Complete abandoned railroad value?

[Texkon]

Howdy folks, happy new year! I have an opportunity to purchase a 68 mile abandoned rail line that is 98% intact. It was last used up until 2019. This would be an infrastructure purchase only, no equipment comes with. The current owner has asked me to make them an offer, but I have no idea how to value something like this as it would be my first railroad aquisition. The railroad has changed hands some in recent years, 1993, 2013 and 2016 to its current owner. I have not been able to find anything online regarding purchase prices of any of these transactions. Can any of you guys shed some light on this?

 

[CharleyL]

You might want to talk to Brian, the guy who bought and formed the East Terminal Railway. It is in Ohio. He and his son have been working to restore it and find customers for the last several years. He has been posting videos of his "progress and the lack of" on Youtube. From watching his channel, his railroad so far seems like it's a "money pit".

This link should get you started -

About The East Terminal Railway – East Terminal Railway

Charley

 

[bnsf971]

There's a reason the railroad abandoned it, and is trying to sell it off. What is the reason? Too high maintenance (bad roadbed, frequent storm damage)? Too high taxes? Too high labor cost? Not enough business? If the line doesn't have any online business, is there overhead traffic to keep it going? Are there businesses that would come back to rail if there was reliable service?
What is the current FRA classification of the road? Class 1, 2, 5? Excepted? All these things are questions you need the answers to.
Is the asking price scrap value? Are there utilities that will pay to lease part of the right of way for access? Are there utlilties that currently lease part of the right of way? Will those leases transfer to you upon the sale, or does the selling road want to retain them?