Are the railroads poor? Or better yet is the United States poor???
All these train forums always seem to end up with that things don’t get done right because of costs. Isn’t needing a quick return on the buck mean you’re short on cash? I also can’t help noticing that many of the highways are in bad shape, even terrible shape realy. I also noticed in Germany for example the highways have very smooth pavement (they even put more diamonds in thier pavement for more grip!). I also noticed the railway track was smooth as silk too, they are electrified (wich we consider too expensive), they have built great projects like the chunnel, two great bridges over the straights in Scandinavia and big tunnel projects on the go i the Alpes. Japan, China even Australia does big projects, do they all have more money to spend than the USA?? Our gas is cheap but it is also brewed dirtier then “Eurpoean gas” wich is more expensive to brew cleaner… because they got the money?? Or does money have anything to do with this, is it the will to do? or is it some other reason???
Our cars are crappy, our tires are crappy (unless we buy import products), our roads are crappy we have poor public transit most places… sounds to me like maybe USA is in the poor house, tell me it ain’t so but the more I look around the more it seems. Are the railway’s problems just a reflection of the nation?
and ps; a big army doesn’t mean you are rich, lots of poor countries have a disproportionaly large army, it’s just a concentration of wealth. Russia has a big army too.
The Esquimalt and Nanaimo Railway is in the poor house after loosing 85% of their annual freight revenue. They continue to operate with the remaining 15% but that ain’t paying the bills. Parent Company Rail America is pouring money into the railway to keep it running to serve 3 customers on a 181 mile network and the VIA Rail passenger service running between Victoria, BC and Courtenay, BC, RA is also slowly upgrading the E&N’s infrastructure to handle the 286,000 lbs railcars. When Rail America took over the E&N Railway in 1999 from Canadian Pacific it was a moderately profitable operation, hauling 8,500 carloads of freight a year, last year the E&N moved a mere 1,000 cars.
The E&N has cut its locomotive fleet in half, they have a GP20 and 2 GP38’s, all but 16 employees were laid off, and the entire 38 mile Port Alberni Subdivision has been left “to the weeds”.
Read in Railway Age that Moody’s has given the railroads a “stable” rating for 2004. The free cash flow is good but the debt is high too according to Moody’s Investor service. They still complain about the industry not covering cost of capitol. There has been controversy lately as to how important that part really is.
I can tell you that the industry is in MUCH better shape financially now than in the '60’s and early '70’s. The last bankruptcy of a major railroad was the Milwukee Road back in 1977. Every forecast I have read says that traffic on the railroads will grow. Time will tell, of course, whether the industry can turn that traffic into profit. Your crystal ball is as good as mine.
I was gonna ask where these countries get all the money to pay for their highways and railways. But to add to it they’ve borrowed money from the US and haven’t paid it back. That’s why the US in debt. Suppose we call in our debts and make those countries that borrowed our money pay it back?
OK, we really need to get away from the Chicken Little thing here. The railroads will be here. They might even merge!! (oh, no, not those threads again…lol…)
Where’s Ed and DA Mook when I need them with some great joke???