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[quote]QUOTE: Originally posted by Murphy Siding [quote]QUOTE: Originally posted by futuremodal What you all seem to be missing (aside from the xenophobic trend this topic is taking) is this: The press release states that BNSF is setting up an office in China because "60 to 70 percent of goods coming in from Asia is coming from China". You'll notice there is no mention of BNSF setting up the office to facilitate the exportation of US goods into China. Hmmmm, don't BNSF trains run both directions? Or do they only run west to east? [/quote] To tell you the truth, I didn't notice a mention of BNSF setting up an office to facilitate the exportation of Chinese goods into the US either. [/quote] Ummm, right there in the article, it says it. "The Shanghai office.......symbolizes the growing importance of Chinese exports to freight railroads such as BNSF." "The Shanghai office is expected to help the company stay in closer contact with its customers." You notice whom it is that BNSF considers it's "customers"? Not Montana farmers. Not US petrochemical companies. Not the dozens of coal mines in the US, nor their power plant destinations. Nope, BNSF's customers are the Asian exporters, as per their own press release. Now, if the intent of this office isn't to facilitate more exportation of Chinese goods into the US, what is the reason? BNSF doesn't operate in Australia, nor Europe, and for the most part neither Mexico nor Canada as well. [quote]QUOTE: I feel you are stretching logic, when you say BNSF is somehow subsidizing foreign trade at the expense of American shippers. [/quote] Again, that's not what I said. I said (and have stated previously) that BNSF internally subsidizes the rates it charges in the import intermodal sector (rates which are usually less that 180% R/VC) by charging those domestic rail shippers rates that are usually much higher than 180% R/VC (often in the 400% R/VC range). This rate disparity in turn contributes to the imbalance of trade shouldered by the US. Again, if 180% R/VC is supposed to be the absolute minimum necessary for a railroad to be profitable, how is it possible for them to charge a rate of 106% R/VC unless they make up the difference somewhere else? BTW, "difference" and "differential" use the same root word, in case you haven't noticed. [quote]QUOTE: As an interesting side note: Look at the shoes you're wearing, and tell me where they were made. [/quote] Doesn't matter. Again, this isn't about xenophobia, it's about a US corporation that engages in exhorbinant rate discrimination against US rail shippers for the benefit of import rail shippers.
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