"WARNING GRAPHIC CONTENT" - BHP SD40's for Scrap

 

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  djukinX1016 Deputy Commissioner

Thanks for sharing, another chapter ends in the Pilbara.
  PILBARAMAN Train Controller

Location: PILBARA
There are still a few on wk trains.
  bevans Site Admin

Location: Melbourne, Australia
Thanks for sharing, another chapter ends in the Pilbara.
djukinX1016

Yes again, thanks for sharing!
  M636C Minister for Railways

The grey locomotives are all ex UP SD40-2s.

These were not rebuilt to the degree that the later BHPB livery SD40Rs received.

As far as I know, the SD40-2s were only ever used as trailing units, while many of the SD40Rs were fitted with air conditioned cabs.

M636C
  Expost Deputy Commissioner

Please, oh please, someone acquire a set of train horns for me, please.
  bevans Site Admin

Location: Melbourne, Australia
Will this do?



http://www.youtube.com/watch?v=6HZI3jdAvaY

Regards
Brian
  nswtrains Chief Commissioner

Yes again, thanks for sharing!
bevans
I am undergoing therapy after seeing these photos. What may help if there is any good news about the Tunnel Motor BHP also acquired.
  Sulla1 Chief Commissioner

I am undergoing therapy after seeing these photos. What may help if there is any good news about the Tunnel Motor BHP also acquired.
"nswtrains"


I think it was used for spare parts right from the beginning...I'm not sure I ever heard of it running, mores the pity.
  JNSymes Junior Train Controller

I can only assume most of you will not react the same way when the Gevos meet the same fate :p
  JGS Moderator Well. We'll see about THAT!

Location: Junee NSW
I enjoy seeing pics like this. Old locos being chopped; good to see. No longer of value to the owners, and of no practical use anywhere else in Australia.

Cheers,
Matt
  Kafoopsy Chief Commissioner

Location: Perth, WA
Will this do?

Regards
Brian
bevans

I think this one sounds better.  The Leslie S5 is an awesome horn, too bad they aren't around much anymore.



http://www.youtube.com/watch?v=I3hSsjNXePI
  SPSD40T2 Chief Commissioner

Location: Platform 9-3/4 and still waiting !!
Kind of ironic using a CAT to scrap them !!
  djukinX1016 Deputy Commissioner

I enjoy seeing pics like this. Old locos being chopped; good to see. No longer of value to the owners, and of no practical use anywhere else in Australia.

Cheers,
Matt
"JGS"


There was a restriction on the sale in Australia preventing their use.

I am interested in the way in Australia that these restrictions are put on loco sales. I have been told it is because the companies are concerned they might be used by a competitor. It is interesting because the large operators in the US sell off there locos and they get picked up by other operators but then again they have operated in competition from the start whereas we have only operated in the private space for 20 years or so since government ownership where the likes of Westrail had a similar stance on resales.

In the US it's all about growing / retaining market share for rail (see how the short line model works where larger operators spin off some lines and give the short line assistance on some occasions to get going so the product stays on rail rather than transferring to road) rather than operators here where we often see contracts swap between operators or go straight over to road.

Back to the SD40's they were only a stop gap purchase and in fact lasted far longer than I thought they would.

I do acknowledge the Pilbara is different as second hand locos could be bought by another miner who sells the same product as they produce and the rail systems are part of their integrated operations.
  sar602 Chief Train Controller

Location: Nomadic truckie
I enjoy seeing pics like this. Old locos being chopped; good to see. No longer of value to the owners, and of no practical use anywhere else in Australia.
Somebody


your a sick man seriously WTF and your a moderater of a fourm of rail enthusiasts seriously??
  bingley hall Minister for Railways

Location: Last train to Skaville
your a sick man seriously WTF and your a moderater of a fourm of rail enthusiasts seriously??
sar602
Just a wind up.
  jmt Deputy Commissioner

I am interested in the way in Australia that these restrictions are put on loco sales. I have been told it is because the companies are concerned they might be used by a competitor. It is interesting because the large operators in the US sell off there locos and they get picked up by other operators but then again they have operated in competition from the start whereas we have only operated in the private space for 20 years or so since government ownership where the likes of Westrail had a similar stance on resales.

In the US it's all about growing / retaining market share for rail (see how the short line model works where larger operators spin off some lines and give the short line assistance on some occasions to get going so the product stays on rail rather than transferring to road) rather than operators here where we often see contracts swap between operators or go straight over to road.
djukinX1016
You cannot compare the US and Australian rail markets

In the US the operator owns the below rail asset. If a locomotive is sold it will not be used by a competitor on the same rails (US multiple running rights only allow transit)

Australia is basically open access, a sold asset can be used in direct competition over the same rails. Plus there is the problem of your customers, nothing in law to stop your customers purchasing and cutting you out of the loop

The current Australian rail business model basically dictates that withdrawn assets be scrapped.  

