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double-stack vs piggyback
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[quote user="VPayne"] <P>Regarding other modes, specifically barge traffic, while there are prior claims to the use of the river systems, where they existed, the expenses for inland waterway improvements are still not meet by user fees. Since some of the conversation has turned to the 80's take a look at part 4 of the linked CBO report from the 80's. <A href="http://www.cbo.gov/ftpdoc.cfm?index=5321&type=1">http://www.cbo.gov/ftpdoc.cfm?index=5321&type=1</A></P> <P>Per page 34 only 10% of the costs were/projected to be recovered through users fees for operations of which "maintenance dredging and operation of navigation aids" amounted to 3/5ths of the expenditure. </P> <P>Why do certain members of the public act as though the railroads are treating them unfairly when the government is giving away the right of ways to barge operators? Railroads where released from the majority of their common carrier obligations due to the skewing of the transportation marketplace by such practices as those above.</P> <P>[/quote]</P> <P>A little bit off topic, and the whole "give away" thing is more than quite a bit askew. </P> <P>It is humorous to hear railroads and their fans complain about "subsidized" waterways, while apparently forgetting those land grants without which most Western railroads wouldn't even exist. Even giving credence to the argument that waterway user's fees only amount to a small percentage of the total cost of maintaining those waterways, the amount of *subsidy* given to waterways is still just a fraction of the subsidy given to the original land grant railroads.</P> <P>The problem with trying to determine the portion of waterway maintenance costs attributable to users is that you can't come up with a reliable standard of measure. Take dredging, for instance. Some including the CBO would say the cost of dredging should be fully borne by the barge lines, yet the accumulation of silt behind dams <EM>would not occur</EM> if the river was free flowing, so since prior usage scenarios were sans siltation, why should silt removal be borne by the bargelines under slack water conditions? Yet, we also know that capacity of the old river boats was limited by free flowing conditions, including a seasonal cessation of navigation during low water periods. Since modern barge lines have far deeper draft than the old river boats, should we pro-rate any maintenance dredging cost over those sections of the river that used to be shallower than current draft?</P> <P>To their credit, the barge lines argue that since the dams themselves provide a valuable commodity called electricity, all the costs associated with waterway maintenance should be included in the cost of producing that electricity. Well, that is true, those projects are producing both a transportation service and a valuable commodity, something the railroads can't claim.</P> <P>For the record, most of the Waterways Trust Fund is kept in limbo to help *reduce* the federal deficit, and is not being fully dispersed for use in waterways projects.</P> <P>What's most important to remember here is that the rail companies are not being discriminated against by this perceived waterways subsidy. <STRONG>Waterways are Open Acess, railroads are not</STRONG>. Anyone can start up a barge company with relatively minimal investment (e.g. no need for a $2 billion federal loan guarantee for a PRB extension or a $1 billion federal grant to aid in a double stack clearance project![;)]) Both UP and BNSF have every right in the world to start up their own barging divisions if they choose. Contrast that with the various public subidies of the railroads, which have not resulted in any improved public access benefits. <STRONG>Though UP or BNSF can start up a barge division and use the Columbia/Snake River Waterway, neither Tidewater nor Foss have the right to start up their own rail divisions and use Marias Pass or Weber Canyon</STRONG>.</P>
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