The previous two posts actually agree with me once you read them in their entirety. First, the OPR was a switch carrier under the SP; UP changed as many roads as they could to handling carriers meanng the shortline essentially lost its identity and became just another station on the UP System. As a handling carrier the UP sets the rates and yearly increases as well as sharing fuel surcharges, etc. I have no experience with BN spinoffs.

Regardless of how the shortline agreements read, the new carrier needs TRAFFIC, without which the margin gets thinner and thinner when two shortlines are involved. Many shortlines lease their track or it is owned by a government entity (POTB, Wallowa Union, Lake County in Oregon) who have all kinds of mystery funds from which to draw when the operating revenue cannot sustain the operation.

My 16+ years experience of owning and operating our two shortlines has taught many of the pitfalls to avoid; ie, own everything you invest money in; don't suck the public teat which has too many strings attached and cultivate the relationship with your banker; this recipe has led to a successful operation.

Shortline Sammie