V&T seeking operator...

I think we should be able to move the V&T off the "Fallen Flags" list shortly as proposed elsewhere...


Railroad Seeking Operator; Big Investment Required

CARSON CITY, NV -- Train operators can now apply to run the future Virginia & Truckee Railway, a $40 million tourist track that's expected to draw 160,000 visitors a year.
The V&T Railway is expected to carry tourists on the historic right-of-way between Virginia City and Carson City by 2010. Several experienced companies are expected to apply for the right to operate the new railroad. The commission in charge of reconstructing the railway is looking for an operator who will invest financially into the V&T and contribute train cars.
The project is funded by private and public money. The Nevada Commission for the Reconstruction of the V&T Railway has so far completed 1.8 miles of track in Gold Hill. The train will connect to Virginia City on existing track owned by Bob Gray.
"We're officially going out for an operator to operate the railroad between Carson City and Gold Hill," project engineer Ken Dorr said Tuesday.
Stone Consulting & Design Inc., of Warren, PA, was contracted to find qualified operators for the railway. The consultant wrote the 31-page request for proposals and will direct it toward qualified railroad operators.
The commission decided to seek an operator before it finishes the rail, or makes construction decisions that could affect the operation. The board would like to include the operator in crucial decisions, such as the main depot construction in Carson City.
The V&T originated in 1870 as the supply line to the silver strike in Virginia City. It transported passengers, property, goods and lumber to support the mines. The Virginia City line was abandoned in 1938 because of the decline in the mining industry. The entire railroad was pulled up in 1950. Applications are due to the commission by Aug21. For information visit www.stoneconsulting.com/new.html. A project map and conceptual depot design can also be found at the Web site. - Becky Bosshart, The Nevada Appeal

 

Choice down to two...

It's Down To Two In A Race To Operate The V&T
VIRGINIA CITY, NV -- Two rail operators are vying to run the $40 million Virginia & Truckee Railway, which will be operational by 2010 and attract an expected 160,000 tourists a year.
And the existing railroad in Virginia City is looking to make a deal with whomever gets the contract.
The rail operators had until Tuesday to submit their qualifications to the state commission in charge of reconstructing the historic right-of-way that will stretch from Gold Hill to east Carson City.
A California company that operates both tourist and freight trains and one that operates the highly successful Durango, Colorado, railroad have submitted proposals, according to Stone Consulting & Design. Homegrown company Virginia & Truckee Railroad has also submitted a proposal for it to continue operating on its two miles of track and then contract with the larger operator.
There were no surprises about who applied, a consultant working on the selection process said, though more operators were expected to show interest.
"Those are the ones I expected," said Randall Gustafson, vice president of operation for Stone Consulting & Design. "I had another operator that was interested, but it was too late to respond to it under the bid procedure we'd established."
Sierra Railroad Co., American Heritage Railways and the Virginia & Truckee Railroad submitted proposals by the deadline.
The Nevada Commission for the Reconstruction of the V&T Railway will have to choose between two large, out-of-state operators. But until now, the role of the little track owned by the Gray family has been unclear. According to commissioners, the Gray family has been reluctant to state exactly what they want to do in the grand operation: sell or strike some sort of operating agreement.
Though he was hesitant to comment this early in the process, V&T Railroad owner Bob Gray said he would like to set up a cooperative agreement with the larger railway operator.
"There's a lot of gambling with this thing, and I feel more comfortable with doing that," Gray said Tuesday.
At a Sep11 commission meeting, the board will decide which operators are eligible to submit a full proposal and business plan, which is due in October.
John Tyson, a V&T railway commissioner, said he is familiar with all the applicants and is looking forward to seeing their business proposals. Tyson said he wants a business-savvy company that can ensure the train is going to make it up to Virginia City.
"I will be very anxious to see what these people are going to bring to the table," he said.
Sierra Railroad executives have visited the area and are eager to enter the market, said Chris Hart, president of the company's tourism division.
"We spent a week touring the V&T this winter, and that's why we're bidding," he said Tuesday. "It's a great opportunity. There's certainly a lot of work to be done, but we feel like we've done our homework on this."
In addition to its freight operations, Sierra Railroad also runs three profitable tourism trains in Northern California: the Sierra Railroad Dinner Train; the Skunk Train and the Sacramento River Train. It has about 200 employees.
"I think one of the assets there is you have a number of existing tourist destinations that you can work with," Hart said about the V&T.
"And the state of Nevada and the local counties are making a huge investment in the line, that's a huge asset. That gives this operation a real advantage over others."
American Heritage Railways is interested because the V&T has serious planning and funding behind it, said Jeff Jackson, senior vice president.
The company owns the Durango & Silverton Narrow Gauge Railroad, which has a $14 million annual budget, and the Great Smoky Mountains Railroad in Western North Carolina.
"The Durango and Great Smoky are two of the five most profitable business-ran types of operations," he said. "In a good year, we'll carry 400,000 customers and gross $20 million."
Jackson said his company has experience running a line on similar terrain as the V&T, which climbs up the Virginia Range.
"Running a historic operation in the mountains is a whole lot different than operating on flat land," he said. "There are a lot more issues in terms of running on steep grades and tight curves. And Virginia City is similar to Silverton, Colorado. Both organizations were built to haul miners up to mining towns and to haul gold and silver out.
"It's a unique situation because there are not very many of these places left." Applicants

