Question:

How much does it cost to start a railroad company? How mush does it cost to buy a locomotive?

by Guest57572  |  earlier

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i am doing a project and i need to know.

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6 ANSWERS


  1. Start up capital is astronomical.  I believe the current price tag for a modern road engine is near 2.2 million a copy.


  2. First, it depends what period of time you are choosing to be in. If you were a wealthy business client or master in the 1800s who decided to build a railroad between Philadelphia and Santa Fe, you would be spending $7,800,000 for the entire connection. A locomotive then, would have cost you roughly $60,000 to $150,000 at the time. However, today, most railroads are no longer built, because they are mostly either converted by federal contracts or repaired. If they are built, it is usually by several companies together, to span across several hundred miles to a smaller yard cross-country for the benefit to their company. Today, the cost of building a whole new railway from east to west or vice versa would be anywhere between $200million to $1billion, depending on where you were, where you wanted to build through, how many separate lines you would have, and where you would end up. Each state, city, and jurisdiction have their own requirements for building through their location, permits and licenses must be had and taken care of. That's why mostly, the government takes care of these such problems. Not to mention there are always the conditions of the public not willing to let those interfere with railway policies by having lines come through their neighborhood. This has happened before and general people have taken their claims all the way to the Supreme Court and have won.

    On the second notion of how much a locomotive costs. Today, diesel locomotives can range between $230,000 to $760,000 depending on what type is needed, the power, the safety features, and its capacity for hauling. There are all kinds of locomotives as well. From standardized diesel engines for long-haul, to switchers, used for yard work. There are donkeys which have two water tanks on either side of the boiler box located on the locomotive, to electric engines. There even used to be a locomotive around back from the 1950s and before, it was one of my favorites. It was known as the "doodlebug." It was part engine cab in the front, separated by a small cargo hold, and then separated again by a passenger car aft. The whole machine worked off of electricity.

    Good luck to you in your report or wherever it is you require this information.

  3. Startup costs for a railroad are incredibly high.  But it's hard to pin down an actual number, as each situation is different.

    The purchase or lease of an existing line being sold/leased by another company would alone be in the millions, tens of millions if it were a long line or had many customers on it.

    As far as locomotives go, prices range.  Brand new, passenger and commuter railroad engines are anywhere from $3-6 million each.  New freight locomotives are upwards of $2 million each these days.

    Used, the prices range.  I've heard of locomotives being picked up for $10,000, but you get what you pay for.  Something that cheap may best be used as a source for parts, and nothing else.  Operable ones in decent condition could be upwards of $50,000, maybe into the hundreds of thousands.

  4. well I work with burlington northern railway so I know their prices they pay for everything so hope this helps.

    well it costs $23.95 per railroad tie and each one is about 2 feet apart. it also costs $45.98 per 20 foot section of rail. then about $100,000-$450,000(used) for a locomotive and $4,000 each rail car rough estimate would be for a small tourist railway:(this is for 3,000 feet of track and everything.) $35,925 for ties-$6,897 for track-$12,000 for rail cars-$100,000 for locomotive   total is $154,822

    the price above is just for 3,000 ft. of running track.

    hope this helps if you need more info email me at lalondejr_donald@yahoo.com

  5. not sure on start-up cost but a used GP-40-2 locomotive can be bought for about 350,000 dollars   the newer dash9's cost new about 2.5 million apiece

  6. About 200 million dollars.

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