Why Railroads Lease Locomotives

[@metalmusicbs6868]

I got a story immidiately! On the thumbnail it shows gmtx 2189 and is shown here at 3:50. I work for a locomotive shop, I worked on that very unit allot and even helped through the entire repaint process. It is now pvrr 2189. It's red and yellow now!

[@Trains21]

Awesome! Thanks for sharing.

[@donaldwantola5800]

Leasing is also common with shortlines when they need power after taking over a rail line, the shortline I worked for did that once we leased a SW1500 from LTEX do to not having any locos ready at start up after the take over.

[@ChainsawNW1218]

ChainsawN&W1218, I used too see quite a few leased units but not in years, see alot of run through/foreign power on NS when I film in Roanoke VA, Christiansburg, Radford other locations, Merry Christmas 🌲!🛤🚂

[@Trains21]

Merry Christmas to you as well Timmy, and thanks for watching!

[@miIwaukeeroad]

Back in the 2010s I saw a lot of leased units like CEFX on CP and GECX on the CN they were classic units I think they were cool

[@afleetcommand]

So is this type of thing happening on the NS on the old Erie line to Buffalo? See BNSF often on that line.

[@Trains21]

Maybe, haven't railfanned the Southern Tier in a while.

[@onrr1726]

CITX units from what I remember were common sight mostly in the summer months on BNSF in and around Tulsa, Oklahoma along side other mixed power. KCS often leased CP units and they were often seen in and around Cherokee Yard. CN and CSX units were rare. NS units often moved in groups of 2 to 3 units every few weeks and Ferromex often 2 or 3 units a month. Indiana HiRail once every 2 months and other misc railroads and leased rent a wrecks from LTEX, GECX, HLCX were sporadic. As for Union Pacific in the Tulsa area they always had 4 GMTX and occasionally an HCLX unit on their local interchange it was rare to catch strait UP Power every month.

[@joshpack7330]

My first train video was one of the lease units. An ex-CSX AC6000CW 688

[@garypyke1576]

Very informative information. Your videos are great. I enjoy watching them and learning things about railroading.

[@Trains21]

Thanks for watching Gary. I'm glad that you enjoy them.

[@LakeVillaRailProductions]

AC coming through with great content as always keep it up bud

[@O-PAC]

Union Pacific “Unemploying America.” 6:36

[@305ayeee]

1:59 god I miss seeing the red, white and blue FEC trains, the red and yellow lng sets are cool and colorful but the red, white and blue was just a classic look

[@iusetano]

Thank you AC. Happy New Year. I really enjoy your videos.

[@RDC_Autosports]

citi rents bicycles for christ sake lol they have their hands in every cookie jar 😁

[@Dennis-vh8tz]

There are also tax benefits to leasing. Lease payments are immediately booked as expenses (pay now, get the tax write off now); whereas, purchased locomotives would be considered assets that depreciate over time (pay now, get the tax write later).

[@AlanWolf-d7l]

Its mostly all in accounting. Get tax write off. If doing extra better speacislized maintence better to own. The unit can work for yrs later yet. Not sure of long term use or warranty issue etc lease the unit Not the Co problem. Farmers / aTruck co etc do this. Some inits are kept around for yrs. Still work well. The new high tech stuff.too many issues when they get old. Nickel and dime NOT reliable. Good when new. Let it go it becomes some elses problem. Thats why vehicle leases insist on vehicles brought into dealership for regular maintenance. Short term gain. For co. Putting capital into more long term assists

[@Oliver_11_the_little_western]

5:52 the b40-8 is ex mma (montreal Maine and Atlantic railroad) wich was history repeating itself as how it went was a exact copy of Penn central minus the rail disaster the destroyed half of a town

[@The_SEWI_Railfanner]

I belive the GECX ET44s were actually bought by CN and now are getting repainted

[@railwayjade]

Merry Christmas thanks for great informative content

[@kens.3729]

Wishing you a Very Merry Christmas and a Safe, Healthy & Happy New Year. 👍🙏

[@Trains21]

Thanks Ken, you as well.

[@kelvintorrence5994]

so why do they all have engines in storage then, or do they pull them out when needed

[@BossSpringsteen69]

Where i work it took an "act of Congress" to get a third unit to pair up and assist a double set of yard power that has known air pumping issues in very cold and extreme cold weather. This issue has been known for the last two years. This is all happening under Precision Scheduled Railroading while there sat at least 60 units from SD40's to SD70's and, for a short time a handful of SD70 T4's on the property in the dead line .

[@stubbsshop]

BNSF conductor here, and in the PNW area lately I always see GECX units pretty occasionally (all are dash 9 units) and ironically within the last three weeks I've seen the NS SD70ACC rebuilds on some of the BNSF trains. We end up with quite a few NS units on our trains over here, along with a lot of KCS and Ferromex. Don't see CN, UP, or CSX that often here but will see them from time to time.

[@stubbsshop]

1810 was one of the locos I saw over here a few weeks back!

