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 Post subject: Re: Texas State RR shuts down
PostPosted: Sun Jan 01, 2017 5:12 pm 

Joined: Sun Aug 22, 2004 8:51 pm
Posts: 2055
Location: Southern California
By a number of reports, it seems that Iowa Pacific has had ongoing cash flow problems that reflect on its overall viability. If this is the case, there would be little money set aside to sustain a necessary off-season staffing.

Sounds like a downward spiral to me.

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 Post subject: Re: Texas State RR shuts down
PostPosted: Mon Jan 02, 2017 12:35 am 

Joined: Thu Aug 21, 2008 8:29 pm
Posts: 397
The one thing that I would ask everybody to consider...Iowa Pacific is NOT a museum or a preservation minded group. It is a company that is owned and controlled by one man...Ed Ellis. He has been in the shortline railroad business for many, many years. He got the bug to re-create the Pullman company about 5 years ago and did so with equipment that was pretty but full of bugs. Heat, AC and frozen water lines were very common problems on the IP Pullman cars. Along the way he bought a lot of interesting railroad cars and they were shipped off to Colorado "for restoration" but truth be told...none if them received any work at all. I think they "fixed up" one car and bought several others that were already fixed up (but not restored). He ventured out all over the country buying and leasing all kinds of shortlines where IP would hold Polar Express, Thomas and dinner trains all over the country. All the while they were slow to pay bills and sloppy in most of their operations. Ed is a nice guy...but he will turn around and seriously hurt small independant contractors by NOT paying his bills. I have heard some pretty shocking stories that are hard to beleive. I hear how he would buy some expensive shortline and then claim he did not have enough cash (several thousand dollars) to pay a small heating and air contractor who fixed a serious problem for him. I have heard that he asks shortline managers to pay for expenses out of their own pocket and seek reimbursement from the company...which never happens.
So...why Iowa Pacific should show up here as a topic from time to time amazes me. They are NOT (I repeat) a museum of any description. They never have been. And if they ever contact you to do some work...get paid UP FRONT.
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 Post subject: Re: Texas State RR shuts down
PostPosted: Mon Jan 02, 2017 1:47 am 

Joined: Mon Aug 23, 2004 10:49 am
Posts: 773
When I worked there, he winters were when all the maintenance work took place. Serious track work, like replacing rail, was done during the winter because we were not running. We also did all the inspections on cars and locomotives then. Since they are now a common carrier, the railroad is still making money by storing cars, and they need a crew to move cars in and out of storage, which may or may not leave a lot of time for actual maintenance.

IMHO, what needs to happen is this:

1. The counties which TSRR runs in need to put themselves in charge of the operation, and run it themselves. True, they did not want the financial responsibility, but they may be forced to do so.

2. Lower the fare structure. Going after the high end business is nice, when you get it. The load factor was higher when the fares were lower. I was there when we hauled 60,000 people in one year. The railroad sits halfway between Houston and Dallas, and until 2248 is back operating, they are the only steam in Texas.

3. Use volunteers to staff and run the trains. It can be done, with most of the paid help to work on the equipment, track, and other maintenance. Supplement with volunteers.There is plenty of help available if one asks for it.

4. More "theme" weekends and advertising. Advertising needs to be visible in Houston and Dallas.

I'm sure there are other things which cold be done, but that would be a good start. Both 300 and 400 need work. 316 needs a new firebox. 1316 needs a new boiler. There is plenty to do, it's just a matter of deciding on how to get the work done...


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 Post subject: Re: Texas State RR shuts down
PostPosted: Mon Jan 02, 2017 2:29 am 

Joined: Fri Aug 27, 2004 4:02 pm
Posts: 1880
Location: Back in NE Ohio
Bobharbison wrote:
That article states:

Quote:
Presley conceded the railroad may operate on a smaller schedule this year, partly because there is no one to put on the special events, which Gregg once handled.


And they can't find an suitable replacement? Granted, it does take some expertise, but can't they hire somebody?


Perhaps it's time to get creative in the PR situation, like taking on a marketing grad student as an intern to do the job for credit? Granted it's not as professional, but better than not having anyone doing it.


