The rail and intermodal transportation industry is highly concentrated, with the seven (7) Class I railroads accounting for more than 89 percent of revenue in 2017; leaving more than 500 smaller operators to compete for the big players’ leftovers. This high concentration reflects the dominance of Class 1 operators. Intermodal transport is affected by coal and oil prices, as well as infrastructure spending. As oil prices remain low, industry expenses have dropped as well, increasing overall profitability. Freight volume and demand for rail transportation are also predicted to increase as the labor market continues to improve.
The rail and intermodal transportation industry comprises all forms of rail transport, including diesel locomotives, tank cars, coal-hopper cars, mill-gondola cars, refrigerator cars, tanker cars, center-beam cars, boxcars, intermodal well cars, flat cars, and steel containers. Our appraisals begin with physical inspections of the fleet of locomotives and railcars performed by an ASA railway appraiser. We’ll also compare the number of similar locomotives and rail cars that are idle or off-lease, as well as pore over maintenance records to make sure all assets have been properly serviced to ensure you thorough valuation guidance.