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Re: The Red and Blue Pens -- Hinkle - Eastport sale.
Author: Shortline Sammie
Date: 10-01-2019 - 01:18
Makes us nervous...wish we were captive to the BNSF instead...don't trust the UP any more. an operating ratio of 55% cannot support infrastructure investment for future growth.
The short lines will suffer as UP will squeeze out all all the profit they share with the short lines(per car handling carrier rates; fuel surcharges, etc) as the handling carrier rates are adjusted annually (stayed the same for the last three years after going DOWN two previous) and the fuel surcharges are adjusted quarterly at the WHIM of the UP accordingly to a formula that is extremely hard to determine.
Not a good time to invest in infrastructure but necessary to stay in business hoping the scrap market improves for when the end comes.
Shortline Sammie
Oregon Pacific Railroad
The short lines will suffer as UP will squeeze out all all the profit they share with the short lines(per car handling carrier rates; fuel surcharges, etc) as the handling carrier rates are adjusted annually (stayed the same for the last three years after going DOWN two previous) and the fuel surcharges are adjusted quarterly at the WHIM of the UP accordingly to a formula that is extremely hard to determine.
Not a good time to invest in infrastructure but necessary to stay in business hoping the scrap market improves for when the end comes.
Shortline Sammie
Oregon Pacific Railroad
