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[quote]QUOTE: <i>Originally posted by gabe</i> <br /><br />The lack of private investment says it all. Railroads are already undercutting one another for better rates in the Powder River Basin, this will just make things worse. I think this is going to go down in history as a collasal blunder with lobyists and power companies to blame. <br /> <br />Gabe <br />[/quote] <br /> <br />Rates out of the PRB are going up, because demand is exceeding the railroads' ability to deliver. The reason for the lack of private investment is due to the political nature of coal. This project has to have long term ROI's just by it's nature, 20 or 30 years. Who knows, in ten years we might be back to politicians seeing coal as an anachronism. Perhaps coal gasification technologies will become much more commerially viable than is predicted, and since gasification precludes the need for low sulfer coals, demand for PRB coal might diminish, making the DME project superfluous. <br /> <br />And the idea of new rail construction "making things worse" is straight from the AAR subtext. It does make things worse if you are a monopolist, it makes things better if the railroad industry wants to actually increase business coverage.
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