Rebates, etc. on hopper cars, etc.

[NW Mailing List]

Okay, so who pays the rebate

Bob:
Each railroad handling the loaded car makes
payment to the owner e.g. Union Tank Car. Many
companies lease cars from Union.  In that case,
Union gets the rebate and the lessee gets a
credit on the rent.

If the car is privately owned, say DODX, the rebate
goes to the owner direct -- the Department of Defense.

How does anybody make money ?
From my time at Texas Gulf Sulphur,  the company
was leasing 100-ton insulated tanks for about $400
per month.  Based on the depreciated value, they'd
earn about $0.14/ loaded mile. There was a great
deal of seasonality in shipments and at $0.14 a mile,
it certainly didn't offset the leasing cost, but it 
helped.  Incidentally, the mty "X" cars are supposed to
return reverse route, but can be as much as 20%
out of route before the carrier charges a fee.  I
don't think Union (or SHPX) would be in business
not to make money.

Although the mileage via Bucyrus hasn't been
calculated . . .yet.  Imagine the revenue, say Progress
Energy, would be making on their cars on this round-
about loaded move.   Harry Bundy


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