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7000-series - Delivery & Updates


railfan4072

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  • 3 weeks later...

An ordinance relating to option orders was discussed in today's Committee on Finance, Audit, and Budget. The committee voted to approve an ordinance authorizing the replacement of a discontinued federal cost escalation index for additional railcars with comparable indices, and General Counsel Kent Ray mentioned option orders and pricing explicitly.

"...[the ordinance] recognizes significant savings over having to seek new contracts to procure these railcars. Funding for the option orders will be approved by the board separately prior to production. We anticipate the first option to go into production somewhere two years out."

In responding to a question, Ray mentioned that the current cost for the base order is $1.5M per car. As part of the ordinance, the cost escalation is capped at an additional $1.2M on top of that. In addition, he stated that "if we were to go out on the street to buy railcars today, we had an independent cost estimate done, and it was looking as though, uh, we would be paying somewhere in excess of $4.25M per railcar."

Yikes! So, it sounds like we're getting 7000 option orders in large part due to sticker shock on the 9000s (?)

Committee recommended the ordinance for board approval. Discussion occurs about 2 hours and 12 minutes into the video. Board meeting itself happening now; should resume and vote on approval after executive session.

 

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1 hour ago, wayfaringrob said:

Yikes! So, it sounds like we're getting 7000 option orders in large part due to sticker shock on the 9000s (?)

Sure sounds like it. It seemed like CTA was going back and forth on this (the budget said 7400s but there was an engineering solicitation for 9000s). One would have to figure (1) how much time and money they want to sink into 3200s, and (2) whether CTA wants to get a contract out before the NITA Act deadline.

CTA does have the money for 300 cars; the question is how many for RLE, which they  will need by 2030 and how many to replace 3200s.

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1 hour ago, Busjack said:

the budget said 7400s but there was an engineering solicitation for 9000s

The fact that someone put “7400” in a document at all has made me wonder if we will see any minor tweaks (that don’t require going entirely back to the drawing board) for 7401 and above. Like, a subseries of or series largely identical to 7000s.

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4 hours ago, wayfaringrob said:

The fact that someone put “7400” in a document at all has made me wonder if we will see any minor tweaks (that don’t require going entirely back to the drawing board) for 7401 and above. Like, a subseries of or series largely identical to 7000s.

I don't think so. It looks like someone just took the project number for 9000s and substituted 7400 except in one instance. Other than the type of the incremental changes like were made during the course of the 5000s, that is; otherwise CRRC couldn't start production in 2 years, when I assume the base order of 400 will be completed.

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