Car loan maine refinancing

Twenty-three large regionals and short lines, totaling 13,000 route miles, plan to invest $145.8 million in capital improvements this year, with heaviest emphasis on roadway.

In some ways, last year could have been much better for the regional railroad movement in general. Because the Supreme Court failed to clearly resolve the issue of labor protection for employees of lines to be spun off by major carriers, no significant new spinoffs took place. And, because Congress failed to provide federal loan guarantees for rack rehabilitation, new equipment, and debt refinancing, some recent spinoffs continue to invest less than needed.

In other way, it wasn't a bad year at all, as most regionals not only performed well but continued to make impressive capital improvements. This year, capital spending generally will be even higher, according to the plans (as of Dec, 26, 1989) of 23 of the 28 largest regional and short line carriers.

Improvement already seems to be paying off. A 1989 bright spot was a report by the ICC's transportation analysis office that 493 shippers using new short line and regional railroads "overwhlemingly" considered their service as good as or better than that provided previously by larger carriers.

The report included 14 regionals, defined as operating at least 360 miles, and 163 short lines. Railway Age's 1990 capital spending survey includes 16 regionals according to the ICC definition, ranging from the 2,002-mile Wisconsin Central to the 350-mile Providence & Worcester, and 7 of the largest short line, ranging from the 309-mile Paducah & Louisville (RA, Nov., p. 40) to the 208-mile Fox River Valley. The mileage figures are for total route operated rather than trck owned, and include trackage rights. This survey includes older regionals and the regionals and short lines resulting from recent spinoffs by Class I carriers.

For 1990, these railroads plan to make capital improvements valued at more than $145.8 million, compared with about $129.7 million in 1989, an increase of about 12%. Again this year, the lion's share will go into roadway. More than one million new crossties will be installed, of which 235,000 are set for the MidSouth system alone.

Ten carriers expect to invest more this year, including three of the four largest, all recent spinoffs, whose combined spending will total about $56.8 million. Chicago Central sees the largest increase., 193%, and the largest capital budget of all, including a major car acquisition. "We're encouraged that business conditions let us put that kind of money back into the railroad," says Lyle D. Reed, president and chief operating officer.

Also this year, MidSouth's capital investment will be up about 46% and Wisconsin Central's will be about 40% higher.

Seeing the largest decrease, 41%, is Montana Rail Link, the seventh largest new regional, but that decrease reflects reduced need. "We did quite a lot of catch-up work the first tow years, and now we're in more of a normal cycle," says William H. Brodsky, president.

Also looking at a large decrease, 16%, is the third largest new regional, Dakota, Minnesota & Eastern. Struggling with a heavy debts load, the carrier had hoped to take advantage of federal loan guarantees this year, to free up at least $2 million for capital improvements.

Other carriers seeing less investment cite 1989 equipment acquisition that isn't being repeated, or completion of major track rehabilitation projects.

Among regionals and major short lines for which no 1990 spending plans are available is the Chicago, Misouri & Western, whose Chicago-St. Louis line was sold to Southern Pacific and whose St. Louis-Kansas City route was to be sold by year's end. The 430-mile New York, Susquehanna & Western was still planning its 1990 budget at press time (1989 capital spending was a projected $9.1 million).

Two Michigan carriers, the 380-mile Detroit & Mackinac and the 200-mile Central Michigan, did not expect to complete capital planning until early 1990, while a third, Escanaba & Lake Superior, declined to reveal figures because it is privately held, as did the 420-mile Kyle Railraod (most other regionals and short lines are not publicly owned).

- Wisconsin Central. In most cases, however, regional and short line presidents were not only willing but eager to discuss their plans for 1990, starting with Edward A. Burkhardt, Wisconsin Central president, who sees his railroad as strong enough financially to acquire more track when the opportunity presents itself. "We could finance a large transaction," he says.

That's not expected to happen this year, however, as the 2,002-mile operator of mostly ex-Soo Line track sees capital spending of $14 million, up $4 million from the 1989 total.

