by NYCS
I got to thinking about why, in today's day and age when there are a plethora of leasing companies, railroads still purchase and maintain their own fleets of rolling stock when any lineside customer could simply arrange for a car via ACFX, UTLX, CITX, TTX, etc.? Are the railroads actually in direct competition with these leasing companies? Also, how does it figure into the lease or "rent" a railroad must pay when it hosts a railcar owned by another railroad? (i.e. BNSF pays CSX a "rent" every day that CSX car is on the BNSF system, hence the incentive to return the car to home turf).
How does the arrangement outlined above affect the private leasing industry? I understand that a customer will pay UTLX to "rent" the car, but how do the railroads collect for hosting said car on their respective networks? Does BNSF, for example, charge UTLX a daily rate (or UTLX pays BNSF?) for each day the UTLX car is on BNSF rails? If so, it seems BNSF has every incentive to keep that car on its territory - a completely OPPOSITE scenario had that car been owned by CSX.
I know there must be a difference, and I may have my theory not completely understood as per prototype practices. That being said, can anyone tell why a customer would:
1. Choose a railroad-owned car versus going with a private leaser?
2. What is the term for the "rent" a railroad pays to another RR when that railroad's car is on its own rails?
3. What, if anything, did the "per diem" craze of the 1980s have to do with any of this?
4. How do railroads collect payment when transporting/hosting leaser cars?
5. Are railroads and leasing companies in direct competition when it comes to furnishing rolling stock to customers?
Any information you can offer into this aspect of railroad operations would be GREATLY appreciated. Thanks everyone!
How does the arrangement outlined above affect the private leasing industry? I understand that a customer will pay UTLX to "rent" the car, but how do the railroads collect for hosting said car on their respective networks? Does BNSF, for example, charge UTLX a daily rate (or UTLX pays BNSF?) for each day the UTLX car is on BNSF rails? If so, it seems BNSF has every incentive to keep that car on its territory - a completely OPPOSITE scenario had that car been owned by CSX.
I know there must be a difference, and I may have my theory not completely understood as per prototype practices. That being said, can anyone tell why a customer would:
1. Choose a railroad-owned car versus going with a private leaser?
2. What is the term for the "rent" a railroad pays to another RR when that railroad's car is on its own rails?
3. What, if anything, did the "per diem" craze of the 1980s have to do with any of this?
4. How do railroads collect payment when transporting/hosting leaser cars?
5. Are railroads and leasing companies in direct competition when it comes to furnishing rolling stock to customers?
Any information you can offer into this aspect of railroad operations would be GREATLY appreciated. Thanks everyone!
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Less Traffic. Less Pollution. Better Future!
http://www.railnewyork.com
RNY Facebook Page