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[quote]QUOTE: Originally posted by nanaimo73 Murphy, Up here in Canada CP is spending hundreds of millions to increase capacity on their western main. They refused to go ahead with it until they got assurances from the federal Government that there would be no open access. Rail companies are not going to spend money on their lines and have someone else use them.[/quote] It was the uncertainty related to a potential change in costing formulas that was more likely the cause of the alleged delay in CP's line "upgrades", not any assurances regarding a no open access guarantee that aided in CP's project start. Uncertainty regading any future operation changes will cause corporations to be very conservative when it come to capital expansion projects. Since the Canadian government themselves had no idea how they would even implement such a concept as open access, it stands to reason they have decided to wait a while until the concept is more detailed. CP's expenditures are mostly focused on the western mainlines to "increase" capacity to Vancouver, but it is curious that they project only 4 additional trains per day with this multi-million dollar project. Logic says they would have been better off if other rail transporters had participated in this project to share the costs. Maybe then they could have spent more money more judiciously to get more than a measly 4 train per day increase. I seriously doubt that the revenues from only 4 additional trains per day is going to improve CP's ability to recover their cost of capital, especially if these 4 extra trains per day are low margin intermodal. It wouldn't suprise me if CP's cost of capital recovery actually gets worse after this.
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