I have a business opportunity to finance a locomotive scrapping operation...

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paul

New Member
Hi I'm new here. I really just need some advice from people with experience in this area. As I said I have a business opportunity to finance a locomotive scrapping operation, i.e. I put up the capital and my associate cuts up the locomotive. This is an operational, very heavy 100-ton+ locomotive, so apparently the generator, etc. can be sold for parts and there is of course ridiculous amounts of steel and copper, etc. Everything's arranged, I just don't know how to determine the salvage/scrap value of this thing, whether they can cut it up in 3 days as claimed, whether its worth my time and money, whether its worth the >$100,000 price, etc.

Anybody familiar with salvaging these monsters?

Thanks guys.
 

LoganTrackdog

New Member
There are companies all over the United States that do this. I am a full time, year round metal recycler. I have scrapped loco shells before. Careful, it's almost a EPA nightmare anymore. Take your money and run.

A typical SD-40 will weigh in at about 184 tons. Even if you were to get $350.00 a ton for the scrap steel, you'd be only looking at about 64 grand. I understand some parts can be sold, but to who? And what about all the overhead you are going to cover. No, if it's 100 grand+ to buy it, walk away.
 

Bob

Forum Host
Staff member
Logan is correct, scrappers are a dime a dozen. The first thing you have to ask yourself is "Why isn't anyone else doing this?" There's probably a good reason, usually that you can't make money doing it.
 

paul

New Member
There are companies all over the United States that do this. I am a full time, year round metal recycler. I have scrapped loco shells before. Careful, it's almost a EPA nightmare anymore. Take your money and run.

A typical SD-40 will weigh in at about 184 tons. Even if you were to get $350.00 a ton for the scrap steel, you'd be only looking at about 64 grand. I understand some parts can be sold, but to who? And what about all the overhead you are going to cover. No, if it's 100 grand+ to buy it, walk away.

Well there's quite a bit of copper as well, which should be worth something in addition. No? I understand an operational diesel locomotive engine is worth money as well. $100,000 seems to be a rather good price compared with others I have seen, but I think I'd like to know what exactly is scrapped/sold from a retired locomotive so the net value can be determined so I don't have to just throw money at it and hope that there will be a profit.

Thanks again.
 




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