Operators who have submitted proposals to operate on the V&T Railway:
. Sierra Railroad Co.
In addition to freight, the Northern California company operates three tourism trains.
The Sierra Railroad Dinner Train in Oakdale, an excursion train, has several different tourism venues, such as a murder-mystery show, Christmas train and a "raft and rail" ride. It carried about 25,000 passengers in 2005.
The Skunk Train runs 40 miles between Fort Bragg and Willits. It runs steam, diesel and motor cars for excursion or "ride and dine" trains. It carried 55,000 passengers in 2005.
The Sacramento River Train is a 28-mile round-trip railroad that's a recent acquisition. It runs both a dinner train and "ride and dine," which is where passengers get out to eat. Visit http://www.sierrarailroad.com.
. American Heritage Railways
The Durango, CO-based company operates two tourism trains.
The Durango & Silverton Narrow Gauge Railroad still operates with a locomotive, the way it did as a mining train in 1881. It's a 50-mile-long excursion track.
The Great Smoky Mountains Railroad in western North Carolina is a 50-mile track that runs with both steam and diesel engines.
Both these lines carry about 400,000 passengers and gross a combined $20 million a year. The company employees 150 year-round and another 250 in the summer. Visit http://www.durangosilvertonrailroad.com
. Virginia & Truckee Railroad Co.
Bob Gray reconstructed the first rails along the historic short line's right-of-way in Virginia City in 1974. It was operational two years later. His family-owned and operated railroad has been traversed by a diesel engine since the locomotive was taken out of commission. The railroad has a staff of about 12 people and has an average annual rider count of 50,000. It runs two miles from VC to Gold Hill. (Sources: Sierra Railroad Co., American Heritage Railways and the Gray family) - Becky Bosshart, The Nevada Appeal

 

latest article...

Who Will Operate V&T Railway? The Contenders Are Both Qualified And Business Savvy, Commissioner Says
CARSON CITY, NV -- The operating contract of the 18-mile Virginia & Truckee Railway is between two established companies: American Heritage Railways, known internationally for operating the popular 50-mile steam train between Durango and Silverton, in Colorado, and Sierra Railroad Co., a Northern California company that operates three tourism trains.
This is potentially one of the most important decisions in the reconstruction project. A rail operator will influence what the Carson City depot will look like and such details as tickets price and souvenirs, all things of great interest to train fans and the 160,000 tourists a year this railway is expected to attract once it's completed in 2010.
On Monday, the state commission reconstructing the historic rail will meet to discuss the two companies and decide who's qualified to submit a full business plan. As project coordinator Kevin Ray said, both are qualified and are the only ones to show interest in the project.
The V&T Railroad, which operates two miles between Gold Hill and its Virginia City depot, is interested in partnering with the company awarded the contract.
Executives from both companies said the V&T is the only scenic railroad that they know of that is being built with public funds and overseen by a state board, which is one reason they were interested in the contract.
"I think the competition will bring the best out of the potential operators," said commission Chairman Bob Hadfield. "They know they have to put their best food forward, be creative and innovative to achieve the goal of having the commission select them to operate the railroad."
Since American Heritage and Sierra are both qualified, commissioners will ask each company what they will contribute to the $40 million V&T before they make their final decision. Commissioners want an operator who will bring cash and rolling stock to the deal, what they would consider the best use of taxpayers' money. "The Durango & Silverton is American Heritage and they are a very, very successful tourist railroad," said V&T Commissioner John Tyson. "They are one of the most successful in the country."

