Rail Spur

[Stephen J. Vertin MAI]

Has anyone had experience with rail spur installation? I am appraising a lumber yard and one of the comparable sales does not have a rail spur but is abutting a functioning rail line. I know actual concrete docks are expensive and have actual cost for several but I am wondering how costly it is to install the spur.

 

[techbiker]

Cost and feasibility probably depend somewhat on the railroad's requirements. Do you know if the railroad is even interested in working with the property owner to install a spur?

https://www.up.com/customers/ind-dev/developers/process_track-construction/index.htm

 

[Sid Holderly]

Most local lumber yards, even with a spur do not get any supplies by rail. The closest local Menards, Lowes and home depot have no rail service.
The local grain elevator put a spur in about 20 years ago and it was well over $100,000.

 

[camrex]

RS Means Heavy Construction Cost manual has railroad siding costs in there. One question I would have is, how much is the presence of a railroad served siding track affecting value? If having railroad service is affecting value, I would doubt that it is the actual track improvements that are the source of value. It would be the presence of the connection. It seems to me that if you think the track improvements are affecting value, then the depreciated value of the track improvements would need to be removed from any sales. Then you could estimate the depreciated contributory value of the track improvements for the subject property. But you may find that the contributory value of the actual track improvements may be minimal.

 

[Stephen J. Vertin MAI]

Most local lumber yards, even with a spur do not get any supplies by rail.

Contra my friend in the Midwest most lumber is shipped from Canada directly to lumber yards by rail. Given the current trade, war prices have increased by over 30 percent in the last 3 months slowing shipping but I suspect it will not last long.

Techbiker, interesting read..

 

[Scott.A]

Looking at the dates, you're probably done with this by now. But for future reference, I found that the railroads are pretty forthcoming with such information, once you find the right person to talk to... and that can take a few days and several phone calls. The state regulators may be easier to get a hold of and can probably point you in the right direction to find the right people to talk to.

 

[Michael P Jacobs MAI]

...I found that the railroads are pretty forthcoming with such information, once you find the right person to talk to... The state regulators may be easier to get a hold of and can probably point you in the right direction to find the right people to talk to.

Scott- I was unaware of this! Have you had RR's give you the actual lease information? Any information would be greatly appreciated.

 

[Scott.A]

Scott- I was unaware of this! Have you had RR's give you the actual lease information? Any information would be greatly appreciated.

Nothing specific as to lease information, but I had a case last year where I had to hunt down someone from Canadian Pacific to discuss an issue with a crossing on private land. It took a while to find the right person, but once I did, he was very helpful. I would suggest once you find out whose line you're dealing with, get on the RR website and start looking for people in that state. The person I talked to at CP was part of their real estate management. He covered the state of Iowa. I don't think there are a whole lot of people to navigate through to find the ones who deal with our questions. At least that was my experience with CP.

 

[allansappraisal]

I did something down in Chicago Heights and spoke directly to a guy out west that constructs them. Long story short, they are relatively inexpensive as long the the rail spir is active.