Project: Valuation of the Staten Island Railroad Client: CSX Real Property
CSX Transportation had leased the Staten Island Railroad to New York, Susquehanna & Western Railroad. NYS&W ceased serving Staten Island, and the states of New York and New Jersey indicated an interest in purchasing the now inactive right-of-way.
Zeta-Tech provides valuation services to several Class I railroads, and was asked by CSX to value the rail assets both on Staten Island and in New Jersey. The rail line contains several noteworthy structures, including 3,000 feet of concrete viaduct on the north shore of Staten Island and the longest lift bridge in the world (designated AK-1) over the Arthur Kill. The line in New Jersey includes more than a thousand feet of timber trestle and several other bridge structures.
Zeta-Tech provided a valuation on the basis of “depreciated reproduction cost”, which involves estimating the construction cost of the railroad in current dollars, and then depreciating based on a physical inspection and the age of rail assets and each structure along the right-of-way.