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Re: IPH up to its old (same) tricks! Abandoning SNC
Author: Shortline Sammie
Date: 03-30-2018 - 11:26
J.K. Trowling Wrote:
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> You can't separate Ellis' problems from the SNC
> because they are hopelessly intertwined. His zeal
> to play 1:1 scale trains has sucked the life out
> of every line in Iowa Pacific's portfolio.
>
> That said, I'll give you my industry perspective:
> you don't start up a line hoping on freight to
> come along and pay the bills while you run a bunch
> of money-losing passenger trains. The tailings
> haul on the SNC could have worked out to provide
> some nice income, as long as the operator didn't
> have a ton of debt and overhead to service
> elsewhere in the company. Even if the freight
> worked out, any profits would have been sucked
> right out the door. Robbing Peter to write Paul a
> bad check. That's how this company has rolled for
> years. So short of having a business plan that
> actually works, there is nothing more Iowa Pacific
> could have done other than a lot more homework and
> either not started the SNC operation to begin with
> or waiting until firm contracts were in place to
> move the freight before launching operations.
Very well said!!!
Dick Samuels
Oregon Pacific Railroad
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> You can't separate Ellis' problems from the SNC
> because they are hopelessly intertwined. His zeal
> to play 1:1 scale trains has sucked the life out
> of every line in Iowa Pacific's portfolio.
>
> That said, I'll give you my industry perspective:
> you don't start up a line hoping on freight to
> come along and pay the bills while you run a bunch
> of money-losing passenger trains. The tailings
> haul on the SNC could have worked out to provide
> some nice income, as long as the operator didn't
> have a ton of debt and overhead to service
> elsewhere in the company. Even if the freight
> worked out, any profits would have been sucked
> right out the door. Robbing Peter to write Paul a
> bad check. That's how this company has rolled for
> years. So short of having a business plan that
> actually works, there is nothing more Iowa Pacific
> could have done other than a lot more homework and
> either not started the SNC operation to begin with
> or waiting until firm contracts were in place to
> move the freight before launching operations.
Very well said!!!
Dick Samuels
Oregon Pacific Railroad
