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USA Today on Powder River Coal Problems
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[quote]QUOTE: <i>Originally posted by Murphy Siding</i> <br /><br />Of course,BNSF would be helping to make sure that a fair amount of that coal leaves on the competitor's rail line. That will help free up some capacity too![;)]. I can't picture any railroads (or any other business for that matter) getting too excited about helping a competitor eat it's lunch for them? There were,and still are a whole slew of challenges the DM&E will have to overcome to reach the PRB. Opposition from BNSF and UP will be tremendous. Not to mention that big threat from coal slurry pipelines.[}:)] <br />[/quote] <br /> <br />Better to pay 50% of a joint line that serves your purpose than to spend 100% of a single line for the same results. BNSF would be better served to spend money on improving lines out of PRB than to spend money in opposition to DM&E. DM&E is basically handing BNSF a new improved way of taking coal from PRB to as far as Edgemont on a silver platter if BNSF wants it, and all BNSF has to do is pony up a certain % of $$ to receive this blessing. DM&E has no PCE, so there's no transcon threat to BNSF. In fact, DM&E hands off a good portion of Pacific Rim grain traffic to BNSF. DM&E's only potential threat in that vein is if they start cooperating with CP for westbound traffic, and that would be a more expensive routing.
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