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You are a RR CEO do you Reinvest profits in Railroad Infrastucture Or pay divididends?
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The first thing I do is remind myself and the board that we are a TRANSPORTATION company first and foremost, not just a railroad. The shipper really doesn't care how a load gets there, just get it there at the price and time expected. With that being said.... <br /> <br />Take a look at your own railroad capacity picture and compare that with any parallel capacity on highways and waterways. There are probably existances wherein certain commodities could be transfered from the congested railroad to an uncrowded waterway, while other traffic could be taken off congested highways and put on our railroad at a premium. Take some profits and invest in a barge line, then put our grain, coal, aggregates, even some of those non-time sensitive containers onto a barge at the nearest riverhead where available, then boost our intermodal fleet and go after some of that higher priced truckload traffic and put it on our newly freed-up capacity on our rails. Don't get hung up on the whole long haul vs short haul conundrum, just focus on maximizing our annual per car profit margins. <br /> <br />In ten years we're now in position to put away all the other railroads who were married to the old way of thinking, and Exxon-Mobile/Microsoft is knocking on my door.
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