Re: Shortlines driving me crazy!!
Author: S. L. Murray
Date: 04-14-2008 - 21:50

Ding Dong raises many troubling points, but I’ll respond with a few in defense of short lines as an industry.

First, it is very important to remember that most short lines do not set the business terms since most short lines exist as handling carriers, where the Class 1 retains all rate making authority as well as controls car supply issues, determines interline service agreements, and may even hold the note on the original line of credit the short line used to start up.

Second, even the most local “mom and pop” short line still has to make money. I’m not saying there aren’t some unimaginative short lines out there, but most of them keep a close eye on their nickels while sincerely looking for new business opportunities.

Since you won’t give us names, product, or industry, I’ll play advocate here and defend some of the quotes you gave.

"O.K., as long as we don't have to work nights or weekends." -- Again, remember that the short line probably doesn’t get to set their rates. Now, factor in that if the short line doesn’t already operate nights or weekends, they’re going to have to not only hire a whole new crew to run your train, but also have a dispatcher and/or manager on duty at the same time. The fact that you might be willing to pay for this overhead MAY not matter if the short line can’t apply a surcharge to you, which many can not.

"We don't have anywhere to put the cars we have in storage on your spur." -- Do you own the spur, including paying maintenance and taxes on it? If not, then it isn’t ‘your’ spur at all. Also, storage is often VERY good money for a short line. They can get a switch charge in AND out, plus between a dollar to fifty dollars a day.

"We really only want unit trains." -- I’d give you good odds that what this means is that their connecting Class 1 only wants unit trains.

"Our business plan has us focused on ag related products and we have 95% of that traffic and your traffic isn't in our business plan." -- I don’t know any short line marketing guys who think this way, but if it was said by one it doesn’t make sense unless you're talking about adding something like haz mat or other insurance or service liability that they may not have have had before.

"You haven't shipped as much as you thought and we can make more storing cars on your siding so we'd rather do that."---(cripes, we just got started and there is a bit of a recession--we do have 150 cars on order though) – Put yourself in the railroad’s shoes: You already have a profitable customer whom you’d have to displace to take on a new potential customer. The new potential customer is promising lots of business to you, but so far hasn’t followed through. Are you paying for the added risk you’re applying to the railroad?

"You need a new switch into your industry that will cost you $250,000 for starters." (This location: the short line has been using the switch to store it's units on our property while they work on them and use our crane for FREE---this detail may give away the location, but plant manager says it's o.k. as he intends remove the crane.) – Okay, sounds like somebody is being a jerk here, but it may be the difference between needing a powered mainline switch for daily service vs. an existing switch used a couple times a month.

"You're too far from the interchange point for us to make as much money as we could if you were closer."---(Potential 1500 cars per year here). – Again, most short lines do not get to set their own rates.

"O.K. as long as it fits our existing schedule, existing customers come first so some weeks you might not see us." -- Sounds like sound business sense to me. Who would you serve first? The existing customer who has shown they value your service and pays to help keep the lights on, or the one who will switch back to truck the minute fuel drops a little?



Subject Written By Date/Time (PST)
  Shortlines driving me crazy!! Ding Dong 04-14-2008 - 17:54
  Re: Shortlines driving me crazy!! kmattg 04-14-2008 - 19:37
  Re: Shortlines driving me crazy!! hepkema 04-14-2008 - 20:42
  Re: Shortlines driving me crazy!! S. L. Murray 04-14-2008 - 21:50
  Re: Shortlines driving me crazy!! PNWRailfan 04-15-2008 - 04:09
  Re: Shortlines driving me crazy!! S.L. Murray 04-15-2008 - 07:42
  Re: Shortlines driving me crazy!! Chris B. 04-14-2008 - 21:56
  Re: Shortlines driving me crazy!! Hipshot 04-15-2008 - 05:56
  Re: Shortlines driving me crazy!! Chris B. 04-15-2008 - 07:17
  Re: Shortlines driving me crazy!! Shortline Sammie 04-15-2008 - 07:31
  Re: Shortlines driving me crazy!! Rich Hunn 04-15-2008 - 07:44
  Re: Shortlines driving me crazy!! Michael Dumbs 04-15-2008 - 12:18
  Re: Shortlines driving me crazy!! S.L. Murray 04-15-2008 - 14:52
  Re: Shortlines driving me crazy!! Tony Burzio 04-15-2008 - 10:50
  Re: Shortlines driving me crazy!! Rich Hunn 04-15-2008 - 15:05
  Re: Shortlines driving me crazy!! S.L. Murray 04-15-2008 - 16:11
  Re: Shortlines driving me crazy!! Rich Hunn 04-15-2008 - 17:06
  Re: Shortlines driving me crazy!! S.L. Murray 04-16-2008 - 09:14
  Question for S.L. Murray Clifford 04-15-2008 - 19:09
  Re: Question for S.L. Murray S.L. Murray 04-16-2008 - 09:07
  Re: Shortlines driving me crazy too. Ross Hall 04-16-2008 - 16:55
  Re: Shortlines myths drive me crazy S.L. Murray 04-16-2008 - 21:36
  Re: Shortlines myths drive me crazy Shortline Sammie 04-17-2008 - 07:48
  Re: Shortlines myths drive me crazy Taco Time 04-17-2008 - 17:29
  Re: Shortlines myths drive me crazy S.L. Murray 04-18-2008 - 11:11
  Re: Shortlines myths drive me crazy Dave B 04-18-2008 - 18:47


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