by george matthews
electricron wrote:There are four types of paying traffic for Eurotunnel.steamal wrote:The Bering Strait is six miles wide. How wide is the English Channel? Also, in response to another opinion that has been voiced on here: A railroad does not necessarily need passengers to survive. Most of the Class I railroads in the US seem to survive without passengers. And the first railroad traffic EVER was freight, with passengers as an afterthought.True. But I'll ask would the Chunnel had been built without relatively high fares from passenger trains?
At the Chunnel, there had been and are still ferries to gauge the amount of traffic - both passengers and freight. The historic traffic between Siberia and Alaska doesn't exist.
No one spends $Billions on what might be, they spend $Billions on what is.
1) Lorries (trucks in the US).
These are the largest traffic. One can see vehicles that have come from as far east as Bulgaria. Probably even further.
2. Cars - private road vehicles. These are priced keenly with higher costs at peak times, such as school holidays and in the middle of the day
3. Eurostar trains. These are true High Speed trains at present to Paris and Brussels. Next year there may be trains to Germany also and Amsterdam, using the various high speed routes that have been built.
4. Freight trains. This traffic has been very disappointing and they are far below the capacity allowed for. Eurotunnel now has its own freight company for traffic within Britain and also on the "other side". They hope to increase this traffic by offering simplified procedures. One of the main hindrances has been France with rules designed apparently (contrary to EU
rules) to keep non-sncf companies off their tracks. Possibly this has now been sorted. Another problem is still frontiers where years after there was supposed to be a Single market trains are still held up. This makes lorries look more attractive to transporters.
5. Other sources of income: water supply, phone communication,
Note that even with all these businesses the Tunnel only started paying a dividend more than 20 years after initial offering.
The Tunnel has to compete with ferries which have made themselves more competitive and improved their procedures, but they are still vulnerable to winds on the sea, and their oil fuel is continually rising in price. The tunnel buys power from a nuclear station in France.
Last edited by george matthews on Tue May 31, 2011 1:07 pm, edited 1 time in total.