newpylong wrote:Going to be an uphill battle to compete with the Water Level Route even for NS owning everyting outright.
Not really, it's about not just service but cost too. CSX is making the Worcester to Chicago run in about 2-3 days and NS is right there with them. From customer door-to-door you're look at 4-5 days New England to Chicago area, 6-7 to St. Paul and about 10 to the west coast. Actually, the big thing is truck capacity to move boxes, so it comes down to JB Hunt (which literally has no lack of drivers), HUB & brokers vs Schneider, Pacer(XPO), & other brokerson the CSX side. Right now, JB Hunt is devastating everyone and HUB is right behind them.... also the cost of moving a single unit by Hunt vs Schneider is about 10% - 20% different in favor of Hunt depending on lane. The only lane CSX providers beat NS providers cost wise is New England to the Southeast (Winter Haven/Jacksonville/Miami).
If NS opens up double stack capacity (which I'm sure they will) and adds a north/south train its going to shift a lot of traffic back to Ayer. Already Mechanicville is taking a large chunk away from CSX in Syracuse.... Not to mention the Water level route is CSX's primary artery from NYC area to Chicago... NS going via PA and runs a lot of intermodal jobs up the Pittsburg line out of Croxton. Also, NS has the advantage out of NYC going to Atlanta and Texas with the Crescent Corridor.