Dear Rishi,
I have tried contacting you in the past and I have not recieved an answer,
I am not sure who is 3G capital and who TCI is? I know that TCI gives money to children in africa but I would like to know who TCIs investors are and what does someone have to do and what minimum qulifications does one have to have to invest in your hedge funds?
I am a CSX Shareholder who also knows a number of other Shareholders in my familys homestead in Cumberland MD. As you might know Cumberland MD is CSXs main yard in the State of Maryland and is the homeshop for major engine overhauls. I have contacted the local newspaper and a number of other stakeholders in CSX. A Stakeholder is someone who may or may not be a shareholder but is affected by the outcome and actions of a company and benifits from the actions of the company as well.CSX and Amercan railroads in general operate on shoestring budget with indirect state subsidys of about 2 billion dollers a year. However British Railroads despite being 1/5 of the US System get 6 Billion Pounds-- or at a US Exchange rate of 1.50 about 9Billion dollers?)
"According to the European Commission, Britain ranked behind France and Germany in the amount of state subsidies granted to the railroads in 2005, the most recent year for which comparative figures were available. But while aid has been reduced in Germany and has been relatively steady in France, Britain has more than tripled its government aid between 2000 and 2005, to €6.6 billion, or $9 billion." _ Source International Herald Tribune.
What you are proposing is that CSX Triple its Rates?
That is impossible for the only reason that shippers in the US ship by rail is because of low rates. Railroads in the US are good at moving massive amounts of bulk raw materials and unfinished products at SLOW Speeds in what is know at just in time delivery. A railroad car can take 3 weeks from mine or paper and pulp mill to its destination.
The shipper does not care about the slow speeds becaus the Mill or mine has to be operating 24/7 regardless and the output has to go somewhere and the railroad acts like storage in transit rather the have teh manufacturer or mine have to have warehouse space....
On the reciving end time does not matter either as all that matters is the car gets swiithed as needed. To put another way is that CSX (And NS and BNSF and UP) is more of a overland barge system...Slow but a effictent and cheap way of getting stuff there.
1 US railroad car hauls about 100,000 pounds- Which is 3-4 truck loads--- CSX makes it sales by going to bulk shippers and saying that they will haul lets say tin cans at the rate of 1-2 truck loads in a boxcar. If they were to triple there rates the cost avantage would go away. There would be no service avantage because the railroad also takes 3 times as long as the over the road truck.
The only way you would get my attention is if TCI and 3g said that they intended to pour massive amounts of cash (as in your own investors not CSXs) into capital improvements as replacing a railroad cars fleet that is
over 35 years old or adding new track as in the fact that the US has over 20,000 miles of right of way that is "railbanked' or a written promise to update and rebuild our car shops and locomotive shops that are over a hundred years old.
On the other hand I beleive that CSX should not pay a dividend and should not be buying back shares if money woudl be better spent on capital improvemts and that board members and Ward should not be getting 35 Million Dollers but the money needs to be spent on the railroad itself.
yours truly
Jon Polelinzinski
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