For the sake of conversation, I have looked into the cost of building new narrow gauge steam locomotives.
A firm in the UK will build a new ready to run 25-ton three-foot gauge 4-4-0 for just under a million dollars. This same firm builds coaches that cost over $200K each.
I also know that a three-foot gauge 11-ton class A Shay is being built by a California firm. It is estimated that the finished product will retail between $800K to $900K.
For me to restore a 32-ton three-foot gauge class B Shay, I am looking at $300-$400K.
No matter how you cut it, it is an expensive proposition.
The advantages of building and running a new locomotive is that you would not be wearing out historical equipment and you would be able to use modern materials, which would possibly have lower maintenance costs. Of course, they would not be able to be billed as historic in themselves, simply recreations for reinactment. I think this may be the direction the industry takes in the future.
I suppose, if you could lease these specially built locomotives to the State for $500K per year and have the leasee fund all the maintenance , you could make it pay to build and operate larger versions.
Phil Reader
CMO
Pacific Coast Railroad