Montana Rail Link Set to Cross Class I Threshold in Next Two Years

Wut? http://railfan.com/montana-rail-link-on ... the-rules/

The U.S. Surface Transportation Board is considering changing the revenue thresholds that designate a railroad as a Class One carrier because Montana Rail Link — a 900-mile regional railroad connecting Montana and Idaho — is on the cusp of becoming one.

Currently, any railroad with operating revenues of $489,935,956 or more is designated a Class One (The thresholds were last set by the Interstate Commerce Commission in 1992 and have been adjusted for inflation). But MRL, which relies heavily on traffic from BNSF Railway, could be making more than that within the next two years, according to a petition for rulemaking filed in February. MRL is asking that the revenue threshold be increased to $900 million. In its petition, the railroad notes that in 2018, the average operating revenue for Class One railroads was more than 27 times MRL’s total revenue for that year.
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Well that's one of many surprises that this year has. SMART Traim also wants to buy out Northwestern Pacific and s debating if SMART train should run freight service or should hire someone else to do it. I am fine either way if Montana Rail Link becomes a Class I. Hopefully that helps them later on in terms of service and credibility.

Interesting about SMART buying out Northwestern Pacific. Is it financially feasible? I belong to the Northwestern Pacific Railroad Society, and one of their newsletter mentioned a desire to extend the SMART train to Eureka, as in the old days. Mendocino and Humboldt would have to pitch in. Only a dream, so far.

WS

Once upon a time, The Washington Companies were sniffing at a system that stretched from Chicago to the Pacific. If Dennis Washington had gotten access to the ex-MILW from Montana to Iowa, and from Spokane to the far edge of the Cascades (since they already owned the Iowa-Minnesota Rail Link and Southern Railway of British Columbia) we would be talking about a for-real Class I.

Mr. Stephens, I've often wondered if BNSF has had second thoughts about their decision to "shortline" the NP as they did. While I admittedly haven't "been on the ground" out that way since leaving the MILW (it was "pathetic" to see our twenty car "one a day" - and with ten of those cars "COMTL" - creaking along at 10mph, and there paralleling was road handling 100 car trains at 45mph), I must wonder if the BNSF would have been "$$$ ahead" had they kept it rather than having to divide the line haul with MRL.

Of course what gave MRL dubious "PR" was when they spilled a dozen or so 737 MAX fuselages into the Clark Fork when handling them from Wichita sub assembly to Renton for final. Who knows, was that the precursor to what would happen to the entire MAX program?

Pensyfan19 wrote: ↑Wed May 20, 2020 2:04 pm Well that's one of many surprises that this year has. SMART Traim also wants to buy out Northwestern Pacific and s debating if SMART train should run freight service or should hire someone else to do it. I am fine either way if Montana Rail Link becomes a Class I. Hopefully that helps them later on in terms of service and credibility.

HIRE SOMEONE!!!!!!!!!!!!!!!!!!!!!!!!!

Firms like Anacostia and Pacific have done a great job of operating others' tracks for freight purposes. Over the last 20-40 years, they have significantly built traffic on the freight side of operations like LIRR and South Shore. It's a win-win. It provides more fees to support track maintenance on the passenger side and creates more jobs in the area.

On the other hand, LIRR saw a distinct downward trend in carloadings until they sold freight off to NYA.

There's also a reason Amtrak doesn't care to carry freight on the NEC or Detroit line, instead setting up trackage rights agreements with NS, P&W, and CSS.

MRL does not want the additional regulatory burden of being a class one. They are asking for the threshold to be raised so they do not have to be a class one.

MRL does not need to be a class one to provide first class service.