Empire Belt RR Operations Part 3 / Running Colorful Free Runners

Greetings All,

Empire Belt RR Operations Part 3

Running Colorful Free Runners

Welcome to part 3 of this ongoing operations series that seeks to introduce and enhance more prototypical freight car handling to my layout. 

Today we'll explore ways to maximize the use of the colorful Incentive Per Diem boxcars, which came into service in the mid to late 1970s The IPD cars were considered free runners during their time in IPD service and were not bound by the AAR rules for movements.

Basic Definition of Incentive Per Diem Boxcars

The IPD program put in place by the Interstate Commerce Commission incentivized new freight car production to overcome a perceived boxcar shortage. The per diem rate at this time for a standard boxcar was about $12.00. The new cars built as part of this program had an incentive rate of about $10.00 on top of the standard rate and a 4.7 cents per mile rate. 

TPW 50568 is one such colorful I.P.D. boxcar on the roster that was painted and lettered by the Patti-O Paint Shop. 

I.P.D. Boom

The IPD program allowed finance companies to purchase large numbers of cars and lease them to short lines that had little to no money for capital expenditures, little track miles, little to no rolling stock nor online customers. By 1978 more than 15,000 IPD boxcars were in revenue service and about 40,000 by 1981. Mississippi Export RR, a 43 mile short line, leased 200 IPD cars from Itel Rail.

This worked well for awhile as leasing companies and owners using freight brokers had the IPD cars loaded about 75% of the time when the economy was good and car loadings were plentiful. Compare this with the RR boxcars under AAR rules which were loaded only about 10% of the time which was one of the reasons for the perceived boxcar shortages.  

To Bust

A nationwide recession in the early 1980s dramatically reduced freight car loadings and the Class 1 RRs were soon able to handle the car loadings with their own fleets. IPD boxcars were sent back to their short lines that had to scramble for track space to store the glut of IPD boxcars coming back. With no loads and now unable to make payments some short lines and leasing companies went bankrupt.

Some Of The I.P.D. Boxcars In The Fleet

AP 60394 is another IPD boxcar painted by the Patti O Paint Shop. The 60394 is leased from SSI Rail as noted by the lettering under the ACI label and the trust information in the upper left corner.

Port Huron & Detroit, PHD 1008, is a factory painted model that indicates it is leased from SSI Rail. The PHD was a nineteen mile short line that had maybe thirty leased boxcars in its fleet. It was a rarity in that it that served online customers, survived the recession and later became a property of the Chessie System. The ex PHD trackage is still in use today by CSX.

Galveston Wharves is another colorful IPD car on the roster. The RR is headquartered in Galveston, Texas and was a 32 mile terminal switching railroad owned by the City of Galveston.

Utilizing Incentive Per Diem Freight Cars

While the class one RRs did not like this program the IPD cars having agents or brokers soliciting car loads enjoyed a 75% load to empty ratio and seemed to solve the perceived boxcar shortage.

If using IPD boxcars in model railroad operations remember that they are considered free runners and can be loaded for destinations in any direction. Attractive for those not paying the higher rates!!!

Using I.P.D. Boxcars in model railroad operations

TPW 71026 is leased by ITEL to the Toledo, Peoria & Western. This car was part of a ten car TP&W paint project with Sir Neal's Atlantic Pacific RR for use in the Penn Central Car Movements Virtual Ops. 

Car Movement #1: The TPW 70126 has arrived on the layout at Terminal Yard loaded with canned vegetables from CC Lange Co. in Black Creek, Wisconsin. The car will be interchanged with the Empire Belt RR at Empire City for movement to Ralph's Grocery Warehouse. The green stripe on the car card indicates the car is in PCCM virtual ops service. Todays car movements are non PCCM moves.

Car Movement #2: TPW 70126 is moved from Terminal Yard to North Side Yard for the interchange with the Empire Belt RR.

Car Movement #3: The EBRR delivers TPW 70126 to Ralph's Grocery Warehouse. After being unloaded at Ralph's Grocery Warehouse and made empty there are several options for the 70126. One option is to send it back to the TP&W empty. Expediting the movement of this high per diem charges freight car off the EBRR property makes good financial sense.

Car Movement #4: The empty TP&W 70126 is pulled from Ralph's Grocery Warehouse and moved to North Side Yard. However before the car leaves the yard the EBRR freight agent with no suitable home road or non IPD boxcars available needs it to fulfill an empty car request from local shipper Red Wing Milling. This will make ITEL and TP&W happy. Remember also that ITEL had their own agents soliciting loads.

Car Movement #5: The 70126 gets spotted at Red Wing Milling to be loaded with bagged flour for Stop & Shop Grocery Stores in Boston Mass. Wait Toledo, Ohio is in the opposite direction of Boston Mass! True, but the IPD cars are not bound by the AAR rules that would have it going back towards Ohio.

