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Superiority of the Transcon line
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[quote user="MP173"]<p>Mr. Hadid:<br /><br />I was under the assumption that margins on intermodal import boxes were very low. By margins, I mean either gross margins or profit margins. If the profit margins are indeed high...BNSF has a real winner at this time.</p><p>ed</p><p>[/quote]</p><p>Ed, as you know railroads are a volume business, and when the volume rises above certain thresholds the margins become highly attractive. </p><p>Your impression points to a basic fallacy we're all subject to, that of relying on conventional wisdoms rather than objective fact. The obvious fact that there is substantial investment being made to add capacity for steamship intermodal, and that the investors approve that investment, should have been all the evidence necessary to demonstrate that the margins were now very attractive, elsewise we could only conclude that the investors were to the last man and woman a collection of chowderheads. "Conventional wisdom" is a generalization about what worked yesterday and is a poor plank on which to bridge to the future.</p><p>ALL, not just one, of the Class Is have a real winner on their hands with steamship intermodal as demonstrated in their annual reports. </p><p>S. Hadid </p>
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