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NITL's suggestions to STB for rail policy oversight
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[quote]QUOTE: <i>Originally posted by bobwilcox</i> <br /><br />[quote]QUOTE: <i>Originally posted by futuremodal</i> <br /><br /> And in global terms, U.S. producers have acrued a net loss in rail rates compared to overseas producers since the passage of Staggers. That's the hard cold fact you have to contemplate. <br />[/quote] <br /> <br />Prove it with data. <br />[/quote] <br /> <br />On average, the four largest U.S. railroads—the BNSF, CSX, Norfolk Southern, and Union Pacific—charged captives rates averaging 237% above their variable costs, while competitive rates average 108% of variable costs. (Revenue adaquacy is determined to be rates that run about 180% above variable costs). <br /> <br />source: STB - 2001 Revenue Shortfall Allocation Methodology Study <br /> <br />From the following, you can clearly see that captive rates for domestic intermodal are over twice the rates for intermodal import rates: <br /> <br />Average revenue/ton for intermodal, captive vs non captive - <br />CSX - $54.11 captive, $26.18 non captive <br />NS - $45.42 captive, $20.85 non captive <br />BNSF - $115.70 captive, $48.88 non captive <br />UP - $91.42 captive, $40.60 non captive <br />source: Rail Price Advisory, First Quarter 2003, Vol 12, No. 1 <br /> <br /> <br />"If railroads don't work with their customers to find a solution, continued economic pressure could end up pushing captive shippers out of the country. It's no secret that manufacturing costs are lower overseas, and for captive shippers, it sometimes is cheaper to ship internationally than it is to move product domestically." <br /> <br />Testimony of Roger Nober, as quoted in Logistics Management, November 1 2003. <br /> <br /> <br />Now, if you think you have data that shows the opposite, provide it. <br /> <br />"Prove it with data" - source: Bob Wilcox, TRAINS forum, October 29, 2003 <br /> <br />
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