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What is Avoidable Cost?
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<p>[quote user="schlimm"]</p> <p>[quote user="henry6"]But Sam, you are addressing Amtrak's costs not the avoidable costs of the host railroad. Or any railroad that eliminates passenger or other service.</p> <div style="clear:both;">[/quote]</div> <div style="clear:both;"></div> <div style="clear:both;">We were talking about the avoidable costs associated with Amtrak, specifically LD services. If you are referring now to the host railroad, that cost should be fairly close to what Amtrak pays it for running its LD services on the host's rails. I suspect it is actually more than the rent received, which would explain why the freight lines do not treat Amtrak as a priority customer. [/quote]</div> <div style="clear:both;"></div> <div style="clear:both;">I agree. </div> <div style="clear:both;"></div> <div style="clear:both;">A good example is found in the case of the BNSF hosting the Southwest Chief. It has been maintaining its line from Dodge City or thereabouts to Albuquerque or thereabouts to a higher standard than it requires to support the Chief. If the Chief goes away, the incremental line cost would go away also. </div> <div style="clear:both;"></div> <div style="clear:both;">If the BNSF won't maintain the track for passenger train speeds, and Amtrak won't compensate it for the incremental costs of doing so, the cost goes away unless the on-line communities absorb it. Last I heard the affected on-line communities were still debating whether they wanted to absorb the cost of maintaining the Chief through their communities.</div>
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