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"Open Access" and regulation of railroad freight rates.
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[quote user="jeaton"] <P>FM</P> <P>You are so squirrely that your comments go beyond funny. Your knowledge of the history of and the reasons for the shift of business from railroads to other modes is non-existent. The simple truth of the matter is that a huge portion of the modal shift came because rail carload based distribution had higher costs even though the rail rates were often well below the rates of the competing modes. A competent distribution manager doesn't see himself as buying some form of container-rail freight car, truck van, barge or air cargo hold. Rather he is buying space to hold his freight and move from one point to another at a speed and for a price that meets his needs. That is why your notion that there is no competition between modes is so bizarre.</P> <P>[/quote]</P> <P>Well, I'm talking to a liberal, so I guess such simple concepts will go right over your head.</P> <P>Each mode has a particular advantage over the others, to which certain types of shipping needs will gravitate. We've gone over this countless times, yet when all is said and done there are certain folks on this forum that cannot mentally concieve of the need for this modal differentiation. You think that if a railroad stops service to a grain elevator, that elevator is just as well off by switching to trucks. It's not, and you should know that implicitly. Elevators that have lost rail service usually scrap by to survive, but eventually they shut down. That's because there are more costs involved in having to truck grain from an elevator to a shuttle facility and transload the grain from truck to bin to hoppers, than there is in moving that grain by carload to the same aggregation point as part of the shuttle consist.</P> <P>Now, if trucks were true competition for rail service, wouldn't those elevators be thriving right now?</P> <P>[quote]</P> <P>I suppose you will now tell me that with the tremendously enhanced competition that would come from open access rail would produce such great advancements in efficiency that rail service could match truck service. When you have it figured out just how one or several freight cars can make a passing move around another car or set of cars at <STRONG>any</STRONG> point along the rail line, let me know. I'll put up my farm to get the cash to invest in the system.</P> <P>[/quote]</P> <P>So how are those lines hosting multiple users (via trackage rights, et al) doing it now? Ever heard of sidings? CTC?</P> <P>It is the ultimate in abject stupidity to say that an integrated rail system can support multiple users, but an OA rail system cannot.</P> <P> </P>
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