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"Railroads can't maintain pace of coal demand"

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[quote user="Datafever"][quote user="TheAntiGates"][quote user="Datafever"] I will admit to having another one of these periods of confusion.  Why would normal interchange not apply here?  Why would DM&E be restricted in the size of their delivery area?  If a shipper is serviced by DM&E, cannot that shipper ship product to any end location? [/quote]Just how much success would you expect DME to have in undercutting the price of either road that could HANDLE  THE MOVEMENT EXCLUSIVELY on it's own rails?  [/quote]Okay, but wouldn't the threat of DM&E taking away such a customer still cause BNSF or UP to maintain fairly tight pricing for that customer?  In other words, if UP is currently gouging a shipper, and that shipper suddenly has access to DM&E, it seems that UP would have to price themselves a little more appropriately to avoid having DM&E take away the business.Anway, I do see your point that it probably is not likely for DM&E to take away business that is travelling to UP or BNSF destinations.  But my reading of the original post made it sound as though DM&E would be unable to deliver to those destinations.  Perhaps I was over-reading it. [/quote]You guys forget - many of those PRB coal customers are in the East, served mostly by NS and CSX, maybe some CN and CP as well.  As long as DM&E has direct interchange with those eastern railroads, they can cut into UP/BNSF's duopoly.
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