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<p>[quote user="schlimm"]</p> <p>[quote user="Sam1"]</p> <p>[quote user="Phoebe Vet"]</p> <p><span style="color:#800000;">NCRR is owned by NCDOT and the funds they are disbursing are primarily Federal grants and lease payments from CSX and NS. </span>[/quote]</p> <p>As per the company's annual report, the company is a stock company owned by the state of North Carolina. Its structure is similar to Amtrak. It gets substantial support from North Carolina's taxpayers, primarily in capital infusions, as per my previous post, as well as substantial capital support from CSX and NS. It has gotten substantial infusions of capital from the federal government, primarily through the ARRA.</p> <p>The initial claim that it gets no support from NC is incorrect.</p> <div style="clear:both;">[/quote]</div> <div style="clear:both;"></div> <div style="clear:both;">Capital infusions for infrastructure, clearly, which to me at least, is entirely appropriate, not unlike roads, sewers, bridges, and airport infrastructures.  We need them to maintain/increase productivity as a nation, to enhance the economy for all.    But it appears there is not much subsidy (less as time passes)  for operating expenses.</div> <div style="clear:both;"></div> <p>[/quote][quote user="schlimm"]</p> <p>[quote user="Sam1"]</p> <p>[quote user="Phoebe Vet"]</p> <p><span style="color:#800000;">NCRR is owned by NCDOT and the funds they are disbursing are primarily Federal grants and lease payments from CSX and NS. </span>[/quote]</p> <p>As per the company's annual report, the company is a stock company owned by the state of North Carolina. Its structure is similar to Amtrak. It gets substantial support from North Carolina's taxpayers, primarily in capital infusions, as per my previous post, as well as substantial capital support from CSX and NS. It has gotten substantial infusions of capital from the federal government, primarily through the ARRA.</p> <p>The initial claim that it gets no support from NC is incorrect.</p> <div style="clear:both;">[/quote]</div> <div style="clear:both;"></div> <div style="clear:both;">Capital infusions for infrastructure, clearly, which to me at least, is entirely appropriate, not unlike roads, sewers, bridges, and airport infrastructures.  We need them to maintain/increase productivity as a nation, to enhance the economy for all.    But it appears there is not much subsidy (less as time passes)  for operating expenses. [/quote]</div> <div style="clear:both;"></div> <div style="clear:both;">The capital infusions from the taxpayers for the NCRR are appropriate because there is a high probability that the users, primarily NS and Amtrak, will pay for them through user rentals, although Amtrak's payments are not likely to cover NCRR's marginal costs.  It is a good investment because of the projected returns.</div> <div style="clear:both;"></div> <div style="clear:both;">NCRR's revenues cover its operating expenses.  It does not receive operating subsidies.  It had net income of $2.8 million in FY12 and $5.7 million in FY11.  In FY12 77 per cent of its revenues came from rentals, i.e. the user fees paid by NSR and Amtrak, and 88 per cent of its lease payments (rentals) came from NSR. NSR is committed to pay NCRR $11 million per year irrespective of whether runs any trains over the railroad. </div> <div style="clear:both;"></div> <div style="clear:both;">In May 2011 NCRR leased 2.7 miles of its right-of-way to Charlotte to extend the light rail system to the University of North Carolina at Charlotte.  The lease payments will be approximately $235,000 per year, which like a number of its other lease grants is a drop in the bucket.  However, those drops add up to more than $2 million per year.</div> <div style="clear:both;"></div> <div style="clear:both;">It relies on it principal partners (NCDOTand NSR) for significant capital contributions as per its annual report.</div> <div style="clear:both;"></div> <div style="clear:both;">As an aside, there is no mention of CSX in the company's annual report.  If CSX uses the line, it must be paying rentals to NSR, which is responsible for the operation of the railroad, and NSR is subsequently flowing foreign carrier rentals through to NCRR in its lease payments.</div>
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