Shortline railroads usually don’t have access to the same type of equipment that high-iron lines do, especially in southeastern Nebraska. Those who provide private services to local shippers, such as industrial lines, have even less choices when it comes time to order new railroad track equipment. In many cases, their managers will simply work with an outsourcing organization that leases the equipment.
Considering the high costs associated with doing so, a number of shortline railroad operating companies have gotten together to order gently used railroad track equipment from dealers. They soon found that bulk discounts were also available for new equipment, which was good news for firms that were completely revamping their maintenance departments.
Operating companies will usually invest in multiple lines, which gives them the freedom to order a large amount of equipment all at once. They can then send this gear to each railroad subdivision that needs it. While they might still be met with a fairly sizable upfront cost while doing so, their long-term expenses will be considerably lower by doing so. This is especially true if they were previously locked into an equipment leasing agreement that wasn’t exactly in their favor.
Railroad operators who have to oversee internal work at industrial shippers have found that they can pool their resources with other similar organizations. Several of these have purchased equipment from local Nebraska dealers at a significant discount. Over time, this should allow them to be almost completely independent from major outside lines.
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