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[quote user="CSSHEGEWISCH"] One thing that has never been evident to me through all of FM's postings about the topic is how his theory of open access can generate extra capacity on the same track that is capacity-constrained in the current method of operation. I will use a theoretical example of the mostly single track Los Angeles-El Paso segment of the Sunset Route.  FM has stated that the rates charged by the owners of the track to train operators would be regulated.  If the firm owning the capacity-constrained Sunset Route is earning an adequate rate of return on investment in the existing line, where is the incentive to add capacity and maintain that same adequate rate of return on a now appreciably larger investment? [/quote] I've read that paragraph three times and it still doens't make any sense![;)] By "rates" I assume you are refering to the user fee or toll. You have it backwards.  By regulating the user fees (the equalization of private ROW to public ROW)you keep the owners from exploiting capacity crunches, thus their incentive to limit capacity to maximize the tolls is extinguished.  Now their income is dependent on volume, not premium, so adding capacity as demanded equates to added income, while not adding capacity means less income. Make no mistake - railroad pathways are of the utility persuasion, de facto if not de jure.
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