Re: Railcars on North Coast.
Author: S.L. Murray
Date: 05-14-2008 - 14:36
I agree car hire should have been stopped long ago, but under Rule 7 (damaged or destoyed equipment handling line responsiblity) the equipment wasn't technically destroyed, so no DV letter was to be issued to stop the clock. The NCRA didn't do this, since they would have had to have bought the cars right then and there through the DV.
The important car hire rule is 1g, where UP becomes on the hook when the handling line (NCRA) doesn't pay car hire. The end result was that UP wasn't obliged to buy the TTX cars, but was obliged to pay car hire since they delivered the cars to the non-complying line. If they bought the cars (and I'm not sure they have yet) they did so because they wanted to in order to stop having to pay TTX car hire.
TTX is well known for holding the smallest shortline to the same rules and standards as they do their largest owner (UP), say what you will, but they're not going to give ANYBODY a break.