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 Post subject: Re: Texas State RR shuts down
PostPosted: Mon Jan 02, 2017 8:02 am 

Joined: Sun Aug 22, 2004 7:19 am
Posts: 6464
Location: southeastern USA
Consider American Heritage railways - they are a marketing powerhouse that also runs trains, rather than railroaders that sort of take stabs at marketing. I think their model provides for a more sustainable long game.......

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 Post subject: Re: Texas State RR shuts down
PostPosted: Mon Jan 02, 2017 9:06 am 

Joined: Mon Aug 23, 2004 11:07 am
Posts: 630
PaulWWoodring wrote:
Bobharbison wrote:
That article states:

Quote:
Presley conceded the railroad may operate on a smaller schedule this year, partly because there is no one to put on the special events, which Gregg once handled.


And they can't find an suitable replacement? Granted, it does take some expertise, but can't they hire somebody?


Perhaps it's time to get creative in the PR situation, like taking on a marketing grad student as an intern to do the job for credit? Granted it's not as professional, but better than not having anyone doing it.


If you look at their website, you'll find they are using a PR firm.

Bob H


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 Post subject: Re: Texas State RR shuts down
PostPosted: Mon Jan 02, 2017 3:09 pm 

Joined: Fri Dec 03, 2004 9:42 pm
Posts: 3010
Dave wrote:
Consider American Heritage railways - they are a marketing powerhouse that also runs trains, rather than railroaders that sort of take stabs at marketing. I think their model provides for a more sustainable long game.......


Don't forget, they were previous operators of the Texas State Railroad and sold it (or transferred the lease/operating agreement, not sure of the technicalities). I don't know any details of why or how the decision was made, but here's the info from Wikipedia. Apparently they felt it wasn't a good fit?

Quote:
On September 1, 2007, the operation was transferred to the Texas State Railroad Authority and leased for operation by American Heritage Railway, which also operates the Durango & Silverton Narrow Gauge Railroad in Colorado and the Great Smoky Mountains Railroad in North Carolina. In August 2012 American Heritage Railways sold the Texas State Railroad to Iowa Pacific Holdings.


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 Post subject: Re: Texas State RR shuts down
PostPosted: Mon Jan 02, 2017 3:51 pm 

Joined: Mon Aug 23, 2004 10:49 am
Posts: 773
Bobharbison wrote:
Dave wrote:
Consider American Heritage railways - they are a marketing powerhouse that also runs trains, rather than railroaders that sort of take stabs at marketing. I think their model provides for a more sustainable long game.......


Don't forget, they were previous operators of the Texas State Railroad and sold it (or transferred the lease/operating agreement, not sure of the technicalities). I don't know any details of why or how the decision was made, but here's the info from Wikipedia. Apparently they felt it wasn't a good fit?

Quote:
On September 1, 2007, the operation was transferred to the Texas State Railroad Authority and leased for operation by American Heritage Railway, which also operates the Durango & Silverton Narrow Gauge Railroad in Colorado and the Great Smoky Mountains Railroad in North Carolina. In August 2012 American Heritage Railways sold the Texas State Railroad to Iowa Pacific Holdings.


AHR had several problems when they took over the TSRR. First, they did not have a whole railroad to work with...a massive washout had severed the railroad east of Maydelle, and taking care of that took time to handle. Then, they instituted higher fares, which did not go over well with a public which was used to the lower fare structure which had been in place, which when we did begin operations, destroyed ridership to the point many trains were cancelled. The $4 dollar a gallon gas at the time played havoc as well as the higher fares. The best thing AHR did was to establish the Polar Express, which was a huge shot to the bottom line. The last two operators are trying to put a square peg in a round hole. TSRR can be successful, but you have to craft your marketing to suit your public. build up the business with steam on both trains at a more reasonable price, offer special events like Polar Express, and occasionally offer an upscale experience for those who can afford it...and ADVERTISE!!!!!!!


