How Much Are The Cars?

How much do rail cars owners get paid to let railroads use their cars? Is it worth it to buy rail cars and let the railroad use them?

  • Answer:

    Most rail companies own their own stock (locomotives,railcars,etc) as it would be inconvenient for them to lease or rent it. The railroads almost always own the tracks, the rolling stock, the repair facilities and maintenance equipment. This may not be the case overseas, but here in the North America it is. Also, you really can’t buy railcars in the US or Canada. They would have to be stored on tracks to be useful and, again, the railroads own the tracks. You could buy an existing building with its own rail spur that would be able to accept rail traffic and store them there. Or you could have one  built; but that more be far more expensive and a difficult project to have approved if you are in or near certain cities (environmental studies, noise studies,road construction,etc) A suggestion: You might consider  buying intermodal containers (containers which can go from container ships, to railcars to trucks ) and leasing those out. That might be somewhat more practical (and affordable) although even with increased rail traffic, the industry is pretty clannish and not open to outsiders. I would advise you to become familiar with the rail system (get some books, take some courses, go to some seminars,etc) and then decide if the industry is for you.

Jon Mixon at Quora Visit the source

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I disagree with , at least to a degree.   This article http://online.wsj.com/articles/railcar-shortage-in-u-s-pushes-up-lease-rates-1401393331 would suggest there is a market for railcar leasing in the USA.   A search for - railcar leasing - yields a all sorts of results, including leasing for locomotives. Obviously the market varies in different countries.   In the UK we have leasing companies that supply all the passenger rolling stock in use.   The trouble is that none of them purchase stock speculatively.   They wait until an agreement has been reached and then bid to provide the finance.   When it comes to freight cars the lease may be with company that wants the goods moved.   This is particularly true when the freight can be moved all in one train - coal for example.   Because the coal company has control of the freight cars it means they can easily move their contract for haulage to another company.   The industry is very capital intensive.   You need money to get into the business.

Graham Harrison

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