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October 2023
Compiled by Pat Foran, Editor
What do maintenance-of-way equipment providers do with aging equipment? Refurbish it to keep it going? Sell it on the used market? Put it up for auction? Sell it for scrap?
All of the above, of course, depending on market conditions.
How are current conditions factoring into equipment suppliers’ decisions?
We recently asked a cross-section of providers how they’re contending with older, possibly outdated MOW equipment fleets, given current market conditions. A sampling of their emailed responses follow.
In 2021, Knox Kershaw started a leasing business for new and used equipment from the Knox Kershaw Inc. product line and other MOW equipment.
We believe there’s an opportunity to renew used equipment, for sale or lease, in order to offer customers more options.
Knox Kershaw has long offered remanufacturing services to its customers on viable used equipment, providing new life to older machines that just need a few repairs or updates to once again be in good working condition.
The company acquires stocks of used and remanufactured machine parts to meet the needs of customers with older models so that they can keep their equipment in working condition for longer.
While the company still primarily manufactures new equipment, we are always on the lookout for ways to extend the life of all of our machines and prevent unnecessary waste.
Jaky Felix Vice President of Sales Knox Kershaw Leasing
Danella sells our used assets on our website.
We also sell assets at our annual equipment auction, which is held in June.
Currently, we are not selling much used equipment. Due to availability of new equipment, the normal time we would replace and rotate out our assets has lengthened.
We find ourselves holding onto equipment longer to satisfy the rental demand. We are starting to see the loosening up of the light-duty truck market, but the other markets still have long lead times.
Steve Bolte Vice President Business Development North America Danella Rental Systems Inc.
Omaha Track recently updated its MOW fleet with a modern tamper, spiker and regulators. These enhancements have boosted production by limiting downtime.
With this recent update, we do not foresee any immediate upcoming changes within our fleet, but with 40 years in the business, we have dealt with aging equipment many times.
Within the railroad industry, equipment is crucial for efficient track maintenance. With years of MOW experience, Omaha Track has a strategy for dealing with aging equipment. Omaha Track believes in cost-effective solutions.
When maintenance costs outweigh the benefits, we opt to sell older equipment and invest in newer models. This keeps operations efficient and aligned with our commitment to quality.
The used MOW equipment market is currently doing well, much better than in recent years. It is in especially high demand lately for spikers and tampers. The scrap market is not particularly strong at the moment, so we have found that auctioning is the best way to go.
However, Omaha Track is constantly monitoring the market conditions to ensure that we are making the best decisions on our MOW equipment.
Overall, Omaha Track takes a proactive and cost-conscious approach to managing aging MOW equipment. Our fleet modernization ensures efficient operations and supports our commitment to quality services in the ever-evolving railroad industry.
Jillianne Gates, Corporate Communication Manager Gabe Lassek, Director of Track Construction and Abandonments Omaha Track
Email questions or comments to pat.foran@tradepress.com.
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