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Mergers, abandonments, limited capacity, and the taxpayer,...OH MY!!
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[quote]QUOTE: <i>Originally posted by nanaimo73</i> <br /><br />It is going to cost billions for Union Pacific to double track the Sunset route from El Paso to Colton. I would guess 20% of the costs are going to Governments of all levels through numerous taxes. When the taxpayer benefits from a railroad construction project (as they will on this one) I don't think it would be unreasonable for the railroad to ask for help with financing up to the level of taxes they are paying. <br />[/quote] <br /> <br />Well hey, I always enjoy trading posts with you, and you are a very knowledgable source, that is much appreciated, so I'm not offering the following to seem combative, or ornery or anything, just that we are getting to the crux of my lament. <br /> <br />What kinds of tangible benefits to the taxpayer are we talking about? because from the formula you provide, for every billion UP spends, we've got the taxpayer contributing $200 million...and as senator Everett Dirkson used to say, you spend a million here, a million there,..etc..and pretty soon you are talking serious money. <br /> <br />I can see beaucoup benefit to the UP stockholder in terms of reduced fuel cost, reduced manhours, and reduced track maintenance cost from closing down the colorado transcon, and diverting the traffic to other lines. Those numbers would likely add up pretty quick. But would the payback to the taxpayer be near as robust? or would they be less tangible benefits such as less time spent waiting for passing trains at grade crossings? <br /> <br />$200 mill to save a few seconds at grade crossings COULD be a very steep price.. Especially if the delays in the first place are constructs of conveniance the railroad may have had a hand in creating.
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