by pgengler
I seem to remember reading somewhere here that some of the Class Ones, like CSX, were selling/leasing some track to local shortlines, because the big roads needed the money (this is the only post I could find through the search, but I recall reading it elsewhere too).
How much profit is there to be made on a shortline RR? I imagine there would have to some in it, or else there wouldn't be shortlines buying/leasing trackage and equipment. At the same time, though, if there's profit to be made, why don't the Class Ones run them themselves? Sure they can get money from selling or leasing the track, but economically speaking, it can't be more money that can be made from running the line, or else shortlines wouldn't be in business.
I also guess there's more overhead involved in a shortline RR operation, since there's no management infrastructure already in place. So, there are most costs for running a section of track as a shortline as opposed to a Class One.
So my question is, why are the Class Ones letting of track for shortlines (or, are they actually, or am I wrong, which is possible?)?
How much profit is there to be made on a shortline RR? I imagine there would have to some in it, or else there wouldn't be shortlines buying/leasing trackage and equipment. At the same time, though, if there's profit to be made, why don't the Class Ones run them themselves? Sure they can get money from selling or leasing the track, but economically speaking, it can't be more money that can be made from running the line, or else shortlines wouldn't be in business.
I also guess there's more overhead involved in a shortline RR operation, since there's no management infrastructure already in place. So, there are most costs for running a section of track as a shortline as opposed to a Class One.
So my question is, why are the Class Ones letting of track for shortlines (or, are they actually, or am I wrong, which is possible?)?
Phil Gengler
Overheard in NY Penn: "All aboard! Get on the train if you're coming with us!"
Overheard in NY Penn: "All aboard! Get on the train if you're coming with us!"