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[quote]QUOTE: Originally posted by CSSHEGEWISCH A few other unanswered questions: Where would the cash come from to purchase the rights of way? Railroading already has a relatively poor return on investment so why would private investors invest in a right of way company. Who would set operating standards for operating companies and how would they be policed and enforced? The FAA has analogous standards for start-up airlines. How would terminal operations such as Chicago, Kansas City, New York/New Jersey area, etc. be established and operated? So far I'm seeing a lot of wishful thinking and theorizing but not too many real world responses. [/quote] CSSHEGEWISCH, Since the concept of an open access system "laid" over an existing proprietary rail network has not been done anywhere in the world, it is still a theoretical concept and therefore discussions of such will employ theorization. One can only use the open access systems of other nations as a template, and then use economic theory and our ability to think abstractly and constructively to discern that such a system would work here. Just because an idea is untried does not make it invalid. To answer your questions more specifically, 1. if open access came in the form of a split of the current rail networks into infrastructure and operations, there would be no purchase required. If there is a need for new rail lines (something that is already apparent today), the "best" option in terms of "fairness" across modes is for new rai lines to be funded out of an infrastructure trust fund, supplemented by a tax credit similar to the recent shortline ROW tax credit. With these two aids, it is possible for private investment in rail infrastructure, if you approach it as a regulated utility with the "safe harbor" low risk but low yield ROI's. Most portfolio managers will advise investors to have a diversified portfolio inclusive of both low return safe investments and riskier high return investments, so the ability to attract private capital would not be compromised. With the tax incentives, it is conceivable that an open access rail system would be more attractive to private investors than the currently imploding proprietary system. 2. FRA is the logical choice, but it is possible that it could be self regulated in terms of standards. 3. As is done with airports and port districts, it is logical for the states and localities to provide the necessary terminal characteristics, since terminal points are the main beneficiaries of transportation operations. It is also logical that each transporter company would be responsible for its own terminal operations, and/or a private terminal company as is done with trucking companies.
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