Valuation/Appraisal
R.L. Banks & Associates, Inc. (RLBA) is one of the most trusted and experienced names in the rail consulting industry, having appraised more than $3 billion worth of rolling stock and tens of thousands of miles of railroad right-of-way and track assets. Over the more than 60 years it has been in business, RLBA has undertaken hundreds of comprehensive Valuation and Appraisal Services, each tailored to the unique needs of its respective clients’ projects. The primary Valuation and Appraisal Services offered by RLBA are described below:
Equipment Appraisal
RLBA’s appraisal and valuation services include derailment and other technical inspections conducted by experienced mechanical engineers, equipment investment and credit advisory services, as well as appraisals of new, used and rebuilt railcars and locomotives. RLBA’s knowledge of and experience with railroad operations, shipper and traffic requirements, equipment design and maintenance, and railroad equipment financing form the basis of our expertise in railroad equipment appraisal services. In the past two decades alone, RLBA has valued tens of thousands of passenger and freight cars and locomotives, with a cumulative value in excess of $3 billion.
Infrastructure Assessment & Appraisal
RLBA’s capabilities include many infrastructure and right-of-way valuation techniques, including cost to cure estimates, value of improvements in place, real estate valuations and track asset valuations that can determine the value of all railroad corridors in varying degrees of condition. RLBA features years of experience valuing entire railroads or component lines in all of the above methodologies.
Net Liquidation Valuation
A standard tool to determine an all-encompassing collateral value of assets constructed on a railroad right-of-way is to perform a Net Liquidation Valuation (NLV). An NLV includes gross value and removal or restoration expenses of all railroad assets located within the right-of-way. RLBA enjoys extensive experience in determining NLVs of short line, regional and portions of Class I railroads, including having calculated NLVs on behalf of more than 50 clients.
Going Concern Value
When valuing a railroad, it is important to know not only the past performance of that enterprise but also the railroad’s growth potential in the future. A standard valuation metric that encompasses these issues is a Going Concern Valuation (GCV). A GCV is an important tool in the valuation of railroad operations, reflecting past and future traffic volumes, revenues as well as operating and maintenance performance. RLBA is a leading provider of GCVs and has assisted numerous private and public sector clients in determining the present value of various railroad systems and component lines.