X-Train Chugging Along?

[Anderson]

Ok, let me take up a position in LVRE's shoes. Assuming there's no real estate development attached to this, then I'd guess that we're looking at a plan for a single station-and-maintenance-facility location. My guess is that the Plaza location would have required a separate turning facility, so they would have needed two locations in Las Vegas, not one, so this is a cost-saving measure. Moreover, the Plaza location isn't bad, but it's not great.

So, shifting back to LVRE's shoes, I'd go for whatever I could afford...which probably means "not near the Strip" right now. It is plausible that, presuming the operation is a success, they would want to set up a second station actually at the Strip somewhere but that such just isn't in the cards right now. 'course, it's also possible that negotiations with the Plaza folks went south and this is a dubious "Plan B" that got shoved together in the face of an increasingly tight deadline.

 

[GG-1]

Aloha

Today's Review Journal, local paper, had this article http://www.reviewjournal.com/business/tourism/railway-company-outlines-us-expansion-plans-vegas-la-service-pushed-back Not very favorable.

 

[RobertB]

Looks like a lot of what us in the software business call "vaporware". When you're about to miss your release date, add a bunch more features (none of which you've actually created or even really planned) and try to keep the hype machine moving.

Here's one interesting statement - maybe they should have just started with private car service in the first place?

Nevertheless, Las Vegas Railway said it has identified several corridors across the country where it would attach as many as eight luxury cars to existing Amtrak trains, starting with Houston to New Orleans later this year. Amtrak did not respond to question about whether such a deal was in place.

The most telling tidbit is the one that didn't get mentioned. They're out $600k to UP unless they ponied up additional dough - back in March.

The status of a deal to use Union Pacific tracks from Las Vegas to Daggett, Calif., was unclear. The company said it has paid a $600,000 deposit with Union Pacific that it would lose if it did not post another $27.4 million letter of credit by March 31. Union Pacific set a price of $56 million to cover all the trackage rights fees and improvements needed to run freight and passenger trains on the same line.

The annual report and other company releases didn’t say whether the terms were met or whether the agreement was canceled by missing the deadline.

If you make that deadline, you tell the world. If you don't...

 

[user 1215]

Alright railfans! Put your money where your mouth is! 7.5 CENTS per share!!! We can all become massive millionaires if we all just invest $1000 each and tell all our friends, too! This is going to be a HUGE success! No way they'll lose.

[/sarcasm]

 

[RobertB]

Seven and a half cents? It was just seven cents this morning. That's a seven percent increase in a day! That means that at this time next year, each share will be worth $8,736,189,635.44 (give or take a few thousand bucks). Looks like we'd better get on board and become billionaires!

Disclaimer: Some of the information on this Forum Posting may contain projections or other forward-looking statements regarding future events or the future financial performance of the Company. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. Exponential growth would not be a realistic expectation, even if this company weren't selling oceanfront property in Arizona Nevada. Also, math - learn it.

 

[afigg]

Another Las Vegas Review Journal article on LVRE which makes me wonder just how shaky the prospects are for the X-Train. Before one goes public with the idea of connecting luxury cars to an Amtrak LD train, I think most people would agree that would be a good idea to have extended discussions with Amtrak first.

Amtrak: No discussions on LV Railway attaching lounge cars

Excerpt:

An Amtrak spokeswoman said that there are no plans or even discussions to have the Las Vegas Railway Express attach luxury lounge cars to trains running between Houston and New Orleans.
Las Vegas Railway, a penny-stock company that has also announced it would start passenger rail service between Las Vegas and the Los Angeles area but never performed, made the new route a centerpiece of its annual report filed July 1 with the Securities and Exchange Commission. The company said it would look at attaching luxury cars to several Amtrak routes, setting the start for Houston-New Orleans as the fourth quarter of this year.

“There have been no discussions regarding the Southwest Limited,” said Amtrak spokeswoman Vernae Graham, referring to the name of the train.

Southwest Limited? My guess is that the reporter jumbled up the SWC with the Sunset Limited because LVRE stated they were looking at several Amtrak routes.

 

[user 1215]

This is really the part that gets me:

Las Vegas Railway has made announcements in the past without informing others involved, such as once saying it would include a gaming car on trains between Las Vegas and Southern California. Union Pacific, which owns about half of the tracks, strongly objected and pushed Las Vegas Railway to drop all mention of it.

This just appears to be a big group of arrogant railfans who don't have a clue about railroading.

They are at 6 cents today.

