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Re: Increased use of railroad shipping due to the high fuel cost crisis???
Author: shortline sammie
Date: 04-04-2008 - 09:46
It's true that the cost to ship by rail is considerably cheaper so long as it is not JIT (just in time) transportation where the shipper/consignee require it to be at a certain place at a certain time. For heavy / bulk shipments this works fine but for the local delivery trucks still are needed.
Don't look for the class I's to invest too heavily in building new facilities or reviving unused secondary routes if it requires any cash outlay. While they may reap benefits from such expansion, the TAX DISADVANTAGES will outweigh any economic benefit in the long run unless the facilities are already in place and being taxed currently.
Taxes are one of the reasons railroads large and small have torn up track and abandoned facilities in the past...in retrospect, it has turned out to be a dumb idea!
Don't look for the class I's to invest too heavily in building new facilities or reviving unused secondary routes if it requires any cash outlay. While they may reap benefits from such expansion, the TAX DISADVANTAGES will outweigh any economic benefit in the long run unless the facilities are already in place and being taxed currently.
Taxes are one of the reasons railroads large and small have torn up track and abandoned facilities in the past...in retrospect, it has turned out to be a dumb idea!
