Re: Carrizo Gorge-Gov Sub or Profit?
Author: BOB2
Date: 11-24-2013 - 11:13
These studies are perennial (and I am perfectly willing to do them for folks at my fully allocated hourly rate), And, this one is kind of like proposals for the full restoration of the NWP to Eureka, parts may be viable for some services, but arguments for full restoration have no current viable economic case. And yes, someone will have to pay, if it ever is going to happen, either from subsidies and/or profits.
Any operator who proposes to go forward with this potentially costly restoration and/or improvement, and significant operating maintenance costs through Carrizo would require either a significant government subsidy, and/or a significant "game changing" level of car-loadings which would be profitable enough to outstrip available potential freight capacity on the LOSSAN. No one is going to do this without someone paying for it.....
I just have seen no scenario for the port that shows a high likelihood of achieving those necessary (hundreds, at least) of additional freight car-loadings that would overwhelm the now/future nearly double tracked off peak freight capacity on LOSSAN to require restoration of the SDA&E through route to El Centro.
I do see opportunities on parts of the SDA&E in the port/border area for better service and more carload generation, and some investment in this might benefit either the port or the "investors" to justify improved ports related RR operations.