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The economics of shortlines and regionals..

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[quote user="CSSHEGEWISCH"]   <blockquote> <div><img src="/TRCCS/Themes/trc/images/icon-quote.gif" /> Sam1:</div> <div>     <blockquote>This is a fact and not a political statement.  I am a strong supported of free markets with minimum regulation. Having said that, I believe a case could be made to have a public sector corporation take over the rail infrastructure in the United States and allow anyone who meets its standards to operate over it.  This could put rail infrastructure on a par with highways, waterways, and airports, which are really owned by the public, and for the most part paid for by the users.  Of course, it would never happen, at least in my lifetime, but it is an intriguing idea. </blockquote>   <div style="clear:both;"></div>   </div> </blockquote>   The concept of open access has been sliced and diced in these forums in the past.  Your proposal suggests that the railroad system be nationalized and separated into a publicly owned infrastructure company with various operating companies still in private hands. [/quote] Nationalization is not the correct term. I would keep the infrastructure in private hands, as per below.  It could be set up similar to the electric utilities in Texas and parts of Australia.  Here and there the poles and wires (similar to railroad rights-of-way) are owned by investor owned, independent operators, but their rates and rules governing their use are set by a utility commission.  In Texas it is the Public Utility Commission. Private generators and retailers buy access to the poles and wires to transmit and distribute electric energy. They pay a fee to use the system. Well, actually, their customers pay the fee. The energy is produced by a variety of generators, and it is sold through a greater number of retailers. The generators and retailers have to meet the system operator's standards to gain access to the transmission and distribution systems. In Texas there are numerous sources of power. Some are owned by investor owned utilities; others are owned by merchant plant operators, and others are co-generation facilities. There are even a greater number of retailers. In Dallas, for example, a customer can choose from more than 30 vendors that sell electric energy.   A similar system might be feasible for the nation's railroads, with various parts of the infrastructure operated by different owners, all under a national regulator.  Opening the system to other operators might improve competition and therefore outcomes. I believe competition, properly regulated, produces the best economic outcomes in the long run. I realize the subject has been discussed previously. Furthermore, I just threw it out for grins.  I don't believe that it will come about in this country.  The railroads, for many good reasons, are against it.  Frankly, I don't know enough about the issues to argue for or against it, but I believe that it is something worth considering.
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