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Trackage Rights
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Welcome back Gabe (Sounds like a song "Welcome back Carter). I cannot offer any enlightment on NS into Indy City, but there are two types of operating on someone elses track - trackage rights and overhead rights. Trackage rights have been pretty well discussed above. It gives the guest railroad the right to service customers on the line, however, this right might be limited to certain customers or certain portions of the line. The second is overhead rights where the guest railroad has the right to run through trains on anothers track without the right to solicit business. This may be the case where BNSF uses the UP lines between Salt Lake City and Sacramento. (I do not know their official status on the line re trackage or overhead rights). Typical charges for the right to travel on the line is around 25 cents per car mile. That is what Trinity Rail Express charges UP, BNSF, and a short line to use the TRE corridor between Dallas and Fort Worth. Yes, their freight trains can be a nuscence, however, we like the check we get every time they run a train over the corridor. Another scenario is where the owner of the track is not using the line and will lease it out to another railroad. The lessee usually is responsible for all maintenance of the line (track, signals, crossing gates, etc) for a fixed fee. Dallas Area Rapid Transit owns about 250 miles of ROW in the area that is being held in reserve for future light rail service. In the meantime we lease out the lines to operating railroads. A classic example of this is the Pittsburg & West Virginia Railway. It was leased to Norfolk & Western many years ago for $915,000 per year for 99 years. N&W maintained it and recently sold their leasehold interest to the Wheeling & West Virginia Railway who now makes the quarterly lease payments. The holding company, P&WV, which is classified as a real estate investment trust (REIT) has a flat income stream of $915,000 per year. their only expense is a little book keeping and the writing of dividend checks. Great for investors, however, no growth. <br /> <br />***
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