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[quote user="Datafever"]I think that we need to agree on what it means to be a captive rail shipper.  By definition of the Staggers Act, any shipper that pays over the 180% R/VC rate is a "potentially captive shipper".  So, any shipper that pays a rate of 180% R/VC or less is not a captive shipper.  In addition, the GAO report already referenced by greyhounds talks about the need to look at all competitive options, including trucks and barges.  Beyond that, I have found nothing that clearly defines exactly what a captive shipper is. However, I think that it is safe to say that any shipper that falls into the potentially captive category on the basis of the rate that it is charged can be deemed to be a captive shipper if other shipping options are not available or are available only at a higher rate than the shipper already pays. NOTE:  This would include shippers that use trucks for short-haul to a facility that then uses rail for long-haul transport.  In other words, for the example that I have previously used, those elevators may still be considered to be captive shippers IF the overall rate that they pay (truck + rail combined) is over 180% R/VC.  Why?  Because the cost of shipping by truck to final destination is probably prohibitive and not a viable option. What does this mean.  Well, it partly means that futuremodal is somewhat right.  He just didn't do a very good job of wording it.  It also means that he is somewhat wrong.  All transportation options need to be taken into account in order to determine if a shipper is captive, and no shipper is captive if they pay less than 180% R/VC regardless of whether any other alternatives exist. The GAO report comment still stands - it is difficult to determine the number of captive shippers.  In fact, when it is taken into account that shippers may be captive even though they do no direct business with a railroad, it becomes even more complicated to determine exactly which shippers are captive. Again from my example, let's say that the elevator utilizes truck transport (short haul) to a facility for long haul rail transport.  Even if the long haul transport is charged at a rate that is under 180% R/VC, that still doesn't mean that the originating elevator's overall rate would not exceed 180% R/VC, which would make that elevator a captive shipper even though the facility to which it ships is not a captive shipper.  And the reverse situation also applies.  If the long haul transport is charged at a rate over 180% R/VC (making that facility a potentially captive shipper), that still doesn't mean that the originating elevator is a captive shipper when its overall costs are taken into account. The GAO report is quite correct in its assessment.  I would even say that it understates the task.  It is probably impossible to determine the number of captive shippers. [/quote] I would counter that using rates as the determining factor is a bit misleading, since rates can change at a whim.  We all know about the long term coal hauling contracts that have come under renewal periods.  Mines and power plants that may have received rates at or below the 180% standard are now being foced to accept rates well over the 180% standard.  Since such studies tend to use older data, it is likely the GAO analysis is using the old rate structure which would then understate the number of captive shippers.  Using the physical connection concept has more merit, because it is "fixed" without an actual construction or trackage rights amelioration. You have to remember, there are current customers, and there are potential customers.  There may be thousands of facilities with one rail connection which are currently idle for lack of rail competition.  That's the shutdown factor, a variable not accounted for in the GAO's study.  Thus, using current active rate structures as the basis for determining captive shippers misses entirely these idle accounts. Hey, the dead and comatose don't complain, do they?
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