Re: Railroads under pressure...maybe that's a good thing?
Author: mook
Date: 02-21-2016 - 14:30
Data please.
It's commonly accepted (though I'm not sure what data support it) that intermodal has a lower profit than coal, but is that per ton, car, or train? Conceptually, it probably costs less to operate a coal train (unit train, slow, schedule uncertain) than intermodal (semi-unit train but higher terminal cost to handle the boxes, fast, schedule important to critical), and the coal train is a lot heavier so the cost per ton is almost certainly lower. But that weight comes at a cost, too, in horsepower and wear on the track structure. Let's see your data and references. And if intermodal is a loser then why are the big RRs with access to LA and Oakland and Seattle (and Vancouver and Prince Rupert) going after the business so much?