As shown in post #
1167, the Ocean had a Variable Operation Ratio of just under 50% and that is using Renaissance equipment, which is by far the most expensive equipment to use (as explained in post #
539). More economical equipment would boost the Ocean's Variable Operation Ratio significantly.
The question is how much will it cost? If you look at the
corridor fleet renewal program, it is costing $989 million to build the 32 trainsets, or about $31 million per trainset, which I assume to have 1 locomotive and 6 coaches. If we assume the locamotive portion of the trainset is $11 million
ref (that is USD, but lets assume par), that means each coach costs about $3.3 million. Now sleepers will likely cost more than a coach. I don't know how much more, but I can't imagine it being more than 50% more, so lets say $4.5 million. If so, they could buy a 20 car train for about 90 million (they can use their existing F40PH-2 locomotives that are being refurbished). This is probably an over estimate though.
If you consider VIA is spending $22 million per year on Variable operating expenses using Renaissance equipment. With modern equipment, that would go down significantly. Similarly, with modern equipment, the revenue generated would likely go up significantly. As result, the Ocean would likely come close to paying its own variable expenses, similar to The Canadian.
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