Car Movement #6: The Empire Belt pulls the loaded 70126 from Red Wing Milling and moves it North Side Yard.

Car Movement #7: The EBRR delivers TPW 70126 to Terminal Yard for interchange with the Penn Central /Conrail.

Car Movement #8: TPW 70126 is placed in an outbound train for movement off layout to Boston, Mass.

Car Movement #9: TPW 70126 is on the move off layout to Boston, Mass. See you next time!!!

Apalachicola Northern 5517

AN 5517 is one of 800 IPD cars leased from ITEL Rail. The AN was a 96 mile short line. It was lensed at North Side Yard in Empire City. 

Simple and easy four cycle waybill 

car movements for this IPD Car

Car Movement #1: AN boxcar 5517 arrives in Terminal Yard with a load of packaging materials for Walsh Steel Wool Products in Empire City, NY.

Car Movement #2: AN 5517 is pulled from the inbound train and placed into the freight consist of Train EC-1.

Car Movement #3: Train EC-1 takes the AN 5517 from Terminal Yard to North Side Yard in Empire City for interchange with the Empire Belt RR.

Car Movement #4: The AN 5517 is being moved towards Walsh Steel Wool Products with a load from St Joe Paper in Port St Joe, Florida.

Car Movement #5: The EBRR pulls the AN 5517 that has been loaded with steel wool products by Walsh Steel Wool Products and moves it to North Side Yard.

Car Movement #6: AN 5517, loaded with steel wool for American Hardware Supply in Bedford Park, NY, gets delivered to Terminal Yard in EBRR Train EB-2 for interchange with the Penn Central / Conrail.

Car Movement #7: AN 5517 is placed into local train BP-41 that will take it to Bedford Park Yard.

Car Movement #8: Train BP-41 departs Terminal Yard and hauls AN 5517 to Bedford Park Yard.

Car Movement #9: AN 5517 is delivered to American Hardware Supply with its load of Steel Wool from Walsh Steel Wool Products.

Car Movement #10: AN 5517 is made empty at American Hardware Supply and then loaded with bulk hardware for Reliable Machine Company in Empire City, NY. The Bedford Park Yard Job pulls the car and delivers it to Bedford Park Yard.

Car Movement #11: Train BT-27 takes the AN 5517 from Bedford Park Yard to Terminal Yard.

Car Movement #12: AN 5517 is placed into the freight consist of Train EC-1 for delivery to North Side Yard in Empire City, NY.

Car Movement #13: AN 5517 is moved from Terminal Yard to North Side Yard in Train EC-1 for interchange with the Empire Belt RR.

Car Movement #14: The EBRR then delivers AN 5517 to Reliable Machine Company.

As luck would have it Reliable Machine Company has cutting machines that need to be shipped to Port St Joe Paper just when the AN 5517 was made empty at their siding. Imagine that!! The EBRR will pick up the loaded IPD car and move it to North Side Yard.

Car Movement #15: AN 5517 has been pulled from Reliable Machine Company and brought to North Side Yard to await movement to Terminal Yard.

Car Movement #16: EBRR Train EB-2 takes the AN 5517 from North Side Yard to Terminal Yard.

Car Movement #17: AN 5517 has been delivered to Terminal Yard and is being placed in an outbound train that will take it off layout to Port St. Joe, Florida.

Car Movement #18: AN 5517 departs Terminal Yard for movement off layout towards Florida.

Additional Thoughts and Comments

The above are only two examples of the many options available when Incentive Per Diem boxcars show up on your layout. As documented above the TPW 70126 provided nine moves to cross the layout and head off layout. The AN 5517 provided eighteen moves to complete its four cycle waybill. The IPD cars are not a bad bang for our modeling bucks!

Coming Soon

In the next installment we'll continue to examine ways to add more prototypical model railroad operations with a focus on Railbox freight cars that appeared in the early to mid seventies.

Prototype Sources and Links

Classic Train Magazine Spring 2024. Article by Jeff Wilson starting on page 28 is an excellent review of the IPD craze of the 1970s. Full of photos and prototype information it is highly recommended.

The IPD Boxcar Story video

Prototype Photos 

Apalachicola Northern IPD boxcar 5517 at Columbus, Ohio in 1983.

Galveston Wharves IPD boxcar 1179 at Galveston, Texas in 1979.

Galveston Wharves IPD boxcar 1200 at Barberton, Ohio in 1983.

Mississippi Export RR IPD boxcar 873 at Mexicali, Mexico in 1979.

Port Huron & Detroit IPD boxcar 1029 at Port Huron in 1988.

TPW IPD boxcar 70126 at North Little Rock, Arkansas. Undated.

Thanks for reading!!!!

See you soon!!!