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Fort Lupton railcar company reaches end of line

By Kevin Flynn, Rocky Mountain News (Contact), Chris Walsh, Rocky Mountain News (Contact)

Published January 3, 2009 at 12:05 a.m.

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A Fort Lupton-based company that was lobbying to make diesel-fueled passenger cars for one of RTD's FasTracks lines has gone belly up and will liquidate.

Colorado Railcar Manufacturing closed its doors Dec. 23 and had no employees as of Dec. 31, according to its Web site and a recorded message on its voice-mail system.

The company pegged the move on a "major liquidity problem" and said its lenders have a secured position in the company's assets.

No one from Colorado Railcar, including Chief Executive Officer Larry Salci, could be reached for comment. Calls to founder Tom Rader, who stepped down from running the company last year but remained its largest shareholder, went unanswered, and the voice-mail system at his number has not been set up. Rader also was involved with GrandLuxe Rail Journey, which operated luxury train trips and also is out of business.

It's unclear how many workers Colorado Railcar employed most recently, but it had a staff of 150 in the spring of 2007, according to a Rocky Mountain News article written at the time.

Colorado Railcar developed train cars for tourist railroads and commuter lines. One of its main offerings was a diesel-propelled passenger car, called a Diesel Multiple Unit. In addition to being the only U.S. manufacturer of the product, the company made the only such vehicles certified as crash-worthy by the Federal Railroad Administration. DMUs made by European manufacturers aren't certified.

Four of RTD's six new FasTracks rail corridors use commuter rail, not the familiar light rail in the current system. Commuter rail is heavier, and some of it will operate on existing freight corridors, necessitating use of a crash-proven vehicle.

Two years ago, some RTD board members were pushing to make all four such corridors diesel-powered, likely using Colorado Railcar's products. But analysis after diesel fuel prices soared showed it would be less expensive to install overhead electric lines and use Electric Multiple Units, of which there are many manufacturers.

As FasTracks stands today, only the 41-mile Northwest Rail Corridor from Denver to Boulder and Longmont plans to use DMUs. The corridor has been hit by soaring costs and lowered ridership projections, making this latest setback another serious problem for RTD, which can't afford to electrify the entire 41 miles. RTD is still considering using DMUs on another line but won't decide until later.

"While Colorado Railcar has been the only manufacturer to date that has actually produced a compliant DMU, other companies have been doing prototypes and research and development on them," said Pauletta Tonilas, FasTracks spokeswoman. "It's unfortunate what's happened with Colorado Railcar, but RTD was not just banking on them."

Colorado Railcar's other market centered on train cars used for tourism. The Alaska Railroad bought four double-decker luxury "dome" cars built by Colorado Railcar. It also has a deal for one of the company's DMUs. Stephenie Wheeler, public involvement officer at the Alaska Railroad, said she expects the DMU car to be delivered.

She said she thinks the train car has been built and is in the hands of another company.

walshc@RockyMountainNews.com or 303-954-2744

Comments

  • January 4, 2009

    9:12 a.m.

    Suggest removal

    MaxPlanck writes:

    This is an outrage. Notwithstanding the FastTracks fiasco, this is an industry that should be thriving and instead is allowed to perish.

    We've allowed too many key industries to disappear from our landscape. It's obvious that passenger rail has a critical role to play in our nation's transportation needs equal to if not superior, to the dinosaurs in Detroit.

  • January 5, 2009

    11:06 p.m.

    Suggest removal

    warrengfunk7 writes:

    I agree, but I don't think FasTracks is a fiasco. Have you read all the reports? I have, RTD has been doing a phenomenal job with FasTracks. And with the unstable economy, the sales tax collection has been in serious flux (in the downward dirrection) and material costs reached historic highs.

    Dispite all this, FasTracks is basically on schedule and RTD is finding innovative ways to balance the budget. If we can get RTD more money for FasTracks, to build a superior system in this economic recession, we should do it. If we can't, I see RTD delivery the next best thing and a satisfactory passenger rail system. One thing is evident, at a time of serious job contraction, RTD's FasTracks is firing up full throttle this year on teh West Light Rail Line and Denver Union Station construction projects. Each year from 2009 on, will see more and more construction going on and there will be thousands of jobs secured through 2017.

  • January 17, 2009

    11:31 p.m.

    Suggest removal

    prk166 writes:

    I fail to see what's "innovative" in severely slashing service and facilities on the lines.