Relco HO Scale Models

Relco LLC is an American locomotive and rolling stock leasing company that has operated primarily in the short line and regional railroad market. The company, which uses the reporting mark RE, has built its business around acquiring, refurbishing, and leasing older diesel locomotives to smaller carriers that lack the capital resources to purchase new motive power outright. This niche has proven durable, as short line railroads throughout North America frequently rely on secondhand equipment to keep operating costs manageable while still maintaining serviceable fleets. Based in Albia, Iowa, Relco developed a reputation for taking in older road switchers and general-purpose locomotives, often units that Class I railroads had retired from mainline service, and restoring them to operational condition for lease to customers who could put them to practical use. The company has worked extensively with locomotives from builders such as Electro-Motive Diesel and Alco, among others, giving extended service lives to units that might otherwise have been scrapped. This approach has made Relco a meaningful participant in the secondary locomotive market, where availability of affordable power is a persistent concern for smaller operators. The leasing model that Relco employs serves an important function in the broader railroad industry by allowing short line and regional carriers to adjust their motive power needs without committing to outright purchases. A railroad facing a temporary spike in traffic or the loss of a unit for heavy maintenance can turn to a lessor like Relco to fill the gap. Over the years the company has maintained a varied fleet intended to serve a wide range of customers across different regions and traffic types, contributing to the operational flexibility that helps smaller railroads remain viable components of the North American freight network.