newpylong wrote: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.
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%.
MEC407 wrote: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...