to Bill Gingrich for his excellent roster info!!!

According to Gary Young of GuilfordRailSightings, LTEX GP40 #6528 is currently en route to Waterville.

Looks like a real beauty.

Shes missing the dynamic break fan.... looks like the grid is intact but who knows if it has working dynamics... But at the same time, can it but much worse than the GP40s already on property :D

CN9634 wrote:Shes missing the dynamic break fan.... looks like the grid is intact but who knows if it has working dynamics... But at the same time, can it but much worse than the GP40s already on property :D

None of the GP40s on already on property have working dynamic brakes either.

It also has a weird spark arrestor, or something along those lines (bit more noticeable in this picture).

Yes, it's a spark arrestor. This is a former Wiregrass Central locomotive, and Wiregrass Central was formerly owned by Gulf & Ohio Railways, Inc. That company also owns the Yadkin Valley Railroad, and YVRR uses that style of spark arrestor on all of its EMD turbo locomotives:

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