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"Railroads can't maintain pace of coal demand"
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[quote user="nanaimo73"] <p>FM-</p><p>There would be less risk to the taxpayers if the $2 billion loan went to UP and BNSF to be used for increasing their capacity for moving PRB coal, perhaps including the Tongue River Railroad.</p><p>Is your main concern moving the coal, or competition for BNSF ? </p><p>[/quote]</p><p>Well, DM&E applied for the $2b loan, not UP nor BNSF. I expect that if the Duopoly twins were to apply for such a loan, they'd get it also.</p><p>The problem as I see it is in the way UP and BNSF would have spent the money, contrasted with how DM&E plans to spend the money. As you know, I am a critic of consolidating new capacity into a single corridor for various reasons. I favor dispersed capacity, and the DM&E plan fits into that concept rather nicely.</p><p>Secondly, there is the expectation of a public good in return for public funds. I can't see how doing nothing more than fattening up the already obese corporations known as UP and BNSF respectively serves any public good. If anything, such a mis-use of funds would amount to a negative public effect, given the monopolistic tendencies of those two. The DM&E plan, being a brand new dispersed <em>and </em>competitive line, does fit the public good criteria.</p>
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