Gross and Net Line Valuation

June 26th, 2009

The costs associated with upgrading a rail line are readily available. The materials and labor are quoted by the supplier-contractors. If the labor is performed in-house, historical costs are known. The material not retained by the railroad for in-house use can be a significant offset to the upgrade costs and this is one of the key services Rail Appraisals can provide.

The value of a rail line to an ongoing railroad is very different than the value to a railroad supply-contracting company that must purchase and resell the material into an ever-changing, dynamic market place. On the same piece of rail, a class #1 railroad may differ in its specifications from that of a shortline. With many years of railroad supply-contracting experience and continuous contact with the industry, Rail Appraisals is able to capture current sales prices, specific material demands, industry trends, and current take-up costs necessary to bring this type of material to market. Environmental issues such as proper tie disposal are also integral to the process.