Re: [Vic] Freight return to Cold stream??

[Barry Campbell <barryC@qimr.edu.au>]

Mark Bau wrote:
> 
> > There is nothing wrong with 2nd hand locos,including Qld ones,if they are
> > substantially cheaper than new ones.
> > They do the same work,(nah) pull the same loads(nah), earn you the same
> revenue(nah). A hatrick!
> 
> I'm glad GOD is not an accountant on a real railway. Ever noticed how the
> RR's in the US that do not rely on any guv subsidies (and indeed pay tax on
> their land, a concept unimaginable in Australia) are buying new locos as
> fast as GE and EMD can build them? These RR's can't get rid of their old
> junk quick enough. Why? Very simple, each dollar they spend on fuel and
> maintenance on a new loco moves a lot more freight than any old loco you
> care to mention. Take away the guv subsidies and we'll see if the new
> private operators are really making any money.
> 
I don't know where GOD fits into this but some facts need to be
remembered. US railroads get their revenue and buy their locos in USD.
Australian railways get paid in AUD and buy new locos in USD. Not very
favourable. Australian traffic levels are nothing like the US and never
will be simply because there just isn't the freight to move. Rebuilt
locos can often handle the loads offering and hence earn as much revenue
as new locos at a fraction of the cost. Of course, that is not always
true, but many US railroads use second hand power and for comparable
tasks it makes even more sense for Oz railways to do the same.

Barry Campbell

(Who is an accountant)