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The Milwaukee Road
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Thanks, Michael <br /> <br />Given what we are witnessing with intermodal growth, I would think a Milwaukee today would be handling 15 to 20 trains per day, assuming the physical plant could handle that number. <br /> <br />On the cost of diesel for six trains per day, I would calculate about double the cost you provided, roughly around $160 million per year based on fuel cost of $1.50 per gallon and ton/mile efficiency of around 800 miles per gallon for a 13,000 ton train. <br /> <br />I would offer that there is definately room for a second transcon across the Northern Tier states today e.g. there is no more underutilized rail capacity out there, and if projections regarding the growth in world trade ring true, that need for a second transcon up north will become more apparent. Even with a reduction in profit margins for BNSF due to de facto rail competition, there seems to be more than enough volume available for profitable operations.
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