Otto Vondrak wrote:SecaucusJunction wrote:Since the Panama Canal is supposed to open for larger ships as well as a greater number of ships in 2014, what effect does everyone think that will have on the railroads in NJ? Good, bad, no change? I've heard all different types of scenarios from more traffic, to less traffic, to not much change at all.... so I'm just wondering what the "experts" think on the situation.
Like there's not enough stuff to talk about in New Jersey, so we have to go to Panama?
This is a "reach" topic if I ever saw one.
Otto, since we know one another face to face, I think you know I'm an "old salt". As such, I find this mature and respectful discussion, as well as that moving forth at other maritime related topics about the site, to be quite interesting. Being "on the masthead' of a railroad industry publication nowadays, I am surprised to learn you do not hold same.
What is being addressed, namely shipping in a post-PANAMAX world, has the potential to turn the railroad industry literally around. with East Coast ports, and the two roads (CSX, NS) that serve them, benefiting at the expense of the West Coast ports and the lucrative line-hauls - far more lucrative than those the two Eastern roads can expect to gain - that both roads serving them enjoy.
East Coast ports are clearly placing their bets on substantial traffic increases in a post-PANAMAX world. This raising the Bayonne Bridge to have a clearance of 180ft MHW (Mean High Water) certainly means the Authorities are prepared to risk the wrath of motorists (and voters, BTW) so that the Port of New York can handle most anything afloat. The bets that the Port of Miami is placing, discussed over at the FEC Forum, in hopes of same clearly means that that Port expect a diversion of traffic to them and away from the West Coast ports.
Warren Buffet may have made a bad bet.
disclaimer; author holds long positions CSX KSU UNP