[@chuxtuff]

Excellent video!! I enjoy finding out more about railroad financing issues in these kinds of videos along with some great train action too. Many of these smaller railroads I've never heard of other then to see their locos and rolling stock here in western Washington once and awhile. With all the ports from Puget Sound to the ocean based ports there's a LOT of trains everywhere you look around here, most of them with DPU power from the mountainous terrain. We've got it all here!! Except maybe 13000+ foot long trains like I've seen in other flatter areas of the country like "Jawtooth" here on KZbin videos in Ohio and Kentucky. That wouldn't fly here for a number of reasons, some of them scientific due to the terrain I'd bet.

[@Trains21]

Thanks Chux! I know what you mean, we have 10-15 thousand foot trains that roll through here with DPU power. Thanks for watching.

[@frankmarkovcijr5459]

Diesel locomotives like anything if you take care of them properly and maintain them they last forever. For 5,000 horsepower in the old days you need four diesels now you need one. EMD unit reduced itself out of business.

[@NSWLE]

Very informative....

[@cessnaace]

As a rail fan I hate seeing rolling stock that is rusted or covered with graffiti. Oh, and I've just subscribed.

[@frankmarkovcijr5459]

I complained on a train video about seeing all the cars covered in graffiti and some asshole called me a Francis. The graffiti everywhere shows just a general lack of respect for anything at all. If we did not have a welfare state breeding all the scum of the earth we would not have graffiti all over everything and the crime rate would be next to zero like it was back in the 40s of course it's not politically correct to say that but then I'm a train guy who wishes we were back in the 40s with steam locomotives and passenger trains and good union jobs and nice neighborhoods and good schools that taught education and not indoctrination it's a liberal philosophy. The old steam locomotives released as well you can see l e a s e plates on the tenders. People would invest in a fund School teachers fireman policeman Factory workers and the fun would buy a locomotive and lease it to the railroad. And then after 20 years they would lease it again. So in your retirement years you would have a little bit of income besides your pension from the company that you worked from and your Social Security. When all the steam locomotives came up when their lease is expired the railroads decided to go diesel instead and all those perfectly good engines were cut up for scrap. And then all of the railroads that were questionable and bankrupt when they were financed for diesel locomotives without a business 10 years later including the Pennsylvania Railroad and the New York Central as well as the New Haven but the New Haven lost business because of car traffic and the Connecticut turnpike being built right next to the railroad that took all the commuters away. Our tax dollars at work

[@Zadesniper]

@@frankmarkovcijr5459 Crime has never been next to zero, basically anywhere

[@frankmarkovcijr5459]

@@Zadesniper any old days in New York when my mom was growing up you could leave the house unlocked because it was a safe neighborhood. The city was safe the streets for safe to Subway was safe. Now You're Not Safe anywhere.

[@Zadesniper]

@@frankmarkovcijr5459 Crime still wasn't next to zero, there was still dangerous neighborhoods. Not saying the city isn't rampant with crime, but let's be real. It was never close to zero, it's just that now it's onsite for everyone. It no longer matters if you're a gangster or not, people are just desperate and following what they saw relatives and what they see in the movies. Society has truly failed our oldest/biggest cities. Imo the straight downturn of society came with cars

[@plisskenationbackfromthede3657]

I have a question regarding lights and block signals perhaps you could help me understand. So normally when most tracks have no traffic the lights are red and go green when a train is cleared to go through. In my town and others nearby tho, theyre always green and only go red on the other side when a train is approaching. Up does it here for some reason because it has a yard close i think, but cn does it too on the single track too and that goes back to icg days. I never understood why tho

[@Trains21]

I'm making a video on Junctions and Control Points and I'll open with this question.

[@gragor11]

This might help. Signalling one of 6 videos by Danny Harmon. Not CN, CSX but the principals apply. Trains21 - Delete if not appropriate. kzbin.info/www/bejne/aKnKhKisnZdrjqs

[@Trains21]

@@gragor11 Very appropriate. I've watched it many times. Thanks for sharing.

[@fluxthelycanroc9603]

Idk it's just weird for me working at ns seeing bnsf, up, cp, and csx locomotives on our trains

[@ghostgarden8032]

Looks like with all the foreign power on the head end of the trains, looks like one big ass happy railroad family, aww, just go grab a locomotive and add it in the line up

[@chuxtuff]

I worked in Tacoma Washington near the port and saw the black "foreign power" NS trains coming and going which didn't bother me one bit. This is BNSF and UP territory so we see almost anything currently running the rails here.

[@fluxthelycanroc9603]

@@chuxtuff i feel ya. I mean its weird but kinda the way thing are right now. Tbh some of the foreign units are nicer than our units so im not complaining

[@tonyburzio4107]

UP got rid of their SP locomotives because of the flim flam that Anschutz played on them with the D&RGW, SP and C&NW. UP was so mad they bought all three lines and tore them apart. Remember, UP doesn't go to Chiago, they relied on C&NW. Anschutz made it look like the SP and the C&NW may merge, and UP went nuts! Gained Anschutz a pretty penny!

[@onrr1726]

I loved how arrogant them assholes with UP were they fucked up SP operations to the brink of almost no return when they started canning people in management. I'm vary surprised that the Feds did not get involved to undo that merger with all the lost cars and understanding of how SP worked in Texas along the petroleum industry.

