I fear that with G&U, MassCentral, and if/when NBRR comes to fruition, there won't be enough transload business in western Worcester County to support all 3.
Oh - I am sure there are "studies" and "potential customers" but a few things to take into consideration:
1) The Class 1s always get the biggest piece of the revenue on each carload
2) The origin shipping railroad, if not a Class 1, gets the next big piece - so it is imperative for any shortline to have that OUTBOUND freight since it has the biggest affect on net income
I just hope the short-line revival does not quickly turn into market saturation.
I can see a scenario since transloading requires minimal capital expenditure on the part of the shippers, that a shipper can play all 3 railroads off each other and just keep driving the rates down. And you can be sure the Class 1's won't take it out of their cut.
As the end result will be wasted capital and lost jobs.
And this is based on my own experience in this type of business I have dealt with in New England, New York and the Maritimes.
Oh - I am sure there are "studies" and "potential customers" but a few things to take into consideration:
1) The Class 1s always get the biggest piece of the revenue on each carload
2) The origin shipping railroad, if not a Class 1, gets the next big piece - so it is imperative for any shortline to have that OUTBOUND freight since it has the biggest affect on net income
I just hope the short-line revival does not quickly turn into market saturation.
I can see a scenario since transloading requires minimal capital expenditure on the part of the shippers, that a shipper can play all 3 railroads off each other and just keep driving the rates down. And you can be sure the Class 1's won't take it out of their cut.
As the end result will be wasted capital and lost jobs.
And this is based on my own experience in this type of business I have dealt with in New England, New York and the Maritimes.
Question Everything.
The Truth is only what you believe.
The Truth is only what you believe.