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G&W buys Rail Management's RRs
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[quote]QUOTE: <i>Originally posted by dldance</i> <br /><br />One interesting operating scenario might be when a large conglomerate of short lines would generate sufficient freight at one point (A) - destined for another part of their short line system (B). In such a case, the normal manifest could be treated by the connecting class 1 as a unit train going from A to B playing into both organization's core competancies. <br /> <br />dd <br /> <br />dd <br />[/quote] <br /> <br />True. In theory this works. In practice there are relatively few places where short lines connect and have freight that can be consolidated. This does happen in a few areas, for example with grain. Usually, however, the Class 1 can make the intermediate move easier on their own tracks and they can price it cheaper, so consolidating the traffic just doesn't have any real impact for the customer and that is where it counts. Generally, Class 1s will only treat like loads or empties as a unit train, so one should not draw any inferences that merely consolidating all traffic between points would result in such trains being considered unit trains. This is governed by tariffs, contracts and AAR rules, designed to maximize profits for the Class 1s who are the primary members of the AAR. <br /> <br />LC <br /> <br />
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