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Government Sticking Too Much of Its Nose Into Transportation .. Again!

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Posted by BaltACD on Thursday, July 8, 2021 4:27 PM

Juniata Man
Or about half what has resulted from psr...

CW 

BaltACD 
Ulrich
Reciprocal switching would likely bring about some competition..i.e. instead of having only one rail option, some customers may now have two. i don't think anyone is too worried about that.. More worrisome I think is the more vague spector of "more regulation". That's what the market is reacting to today..  

Reciprocal switching is a guaranteed 2 to 4 day delay in car cycle times.

That will be on top of what PSR has dealt the shipping public, not in place of.

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Posted by Juniata Man on Thursday, July 8, 2021 4:15 PM

Nimbyism would kill this real quick. Heck, the short line folks who were proposing leasing and reopening UP's Tennessee Pass line ran into a firestorm of opposition from communities along the line. And that railroad is still in place albeit out of service for something like 20-25 years.  

Just imagine the opposition if a railroad attempted to acquire land to build a completely new rail line.

CW

 

CMStPnP

It would be smarter to ease barriers of entry into the railroad industry.   Maybe have some of these shortline firms start laying rail again to compete for business.

 

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Posted by Juniata Man on Thursday, July 8, 2021 4:09 PM

Interswitching applies only within a 35 kilometer radius of a physical interchange point so; it wouldn't apply to your Atlantic Canada situation. Rather, the shipper would approach CN and request a competitive line rate to the nearest CP interchange then negotiate with CP for their rate beyond.

I used interswitching extensively prior to retirement because each of our Canadian production sites fell within a zone 1 or 3 for interswitching. I never had an opportunity to try using competitive line rates but, from conversations with industry colleagues they were beneficial at times but, not always. 

CW

Ulrich

And I wonder how well reciprocal switching works in most of Canada. Let's say you're a shipper in Atlantic Canada's largest city, Halifax. You're not happy with CN's prices so you contact CP for pricing on your five carloads a week. CP's nearest interchange to Halifax is roughly 300 miles away.. not sure how high CP would jump to price that business, but my guess would be not high at all. 

 

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Posted by Ulrich on Thursday, July 8, 2021 3:26 PM

CMStPnP

It would be smarter to ease barriers of entry into the railroad industry.   Maybe have some of these shortline firms start laying rail again to compete for business.

 

 

I like that idea, but critics would point out it would cost billions upon billions in this day and age. Maybe if someone like Elon Musk came along it could happen.. someone with the ability to think huge and with the wherewithal to raise the required capitial. 

 

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Posted by CMStPnP on Thursday, July 8, 2021 3:20 PM

It would be smarter to ease barriers of entry into the railroad industry.   Maybe have some of these shortline firms start laying rail again to compete for business.

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Posted by Ulrich on Thursday, July 8, 2021 3:03 PM

And I wonder how well reciprocal switching works in most of Canada. Let's say you're a shipper in Atlantic Canada's largest city, Halifax. You're not happy with CN's prices so you contact CP for pricing on your five carloads a week. CP's nearest interchange to Halifax is roughly 300 miles away.. not sure how high CP would jump to price that business, but my guess would be not high at all. 

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Posted by Juniata Man on Thursday, July 8, 2021 2:57 PM

Or about half what has resulted from psr...

CW

 

BaltACD

 

Ulrich
Reciprocal switching would likely bring about some competition..i.e. instead of having only one rail option, some customers may now have two. i don't think anyone is too worried about that.. More worrisome I think is the more vague spector of "more regulation". That's what the market is reacting to today.. 

 

Reciprocal switching is a guaranteed 2 to 4 day delay in car cycle times.

 

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Posted by BaltACD on Thursday, July 8, 2021 2:40 PM

Ulrich
Reciprocal switching would likely bring about some competition..i.e. instead of having only one rail option, some customers may now have two. i don't think anyone is too worried about that.. More worrisome I think is the more vague spector of "more regulation". That's what the market is reacting to today.. 

Reciprocal switching is a guaranteed 2 to 4 day delay in car cycle times.

  • Member since
    February 2003
  • From: Guelph, Ontario
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Posted by Ulrich on Thursday, July 8, 2021 2:27 PM

Reciprocal switching would likely bring about some competition..i.e. instead of having only one rail option, some customers may now have two. i don't think anyone is too worried about that.. More worrisome I think is the more vague spector of "more regulation". That's what the market is reacting to today.. 

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Posted by Juniata Man on Thursday, July 8, 2021 2:07 PM

The reciprocal or competitive switching proposed here in the US is similar in nature to the interswitching that has existed in Canada since the mid to late 1980's.

Interswitching along with competitive line rates have certainly not killed Canadian railroads so, there is no reason to believe a similar structure would kill US railroads. 

CW

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Posted by Ulrich on Thursday, July 8, 2021 12:59 PM

What are they talking about? If I had only ONE competitor I would continue to offer low freight prices.. because I'm fair and a nice person and my one competitor will keep me in check anyway. Yes siree.. Unfortunately Biden is about 50 years too late with this initiative.. the horse is out of the barn and long since gone.. or perhaps a better way to put it.. the train has left the station. 

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Posted by tree68 on Thursday, July 8, 2021 11:44 AM

They need to put the shippers and the railroad stockholders in the same room and let them argue about it.  

As we've discussed here before, the shippers would prefer that their goods be moved free, while the stockholders want the maximum possible return on their investment.  The actual railroads are kind of stuck in the middle.

There's middle ground there somewhere, but I would expect a bloody battle to reach it.

LarryWhistling
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There's one thing about humility - the moment you think you've got it, you've lost it...

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Government Sticking Too Much of Its Nose Into Transportation .. Again!
Posted by SD60MAC9500 on Thursday, July 8, 2021 10:00 AM
 

While regulation may have a place in some aspects of interstate commerce. This isn't the time and place ... The current administration has deemed the railroad industry anti-competitive due to consolidation and "unreasonable cost". The claim is American businesses are paying increased prices on goods due to the railroad industry... Excuse me while I laugh a bit...... I'm going to link an article from Railway Age.. Read and see what you get out of it..

https://www.railwayage.com/regulatory/biden-targeting-class-i-rail-mergers-report/

 
 
 
Rahhhhhhhhh!!!!

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