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<p>[quote user="JL Chicago"]Sam1<br /> Why do you keep saying we must walk before we run?? <br /> [/quote]</p> <p>Amtrak has 75 per cent of the NYC to DC air/rail market with trains that average a tad over 80 mph. </p> <p>Amtrak has won its share of the NYC to DC rail/air market by incrementally upgrading the existing rail corridor as opposed to building a new railroad.</p> <p>In FY14 the NEC had an operating profit of $482.2 million before depreciation, interest, etc. (capital charges). Assuming that it wears 80 per cent of Amtrak's capital charges - Amtrak does not reveal how it allocates the capital charges, it had a loss of $96.6 million in FY14. That's down from $504.7 million in FY10.</p> <p>If Amtrak operated 205 mph trains in the NEC or elsewhere - average speed would be less than the top speed - would it turn in better numbers? Would it do a better job of meeting the travel needs of the people in its market? I suspect not. </p> <p>The cost to build a high speed railroad from scratch probably is greater than making incremental upgrades to existing rail corridors. Moreover, the operating cost for a moderate high speed railway is less than the operating cost for a super high speed railway. </p> <p>I don't recall saying that I am comfortable with an average speed of 80 mph, but perhaps I did. </p> <p>If the current rail route between Dallas and Houston or along the I-35 corridor could be improved incrementally for passengers trains running an average of 100 to 110 mph, the outcome could be better for more people in Texas when costs, revenues, etc. are factored into the equations. </p> <p>The Texas Central Railway has not presented any validated ridership, revenue, or cost projections. Without them it is impossible to know whether its proposed high speed railway between Dallas and Houston will be financially successful.</p> <p>Southwest Airlines started with three airplanes. And built itself incrementally into the largest domestic carrier - volumes - in the United States. Its success story is a case study at many of the leading business schools. Presumably there is a lesson there. </p>
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