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Railroads Struggle to Deliver Coal to Utilities

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[quote]QUOTE: Originally posted by n012944 [quote]QUOTE: Originally posted by n012944 [quote]QUOTE: Originally posted by futuremodal [quote]QUOTE: Originally posted by n012944 [quote]QUOTE: Originally posted by futuremodal [quote]QUOTE: Originally posted by Murphy Siding [quote]QUOTE: Originally posted by futuremodal Many other industries will maintain "unused" assets for long periods of time, because they understand the cyclical nature of business. Apparently, railroads do not understand this basic business tenet. You see, if you scrap an asset, you don't have that asset later on when you need it. Now that the nation's energy and other transportation needs are such that abandoned lines would be put into play right now, it shows a lack of foresight (or a complete lack of concern) by the shortsighted railroad industry. Don't these guys follow economic trends? Or did they think that the US was destined for a Soviet-style command economy, so why save assets if the railroads are going to be taken over by the federales? [/quote] Hey Dave- any chance you could make a quick list of the under-utilized or dormant rail lines that will be really busy 10 years from now? 20 years from now? That way, the railroads would have an easier time planning some of this stuff?[;)][:-,] [/quote] Again, I will ask you this: Can you name any other industry besides the rail industry that has engaged in such a canabalistic attitude toward it's hard assets? [/quote] The auto industry. [/quote] Nope, you're thinking of a few specific companies like GM or Ford, but not the aggregate industry as a whole, which continues to add assets. GM and Ford aren't shutting those plants to extract more pricing power, they're rather on the losing end of the intra-industry competitive battle, e.g. losing market share to other auto makers, subsequently closing their plants while others open new ones. Toyota, Nissan, Lexus, et al are not lopping off assets, are they? [/quote] Thank you Dave. Since you understand the auto industry, let me put it in those terms. Think of the railroad industry in the early 80's as GM and Ford today. Then think of the trucking industry as Toyota, the air freight as Honda, and shipping as BMW. The railroads were losing out to new ways of doing things. The trucking industry was doing well with the expansion of the interstate highways, many of the 1st generation jet airliners were being moved from passenger to freight service, and the shipping industry was doing well with ACofE projects. Since you wanted examples how about the steel industry? They have gotten rid of a lot of capacity since the 1950's, was that a monopoly conspiracy too? I look foward to the spin that you put on this. Bert [/quote] I am still waiting for your spin on the steel industry. Bert [/quote] Bert, are you a glutton for punishment? Do I really have to point out the illogic in your auto industry analogy? Yes or no, let me know and we'll go from there. And I don't want anyone else piping in and claiming I'm being rude or insulting if Bert avers to carry this one further, okay? (That means you, Murph![:0])
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