Why is this proposal good for the five-county region and the State of Nevada? Jobs. Nevada's economy is well developed for tourism, and it is now a nationally competitive market. Gaming alone can no longer be depended upon as the sole reason for visiting the state and other attractions can make the difference.
Just building the railroad is a $41.5 million project that will take about 3 years to complete, including construction and utility relocation. Right-of-way acquisitions add another $8.2 million to the total cost and engineering, permitting, environmental concerns, and project management costs comprise an additional $5.3 million, bringing the total cost to $55 million (including construction costs to date). Yes, this is a lot of money but the economic impact to the region and the State of Nevada is significantly more than the initial cost. The jobs created during planning and construction result in an immediate return on investment long before the first ticket is sold.
What's the total payoff? After the railroad is operating, annual economic impacts can total $11.8 million annually - just over three hundred jobs - at a sustainable level of ridership.
Existing Attractions
Carson City and Virginia City are nearly midway between two major tourist markets: Lake Tahoe, and the Reno/ Sparks area. 5.2 million tourists visit the Reno/Sparks area each year, Carson City's visitor base is estimated at 1,500,000 per year, and Virginia City, although less precisely measured, is estimated to be 425,000.
Other regional attractions aimed at nearly the same market have much higher attendance than the existing V&T Railroad. The two cruise boats surveyed on Lake Tahoe, carried 130,000 and 180,000 respectively, with one boat being May to October. The Nevada State Museum at Carson City hosts 275,000.
Similar Railroads
There are over two hundred tourist railroads and operating museums today in the United States, with the majority being one- to two- hour trips. Most aren't really very historic, and many aren't behind a steam locomotive. But there are operations that can be examined for some similarities.
The Durango and Silverton Narrow Gauge Railroad, in Durango, Colorado, is a legend. With possibly the best scenery in the nation, authentic steam engines, and an all-day trip, it draws an impressive 207,000 riders per year and $8.3 million of revenues.
The Silverton is impressive as a tourist attraction, has spectacular scenery, and the railroad is well known nationwide. But it is also about as isolated as a tourist railroad can be: 336 miles from Denver and 168 miles from an interstate highway. You don’t get to Durango accidentally. This is a good example of how important marketing and reputation are for a tourist railroad.
The Verde River Canyon Railroad in Clarkdale, Arizona, is very similar to the V&T, with canyon/desert scenery and a location near the historic mining town of Jerome. Its 80,000 riders per year only come from one train per day - a round-trip ride of 40 miles that takes about four hours. It's diesel-powered and still growing, but this can show the potential for just a long distance trip.
A third operation, the Great Smoky Mountain Railroad in North Carolina, has achieved 160,000 riders on a variety of short and long trips over the steam-powered 67-mile line. Its extremely professional marketing program has developed this number in just over three years.
What Can an Expanded V&T do?
We feel that a realistic and achievable ridership for the expanded railroad, given the services and schedules that could be implemented, is 160,000 per year. It won't get there overnight and will require planning, hard work, and advertising. But with this new ridership coming from existing short trips, a Carson City to Virginia City train, and a variety of one-way packages aimed at bus tours, this level can be achieved.
What will it take to do this? It will take more that "just" a train ride to achieve this level of ridership. But the legacy of the V&T provides ample scenery, history, and special event rides to help the project.
Short Trips
The existing short trip between Virginia City and Gold Hill is a winner and will stay in place. Other short trips could be planned, for example a trip starting at the Carson City Depot through the Brunswick Canyon next to the Carson River and back again. The Virginia City trip can be handled in much the same manner as the current operation, and on the same schedule. The short trip at the south end of the railroad can be incorporated into the long trip schedule, and sold as a separate attraction. There are many options and further consideration must be completed before a final decision is reached.
Long Trips
Two trips a day can be made with one set of equipment between Carson City and Virginia City. With a 10:00 AM departure, a train can arrive just before noon in Virginia City, return back to Carson City just before 2:00 PM. The second train of the day arrives at Virginia City just before 4:00 and arrives at Carson City at 5:35.
This schedule assumes short stops at Mound House and Gold Hill, to allow variations on short trips, and to accommodate bus tours and stopovers that also produce one-way business. Total ridership is a mix of market demand: short distance, long distance, and one-way trips.
With an eight-car excursion train, long distance train capacity is just over 300 persons per trip. This is 18,400 long-distance round-trip seats per month at capacity levels. The schedule cannot reasonably accommodate more than two trips per day per equipment set, and further capacity additions would require another entire train.
Dinner and Entertainment Trips
Located midway between the entertainment centers of Reno and Lake Tahoe, Carson City, and Virginia City are in an excellent position to attract patrons to "Dinner Trains". Dinner on the V & T would be a fun trip and different themes could be incorporated into each trip. Dinner trains could cater to business events, anniversaries, conventions and can provide an off-season attraction that can justify keeping the railroad open year-round. It is also possible to have a moving "Casino Car" to expand the entertainment for the visitors.
As we get closer to opening the Railroad, we will let you know about the decisions that are being made. In the mean time, come back to the site often and get updated on current construction progress here.