The problem is that they have no assets. Nothing to sell when they run out of cash. Half of their listed assets is cash and the other half is intangible, including $800,000 of "goodwill".

Another fundamental flaw of fledgling companies is announcing products before they are ready - which is what this Amtrak stuff is about - AND before they are successful with their primary venture.

It's very interesting - I used to work for a start up company and the flamboyant CEO made that comment. Then announced a new product, even though the first one wasn't successful yet. Guess what? They bankrupted.

 

[jis]

Looking at a satellite map of N.Vegas there is a large siding just off the main line that may be their reason, a good place to hold the train for the weekend. This location is so close to I-15 any hotel is maybe 15 minutes away.
Aloha

btw: they are telling stockholders a test run in Oct. and Scheduled run for the New Year Weekend.

Just curious..... how much construction of anything resembling a station has taken place at the station site? Or are they just planning to use an Amslab .... er an LVRSlab as the station for starters?

 

[George Harris]

Another Las Vegas Review Journal article on LVRE which makes me wonder just how shaky the prospects are for the X-Train. Before one goes public with the idea of connecting luxury cars to an Amtrak LD train, I think most people would agree that would be a good idea to have extended discussions with Amtrak first.
Amtrak: No discussions on LV Railway attaching lounge cars

Excerpt:

An Amtrak spokeswoman said that there are no plans or even discussions to have the Las Vegas Railway Express attach luxury lounge cars to trains running between Houston and New Orleans.
Las Vegas Railway, a penny-stock company that has also announced it would start passenger rail service between Las Vegas and the Los Angeles area but never performed, made the new route a centerpiece of its annual report filed July 1 with the Securities and Exchange Commission. The company said it would look at attaching luxury cars to several Amtrak routes, setting the start for Houston-New Orleans as the fourth quarter of this year.

“There have been no discussions regarding the Southwest Limited,” said Amtrak spokeswoman Vernae Graham, referring to the name of the train.

Southwest Limited? My guess is that the reporter jumbled up the SWC with the Sunset Limited because LVRE stated they were looking at several Amtrak routes.

Southwest limited is probably the right name. The connection would be at Barstow, about 160 miles from LA. It gets closer to Las Vegas than the Sunset Limited. Its closest point is only about 40 miles out of LA, which would make the connection hardly worthwhile. I have no idea of what "several" Amtrak routes they could be looking at otherwise. The whole thing appears to be nothing more than hot air.

 

[CHamilton]

An X Train press release announced that it had

terminated its agreement with Union Pacific Railroad effective October 31, 2013 citing an alternative capital plan which will relieve the Company from raising $100 million from its own equity to finance the LA to Las Vegas rail route.

 

[afigg]

Yep, the prospects for the X-Train do not look good. A google search turns up a number of news story on the latest change of course for the X-Train plans. Las Vegas Review-Journal: Plans for party train between Las Vegas-L.A. derailed. An excerpt:

But in its second-quarter report filed Tuesday, the company disclosed that it had scrapped its previously announced strategy of raising $100 million to launch the service, including paying the Union Pacific Railroad $67 million to improve and expand its tracks between Las Vegas and Daggett, Calif.

As a result, the company forfeited a $600,000 deposit paid to Union Pacific last year.

When the Union Pacific deal was announced one year ago, Las Vegas Railway Express CEO Michael Barron said in a statement, This moment will be long remembered as an important milestone in providing a great experience for X Train customers.

Barron promised an inaugural run on the upcoming New Years Eve, one of several start dates that have gone by the boards. The initial concept called for a $99 fare each way, including food and drink, for about a five-hour ride.

The quarterly report said the company will pursue an off balance sheet deal being put together by unidentified investors to restart Amtrak service for the first time since 1997, with X Train party cars attached.

Amtrak spokeswoman Vernae Graham said in a statement, They have approached us but we have no agreement.

The boldface on the forfeit of $600K to UP is mine. Well, at least, UP got some money out of this. I think a daily Amtrak LA to Vegas train could be successful, however it would need funding and support from CA and NV. Meanwhile, I guess the Las Vegas Railway Express management will continue to announce plans without having signed agreements with Amtrak or anyone else first.

 

[GG-1]

I think a daily Amtrak LA to Vegas train could be successful, however it would need funding and support from CA and NV. Meanwhile, I guess the Las Vegas Railway Express management will continue to announce plans without having signed agreements with Amtrak or anyone else first.

