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<P mce_keep="true">I suggested as a possibility that a third party, i.e. the federal government or an independent third party, take ownership of the rails as a way to unlock the benefits of greater competition. If more than one carrier could run on rails owned by a non-carrier entity, many of the markets that are served by only one service provider could see more carriers, which could result in better service and lower prices. </P> <P mce_keep="true">The third party could be a government agency, an independent owner with no interest in an operating company (carrier), or even a consortium of operators, i.e. similar to the concept that was used to build some of the nation's union stations.</P> <P mce_keep="true">Robust standards for regulating the track system, i.e. tariffs, maintenance, rights of access, etc. would have to be developed, implemented, and maintained. It would have to be financed adequately, i.e. sufficient rents would have to be charged to the carriers to ensure the system is operated and maintained property. </P> <P mce_keep="true">Amtrak's ownership of parts of the NEC is not a good example. It has a vested stake (operational and financial) in its system. It has a built in bias to favor its trains at the expense of other operators or to maintain the system for its needs without necessarily considering the needs of others. This works the other way when Amtrak is operating over a hoist railroad. </P> <P mce_keep="true">Absolute separation of the ownership of the track from any carrier is the key. The owner of the track would have no ownership or control interest in any carrier. </P> <P mce_keep="true">A number of states and countries have an electric grid that operates similar to the concept that I have thrown out for discussion. In several Australian states the transmission system is owned independently of any power generator or distribution company. The rules for transmitting power and the charges for doing so are highly regulated. Access to the grid is controlled by the system operator under a strict set of technical and commercial standards. Moreover, the system operator's behavior is audited frequently by independent auditors. Violations of the transmission agreements are dealt with harshly. A similar concept is extant in Texas except the transmission lines are owned by the utilities. But they are tightly regulated, and they have to treat all comers equally. </P> <P mce_keep="true">Those who argue that commonly owned facilities would not work only have to look to a major airport. Every day hundreds of airplanes owned and operated by a variety of carrier's takeoff and land on common runways. They must follow the rules if they want to use the system. Is it perfect? No! But I don't know of any human system, including the present one that is perfect. If it can work for the airways, which are far riskier than running a train, it could work for a railroad.</P> <P mce_keep="true">Any cooperative system requires that the stakeholders communicate. They have to hammer out the terms of their contracts. And they must meet frequently to identify and resolve issues associated with the contrcts. Can it be done? You bet. It happens every day in the electric utility business. And with good results! </P>
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