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To what extent is the Intercity Marketplace skewed in the US
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<p>[quote user="PNWRMNM"]</p> <p>Don,</p> <p>I will stick to huge. Freight gross earnings are in the range of $1.00 to $1.50 per car mile, assuming 100% empty return. that is $ 2-3 per loaded car mile. At 100 cars per train that is $100-150 gross revenue per train mile. If delete equipment and crew costs we are down to $80-120 or so per train mile, say $100.</p> <p>If Mr. Payne's $4.50 per train mile is accurate, the passenger train pays 4.5% what a freight train does and imposes more congestion costs than the average freight train due to it legally mandated prefferential treatment. That is a huge discount, that is a hidden tax on the freight carriers, and a hidden subsidy to ATK. It would be nice to see the passenger train advocates admit that fact. I have yet to see anyone acknowledge that fact on this website.</p> <p>As to the other poster who listed capacity improvement projects that various government agencies are funding on ATK's behalf, the freight carriers have no need for these projects BUT FOR the presence of ATK. The freight carriers are simply being made whole for the new capacity ATK will consume. The fact that one can list a few projects simply proves that these are the exception to the rule of imposing a free ride for ATK on the freight carriers.</p> <p>I still say shut it down.</p> <p>Mac [/quote]</p> <p>I don't have access to the numbers, but your argument makes sense. In addition to the hidden subsidy re: freight carriers hoisting Amtrak's trains without adequate compensation, Amtrak receives numerous other hidden subsidies. It pays no fuel taxes, property taxes, inventory taxes, sales taxes, etc. Furthermore, it pays no income taxes because it has never had any net income.</p> <p>Amtrak has made no improvements for the benefit of anyone else. The improvements were made by the taxpayers. Amtrak does not have any money for capital improvements. It has lost more than $28 billion since its inception. The opportunity cost probably is north of $50 billion.</p> <p>I would keep the high density corridors, but I would bid them out to the lowest effective cost bidder. The operator would be required to pay a fair rent to a hoist railroad to lift its passenger operations.</p>
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