Gentleman:
Through an anonymous source I have with BNSF, it appears the original interchange agreement which gave the CW/P&L lines a division of revenue under WATCO has been eliminated by BNSF with the state's blessing (or lack of dissent). If you know much about economics on these lines (read the studies done), it is a good bet this will kill off most of the traffic, (especially the grain) as the new operator will most likely be considered Rule 11. For those that may not understand, this means the new operators will need to charge their own rates and there will be two bills for each customer (one from BNSF and one from the operator). Generally the Class I invoking the Rule 11 DOES NOT lower the rates to accomodate the change either. Not only that, but car hire and demurrage free time is pretty much shot. It would appear the bid winners could be losers along with all the shippers on these lines if this is true. I can't help but wonder why the state would allow this, as the big winners will be WATCO on the Hooper Branch and BNSF at Ritzville. This also ties in with splitting the lines into two operators. Niether will have much clout. I predict this day will be looked back upon as a sad one for Eastern Washington and also one remembered by shippers being sold down the river by the state. Could it be they want this whole thing to fail?