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What's Ahead for Amtrak
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<p>[quote user="schlimm"]</p> <p>Why Australia? Because it has private contractors? Why not adapt something more like the German model? [/quote]</p> <p>The key is competition. Not Australia! I happened to live through the Australian transition from a highly statist commercial environment to a competitive commercial environment, albeit properly regulated. It is a reference point.</p> <p>As I have stated on other posts, I began my electric utility industry career with a major utility in Dallas. It was a regulated monopoly. It looked like the government, talked like the government, and walked like the government. Without getting into all the details, it was grossly inefficient. Then competition came to the TX electric utility business. And it changed dramatically. Long story short we dropped from more than 18,000 employees to fewer than 10,000 whilst increasing our customer base 25%, and the lights did not flicker once. Competition forces people to work better, faster, cheaper, with the operative word being better. Those who could not hack a competitive environment were let down gently. But they were let down.</p> <p>Competition is not a panacea. But it forces people to pay attention to the entities key stakeholders, i.e. customers, employees, shareholders, etc. If they don't, they go out of business. In the case of a government managed enterprise, there is little in the way of a driving force to optimize results.</p> <p>Lived through the process! Been there! Done it!</p>
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