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[quote]QUOTE: Originally posted by tree68 OK, here's my take on these questions - [quote]QUOTE: Originally posted by CSSHEGEWISCH The following questions are based on FM's proposals as expounded in other threads: 1. Since the rates charged by the infrastructure company would be tightly regulated in an attempt to level the playing field, wouldn't this be re-regulation through the back door? [/quote]No more than what happens on a toll road. As long as you are willing to pay the toll, you can drive any legal vehicle down that road.[quote]QUOTE: 2. For example, let us assume that a small grain elevator is located at the end of a 25-mile long branch and is the only business on that branch. How would open access guarantee that there would be competition for traffic on this branch, assuming that anyone would even bid to provide that service?[/quote]Why would a trucking company provide service to that elevator? If there is money to be made by serving the elevator, someone will probably serve it. If nothing else, the elevator can invest in an old Whitcomb and save another carrier the 25 mile hike, which might make it worthwhile for them. Open access means that if someone does want to serve the line, they can. Without OA, if the owning XYZ RR doesn't want to serve the elevator, nobody else can.[quote]QUOTE: 3. Since the rates it could charge would be regulated, what incentive would exist for the infrastructure company to increase capacity on any of the lines it owns but does not operate? [/quote]More traffic=more income. The question becomes whether the regulated rates include money for capital improvement or merely basic maintenance.[quote]QUOTE: 4. Would operating companies be allowed to cherry-pick the most profitable customers and services or would they have to serve everybody on the lines over which they operate? This is in the context that the operating companies would be unregulated as to rates and services. [/quote]You mean they don't do that now? What's to stop "you" from picking up an engine, meeting the necessary requirements, and cleaning up what the big boys don't want to? They may not want to switch the line, but might be willing to handle the aggregated traffic.[quote]QUOTE: 5. Would there be provision for abandonment of a line over which nobody wishes to operate? [/quote]That's a question for the regulators. Again, however, if there is money to be made, someone will use it. If there is no money to be made, either some municipality will take it over, or it no longer needs to exist anyhow.[quote]QUOTE: 6. How would you sell tax abatement to school districts, municipalities and other taxpayers? [/quote]That will be a tough sell for any industry unless you can prove the potential for economic development. [/quote] tree - couldn't have said it better myself!
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