eolesen wrote: ↑Fri May 14, 2021 8:39 am
If logistics companies like UPS, FDX, Amazon, etc. can function successfully on a global scale, surely a railroad can.
I can't help but feel that some of these major mergers would be too large to operate, with some sections being neglected in favor of others.
Functions like payroll, HR, tax, legal don't suddenly get more complex if you're a company with 1,000 vs 300,000 employees. You might have to scale up somewhat but it's not a linear progression by any means.
Railroads are already decentralized to some degree with regional and divisional structures. Having 10 divisions in 15 states or 20 divisions in 35 states won't be a problem.
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The exact opposite of your statement is reality -- things definitely are more complex with a company going from 1,000 vs 300,000.
A lot of global logistics companies employ agents, traders, contractors and brokers as part of their global network. They always try to save a buck too outsourcing data entry, contract management, and even HR functions to administrative companies in India and other Asian countries. You have a company of 1000 people you can almost entirely manage that on this shore, you go to 300,000 and you are dealing with multiples more complex.... more trade unions, more currencies to manage, legal jurisdictions, different tax laws, accounting, ect....
Personally, I would have no interest in running a RR in three countries, and there is a difference between having large line density (spaghetti) in say the east, or west, vs a huge geography connected by long tentacles. Steamship lines realized it wasn't feasible years ago and consolidated + setup the alliance structure... even then the individual companies focus on their core strength markets. Trying to be all things to all customers can get you into a lot of trouble.