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New cross country perishable train
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[quote]QUOTE: <i>Originally posted by ericsp</i> <br /><br /> <br />Futuremodal, did you ever talk to BNSF to get their side of the story regarding Swift? <br />[/quote] <br /> <br />No. Do ya think they'd spill their guts to little ol' me? <br /> <br />What stands out is this - BNSF went into this arrangement beforehand with their numbers intact, and one can assume that they showed enough of a profit to jump into the action, else they wouldn't have ventured thus in the first place. I doubt they went into this with the thought of making it a loss leader for it's first few years, because there's just no end game for the tactic in that market. Either you're making money running bi-modal, or the customer goes back to the highways or TOFC/COFC (in this case Swift went back to the highways, although I expect some of that traffic must have gone onto TOFC/COFC consists). <br /> <br />All I have gotten from this episode is this: <br /> <br />1. Both Swift and BNSF invested in this operation. <br />2. Both Swift and BNSF ran their numbers, else one of the parties would have opted out beforehand. <br />3. BNSF got cold feet in a relatively short amount of time, certainly not enough time to analyze the project's growth potential. <br />4. Both BNSF and Swift ended up eating a loss on the initial investment because of BNSF's untimely pull out. <br />5. Since this is partnership was in the public eye, you can bet Swift and the rest of the trucking industry will think twice when approached by one of the railroads for another "partnership". <br /> <br /> <i><b>"Fool me once, shame on you. Fool me twice, shame on me."</b></i>
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