Re: Senator Wyden Sends Letter to STB
Author: Ernest H. Robl
Date: 01-28-2009 - 15:58
Okay, I'm not in the railroad business either, but I think the
cost of a crew is the least of a shortline's problems.
Infrastructure is expensive to maintain -- and is a major part
of the value of a railroad. Installing a new switch or full
grade crossing (gates & lights) can cost in the $30,000-50,000
range each, if I remember correctly what I've been told.
Replacing a bridge, even a relatively simple one that spans
a two-lane country road, can cost in the $1 million range.
Many of the older bridges, built 50 or more years ago, while
technically still usable, cannot carry the weight of many
fully loaded modern freight cars.
Though I don't know all the details and have not been to the
line in question, it's my understanding that this line has
a number of tunnels, the condition of which is questionable.
(I have, however, spent considerable time talking with railroad
officials, including shortline managers, about operating
problems.)
So, I assume the selling (if it comes to that) railroad thinks
the infrastructure is worth more than the buying railroad is
willing to pay for it. The buing railroad does not want to
pay too much, so it can have some money left over for
maintenance and repairs, particularly if sections of the line
or tunnels are in bad condition.
Many issues which, on the surface appear to be simple, are
in fact not so simple, once the details are looked at. As
the old saying goes, "The @#$%& is in the details."
The shippers who want service may also not understand all the
complexities of operating and maintaining a railroad.
-- Ernest