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July TRAINS takes on the captive shipper debate - Best Issue Ever?
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I hate to drag this discussion back to a previously posted remark, but since it got lost in the ilk storm........ <br /> <br />Paper barriers - The federales are seriously considering eliminating the paper barrier caveats from the shortline contracts. I think is was White from AAR who stated that if such should happen, the railroads would just stop selling branchlines to shortline operators and abandon them instead. <br /> <br />Haven't the railroads squandered that bluff by now? Most if not all branchline sales to shortline operators have already taken place, so there are not too many branchlines left under Class I ownership for the railroads to use as blackmail bait. <br /> <br />I would venture that the feds will go ahead and eliminate the paper barrier constraints from current shortline sales contracts. That's good news for rail shippers on shortlines which have physical connections to more than one Class I but which are captive to the original Class I owner via the restrictive caveats.
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