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<P mce_keep="true">If the "track" was owned by the federal government or an independent third party, it could result in greater competition for freight and passenger services. Competition could improve service and lower tariffs. Only those operators providing high quality service at the lowest effective price would survive. </P> <P mce_keep="true">There is an example of how this model could work. In Victoria, Australia, where I worked for nearly five years, the electrical transmission lines are owned by an independent third party operator. Power generators rent space on the transmission lines to move their power to independent electrical distributors. To use the lines they must meet the transmission line operator's standards. The system is efficient and effective.</P> <P mce_keep="true">Would ownership of the "track" by the federal government or third party result in more passenger trains? Not if only one bloated operator, Amtrak, was permitted to offer intercity services. Moreover, if the owner of the "track" charged the fully allocated cost to use its system, passenger trains operators might find themselves paying more to use the system than Amtrak pays today, which means that they would have to reduce their operating costs below Amtrak's to offer better services. </P> <P mce_keep="true">Several studies have shown that Amtrak does not pay the fully allocated cost of moving its trains over the hoist railroads. Moreover, it does not pay the full cost for many of the stations that it uses, i.e. Dallas Union Station, Fort Worth Intermodal Transit Center, etc. Many of the stations have been taken over by city governments and refurbished with tax free municipal financing.</P> <P mce_keep="true">If any organization that met the system operating standards was allowed to run passenger trains, services in short, high density corridors could improve through the magic of competition. Faced with competitors Amtrak would have to squeeze out the inefficiencies in its operations or go out of business. </P> <P mce_keep="true">Irrespective of who owns the track the long distance passenger train could not survive without large subsidies. It is an unworkable model in the era of jet airplanes and comfortable family buggies.</P> <P mce_keep="true">Ownership of the rails by the government or an independent operator, with open access to qualifying carriers, could improve freight services. Again competition could work its magic to improve service and drive down prices. Moreover, it could place rail services on a more even footing with air and highway carriers in that all modes of transport would then be operating over rights-of-way owned by an independent third party. </P> <P mce_keep="true">Unfortunately, the federal government does not have the money to buy the "track". Moreover, the potential returns are not sufficient to attract private capital. And the railroads are opposed to the idea. </P>
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