The following are articles we believe may serve to help you make a more informed choice as to your equipment and leasing needs.
Easing Financial Burden of MOW Equipment
How can we get innovative financing ideas used in areas such as locomotive acquisition into maintenance of way?
To discuss this question we must first look at the current trends that many of North American railways are employing today: Joint operating agreements have become a way of life. Railways are sharing routes that allow for through train using the originating railways power to cross over several railroads to deliver cargo directly to the customer. Stopping only to refuel and change crews, these trains are roaring across heretofore divisional boundaries while scarcely slowing down, bypassing interchange yards and time-consuming switching and reblocking for the next railways part of the shipment. Read More »
A New Twist on Equipment Leasing
Chief Financial Officers of capital-intensive industries frequently must make the unappetizing choice between balance sheet presentation niceties and economic sense. In the case in which a company is going to acquire heavy equipment with a useful life of almost forever, it can do so on-balance sheet (capital accounts) or off-balance sheet (operating accounts). Eager to avoid showing excess debt on the balance sheet, the CFO will frequently turn to the most common method of securing needed capital items by securing operating leases. Read More »
Alternative Purchasing Options
Will the U.S. railway's revenue growth continue as it has over the last 10 years? Can railways continue to fund the rebuilding and expansion of their infrastructure? Will profits continue to set records? The answers to these questions are difficult to predict.
More yard capacity in the form of larger, more efficient yards is coming on-stream every year. Additional main lines, double tracking and, in some cases, triple tracking main lines are being built around the country. Train density is reaching levels that not only make operations more complicated, but also make maintenance of way an almost impossible task. Read More »