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As noted in the August Issue of TRAINS, particularly by industry pundit Larry Kaufman, capacity on our rail network is getting quite strained. Customers want more and better rail service as an alternative as trucks become more dificult to use and more expensive with the tightening of trucking regualtions on hours of service, vehicle emissions and rising fuel costs. At the local level on the railroad this increased demand manifests itself as more trains than crews, frequent calls on off days and customers complaining about inadequate or outright unavailable car supply for certain commodities. Calls for better service have reached short lines as well where the 286K issue has become more prevalent as a result. Will this result in a more in depth look by the government or others into the needs for 286K capacity on Class 1s and smaller roads? Will RRs be able to raise rates as a result of this new surging demand outpacing supply and build a larger car fleet and achieve returns on investment greater than the cost of capital? See what happens when I get a vacation. I have some time to think... LC
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