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Amtrak: Privitize it?
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<p>[quote user="schlimm"]</p> <p>Non-governmental, non-profit corporations operate very successfully in the field of hospitals and healthcare, and they operate in an environment in which there are many for-profit and some government players. They end up being competitive on price, provide a competitive, often superb service, and pay their staffs at or (usually) above the prevailing rate. They do not pay dividends or issue stock. The model works quite well. Why not consider it for a quasi-utility such as a National Rail Service? Their motivation for cost containment and excellence does not depend on profit, but it can work. [/quote]</p> <p>But we are talking railroads or at least public transport companies. Case in point! Canada had a government owned railroad (Canadian National) and an investor owned railroad (Canadian Pacific) that operated over similar territories for years. Although not exactly alike, they were similar. For years the Canadian Pacific ran circles around the Canadian National. Then, low and behold, the Canadian government had a Thatcher moment. It spun off the Canadian National and privatized it. What has been the result? Today the Canadian National is one of the prime railroad players in North America, in large part because it was unshackled from government bureaucrats. </p> <p>Again, I come back to a central question that no one wantsto address. What is it about intercity passenger rail that suggests that it should be a ward of the state, i.e. a government agency or a heavily subsidized non-profit? Why is it OK for the airlines to rise or fall on their ability to cover their costs or Greyhound to do the same, but we have to pour billions of dollars into subsidies for passenger rail?</p> <p>Like another participante in our forums, I wish it weren't so. But it is!</p>
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