Farhad's Update on NWP Co Asset Purchase
Date: 11-20-2020 - 09:00
The deal hasn't been consummated yet.
See Farhad's statement at the Wed. Board meeting.
It requires STB approval before it is completed.
The state "white wash" report on the deal is now
available on SMART's website. Tons of information
The report has zero on the revenues/costs to SMART.
It was out of scope. But, it doesn't address the "what if"
scenario of what happens if SMART is dissolved because it can't pass
a tax extension measure. If there are freight customers
in 2029, that obligation could indeed transfer to the state.
Reminder: they were trounced in March and they'll have
a heck of time winning back voters who had supported
them in 2008, but changed their minds in March.
As everyone on this forum knows, whether purchase of NWP Co freight assets comes at a
net cost or benefit to SMART's revenues remains to be
determined. To the extent it doesn't work out, it'll come
at a cost to passenger rail.