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[quote]QUOTE: Originally posted by Murphy Siding [quote]QUOTE: Originally posted by futuremodal [quote]QUOTE: Originally posted by Murphy Siding Zoom! Went right over my head in a hurry.I can see hoe it is put forth that "captive" shippers *might* receive lower rates due to OA. I haven't seen yet, a plausible explanation as to how OA would improve the rest of the rail system. In fact, I've read lots of plausible explanations as to why we could expect rail rates to go up. [/quote] And those "plausible" explanations for rail rates going up under OA are what? Multiple users causing higher costs? Funny, we already have situations of multiple users here in the U.S., and no one has offered any evidence that such multiple use results in higher costs on a tonnage moved basis. Come to think of it, I was the only one who offered a counterargument to my own statement that OA would result in lower rates, in that it would be harder for host railroads to engage in and get away with deferred maintenance. After all, it costs more to keep the tracks in optimal shape day in and day out. [/quote] Geez, Dave don't get cranky with me, I didn't throw down any gauntlet ![:)]. So explain to me how OA is going to save any money on non-captive customers. Thanks ( watch that blood pressure- I'm not the enemy, I'm just asking .) [/quote] I guess subtle references to "blond jokes" and the like don't count as any gauntlet, right? To answer your topic question, it depends on just how "non-captive" those non-captive customers are. Do they have access to two railroads? If so, they are paying much lower rates than captive customers, but are still subject to duopoly actions. If it is three or more, then the rates probably won't be subject to any more downward pressure from de facto competition, but the ability of outsider transportation companies to provide more responsive transportation services (e.g. J.B. Hunt running their own consists by their rules, not the railroad's) may result in lowering shipping costs as they relate to expediency. I say "may" result, because there is no way to test this theory under the current closed access system, we can only observe how responsiveness is characterized by the open access highway system and try to transpose that onto a hypothetical OA rail system.
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