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Elon Musk will drain the swamp!Water table is pretty high in Fremont. Boring here may be challenging.
They used to have them, but the spur into the plant was torn up last year. I'm not sure why they haven't replaced it yet.
Was that the only rail loading that was onsite?
That seems odd. Anyone know why they don't avail themselves of the tracks in their own backyard?
-Randy
Or production is up and bottlenecking
-Randy
Maybe, but the week prior, there were a dozen semi in the lot every morning, whereas there were a handful for the last few days. Total conjecture on my part since I only pass by the lot around 8ish each morning so I have no idea what's going on during the day.
why do I remember the phrase "Cheaper than rail" ?I had heard in the past they needed the land where the Rail came in, for more buildings. there is just a dirt pile there at the moment. They had a beautiful 3 track rail loading center.
Personally I think it was an ill thought out move that is going to cost them in the logistics. It was there and paid for. Granted a lot of the ties may have needed to be replaced due to age but that is minor to the cost of replacement. But still it was there and paid for.
Railroads have annual maintenance fees. On of those is the cost to retain rail switches. Tesla had two connected to UP. The railroads want to minimize the derailment risks and are very vigilant on their maintenance. So I have heard number of up to $60,000 A YEAR to keep a switch in service, used or not. Tesla at the time wasn't using there so they said cut them out and avoid the fees. (Happened to a buddy of mine here on the east coast). Dirt road crossing fees are $600.00 a year minimum. Daily switching costs from UP are not cheap either.
Now Tesla will have to pay to reinstall the loading center back in and that will now cost Millions to start over. Infrastructure costs for RR's are staggering. Car Demure is also not cheap either.
I don't know what is at Richmond and who they could be sharing the loading facilities with. But Tesla may be avoiding all these direct costs by sharing the site with other car companies??? It could be a UP Transload facility, I just dont know. Here on the east cost is Jessup MD. All brands ship into this location for the Baltimore & DC area. Tesla might be the only outbound cars but others could be coming inbound which is nice for the RR's who would be pulling out empties.
Musk mentioned that in re: Tesla semis, which need to travel few in a row so that less air resistance causes the cost of electricity to run them be cheaper than to transport goods by rail.why do I remember the phrase "Cheaper than rail" ?![]()
why do I remember the phrase "Cheaper than rail" ?![]()
There is a very good chance that the existing rail line was going to have to be completely revamped anyway to serve their future needs. We will know the end result at some time in the future...I had heard in the past they needed the land where the Rail came in, for more buildings. there is just a dirt pile there at the moment. They had a beautiful 3 track rail loading center.
Personally I think it was an ill thought out move that is going to cost them in the logistics. It was there and paid for. Granted a lot of the ties may have needed to be replaced due to age but that is minor to the cost of replacement. But still it was there and paid for.
Railroads have annual maintenance fees. On of those is the cost to retain rail switches. Tesla had two connected to UP. The railroads want to minimize the derailment risks and are very vigilant on their maintenance. So I have heard number of up to $60,000 A YEAR to keep a switch in service, used or not. Tesla at the time wasn't using there so they said cut them out and avoid the fees. (Happened to a buddy of mine here on the east coast). Dirt road crossing fees are $600.00 a year minimum. Daily switching costs from UP are not cheap either.
Now Tesla will have to pay to reinstall the loading center back in and that will now cost Millions to start over. Infrastructure costs for RR's are staggering. Car Demure is also not cheap either.
I don't know what is at Richmond and who they could be sharing the loading facilities with. But Tesla may be avoiding all these direct costs by sharing the site with other car companies??? It could be a UP Transload facility, I just dont know. Here on the east cost is Jessup MD. All brands ship into this location for the Baltimore & DC area. Tesla might be the only outbound cars but others could be coming inbound which is nice for the RR's who would be pulling out empties.