In the 1960s, Earle Gil of the Morris County Central Railroad burned used motor oil in his 2-8-0 and 0-6-0 steam locomotives. After all, why pay for bunker fuel oil when you can collect crankcase oil for free? This wouldn’t meet today’s EPA standards, but it sure cut his fuel expenses.
With good coal at $250 a ton and diesel fuel briefly receding from $4 per gallon, you know how expensive it is to run a heritage rail operation–whether you have a coal- or oil-fired steam locomotive, an aging diesel engine, or a thirsty railcar generator. Class I railroads can afford fuel hedges to protect against rising diesel prices. You don’t have that flexibility, but you can steal another Class I technique: give out gas cards to reward fuel efficiency.
In its Fuel Masters program, Union Pacific gives $100 gas cards to engineers who reduce their average fuel consumption. The railroad has used the program since 2004, and divisions using Fuel Masters have reduced average fuel consumption by 5%.
How could you implement a similar fuel-efficiency program? Start by figuring out how much you can save. Will saving 5% on fuel consumption be worth the gas cards? Are there other benefits?
Get your operating staff and volunteers on board, and work with them to figure out how to design your program so it’s fair. You’ll need to track average fuel consumption over time, and adjust for unusual operating conditions. After the program is running, you’ll need to adapt as needed.
As Mark Bassett of the Nevada Northern likes to say, it can feel like you’re shoveling rolls of $20 bills into the firebox. See if you can save 5% or more this year, and peel off a few $20s for the people who make it happen.
What are you doing to reduce fuel consumption? Please share your comments below!
About the Author: Heritage rail marketing expert Karl Sakas helps North American tourist railroads, railway museums, and private railcar owners “keep the trains running” using marketing, technology, and business strategy. Learn about his consulting services at www.HeritageRail.biz.
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