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Thread: Got Revenue?

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    Default Re:Got Revenue?

    Revenue railroad - a railroad that makes a profit, mostly from goods transports. In some areas the profit comes from passengers instead, but that's hard.

    Non-revenue - museum railroad.

    I hope I got it right since I'm from Sweden.

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    Default Re:Got Revenue?

    Revenue railroad. In the business to make a profit. All cars used for making money.

    non-revenue = not for profit like what reptilianfeline said.. museum railroad. Or in some cases public transit railroads..
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    Default Re:Got Revenue?

    You didn't state "profit" railroad, so any railroad, or railroad piece that take in a reveneu can be cosidered a "Revenue Railroad". This would include Non for Profits, Museum pieces, Public Transports, Tours, even MRR clubs that have a mebership fee could be considered "reveneu" ventures.

    Non-reveneu. That's hard :twisted: . One that dosen't exist any more?
    I was young and foolish then;
    now I am old an foolisher

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    Default Re:Got Revenue?

    I applaud the textbook definitions, but does anyone dare step outside the box to add to this? :?

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    Default Revenue railroads

    BN..revenue railroad
    Santa Fe...non-revenue railroad

    Chris
    K8CRQ

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    Default Re:Got Revenue?

    I like your style, kid! 8)

    Any other takers?

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    Default Re:Got Revenue?

    another option for non-revenue railroad. My layout railroad.... Its definitly non-revenue generating. In facit it sure sucks my revenue every change it takes.....
    Visit my Layout at:
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    Default Re:Got Revenue?

    Since nobody but Chris had the whimsy to try this I guess it's time for me to spill the beans... err... I mean revenue!

    There are two types of railroads, "revenue" and "non-revenue." A revenue railroad is any railroad that handles mostly revenue trains, i.e. unit trains. This includes but is not limited to coal, iron ore/taconite, grain, and chemicals. A non-revenue railroad is any railroad that handles non-revenue trains including passengers, intermodal, and carload freight.

    Why the dramatic difference between railroads? Look at the income sources. Revenue railroads haul low-value commodities long distances. In many cases the cost of the transportation service exceedes the value of the commodity itself. This traffic is high-profit for the railroads hauling it, it needs a minimum physical plant, is not time senstive, and doesn't require a large capital investment on the railroad's part. Powder River coal is a great example of this, it is shipped long distances in utility-operated equipment without much regard for a schedule. On the other hand non-revenue railroads deal with high-value and low profit shipments, like intermodal. The nature of the business invites competition between railroads which cuts into profit margins. Even returning revenue trains are still classified as such because they made so much money when they were loaded they're still making a profit.

    As a rule revenue railroads have a better physical plant than non-revenue railroads. The sanitized saying "Gosh darn revenue railroads and their freaking capital projects" expresses this. Revenue railroads are able to maintain a higher standard for their physical plant because of all the revenue they haul. Additionally, many revenue railroads are able to pay cash for new equipment and have large sums of money in reserve.

    History proves that revenue railroads tend to acquire non-revenue railroads for lack of anything better to do with their money: Burlington Northern over Santa Fe; Chesapeake & Ohio over Baltimore & Ohio; and Rio Grande over Southern Pacific. There are exeptions to this rule, of course. Union Pacific was able to take over a number of revenue railroads including the chemical-rich Missouri Pacific and Powder River player Chicago & Northwestern.

    Railroads can change from one category to another. For instance, a railroad without a base of revenue trains can develop the traffic (Powder River coal, for example) late in its existance. On the other hand, a revenue railroad can lose its revenue trains, say if the type of revenue hauled falls out of favor in the market (anthricite coal).

    So what's the ultimate revenue railroad? Norfolk & Western, of course! Over the years the N&W has acquired more non-revenue railroads than it knew what to do with: Wabash; Nickel Plate; Akron, Canton & Youngstown; and Southern Railway. They even had enough money to buy the Virginian, another revenue railroad! That's not all, however. For a good part of the 20th century the Norfolk & Western was owned by the storied Pennsylvania Railroad, a slowly failing revenue railroad itself. Even though its own operations were losing money the Pennsy was still able to pay annual dividends to its shareholders from the procedes of its N&W stock ownership! That, my friends, is a lot of revenue!

    So next time you see a unit coal train riding the rails be sure to shout out "REVENUE!"

    Thoughts? Comments? Questions?

    *crickets*

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    Default Re:Got Revenue?

    Seems very "American" to me.

    When the government/state owns the railroads, there is no distinction. In Sweden we have some local transport companies that run passenger trains locally, and the state-owned company Green Cargo takes care of goods, and country wide passengers are taken care of by SJ (State's Railroads).

    After looking into British railroads, many local businesmen created lokal stretches of railroads (as they did in Sweden as well). Then they formed small companies, that formed larger companies, and then the governement desided that they had to go to gether even more. Not so sure about present day though. BR is British Rail, and that seems to be the only thing that excists.

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    Default Re:Got Revenue?

    Not only is it very American but it is also very "railohio-ish". This is just how my friends and I describe railroads among our group. Your mileage may vary (pun intended). I was hoping others would catch on and add their own insight and jokes.

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