I disagree that this is a negative thing for the new operators of the PCC for several reasons.

First, in my experience interline or Rule 11 roads get a higher per car charge than handling carriers, not a lower one. There are only two interline carriers in the PNW, that I can think of, CLC and SRY, but they are more common back east. US Rail’s other operation is Rule 11, I think.

Second, BNSF would not be allowed to raise their rate at the interchange to reflect the difference of the old handling/switch charge. It doesn't mean they won't try, but the STB frowns on this, and I'm sure the State is well aware of what the existing through rates are.

Third, handling carrier agreements like the old PCC would have included the car hire “relief” in the handling charge. So, if the handing rate would have been $400, the reclaim ‘given’ is worth $100, then the handling carrier will actually only get $300. It is true that usually interline or Rule 11 roads don’t get any reclaims under the car hire rules, but that doesn’t mean a special reclaim can’t be negotiated.

Fourth, demurrage would be unaffected, as both interline and handling carriers can create whatever demurrage tariffs they want, although an interline road would have more perceived flexibility in doing this.

Lastly, and most importantly in my opinion, the new operators will be able to set their own rates. They can apply a fuel surcharge, or any other surcharge, and apply any escalation clauses they like. Or alternately, they can discount a rate in order to land the business. It would also imply that the customers on the line are now open, since it is the new operator who has rate making authority. This is a moot point on the CW, but could be very helpful for the P&L.

In general, most short lines would be much better off and would prefer it if they were interline, but the Class 1s are the ones who won’t let them. The reasons to not be interline are basically two: administrative overhead and car supply issues. If the state can help supply grain cars, then this removes the real major drawback of being interline.

That said, the Class 1s usually only allow a line to go interline if they have totally written it off and could care less about the traffic. This could work out well for the short lines, provided the State ensures the BNSF (and UP?) will allow participation in through rates and, most importantly, provide service at the interchange. WSDOT would be well served to ensure intrastate traffic as part of any assistance on Stampede.