Blue Marble Travel
Service Attendant
The difference in the per-car price is substantially accounted for by scale of the order. That's not to say that Kazakhstan's manufacturing costs are not lower than those in the US, but recent large car builds across the world show the advantage of ordering in quantity. If you doubt the premise, I'll supply some examples.A few questions that come to mind....wherever you put them, some specialized maintenance is required, usually provided by Talgo itself. But a $50 million maintenance facility is not. Talgos operate on a premier overnight sleeper service in Kazakstan. Here's betting that they didn't build a $50 million maintenance facility to take care of those first two sets. But they have been sufficiently successful that the Kazaks just placed a follow-on order for 420 more coaches.
http://www.railwayga...rain-fleet.html
First, what differences are there between the Talgos bought for Kazakhstan and those being built in Milwaukee (differences that may alter the cost of maintenance)?
Second, what are the maintenance standards in Kazakhstan vs. those here?
Third, what are the relative costs (including labor) of maintaining trains in Kazakhstan compared to maintaining trains in Wisconsin?
Running the numbers, Wisconsin spent $72 million to buy (I think) 31 cars (I believe there were going to be 14 cars per trainset, plus 3 spares, could be off by a car or two). That amounts to $2.3 million per car. The Kazakhstan order was worth 300 million Euro, according to that article. At today's exchange rates, that would be $390 million. That amounts to less than $1 million per car.
So, saying that Kazakhstan didn't build a $50 million maintenance base is kind of disingenuous because I doubt you could build a $50 million anything in Kazakhstan (not literally, but you get my point, things are a lot cheaper over there).
The simple fact is that things cost a heck of a lot more to build here than many other parts of the world, for a number of reasons.
Milwaukee's train station cost over $16 million to renovate, and there wasn't even a new building built. They just extended the facade of the existing structure and redecorated the interior. So, to build a brand new building, and one that needs to be able to accommodate the maintenance of two trains, it's not out of the question to believe a $50+ million price tag.
I certainly believe that we can spend $50 million, on anything. We could probably spend $50 million on paper clips. And only wind up with a handfull of the things.
What I am saying is that there is no need to spend that. The new, dedicated maintenance facility is not needed at all, in reality or by contract, let alone at that price.
Having said all that, we agree on one point: the trains were never a good choice for this route, and should not operate there. I feel sorry for Wisconsin's taxpayers, and her traveling public. I have family in Wisconsin, and feel sorry for them, too. But WI has gone strange on itself, and has to sort out its own problems. In the mean time, there are a couple of slick trains for sale, probably cheap, and I'll bet that the maintenance cost issue will mysteriously disappear for whomever buys them.
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