David Smith Wrote:
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>>>>>>SNIP>>>>>>>>
>
> Is there anything wrong with being a comprehensive
> transportation company?


It's called "core competencies". Railroads are good at running trains and not much else. They have refined the art of moving cars to a science of making maximum $ per car. Thus the divestment of most other railroad owned companies and operations. This is also why they have got out of most branch line operations, the $ per car is not enough for the bean counters. (No comment on my part if this is a good thing or not.)

This focus on core competency has been happening across most of America. Companies focus on their core competencies and outsource the rest of their operations.

The complaints of congestion are a good things for the BNSF/UP this means they have lots of business and $ coming in. They complain because there is a chance they can get government money for upgrades that they will pay for eventually if deemed essential to operations (even if no government $ end up coming in).

Once loaded the more miles a railcar moves the better the economies. Not to mention that river barges have nothing to do with ocean going ships and the Columbia faces it's own congestion issues with equipment and dams. The cost to transload or reload the commodity is simply cost prohibitive on the Columbia.

If you could be a fly on the wall I bet the RR knows exactly what routes generate the highest profits and thus highest priority for investment. Other projects get funded based on need and some kind of schedule I would assume. The amount of science that goes into all of this is probably staggering.

Definitely an interesting subject. One that business and government wrestle with everyday.

Jerry