Re: [Vic] Fast train services to go ahead, says Govt

["Dave Proctor" <daproc@spambait.ozemail.com.au>]

"Maurie Daly" <mauried@tpg.com.au> wrote in message
39d9ad46.25964644@can-news.tpg.com.au">news:39d9ad46.25964644@can-news.tpg.com.au...

> Well what is the value of the trains?
> The major value is in the loco fleet of which the best locos are the
> Gs .
> There are 33 Gs of average age 14 - 15 years.
> Whats a G that old worth?
> Well , based on the most recent sale of similar HP locos ,the ELs were
> sold to CFCLA for $650K each and the ELs were only 6 years old .
> That makes a G worth less than 650K.

Why is it worth less just because it is older? Surely fitness for usage
should be considered, I bet my brothers MG (mid 80's) is worth more than my
1991 Mazda 323.

The G's are considered to be pretty valuable in that they suit their usage
perfectly within Victoria, the EL's were probably undervalued, in that in
their prior areas of operation a decent use could not be found for such a
loco. When it comes down to value, the g's would win hands down.

> All the rest of the loco fleet is so old ,it would be worth its scrap
> value only,maybe a bit more for the X class.

Depends - things are only worth what people are willing to pay for them.

> The best value I could get for all the locos plus all the rollingstock
> based on its age is around $45 -$50 M tops.
> Even the VIC DOT in its primary infrastructure lease documents
> value the rolling stock at only $70M.
> This means that the contracts are worth $90M to $110M ??
> Unlikely , given that Vline freight was making a loss when it was
> sold.
> Something missing here?

The cost of preparing tender documents, evaluation of the tenders, preparing
and signing contracts? Perhaps FA were using VLF as a staging board into
Australia, and were prepared to cop a bit of a loss in view of the big
picture - increased freight contracts Australia wide - we have already seen
this with freight contracts in NSW, and a possible purchase of WestRail.

Dave