PAR SD40-2s (MEC 600 series and 3400 series)

CN9634 wrote:PAR is looking to spend $60k to 70k a unit in bulk deals.

Unless they start looking at GEs, that price range is going to be difficult. SD40-2 prices are back on the rise after a period of bottoming out. The Class I roads have gone from dumping them like hot potatoes, to rebuilding them and adding more to their fleets. That has driven prices up.

Even when PAR bought the first batch of 600s a few years ago, they were quoted in ANR&P as paying $100K apiece for them. The going rate has gone up since then. I don't know where they're going to find any for $60-$70K, unless we're talking about units that are inoperable and need significant repairs in order to be brought back online.

Even the GE ship may have already sailed. Railroads like CN, PW, NERR have scooped up most of the decent Dash 8s that have become available in recent times. LTEX grabbed most of what was left over. I don't think there's much left to choose from. PAR should've been at the UP auctions when Dash 8-40Cs were selling for $60K apiece. You snooze, you lose.

They paid less than 100K I'm quite sure. This may explain why they are leasing right now too

I'm told them HELM units are leaving soon and they are looking to pick up 10 more SD40-2s.

CN9634 wrote:I'm told them HELM units are leaving soon and they are looking to pick up 10 more SD40-2s.

Not going to exercise the buy out option on the HELM's?

Some behind-the-scenes paperwork stuff happened with them. But really, I'm not making it up. The HELMs should be leaving fairly soon.

CN9634 wrote:I'm told them HELM units are leaving soon and they are looking to pick up 10 more SD40-2s.

More NS units? With the current crew shortage it would behoove NS to stave off a power shortage as well.

The HELMs are sidelined now. The 'behind-the-scenes' paperwork stuff was HELM got sold to First Union Rail (FURX) a division of Wells Fargo. They do not like to do business with Pan Am.

See here for more details
http://www.hlmx.com" onclick="window.open(this.href);return false;

So Wells Fargo just broke the leases for basicly not wanting to deal with PAR?
Was PAR on time wth lease payments? How much time was left on the lease?
Or was the lease a $$$ loser to them?

CN9634 wrote:The HELMs are sidelined now. The 'behind-the-scenes' paperwork stuff was HELM got sold to First Union Rail (FURX) a division of Wells Fargo. They do not like to do business with Pan Am.

See here for more details
http://www.hlmx.com" onclick="window.open(this.href);return false;

I've heard a different story, and that Norfolk Southern is going to be purchasing a batch of 100 locomotives from First Union so they are not extending leases. Though I admit, your version seems more logical, but who knows.

Yes NS is picking up 100 more (They may have already picked up some). I heard more NS SD40-2s were coming but that was a bit ago. Not sure what's up now.

Interesting to see NS picking up power at the expense of one of their business partners.

I doubt that thought came into play considering they can just give them right back to Pan Am, or alternative units.

newpylong wrote:I doubt that thought came into play considering they can just give them right back to Pan Am, or alternative units.

Makes sense. Seemed strange to me to think that they would essentially poach against the fleet that feeds their own trains.

It would seem both claims are correct. They haven't paid their bill in a while and NS is getting a large order. Both contributed to the non-extension of the lease.

Here we go again. POSE, which has at least two of the 600's, 615 and 614, is in trouble somewhere west of Durham at 7:35AM.
Downeaster #680, which left Wells on time, is now being held at Durham and is one hour, 20 minutes late (as of 7:50AM)