DRAFT DOCUMENT FOR WSRA Board Meeting 5.9.08
The Association owns two locomotives, 6412 and 4561. Neither are in traffic; 4561 has not been in traffic for a considerable period. 6412 is now too small for other than peripheral service on the WSR and, if restored, will spend more time away from the WSR than on it, if 6412 is to stand any chance of sufficient earnings to pay for its next restoration.
Restoration of 6412 is likely to cost in the region of £130,000 to £150,000. The 6412 (unrestricted fund) presently has of the order of £90,000 available – a shortfall of £60,000 to be found from other WSRA resources.
Restoration of 4561 might be considerably more expensive, of the order of £300,000. The 4561 (restricted) fund, has of the order of £88,000, and there is £67,000 in the 4561 unrestricted fund, a total of £155,000. This leaves a very considerable shortfall of £145,000 probably only bridgeable with several years’ hard fundraising to the exclusion of other WSRA projects.
We have now purchased Ditcheat Manor. It is assumed that the appeal to be made will cover the remaining purchase costs of 7821.
Two alternatives now open up:
The plc restores Ditcheat for the projected two year period of extension to the boiler ticket (Possibility 1).
Or not – if investigations reveal this to be too expensive (Possibility 2).
I assume that we SELL 6412 to the SDR for the £160,000 offered. This gives us a total of £405,000 in loco funds without calling on other WSRA funds.
If Possibility 1 pertains, we have the likely funds to pursue a full restoration of 4561 in two years. By the time Ditcheat Manor comes out of traffic, 4561 will be in traffic and earning, able to finance the restoration of Ditcheat when that fits into the WSR traffic requirements. Use of Ditcheat beyond the minimum hire agreement may have contributed something further to the locomotive restoration funds available.
If Possibility 2 pertains, we will consider carefully with the company whether 4561 OR 7821 should first be put through a 10 year overhaul. The overhaul will be performed against the prospect of a proper hire agreement. A 10 year overhaul on 7821 should be somewhat cheaper than 4561, of the order of £250,000.
4561 and 7821 can be cycled through 10 year overhauls as required by WSR traffic requirements, with at least one always being in traffic (attractive to most WSRA members) and the other being under active restoration (attractive to those members who like working on locomotives) when not in traffic. Appropriate use of volunteer labour on restorations should keep costs below the revenue generated from hire.
It is to be assumed that at least one of the two locos would always be on hire to the WSR plc under a minimum hire agreement. For any period that either locomotive is available to traffic and not required by the WSR, active external hire should be actively pursued and the locos will be available for special event weekends elsewhere, as ambassadors for the WSR and the WSRA.
Hire agreements for attendance at other railway special events to include a suitable promotional stand at the host railway.
There are a number of uncertainties in steam locomotive restoration and operation. This strategy gives the best chance of the WSRA locomotives making an appropriate and visible contribution to the WSR without significant call on other WSRA resources.
Robin White
Chairman, WSRA
11 August 2008
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No 6412 on the Nene Valley
No 4561 on Swindon
No 7821 at Blue Anchor
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