SP5103 Wrote:
-------------------------------------------------------
> >Why put so much $'s into a line that might get
> 300 (Guessing) cars a year?
>
> Because it's cheaper than a derailment or fines!
> And if we are talking a short length of track, it
> could be those "only 300" (?) cars are either long
> haul or high profit cars for UP. If they don't
> have direct rail service, who says since the
> customer has to truck it to a transload they
> wouldn't just truck it to a BNSF transload instead
> or just leave it on a truck?
>
> Shortline Sammie and most shortlines would gladly
> work to keep most customers for another 300 cars a
> year. THink about it - the same volume would
> require 900-1200 trucks. According to an investor
> rule of thumb, you need 100 cars per mile annually
> to be profitable, though I have worked for a few
> shortlines that were able to survive on a lot
> less.
>
> I'm not saying every customer is worth it, but it
> is somewhat expensive and potentially fraught with
> political issues to abandon service to an active
> customer, especially since we're talking a few
> blocks not 25 miles of track.

When the OPR learned that American Steel was considering moving out of Portland (OR) to Canby we became very proactive in meeting with the planning department and the Customer to assure they were in good hands. In order to entice them we agreed to front the entire cost of their new 136 pound turnout plus about 125 feet of track to the property line based upon their expected traffic levels.

We were not disappointed....that construction cost has been repaid many times over plus we got a couple hundred feet of our main track rehabed as a result.

Just don't promise what you cant deliver!

Sammie