Tyson is a locomotive engineer on the Nevada Northern Railroad in Ely and sits on the nine-member board.
"They are greatly responsible for maintaining the two cities of Durango and Silverton. The are business savvy, so I will be anxious to see what they bring to the table.
"Sierra also has a very successful operation, but you don't hear too much about them. They are business savvy and they've been in business for a long, long time. Both are contenders and have a very good business record. Any one of them under the right circumstances can do very well. But it's going to depend on what they can bring to the table."
Mayor Marv Teixeira, who also sits on the board, said both operators will make presentations to the board after they submit business plans, which will be followed by negotiations. It could take another two to three months to select the operator.
The company: American Heritage Railways
Its history: The company formed in 1998, at about the time it purchased the Durango & Silverton Narrow Gauge Railroad. Owners are Al and Carol Harper.
The executive: Jeff Jackson, senior vice president, American Heritage Railways
Experience: He went from running a public rail transportation agency in Florida to heading the Durango operation in 1997. Trains: The Denver & Rio Grande Western Railroad operated the Durango line until 1981. It sold to Charles Bradshaw, who then renamed it and sold it to the Harpers. The 50-mile excursion track is a popular tourist destination and is considered one of the most scenic locomotive rides in the country. This 1881 line carried miners, tourists and freight between Durango and Silverton.

The company purchased the Great Smoky Mountains Railroad in Western North Carolina in 1999.
Advantages: The company has experience operating on terrain that Jackson said is similar to Virginia City, with tight curves and steep grades. The V&T and Durango line also share a similar mining history and tourism venues. The company has 400 employees between the two rail operations.
Number of passengers a year: 400,000
The company: Sierra Railroad Co.
Its history: Hauling freight since 1897. Mike Hart was part of a group that purchased the company in 1995. He is the primary owner.
The executive: Chris Hart, president of the company's tourism division.
Experience: Vice president of the Central Valley Tourism Association. He has worked with his brother in the operation since 1999.
Trains: In addition to freight, the Northern California company runs the excursion Sierra Railroad Dinner Train in Oakdale, which has multiple tourism venues, including dinner and murder mystery shows.
Skunk Train runs 40 miles between Fort Bragg and Willits, in Northern California. Sierra rescued this line from bankruptcy in 2004; the Sacramento River Train acquired in July 2003 with a freight merger.
The company also is a part in many commercials and movies.
Advantages: One-third of the company's 200 employees are located in the Sacramento area, which would be an advantage for sharing employees, supplies and equipment with Carson City. Hart has an extensive tourism marketing campaign in California and could lay the groundwork for the V&T train.
Number of passengers a year: More than 80,000 - Becky Bosshart, The Nevada Appeal

 

Certainly this is good news. Of the two "finalists," the Durango & Silverton seem to have sounder $ fundamentals. A quick read of the consultant's criteria is interesting in not what it says about finances, but what is not said. Kinda wonder who's bellying up to the poker table with what?
Also interesting how the Grey family is "holding out" to see how the dust settles. Rail life becomes "curiouser and curiouser."

Sadly, the well being of railroads, historically, has been dependent upon a healthy bottom line and access to lines of credit.

 

some rambling...

Give V&T Contract To Operator Who Draws The Most Riders
CARSON CITY, NV -- We see the V&T Railroad commission is going to make a decision about "who will run the railroad" soon.
Three companies are vying for the rights:
American Heritage Railways (Durango & Silverton, 400,000 riders a year); Sierra Railroad Co., (80,000 riders); and Bob Gray's V&T Railroad (the people who've kept it running for the past several years, 40,000).
This is a "no-brainer" for us. Isn't it in our best interests to bring as many people as possible to the area to "boost the economy?" If that's the case, American Heritage has our vote, hands down. And if Bob Gray (the "local boy" who's kept the dream alive for all these years) wants to partner with or sell to, them, all the better, since we believe he deserves a piece of the action. Bottom line, if American Heritage can bring 400,000 riders to an out-of-the-way area like they do in Colorado, then they would probably garner half a million here in Nevada. As Mills Lane would say, "Let's get it on..." - Commentary, Carolyn Tate and Maizie Harris Jesse, The Nevada Appeal

 

Here is hoping!! I do worry that American Heritage might get spread too thin though. Also...Durango Colorado is no longer as out of the way as it used to be. As a tour operator in the area I have seen a massive increase in visitation to the area since 911...
John

 

I would tend to agree. Bringing 500,000 folks into the Carson City (or Virginia City) area would be easier than bringing them into Durango, but it is still a tall order to fill.

As far as the picture goes as a whole, it is important to note that both American Heritage Railways (Durango & Silverton) and the Sierra Railroad Co. (Sierra Railroad, Sierra Northern [ex-Yolo Shortline], and the California Western) are established operators with proven track (pun intended) records but both would have to shift resources (people, equipment, etc.) around some to run the V&T. The Sierra may have a slight edge in that regard (being located in California) and they certainly have a few extra railcars that could be used to make the V&T operational rather quickly (i.e., added capacity and/or "speciality" needs). I also wouldn't count Bob Gray out...As the man that has "been there and done that", he's going to be the individual that the other 2 operations are going to have to consider in any plans that they may have for the V&T.

Whatever the outcome, it's exciting to know that the V&T will be a reality! :teeth: