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Energy, Powder River Basin, and the DM&E
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[quote user="Murphy Siding"] <p>......1)open can....2)dump out worms in a microwaveable continer...3)heat on medium for 3 to 4 minutes...4) re-open discussion of DME?PRB merits.....<span class="smiley">[:P]</span></p><p> Dave-on another thread, you suggest that the railroads don't have enough money to maintain their trackage at the current levels of traffic. On this thread, you're once again championing a third rail line into the PRB to increace competition, and lower shipping costs. You do see the irony in this-don't you?</p><p>[/quote]</p><p>The reason railroads can't cover their cost of capital is due to the anachronistic integrated system combined with the natural monopoly characteristics that cause US railroads to make irrational choices. Like spending most of their capacity enhancement funds on the low margin import intermodal corridors, while throwing nickel and dime expenditures at the high margin corridors. Like simply trying to add trackage to existing lines e.g. maintaining the error of consolidation rather than diversifying/dispersing new lines into new corridors.</p><p>But you know what? That's a whole 'nother subject. The question put forth in this thread is whether the PRB is better off with two railroad companies simply trying to add track to existing lines or with a new third railroad coming in with a uniquely located new line. I of course vote for the latter. I would amend that basic question with a scenario of my own: The PRB would also be better off if UP and/or BNSF added new trackage on new corridors out of the PRB than if a third railroad company was added but was instead granted trackage rights over the present set of lines.</p><p>Of these four choices, I choose a third player over new trackage in new corridors. Next would be UP/BNSF adding new trackage on new corridors. Next would be adding a third player over present trackage with added sidings et al, and last is UP/BNSF simply adding trackage on present lines.</p><p>I have to go to work. I'll explain it later.</p>
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