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Plans for ethanol plant on hold.
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[quote]QUOTE: <i>Originally posted by futuremodal</i> <br /><br />Well, the irony is that those "evil" regulated entities almost always are willing to engage in build outs to new customers, especially industrial customers, while the partially deregulated "angelic" railroads almost always balk at building new spurs, as is evidenced by the content of the article posted. <br /> <br />You notice there is nothing in that article about the utilities reneging on an upfront promise to provide connecting infrastructure. Nope, just the railroad. <br /> <br />Something to think about. <br />[/quote] <br /> <br />Of course, what is the alternative to the utility service? Where is the competition?? <br /> <br />No large industrial plant can afford to provide for its own electrical needs nor water or sewer. There is no effective competition for the utility's service. This is the major reason they remain closely regulated. It is also the reason the business will accept the service from the utility and the utility will be able to recover its investment. <br /> <br />On the other hand, any business can call a truck that operates on a public road, usually provided FREE (there's that pesky word again) as an economic incentive to the new business. This subsidized COMPETITION can render the rail superfluous and thus the railroad unable to recover its investment in the construction. Accordingly, railroads are reluctant to make such investments unless they have some assurance of a return such as a simple output contract of some form. <br /> <br />FM, once again you are comparing apples and oranges and extrapolating self serving conclusions. As my investment banker likes to say... <br /> <br />"The math don't work" <br /> <br />LOL... <br /> <br />LC
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