This model will ensure that under-capitalised start-ups like El Zoro are doomed to failure, but well capitilised entrants with the ability to import rolling-stock like Qube should prosper. High start-up costs limit the ability of entrants to dramatically cut rates, and should lead to the refreshment of the national rail park

Aurizon as an example, no more rebuild/re-powering programs for aging locos (with tired iron flogged off overseas). As new long term contracts are won new locos are acquired to be amortised against profits. Only government owned rail (not subject to taxation) with large highly staffed back-shops can afford the luxury of 2250 and 2300 Class rebuild programs (basically expensive "make-work" to justify the politically expedient high headcount). PN's NR class half life rebuilds are a case in point, minimum amount of expenditure to ensure a further 15/16 years working life.

And lets kill talk of "branchline operators" in Australia. It will not happen as long as we have open access. With open access no operator has exclusive rights to freight over a designated branch. With the open access business model freight is block train movement from point A to point B by a single operator (or consortia in the case of some grain). It will be interesting to see if CBH's business model unravels in WA now that the ACCC have removed their exclusive franchise to move grain by rail, with Aurizon sitting in the wings with fully amortised rollinging-stock. If they wanted Aurizon can afford cut the guts out of WA grain freight rates, and make CBH's rail operation untenable
  djukinX1016 Deputy Commissioner

I agree with most of your comments but what I was trying to highlight with the US was the large companies spinning off "unprofitable" lines but assisting smaller operators (not in all cases) to take over those lines and still feed into their main network.

Unfortunately as you say "open access" effectively means someone else can step in and undercut the prices, but as we see especially in W.A. the main operator will decide a particular traffic is no longer profitable and it is lost to road. What we are now seeing is the growth in trucking that is able to use these traffics to get stuck into the bigger bulk tonnage areas once the area where rail had the advantage and anything up to 3 million tonnes per year is capable of being hauled by road.

With the ACC decision on CBH I do not see Aurizon as the threat, the decision effectively is handing a chunk of the market to road, see the announcements for Albany and Bunbury where the grain handlers will be using road for their operations. It will be interesting to see what happens in the Geraldton and Kwinana zones as the Port capacity will play a role in restricting direct farm to Port haulage.
  VRfan Moderator

Location: In front of my computer :-p
I am interested in the way in Australia that these restrictions are put on loco sales. I have been told it is because the companies are concerned they might be used by a competitor. It is interesting because the large operators in the US sell off there locos and they get picked up by other operators but then again they have operated in competition from the start whereas we have only operated in the private space for 20 years or so since government ownership where the likes of Westrail had a similar stance on resales.  
djukinX1016

I would have thought its anti-competitive behaviour to put restrictions on sales. ie: if a railway company no longer requires an asset and puts it up for sale, then it should be open market. ie: scrap mercahants, other railway companies, even foaming gunzels with $$$, let the market decide its value.
  jmt Deputy Commissioner

I would have thought its anti-competitive behaviour to put restrictions on sales. ie: if a railway company no longer requires an asset and puts it up for sale, then it should be open market. ie: scrap mercahants, other railway companies, even foaming gunzels with $$$, let the market decide its value.
VRfan

Your house is your castle

In law the body corporate or the individual who owns an asset, are at liberty to dispose of as they see fit

There is an election on the horizon, if you believe in the nanny state, you know who to vote for

Under common law and current legislation there is little impediment to conditions or encumbrances on sales, nor do you have to sell to the highest bidder, as a buyer if you do not like the conditions, encumbrances or caviets, you walk

Look at your land title, mine has a permanent caveat that does not allow front fences, or side fences as far back as the building line. In purchasing the property we accepted the caveat
  Kafoopsy Chief Commissioner

Location: Perth, WA
Just out of interest, what happens if a company buys a loco with condition like these and ignores those conditions?
  Barrington Womble Photo Nazi

Location: Banned
your a sick man seriously WTF and your a moderater of a fourm of rail enthusiasts seriously??
sar602
How so?

It's a fate which most motive power will face, and is inevitable for most. You can't save everything, nor can ignore that this is the reality of the situation. Locos get scrapped. Deal with it.
  jmt Deputy Commissioner

Just out of interest, what happens if a company buys a loco with condition like these and ignores those conditions?
Kafoopsy
Breach of contract

The courts take a fairly dim view

the vendor would be entitled to sue for damages

Wikipedia's answer is generic, but you will get the idea http://en.wikipedia.org/wiki/Breach_of_contract
  GeoffreyHansen Minister for Railways

Location: In a FAM sleeper
Is there any chance that an SD40 could be put in a railway museum in Western Australia as they are fairly unique to own under?

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