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Re: Airlines and Railways - deep trouble?
Author: Rich Hunn
Date: 06-09-2008 - 07:11
And we bring you TCI + CSX = Rail America on steroids. There's been numerous news articles plus
Don Phillip's op-ed in TRAINS on the subject but the bottom line is that they want 5 directors
out of the 12 on the board to push a better profit picture. Many of Hep's switches weren't pulled
out just for lack of use but rather because the state taxed every leasehold improvement on the
railroad. If it wasn't making money, pull it out because it was costing money just sitting there.
The balance between plant improvement and downstream benefits can be very tough to sell to the
business school graduates whose crystal ball is only a year deep.
Don Phillip's op-ed in TRAINS on the subject but the bottom line is that they want 5 directors
out of the 12 on the board to push a better profit picture. Many of Hep's switches weren't pulled
out just for lack of use but rather because the state taxed every leasehold improvement on the
railroad. If it wasn't making money, pull it out because it was costing money just sitting there.
The balance between plant improvement and downstream benefits can be very tough to sell to the
business school graduates whose crystal ball is only a year deep.
