ExCon90 wrote:I'm wondering whether there are some legal aspects to any disposal by Amtrak at scrap prices when there is a higher market price--and in a case like this how would you determine the market price without an auction?
I think the best way to do this is back into it. Given the weight of the car and the going price of scrap, perhaps using the 52 week high, one could figure the scrap value. Then, open an RFP for environmental remediation, if any is required. Take the calculated scrap price, subtract the remediation price, and arrive at X. Post it for sale on Amtrak's website, or maybe some government liquidation site, for $X+1. If there are no takers within a set period of time such as 90 days, that means the better deal to the railroad is scrap.
As of right now, scrap steel is about $.05/lb. The full dome weighs something like 185,000lbs. That means scrap price is $9250 if there is no remediation costs and it's all steel, which it is not. The glass is a big part of the weight. Rough passenger cars trade for $20-50k, and good ones trade upwards of $300k.