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Re: FEC to initiate privately funded passenger rail
Author: OldPoleBurner
Date: 03-23-2012 - 09:24
Read the articles more carefully. While it was stated that there would be no risk to the State, and that no capital investment was required from the State; there were mentioned very vague references to some sort of financial involvement by state and local entities.
The FEC has been and continues to be one of the most rationally run railroads in the world. And no rational investor is willing to put money at undo risk, nor to invest where no return on investment is likely. But they clearly see the potential, that there will be such a return. So they are now beginning the process of proving it, before they invest.
But how? Can the fare box actually cover all incurred expenses and also bring enough down to net, to provide that return. No one else has managed that in the good ol' US of A in the past 70 years, even with sold out trains. My guess is that FEC will invest that one billion or so, only if the State contracts with them to operate it (ie, pays them a stipend per scheduled run); the net effect - an operating subsidy.
That said: The FEC is the most rationally run railroads in the world. And it is not because they are non-union. If memory serves, their employees have joined a union - just not a traditional railroad union. But union or no, their operating practices are far advanced beyond the traditional American railroad industry and have engendered very progressive work rules and superior working conditions.
For example, they have pretty much solved fatigue issues, by regularly scheduling their freight trains and by swapping crews, as opposing trains meet, as much as is possible; thus returning crews to home base after regularly scheduled work shifts. Note also, that they are scarcely afraid of any interference between 110 mph passenger trains and 60mph freight trains on the same tracks. Their managers and traffic planners are not at all lazy. ALL FEC traffic has been well choreographed in advance, for decades now. They do know how to run trains!
These practices are so efficient in fact, that unlike the rail industry as a whole, FEC is well able to compete in the short haul traffic market, where the real transportation bread and butter is. That they have proven so consistently over the years, to be so much more efficient and cost effective; while at the same time providing much improved working conditions; it is astounding to me that other railroads have made very little attempt at such improvements - seeming to scoff at them instead, or making lame excuses as to "why that won't work here". I guess stUPid is as stUPid does (just to mention the very antithesis of the FEC.
Bottom Line: Since their operating practicecs have consistently been the most efficient, far above any other American railroad; if any private railroad could do it, they could.
The FEC has been and continues to be one of the most rationally run railroads in the world. And no rational investor is willing to put money at undo risk, nor to invest where no return on investment is likely. But they clearly see the potential, that there will be such a return. So they are now beginning the process of proving it, before they invest.
But how? Can the fare box actually cover all incurred expenses and also bring enough down to net, to provide that return. No one else has managed that in the good ol' US of A in the past 70 years, even with sold out trains. My guess is that FEC will invest that one billion or so, only if the State contracts with them to operate it (ie, pays them a stipend per scheduled run); the net effect - an operating subsidy.
That said: The FEC is the most rationally run railroads in the world. And it is not because they are non-union. If memory serves, their employees have joined a union - just not a traditional railroad union. But union or no, their operating practices are far advanced beyond the traditional American railroad industry and have engendered very progressive work rules and superior working conditions.
For example, they have pretty much solved fatigue issues, by regularly scheduling their freight trains and by swapping crews, as opposing trains meet, as much as is possible; thus returning crews to home base after regularly scheduled work shifts. Note also, that they are scarcely afraid of any interference between 110 mph passenger trains and 60mph freight trains on the same tracks. Their managers and traffic planners are not at all lazy. ALL FEC traffic has been well choreographed in advance, for decades now. They do know how to run trains!
These practices are so efficient in fact, that unlike the rail industry as a whole, FEC is well able to compete in the short haul traffic market, where the real transportation bread and butter is. That they have proven so consistently over the years, to be so much more efficient and cost effective; while at the same time providing much improved working conditions; it is astounding to me that other railroads have made very little attempt at such improvements - seeming to scoff at them instead, or making lame excuses as to "why that won't work here". I guess stUPid is as stUPid does (just to mention the very antithesis of the FEC.
Bottom Line: Since their operating practicecs have consistently been the most efficient, far above any other American railroad; if any private railroad could do it, they could.