WC's 1990 program includes installation of 99,000 new and 34,000 used crossties, 157,000 tons of ballast, five miles of cwr, extensive rail and switch grinding, and heavy repair of 352 cars.

- MidSouth. Operating 1,,150 miles of mostly ex-Illinois Central Gulf track in Mississippi, Louisiana, and Alabama, the MidSouth system sees 1990 capital spending of more than $19 million, compared with $13 million last year. Of that, $12 million will go for the first year of a five-year, $37-million rehabilitation of the 713-mile SouthRail segment, and the rest will go into the 418-mile MisSouth segment. No capital improvement is set for the MidLouisiana segment.

SouthRail will receive 185,000 new ties and 900 cars of ballast, along with rehabilitation of four yards. MidSouth will receive 50,000 new ties, 700 cars of ballast, and the first phase of a 73-mile cwr project.

- Springfield Terminal. Including its 346-mile Maine Central and 653-mile Boston & Maine segments, Springfield Terminal Railway co., a Guilford Transportation Industries subsidiary, sees 1990 capital spending totaling $23 million, the same as for last year, but with a shift to locomotive overhauls. The 1989 plan included installation of 100,000 new crossties and other track work resulting in removal of more than 100 miles of slow orders.

- Dakota, Minnesota & Eastern. Operating 965 miles of former Chicago & North Western track through southern Minnesota and central South Dakota, Dakota, Minnesota & Eastern sees 1990 capital outlays of $7.5 million, compared with $( million in 1989. This year's plan includes 80,000 new ties, 100,000 tons of ballast, strengthening of 13 steel bridges at west end to handle new betonite clay traffic from northeastern Wyoming, and acquisition of nine used locomotives.

- Chicago, Central & Pacific. Operating 797 miles of mostly ex-ICG track between Chicago and Omaha, Chicago, Central & Pacific expects 1990 capital spending to total $23.8 million, compared with about $8 million last year. The railroad will complete rehabilitation of a 100-mile segment in western Iowa (phase II of a project started in 1988) and realign track and yard at Dubuqe, Iowa because of a highway project. These and general capital projects will involve 95,000 new crossties. What' more, CCP will acquire 220 new coal cars, with a supplier to be chosen in early 1990.

- Red River Valley & Western. Red River Valley & western, operating 667 miles of ex-BN track in North Dakota and northern Minnesota, sees 1990 capital spending at "just over $1 million," about the same as for 1989. The plan includes 9,000 new ties, up to six miles of used rail, 50 to 60 miles of surfacing, and some m/w equipment.

- Iowa Interstate. Operating 662 miles of ex-Rock Island track between Chicago and Omaha, Iowa Interstate sees 1990 capital outlays totaling $1.5 million, compared with about $2.0 million last years, which included sizable equipment spending. This year's plan includes completion of a Chicago intermodal yard and 25 miles of track improvement at the railroad's west end involving 32,782 new crossties and 2,811 tons of ballast. With completion of the 1990 work, the entire main line will have been restores to 40 mph operation.

- Montana Rail Link. Operating 650 miles of ex-BN track in Montana, Idaho, and Washington, Montana Rail Link sees 1990 capital outlays of $10 million, compared with $17 million last year. This year's plan includes eight miles of new and 10 miles of used 132 pound cwr, 60,000 new ties, 220 miles of surfacing, and a large amount of bridge deck rebuilding.

- Tucola & Sagina Bay. As Michigan's designated operator of 550 miles of track with various previous owners, Tuscola & Saginaw Bay looks forward to capital investment of at least $4.4 million, with more likely to be announced, in a continuation of the strong pace of track rehabilitation started in 1988.

- Alaska Railroad. The 530-mile Alaska Railroad sees 1990 capital spending of $11.9 million, compared with $11.8 million last year. This year's program includes $4.5 million for maintenance of way.