Edit post

Edit your reply below.

Post Body
Enter your post below.
[quote user="greyhounds"][quote user="futuremodal"][ Bad conclusion, Ken.  There is nothing implicit about a second rail carrier "increasing costs" to serve the plant.  There would be a shift of revenues from the one rail carrier to the new rail carrier, assuming they both use the same trackage.  Loss of revenue does not equate to increasing costs. What might happen with rail on rail competition is a shift in the plant's production to products more prone to rail carriage if they are now afforded more reasonable rates and rail service offerings. Another faulty premise.  Who says the plant or a 3rd party contractor can't handle the switching for both carriers?  All the Class I's have to do is leave the inbounds and take out the outbounds.  You know, like Ed's railroad. . [/quote] Yes, the second rail carrier will increase cost.  At a minimum you'll be using two crews to do what one crew does very well now.  And you'll double the train frequency needed to handle the same traffic. [/quote] You are assuming that competing rail companies will not be able to maximize labor and capital productivity.  Faulty assumption.  Again, look at all the currrent multiple use, trackage rights, et al agreements - these are not increasing costs, they are actually lowering costs. [quote] And yes, you could put a "3rd Party contractor" in there to do the switching.  But then you'd have three crews doing the work now done by one crew.  Open access will increase the cost of providing rail service.  There is no doubt about it. [/quote] You're stuck on faulty.  Why would a 3rd party need three crews?  You really aren't thinking this through. [quote] That's why railroads are "Natural Monopolies".  Now try to understand that that doesn't mean that there is no competition - there is.  But that competition comes from trucks, barges, etc.  Not from putting multiple railroads in service on a line. [/quote] Answer us this - why do you automatically assume intramodal rail competition would increase costs, but intermodal competition would not? I expect more faulty premises to ensue........
Tags (Optional)
Tags are keywords that get attached to your post. They are used to categorize your submission and make it easier to search for. To add tags to your post type a tag into the box below and click the "Add Tag" button.
Add Tag