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Re: CORP And Track Leased From UP
Author: SP5103
Date: 07-19-2011 - 14:18
Class 1 will often lease versus sell certain lines:
1. To retain control and limit access.
2. To provide the Class 1 with the option of providing service to important customers or viable portions of the line in case the shortline fails.
3. In some cases, to reduce the cost to the shortline.
I know of some cases where the Class 1 "sold" a line to a shortline, but retained the underlying real estate or the track itself. Sometimes a line expected for eventual abandonment will be "sold", but the Class 1 retains an interest in the salvage value.
1. To retain control and limit access.
2. To provide the Class 1 with the option of providing service to important customers or viable portions of the line in case the shortline fails.
3. In some cases, to reduce the cost to the shortline.
I know of some cases where the Class 1 "sold" a line to a shortline, but retained the underlying real estate or the track itself. Sometimes a line expected for eventual abandonment will be "sold", but the Class 1 retains an interest in the salvage value.
