Re: FEC to initiate privately funded passenger rail
Author: OldPoleBurner
Date: 03-25-2012 - 14:19
In order to obtain that seemingly low operating ratio, the UP had to leave all but the low hanging fruit to its competitors; turning away much business it could have had, albeit at a somewhat less margin. Ask the meriads of previous customers of the UP, whose business the UP deemed was not low hanging enough, so was summarily dumped. If it wasn't easy to make money on, thay didn't want the business. Or ask the State of California, or other states nearly captive to the UP, where highways are now utterly choked with trucks full of all that turned away business.
Any stUPid monkey can seem very efficient, if he avoids the tougher assignments. The point was, and is, that the FEC managed its efficiencies without turning away the tougher business, such as short haul (under 500) traffic. And there is no tougher "business" in the transportation industry than passengers! There lies the basic for my stated opinion that if anyone could do it, they could.
I have no doubt also, that if FEC could do it, so could anyone else including the UP. if wise up and re-learn how. After all, the UP once was a very formidable competitor itself - not anymore. However, no one with the current neanderthal business mentality of a UP, will ever manage to break even in the passenger business, let alone earn an adequate return on a private investment.
For most railroads, it will require a massive paradigm shift, to even have the cahones to check into it, let alone actually do it. Or to just get back a fraction of the market share of freight traffic they have already lost in the past decade or so.
I hope that happens, but I ain't going to sufficate myself holding my breath! The FEC initiative, I will follow, with some degree of hope.