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Railroads Struggle to Deliver Coal to Utilities

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[quote]QUOTE: Originally posted by n012944 [quote]QUOTE: Originally posted by futuremodal [quote]QUOTE: Originally posted by Murphy Siding [quote]QUOTE: Originally posted by futuremodal Many other industries will maintain "unused" assets for long periods of time, because they understand the cyclical nature of business. Apparently, railroads do not understand this basic business tenet. You see, if you scrap an asset, you don't have that asset later on when you need it. Now that the nation's energy and other transportation needs are such that abandoned lines would be put into play right now, it shows a lack of foresight (or a complete lack of concern) by the shortsighted railroad industry. Don't these guys follow economic trends? Or did they think that the US was destined for a Soviet-style command economy, so why save assets if the railroads are going to be taken over by the federales? [/quote] Hey Dave- any chance you could make a quick list of the under-utilized or dormant rail lines that will be really busy 10 years from now? 20 years from now? That way, the railroads would have an easier time planning some of this stuff?[;)][:-,] [/quote] Again, I will ask you this: Can you name any other industry besides the rail industry that has engaged in such a canabalistic attitude toward it's hard assets? [/quote] The auto industry. [/quote] Nope, you're thinking of a few specific companies like GM or Ford, but not the aggregate industry as a whole, which continues to add assets. GM and Ford aren't shutting those plants to extract more pricing power, they're rather on the losing end of the intra-industry competitive battle, e.g. losing market share to other auto makers, subsequently closing their plants while others open new ones. Toyota, Nissan, Lexus, et al are not lopping off assets, are they?
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