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[quote]QUOTE: Originally posted by oltmannd [quote]QUOTE: Originally posted by futuremodal [quote]QUOTE: Originally posted by oltmannd Dave- Are you just ignoring the idea that if OA was a win-win, the capital markets would fund it? Or, is this just an inconvenient fact? I've put this out there twice, now. [/quote] Don, Is the closed access system getting the funding from the capital markets? $35 billion from the public sector says no. OA also represents significant change, and that doesn't happen outside federal directive, aka energy market deregulation, et al. Sometimes the federales need to give a "nudge" to make the right thing happen. [/quote] No, no, no. You're mixing apples and oranges. The $35B public sector money you say is out there now would not go away if capital markets funded OA. RRs are able to raise money from the capital markets. Big 4 US roads all have bond ratings above junk. Recent stock price says that market believes RR have future. If future is brighter with OA, they would fund it. [/quote] Well, if you want the apples and oranges comparison, try this out for size: Do you agree there is a big difference between capital expenditures for rolling stock or the occassional siding, and building whole new segments of ROW from scratch? When you say "if capital markets funded OA" you must be refering to building whole new rail lines from scratch. If you're talking about the current rail network being split up into infrastructure and transporting, that is simply a restructuring, not a capital expenditure, so the capital markets would not necessarily be accessed soley for a shift to OA. The potential increase in private funding for railroads under OA would come from the new entrants and innovators, both of which are effectively barred under closed access. You are aware of the introduction of OA into the electricity and telecommunications markets. What in your opinion have the capital markets said about those versions of OA? Hasn't investment in telecommunications and energy increased substantially since those sectors were opened up? You are also aware that OA has been adopted by most other rail systems in the world. Have you noticed the increase in private sector investment in those rail systems? It should also be noted that OA may well be banned under current STB and FRA rules, neither of which has a rule making template for potential OA operations in the US. Why would the capital markets fund something that is not even allowed right now?
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