[@railfanmcneal2527]

Did the sun berry line went dark yet

[@Trains21]

No. It's not going dark anymore.

[@jeffbyland7128]

Enjoy the videos and the information that is put on them

[@stuew6]

Hey CP Sd40-2 High hood were turned into Unit-B.

[@kens.3729]

Union Pacific (UP) is currently spending Millions of Dollars on New Paint while 🤪 Contract Negotiations take place. Talk about having your Priorities Screwed Up.

[@DC9Douglas]

True, but ya can't say the paint wasn't needed.

[@O-PAC]

And their new paint scheme is atrocious on top of that.

[@O-PAC]

They also introduced 1111 “The power of people” paint scheme right before they laid off a bunch of people. So this is normal operating procedure them.

[@skyraiderjet]

@@O-PAC “The power of the shareholders”

[@thetexorcist2235]

You have to paint them though or they’ll never last.

[@bradjames6748]

The CP 9043macs were cut up

[@Dennis-vh8tz]

Only two of CP's 9043's were scrapped, these due to damage from improper storage. CP had Progress Rail rebuild the rest, along with a batch of 9043's CP bought from UP, into SD70ACU's. It was CP's SD90-MACH's, with the flawed 6000HP engine, that were scrapped en masse.

[@railfandepotproductions]

@@Dennis-vh8tz what if they also rebuilt their mac-h instead of scrapping them

[@Dennis-vh8tz]

@@railfandepotproductions It would've been nice if CP and UP each donated one or more MACH's to rail museums. But I guess they were seen as an embarrassing failure and rushed to the scrap yard. The were long gone when the 9043 rebuilds started.

[@TimothyJazmineFamily]

Good film AC

[@Trains21]

Thanks.

[@thepubliceye]

The company I work for leases from a company that they own, which always loses money.

[@tomstarcevich1147]

Merry Christmas 🎅 🎄 🚂🚃🚃🚃🚃

[@Trains21]

Same to you Tom.

[@matthewarentzen7465]

Another great tutorial!!

[@Trains21]

Thanks Matthew!

[@matthewarentzen7465]

@@Trains21 you are welcome!

[@matthewarentzen7465]

@@Trains21 Happy holidays, my friend!

[@jobhowie1110]

i see a lot of leasing units on union pacific

[@janvarif]

hello does anybody with brains know or realize that norfolk southern had two locomotive shops before the conrail spilt in 1999 then norfolk southern got another locomotive now they have 3 big locomotive shops the one in Roanoke VA is just about closed with all these locomotive shops norfolk southern should have the ability to rebuild locomotives fast without having to send locomotive to Texas and other places to get rebuilt but unfortunately the staff and labor at the norfolk southern locomotive shops has been cut down thin very thin .

[@onrr1726]

I never did see a lot of New NS units mostly older stuff along with Ex UP SD90MAC's sub lettered for NS. The routing for NS units going to Texas is St. Louis, MO where BNSF grabbed them from there they head to Springfield and on to Cherokee Yard in Tulsa, Oklahoma where they then head South down the Creek Sub to Dallas-Fort Worth. I used to catch NS engines every once and a while when I lived Cherokee Yard in West Tulsa. You'll find close to 2,000 videos in my KZbin account many filmed in Tulsa.

[@sernajrlouis]

Great video

[@RailfanNetwork]

Great info AC!!

[@josephhigdon2204]

Tax rates. Between daily use and amortization

[@davewallace8219]

Have I got a loco for you!

[@kellyveal1675]

All the cars engines and box cars are all leased.

[@theestallion818]

Shit to save money leasing it out is much better lol

[@frankmarkovcijr5459]

There are also political considerations involved. When the Penn Central was broke admired in debt it was given credit to buy thousands of brand new locomotives and cars for a railroad that had 10 mile an hour slow orders all over due to deferred maintenance of 20 years. All of the railroads involved in the reorganization should not have been permitted to buy anything new when they had plenty of locomotives just awaiting repairs. All the people in all of the locomotive shops would have had work and we would have first generation deals working even now. Amtrak is well should not have bought new power to rebuilt the power it had after all it's cheaper to do a valve job or an engine job on a car that it is to buy a brand new car. Same thing with a locomotive. They had thousands of employees laid off and car shops and locomotive shops closed that should have been teeming with work rebuilding the stock that they had. Amtrak as well should have rebuilt the locomotives they had and the cars they had. After all Amtrak has been a money losing concern since the beginning. It was made to save the passenger trains in the first thing they did was kill half the trains and the railroad said that they let us get rid of half the passenger trains we would still be in the passenger business. It's funny how railroads fly or leash new locomotives and they have hundreds of them in storage just resting away. I think of all of that money it's like burning millions and millions of dollars in great big bonfire same results.

[@dogyerf21]

Did 17 go on 47 or thwart?

[@Trains21]

????

[@BNSF4706]

I'm not happy about locomotives being leased and I will put a end to it.

[@Joe-d7m6k]

Most of these new locos all look alike. So boring!!!!!!