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Economic Time for Acquisition?
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Author:  Superheater [ Mon Sep 01, 2003 8:55 pm ]
Post subject:  Economic Time for Acquisition?

An article in the June 2003 Railway Age "Betting the Farm on a Dune of Shifting Sand", page 46 claims that 25 year old SD-40-2's are being cut up due to the massive changeover by the UP to standardize around the SD-70M.

The article maintains this is generally the case for only for 6-axle units too big to find a home on smaller roads with less manicured roadbeds, unfortunately.

In either case, I guess the question is: Is it a time to buy on the cheap (ok, less expensive) OR is that likely to exacerbate the unfocused, infeasible collection issues we discuss here?

Maybe some roads/lessors would take a charitable donation letter and good publicity instead of scrap prices?


Superheater@rrmail.com

Author:  Erik Ledbetter [ Mon Sep 01, 2003 9:36 pm ]
Post subject:  Re: Economic Time for Acquisition?

> An article in the June 2003 Railway Age
> "Betting the Farm on a Dune of Shifting
> Sand", page 46 claims that 25 year old
> SD-40-2's are being cut up due to the
> massive changeover by the UP to standardize
> around the SD-70M.

Judging from the article "One Railroad's Junk is Another Man's Treasure" in the October issue of Trains, it sounds like the only UP SD-40-2s that are getting cut up are total basket cases; anything even moderately runnable is being snapped up by buyers in the shortline power and lease fleet market.

To be sure, SD-40s are now more affordable for preservationists--but the better ones sell for a lot more than scrap value.

eledbetter@rypn.org

Author:  Alex Huff [ Mon Sep 01, 2003 10:47 pm ]
Post subject:  Re: Economic Time for Acquisition?

Operational (or nearly so) SD40-2's have sold at absolute auction on UP in the $20-25,000 range. These are high mileage units. I am aware of an ex-SP B30-7 which sold at auction for less than $9,000, a couple of thousand was required to put it back into service.

dsrc512@sd.value.net

Author:  Rob Davis [ Tue Sep 02, 2003 9:51 am ]
Post subject:  Excellent Point

Super,

Looking at prices from recent private, CN and UP auctions, SD basket cases are going for up to $7K. Operable 45's are in the $16K range. 40's can be anywhere from there on up since they have better rebuild potential.

GE's can be had much cheaper.

You won't find many four-axle bargains, but if you are looking for an SD, the time has never been better.

And, yes, the standardization we are seeing on GE Dash-9's and SD70's points to a coming flood of older SD's, so you might see the market drop more, especially for the remaining in-service 45's.

Rob

rdavis@rypn.org

Author:  Gerald W. Kopiasz [ Tue Sep 02, 2003 2:57 pm ]
Post subject:  Re: Excellent Point

In Council Bluffs, the UP has the following stored: SD40-2 (B units and no dynamics), tunnel motors, 4 axel GEs, SD45, and a C30-7 or two. If this is a microcosm of the other engine terminals, there's a lot of locomotives that will be coming available. Acquiring a basket case wouldn't be a bad idea for museums looking for a static display. Now's the time to buy. We even had eight newly painted GE Dash 7's in the yard waiting to go to South America.

Gerald W. Kopiasz

> Super,

> Looking at prices from recent private, CN
> and UP auctions, SD basket cases are going
> for up to $7K. Operable 45's are in the $16K
> range. 40's can be anywhere from there on up
> since they have better rebuild potential.

> GE's can be had much cheaper.

> You won't find many four-axle bargains, but
> if you are looking for an SD, the time has
> never been better.

> And, yes, the standardization we are seeing
> on GE Dash-9's and SD70's points to a coming
> flood of older SD's, so you might see the
> market drop more, especially for the
> remaining in-service 45's.

> Rob


hrrhs@aol.com

Author:  Alan Maples [ Tue Sep 02, 2003 7:58 pm ]
Post subject:  Re: Economic Time for Acquisition?

> In either case, I guess the question is: Is
> it a time to buy on the cheap (ok, less
> expensive) OR is that likely to exacerbate
> the unfocused, infeasible collection issues
> we discuss here?

Another approach to this is to look at the opportunity to buy parts when the market is down to repair/restore/upgrade locomotives already in collections.

About a year ago I purchased a complete locomotive cab off of an SD-40-something at a very reasonable price. Except for the air brake equipment, everything was there. I salvaged some of the cab, electrical switch gear and control stand for a switcher rebuild project. At the time it occurred to me that this would be a good opportunity for a museum that wanted to set up a display cab or simulator so visitors could experience being in the engineer's seat without having to climb on a locomotive.

Alan Maples

AMaples@aol.com

Author:  ge13031 [ Tue Sep 02, 2003 8:55 pm ]
Post subject:  Re: Economics

> Another approach to this is to look at the
> opportunity to buy parts when the market is
> down to repair/restore/upgrade locomotives
> already in collections.

> Alan Maples

If all you are looking for is a static cosmetic display you should be able to part one of these babies out and at least get your money back, if not a little bit more ???


lamontdc@adelphia.net

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