Aloha

When I tracked down the North Las Vegas location last month for the X-train station I had my doubts about their ability to complete, or intentions to complete the project. This location is in the middle of scrap yards, and industrial locations. Also the stated "5 minutes to the strip hotels" is bogus from the station location. At the 5:00pm scheduled arrival time the traffic would require maybe an hour to get to the strip hotels.

Since both states failed to support the Desert Wind so under what assumption do they think their apparent pipe dream would the states support them.

I am extremely disappointed.

 

[jis]

The Southwest Chief was called the Southwest Limited before Santa Fe allowed Amtrak to use the word "Chief" again. I guess the Amtrak guy just remembered the old name.

 

[ALC Rail Writer]

The Southwest Chief was called the Southwest Limited before Santa Fe allowed Amtrak to use the word "Chief" again. I guess the Amtrak guy just remembered the old name.

Eh hem.

Amtrak spokeswoman Vernae Graham

 

[CHamilton]

From the AP report, it sounds like X Train just can't raise the money they need.

Railway Express said it still needs to raise $1 million for the California-Vegas route and added, "there is no assurance such funding will be available on terms acceptable to the company, or at all."

 

[jis]

The Southwest Chief was called the Southwest Limited before Santa Fe allowed Amtrak to use the word "Chief" again. I guess the Amtrak guy just remembered the old name.

Eh hem.

Amtrak spokeswoman Vernae Graham

I (and many others that I know) have been known to often use the term "guy" to refer to a person irrespective of gender or sexual orientation. So this is nothing new. If someone wants to obsess over it, well .... :expect to keep obsessing for a long long time

 

[AmtrakBlue]

The Southwest Chief was called the Southwest Limited before Santa Fe allowed Amtrak to use the word "Chief" again. I guess the Amtrak guy just remembered the old name.

Eh hem.

Amtrak spokeswoman Vernae Graham

I (and many others that I know) have been known to often use the term "guy" to refer to a person irrespective of gender or sexual orientation. So this is nothing new. If someone wants to obsess over it, well .... :expect to keep obsessing for a long long time P

I too use guy for males & females.

 

[Bob Dylan]

This must be a Northern thing! Here in the South/Southwest '"Guy" means a Male! I would compare it to "Dude" which Definitely is a Term used for a Male!

 

[CHamilton]

Press release:

X Train to Seek Strategic Public Private Partnerships to Roll Out High End Service on Existing Passenger Rail Routes

LAS VEGAS, NV--(Marketwired - Dec 2, 2013) - The Las Vegas Railway Express, Inc. (OTCQB: XTRND), known as the X Train, a planned luxury train travel service featuring its "Club X" service, announced today that the Company is seeking to create Public Private Partnerships with existing passenger rail services, to provide a high end Club Style service on selected existing routes. The concept, set to deploy this coming year, has the X Train providing its own club style and upscale rail cars which are planned to be coupled to existing passenger trains. The X Train plans to pay for the incremental cost of hauling the additional cars plus a revenue participation in the X Train revenue stream for participating rail agencies.

 

[Bob Dylan]

Hooked to WHAT Passenger Trains? The Desert Wind Perhaps??

 

[jis]

In another screed they did say Southwest Limited

 

[Blackwolf]

Seems to me that they're looking at what Iowa Pacific is doing with their Pullman Rail Journeys.

 

[jis]

Seems to me that they're looking at what Iowa Pacific is doing with their Pullman Rail Journeys.

Exactly!

 

[Paulus]

Hooked to WHAT Passenger Trains? The Desert Wind Perhaps??

More like a party car on the Surfliner or other route it seems. It's not necessarily a bad idea, I've floated the idea before that a CCC as a bar/grill car or regular diner cars (with a quick turnaround men/service) might do reasonably well on the busier routes or trains. Friday night Surfliners will easily get 1000 passengers between LA and San Diego in the off-season, I'd be surprised at not being able to recoup marginal costs of such a venture (there may be other issues at play of course like regulations concerning platform length). Wouldn't trust X-Train with it of course.

 

[Blackwolf]

I don't know. I have great difficulty in understanding just WHO X-Train is, nevermind what kind of incredible funding sources they advertise as having. But this line really has me scratching my head: "The first such delivery of Club X Train cars is scheduled to start this month as the cars begin arriving December 9th here in Las Vegas."

Uh, do we have anyone with an idea as to which railcar manufacturer has been secretly building and/or refurbishing existing stock behind our backs? I mean, the 9th is next Monday! :help: