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"Railroads can't maintain pace of coal demand"
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[quote user="MP173"]<p>This leads me to a few questions/comments:</p><p>1. Pricing power for the rails obviously has changed, if they are "publishing" rates for coal, rather than negotiating or bidding on coal rates. How prevelant is it to use these circular rates rather than the contract rates?</p><p>[/quote] </p><p>Growing more and more prevalent. Some utilities still feel they need contract rates. To get them they may pay more than a circular rate.</p><p>[quote] </p><p>2. any idea of what a coal train produces in revenue? Any pair of points would work, I can figure the mileage and translate.</p><p>[/quote]</p><p>0.5 cents per ton/mile for long moves isn't an uncommon number.</p><p>[quote] </p><p>3. What percentage of PRB coal moves in private cars? It sure seems as if most of it does, from what I see.</p><p>[/quote] </p><p>I have no idea. There's still a lot that moves in system cars, though.</p><p>[quote] </p><p>4. I have no faith whatsoever in the utilities passing any savings along to the customers. Yeah right! As the AntiGates said so well, they are capitalists....just like me.</p><p>[/quote]</p><p>That's not really a question ...</p><p>[quote] </p><p>5. Looking at the map, I see BNSF has two lines thru Wy. One is right thru the coal basin, the other via Casper. Do both have mines? Does the Casper line carry much coal or is it a merchandise route?</p><p>Thanks,</p><p>ed</p><p>[/quote]</p><p>The former CB&Q "Wind River" line from Casper to Laurel serves no coal mines and carries no coal. It's an inexpensively located route that would have very high operating costs to carry coal. It's out of any conceivable circuit for coal, unless someone wanted to build a plant on it, or if a branch line from it was extended southwesterly into the Hanna Basin. None of that is very likely. Primary traffic is overhead between Pasco/Spokane and western Montana/MRL, and Denver/Fort Worth.</p><p>S. Hadid </p>
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