Old rail equipment

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.

Select Project Descriptions:

WATCO COMPANIES, INC:

WATCO contracted with RLBA to perform a desktop valuation study, as part of a refinancing package in connection with approximately 1,573 miles of rail line. RLBA was asked to independently update prior NLV reports of lines to be refinanced, to reflect their current market prices. The NLV was calculated in total and as five separate segments, reflecting independent verification of abandonments, addition/subtraction of rail mileage that had occurred in the interim, consideration of interim track improvements and determination of relay material price changes that had occurred in the intervening years.

A&K RAILROAD MATERIALS:

RLBA was engaged to perform net liquidation valuations of three parts of A&K Railroad Materials’ 121.9-mile Towner Line V&S Railway:

  1. a western segment between North Avondale (NA) Junction (MP 869.4) and Haswell (MP 808.3);
  2. a middle segment between Haswell and Eads (MP 787.5); and
  3. an eastern segment between Eads and Towner (MP 749.5), all in Colorado.

The assignment included on-site inspection and an RLBA report suitable in litigation support.

OKLAHOMA DEPARTMENT OF TRANSPORTATION:

RLBA was engaged to perform track asset and real estate net liquidation valuation of the Oklahoma Department of Transportation-owned Blackwell subdivision extending seventeen miles between Blackwell and the Oklahoma-Kansas border. Work included on-site inspections by RLBA’s Director of Transportation and Senior Real Estate Appraiser, each of whom used information gleaned on site to complete their respective reports. Final deliverables included completion of a rail asset Net Liquidated Valuation Report and a detailed rail linear corridor Real Estate Appraisal Report.

SAN BENITO RAILROAD, LLC (SBR):

RLBA was engaged to provide professional valuation services on a confidential assignment. RLBA performed a physical inspection of the track and related materials on the property and surveyed then current market prices in the used rail asset marketplace. Additionally, RLBA prepared a Self-Contained Report capable of withstanding federal or financial institution review standards, which included a transparent accounting of the methodology, reasoning and data used to render the opinion of value.