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 Post subject: Re: Texas State RR shuts down
PostPosted: Mon Jan 02, 2017 5:04 pm 

Joined: Thu Apr 14, 2005 9:34 pm
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Location: Copenhagen, Denmark
One of the problems for TSRR, and I remember this specifically from a TRAIN conference presentation way back in 1995, was that as a state park it was prohibited from advertising by Texas law. Texas did not want state enterprises "competing" with commercial enterprises. Transferring TSRR to a private contractor released them from this restriction.

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 Post subject: Re: Texas State RR shuts down
PostPosted: Mon Jan 02, 2017 6:40 pm 

Joined: Sat Nov 28, 2015 7:28 pm
Posts: 545
Location: Northern WV
There are parallels between the situation at the Texas State RR and the Cass Scenic Railroad in WV. After 51 years of being run by the WV State Parks Authority, a private designated operator was chosen (Durbin & Greenbrier Valley Railroad). WV still owns the right-of-way, engines & part of the town of Cass. D&GVRR operates the Cass Scenic, maintains the engines, sells tickets & sets fare prices. I believe the state helps with the track maintenance. The bad part-the fares roughly doubled the first year of the new arrangment which rankled many long-time riders. WV had kept the fares low and been losing money on Cass and now that coal is waning, the state budget is in trouble. If the new arrangement hadn't come along, Cass might have been shuttered or perhaps even seen their engines sold off. The good part-Cass is still running, Shay #2 was rebuilt, Climax #3 is supposed to be finished next. The operating season has been extended and a new event, the "Elf Limited" was begun in the traditional off month of December. D&GV is rebuilding a former C&O line to Durbin damaged in 1985 and thought by many never to be restored. There's another Climax and a rod engine that are supposed to get a turn at restoration. Change is sometimes hard to accept, but is inevitable.

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 Post subject: Re: Texas State RR shuts down
PostPosted: Mon Jan 02, 2017 6:43 pm 

Joined: Mon Aug 23, 2004 10:49 am
Posts: 773
softwerkslex wrote:
One of the problems for TSRR, and I remember this specifically from a TRAIN conference presentation way back in 1995, was that as a state park it was prohibited from advertising by Texas law. Texas did not want state enterprises "competing" with commercial enterprises. Transferring TSRR to a private contractor released them from this restriction.


Very true, the TSRR under state control could not advertise. However, where was the advertising for them when AHR had it? I have not seen any from IP either. The only press I've seen from either one was local news coverage, and that coverage was not in the Houston or Dallas area.

If someone loaned me three million dollars and three years, TSRR would be handling 100,000 people a year AND making a profit. Not trying to step on IP's toes, but if Ed wants to make it work, I'll be happy to give him a blueprint.....


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 Post subject: Re: Texas State RR shuts down
PostPosted: Mon Jan 02, 2017 6:45 pm 

Joined: Sat Feb 06, 2010 9:29 am
Posts: 319
Hmm....Having worked for them before...twice (my mistake)...
They seem to have a pretty regular cycle of money issues, etc...
As much as I'd like to be positive, fair and objective, I can't help but wonder of the house of cards is starting to collapse...
On a more positive note..perhaps they'll start selling off some of those excess cars?


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 Post subject: Re: Texas State RR shuts down
PostPosted: Tue Jan 03, 2017 4:25 pm 

Joined: Mon Aug 23, 2004 10:49 am
Posts: 773
It may be worse than we think. According to a poster on another web site, the majority of the MCRR staff, all but two at MHRR, several management positions...around 250 system -wide. Only two TSRR employees are actually on payroll, with five more doing grant work. It is going to be an interesting spring....


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 Post subject: Re: Texas State RR shuts down
PostPosted: Tue Jan 03, 2017 4:35 pm 

Joined: Thu Apr 14, 2005 9:34 pm
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Location: Copenhagen, Denmark
What is MHRR and MCRR?

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 Post subject: Re: Texas State RR shuts down
PostPosted: Tue Jan 03, 2017 4:56 pm 

Joined: Mon Aug 23, 2004 10:49 am
Posts: 773
Mount Hood Railroad and Mass COastal Railroad. Pullman Rail Journeys has also run its last trip...


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