KLS retrofit opportunityCan someone explain the retrofit opportunity for KLS which is summarised below. Why would a tank car owners retrofit DT - 111 & CPC - 1232 cars if they need to be phased out within 3 & 5 years. Or are they saying they need to be retrofitted in that time frame to keep them in circulation?
If they are able to retrofit to keep in circulation why would an owner do this vs buying a new car that meets the new standards. Is it simply cost but I also assume those old DT - 111 cars have been fully depreciated and are mostly at the end of their life cycle. Why throw more money at them?
"Existing tank cars must be retrofitted with the same key components based on a prescriptive, risk-based retrofit schedule (see table). As a result of the aggressive, risk-based approach, the final rule will require replacing the entire fleet of DOT-111 tank cars for Packing Group I, which covers most crude shipped by rail, within three years and all non-jacketed CPC-1232s, in the same service, within approximately five years."