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NITL's suggestions to STB for rail policy oversight
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[quote]QUOTE: <i>Originally posted by oltmannd</i> <br /><br />[quote]QUOTE: <i>Originally posted by futuremodal</i> <br /><br />[quote]QUOTE: <i>Originally posted by oltmannd</i> <br /><br />No, again. You don't understand capital markets very well. It's not my area of expertise, but I'll try to explain anyway. <br /> <br />Any RR, right now, could operate as a "toll road" for all comers. All it would take is mgt will to make it happen. If it's such a great idea, capital mkts would fund the purchase of the RR to install mgt to make it happen. Stock would go for a premium and no board would refuse to sell under those conditions. <br /> <br />[/quote] <br /> <br />Hmmm, I don't understand capital markets? My econ degree says differently. <br /> <br />What you don't yet understand, though I've explained it to you twice, is that capital markets will not jump into an enterprise for which there is no legal parameters yet set up. OA can take on any number of forms, varying degrees of regulation, FRA and STB requirements, etc. As of yet, there is no such groundwork in place to define what OA in the USA would even look like. Even if one of the railroads decided to try out the OA concept, what guidance regarding government oversight would be needed? What you are suggesting is something better left to the venture capitalists, and even they would have to wait for a set of parameters before they would jump in. <br /> <br />The markets hate uncertainty, you should know that. <br />[/quote] <br /> <br />Marketers and train operators would fall under existing STB regs. ROW owners wouldn't need any more regulation than the owner of an office building. I don't see any real uncertainty or need for regulation. The REAL issue here is that OA would convert the RRs into the highly unprofitable airline service model. Isn't that obvious? <br />[/quote] <br /> <br />The "highly unprofitable airline service model" to which you refer is predicated on the hauling of passengers, and those airlines that are struggling the most are the ones with the worst pricing/service structures. Isn't that obvious?
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