RII can perform services for all types of railway equipment, from rolling stock and locomotives to maintenance of way equipment, passenger coaches, historical equipment and maintenance vehicles
Projects
Florida East Coast/Bank of America Equipment Fleet
Evaluation of entire Equipment Fleet for Bank of America. RII performed the evaluation of all rail equipment of the Florida East Coast Railway (FEC) each year on behalf of Bank of America to justify continued financing deals for 7 years after its acquisition by Fortress Group. Work included a thorough review of documents provided by FEC, physical inspections of FEC’s locomotives and a sampling of railcars, containers, trailers and other equipment to determine the overall condition and develop the market value for the equipment for purposes of using the equipment as collateral. These evaluations included up to 20 locomotives, over 1000 freight railcars, 3 prestige historical passenger business cars and extensive maintenance of way and intermodal equipment. Follow on work included periodic desktop updates for market values and annual physical inspections to confirm consistent condition of the assets. RII also performed an asset life cycle analysis for FEC to examine the remainder of life for all equipment in to assist in financial depreciation and equipment replacement planning, as well as assess the maintenance program.
Amtrak Revenue Loss Case
RII served as one of the expert witnesses for this case involving Amtrak's interests in a lease of railway equipment. The contract consisted of expert witness, research, knowledge of equipment types and valuations, projected traffic and value calculations, deposition and testimony for proving equipment used by a third party was not under lease and therefore Amtrak was entitled to the value of the revenue they could have derived from the assets. The project involved detailed financial analysis, forecasting and knowledge of equipment condition and values. The case settled in our clients’ favor resulting in a large settlement offer for Amtrak.
North Dakota Port Services Evaluations
RII has developed several evaluations for this facility that provides storage, transload, drayage and other transportation service in Minot, ND. RII first developed the value of the facility based on both current assets and potential business during the period when Minot, ND was at peak industrial activity. Work included examining potential customers in the area and developing conservative and optimistic traffic projections. Work since that time has included developing detailed Net Liquidation Values for the assets of the facility, which include substantial track, land, maintenance of way equipment, vehicles, machinery and tools. Valuations have been updated periodically as property values in the area have changed used for bank financing and collateral, as well as sales packages and negotiations.
Railroad Expert Witness Cases
RII has served on numerous cases to estimate the equipment damages, on both the railroads' sides and defendants' sides, to establish the value of the damages. Damages have been calculated based on repair costs, depreciated value, replacement cost, fair market value, as retroactive values, future values, business lost and income values and lease values of various terms.
