Mike,

That's very interesting. It looks like IPH gets dying shortlines to keep running them with little freight left and then injects passenger trains like viagra and then loses money (heart attack/coma)?

I don't see the economics... I think IPH did great with Permian Basin and Arizona Eastern, but Ellis focused on running passenger toys and steam... Premature decision?

Now looks like they're doomed... What a tragedy!

ShortlinesUSA Wrote:
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> Although the interchange with UP was reinstalled
> to facilitate freight traffic, little has
> developed. It was good of IPH to pursue freight
> traffic on the line, because that's where the
> money is. And while the potential of developing
> freight traffic was touted, it never seemed to get
> past the "potential" phase.
>
> This story is all too common with IPH's entry into
> several of its operations-- acquire or negotiate a
> contract to operate a marginal line with little or
> no freight traffic under the premise of running
> passenger trains to generate money while working
> to build freight traffic. But I can't think of
> one line where the freight traffic has
> dramatically changed. I am certain IPH has tried,
> but they are stuck with the same economics that
> existed when they walked in.
>
> Case in point, the Piedmont & Northern in
> Gastonia, NC. Patriot Rail was the first
> contracted operator on this line after it was
> returned to service. In their two years of
> operating the line, they moved TWELVE cars.
> Patriot couldn't leave that contract fast enough
> when their initial two years were up. IPH came
> right in with the optimistic story of passenger
> excursions to make the line a success. And it is
> right there in the ranks of the lines virtually
> doing nothing now after the "seasonal layoffs"
> following the Polar Express trains.
>
> Mike Derrick