BIGGS APPRAISAL Railroading 101
BIGGS APPRAISAL Railroading 101 American Society of Appraisers Conference June, 2018 It is likely that you will encounter rail equipment if you are appraising a large industrial facility • Your asset list may include locomotives, freight cars, rail car movers, track maintenance of way equipment as well as track. • The purpose of this presentation is to give you an understanding of what you have and where you might look for information to support a credible valuation. The Association of American Railroads (AAR)is the Railroads centralized governing body. • It develops: • The Interchange Rules • The Standards and Recommended Practices • General Railroad Operating Practices • Processes Car Hire • Processes Movement records and car tracing information • Processes Car Repair Billing • Maintains the Rail Equipment Registration File (Commonly called Umler) • Develops Rail Equipment Specifications Federal Governing Bodies that impact Railroads • Department of Transportation • Federal Railroad Administration • Environmental Protection Administration • Surface Transportation Board The Interchange Rules The term Interchange rules applies to the rules found in the Field and Office manuals published by the Association of American Railroads. These rules apply to the running gear, couplers, safety appliances, brakes, wheels. A railcar could having a gaping hole in the side and still meet the interchange rules. The term suitable for loading the intended commodity is an important qualifier. Rail Car Identification • As of May 1, 2018 the North American Rail Fleet was comprised of 1,644,507 units in over 700 car types. • There are seven major rail car classifications: Boxcars, Covered Hoppers, Flat Cars, Gondolas, Hoppers, Tank Cars and Other Cars. • The Gross rail Load Capacity (GRL) or freight railcars fall in to three general categories 220,000 pounds (70 ton) 263,000 pounds (100 ton) • 286,000 pounds (100 Plus tons) is the modern standard car capacity.
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