THE MARKET IS TOO THIN FOR EQUIPMENT TRUSTS. In Vermont, the state transportation agency (passenger transport executive, if you will) would like to replace locomotive-hauled passenger trains with the North American version of an Adelante (or perhaps with a modern version of a Budd Highliner.) The plans, however, are on hold for lack of an out should the project fail.

The Vermont Legislature approved the purchase earlier this year on the condition that there was a guaranteed buyback.

The State Agency of Transportation (AOT) spokesman John Zicconi said all the parties agreed that a three-year buyback was a good idea. The problem, Zicconi said, was that neither Colorado Railcar nor Amtrak had the financial resources to make it happen. At best, all that they could offer was a verbal agreement.

“Colorado Railcar could not put a financial instrument together,” he said. “They could make verbal guarantees.”

The purchase would have included three self-propelled engines and two passenger cars. Each diesel-powered car and coach has a capacity of 60 passengers. The plan called for the new cars to begin service by January 2009.

These cars would operate a more frequent service (albeit not as frequent as the New Haven and Boston and Maine offered until the mid-1960s) from New Haven to White River Junction.

The market for rail diesel cars is quite thin. We're not talking about being able to repaint a train for a new franchise the way the British do, and the only other operators I know of for rail diesel cars are commuter operations near San Diego and Dallas. Financially strapped freight railroads (and airlines) have an easier time financing equipment because it can be repossessed and leased to another carrier with relatively little loss to the equipment trust holders.