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[quote user="VPayne"] It is interesting to note that railroads paying their full cost of capital could not beat barge movements. What is the recovery rate from the barge industry in the form of "user fees" for the Army Core of Engineers designed lock & dam inland water system? If I recall correctly it is around 10 to 30%. Why are we worried about a private companies, the railroads, charging 300% of variable costs when the government is charging 30% to their competitor for the use of the inland waterway system? [/quote] You have to remember, there were riverboats on the Columbia Snake river systems prior to the dams being built.  The Corps of Engineers were required by law to design the dams with locks and navigation aids to maintain this prior usage claim.  There was an efficiency gain for river shipping companies when the slack water was introduced, and the barge company fees are set as a determination of this improvement over the free flowing prior river system. Don't let the econuts and the rail oligarchy fool you.  The barge lines do pay their own way, and they do it within the scope of a completely open access system.  Contrast that with the railroads, who received huge land grants, anti-trust exemption, and now they are getting a portion of the highway users' money's to fatten their wallets.  And all that occurs in a closed access system, aka monopolistic.  If anything, it's the railroads that are taking advantage of the US taxpayers.
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