Model Railroading > IPD boxcars

How long did the Incentive Per Diem boxcar program last? Seems like just a few years before they started to be relettered for new owners (in the early 80's?).

It was pretty well defunct by the mid-1980s with deregulation, tax code changes, the economic recession, and changing market for carload freight (think intermodal). There wasn't a date per-se where things ended, but rather a change in demand and viability over a few years. Railroad deregulation in 1980 and tax code changes impacted the viability of the program as it relates to profitability. With car hire options greatly reduced (de-incented, if you willl...), the shortline railroads ended up with cars routed back to home rails (per standard interchange rules). Aside from often having nowhere to park 50-100 boxcars, shortlines were still liable for the lease payments, even without the revenue coming in to offset said payments. On top of it, some railroads had to pay to store the cars on other property due to lack of home rail space. As such, many railroads quickly turned their fleet (or at least part of it) back to the lessors to get out from under the ongoing financial obligation.   

There's a lot more detail to it, of course, but this is the gist of it. 

-Rick

Rick Selby
Redmond, WA
Pacific Northwest RPM



Edited 1 time(s). Last edit at 06/21/24 09:20 by RAS.

In otherwords, those IPD boxcars didn't last very long in original markings right?  Two, maybe three years?



Edited 1 time(s). Last edit at 06/21/24 14:40 by SPDRGWfan.

There is a good article with many photos of this very subject in the Spring 2024 issue of Classic Trains magazine, for those interested.

SPDRGWfan Wrote:
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> In otherwords, those IPD boxcars didn't late very
> long in original markings right?  Two, maybe
> three years?

It completely depends on the railroad, but yes, some were gone only after a few years. Some didn't even last that long. Others lasted much longer (example: MTW cars). 

Rick Selby
Redmond, WA
Pacific Northwest RPM

Here is an example of a very short-lived per-diem scheme - these Vermont Northern cars were re-leased to the Wabash Valley RR when the yellow paint was still shiny. Slide from the collection; car photographed by Peter Arnold in San Luis Obispo, CA, in September of 1977. 

If you are interested in a specific railroad per-diem scheme, let me know - I almost certainly have pics I can share. 

-Rick

Rick Selby
Redmond, WA
Pacific Northwest RPM

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You might want to get a copy of the Morning Sun book on IPD boxcars. Many interesting lessors logos, and paint schemes.

Posted from iPhone

Since I am focusing on 1977-1983 I loaded up on per diem boxcar models.

I'll see if the local Barnes & Noble still has the Spring Classic Trains. Thanks!