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up829 - If it is true that today's railroads are too big to effectively maximize economies of scale to the point of exhibiting diseconomies of scale, then there would be a great benefit to the industry if some of these companies are split. The question then is whether it is better to split them horizontally or vertically. If we split them horizontally, we basically go back to a rail picture similar to the 70's and 80's, e.g. dozens of Class i's operating in the closed access system. If we split them vertically, we get a half dozen Class I transporters and a half dozen Class I infrastructure owners. I prefer the latter because it opens the door for public participation in infrastructure maintenance, others may prefer the former, while some would insist the current makeup is fine for the time being. <br /> <br />The point is, it may be in the best interests of the rail industry to disperse of some managerial responsibilities into separate entities, and in the process rid themselves of that managerial layer needed to placate the inherent disfunction between MOW divisions and transporter divisions.
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