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OAT : Open Access Thread
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[quote]QUOTE: <br />All Open Access is doing is shifting costs from one group of shippers to another. Because multiple rail companies are involved, that means multiple top management teams, back office functions, a new organization of some sort to regulate usage and acccounting. and of course each will have to make a decent return to remain profitable, so total real rail transportation costs would go up not down. <br />[/quote] <br /> <br />Why would there be a need for "new" management? Couldn't the current crop of Class I's, the largest truckload carriers, and current intermodal firms handle the new business? And since transporters are unregulated, they can merge with each other down to a handfull of companies (assuming government approval), further reducing managerial overhead. And any new entrants into the transporting market (relatively easy since they now don't have to build their own tracks) would not necessarily be taking capital from other segments of the railroad industry, rather it would more than likely come from outside the industry. <br /> <br />Industry costs under OA would go down, and investment in the industry would go up.
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