[8D] We the people are on the hook for all the expenses with any and all transportation projects either thru direct cost or the additional cost of goods. the more cost efficient we are the better it is for everyone. Period. stop being greedy and we can all pull the load much easier when we all pull in the same direction>
As some of you know the INDOT has received proposals to run the Hoosier state. The Total Cost reported by Amtrak in the monthly reports are as follows.
Total (Fully Allocated) Costs (Millions):
$8.9 Million/Year per Monthly Report for September 2013 (I reproduced a snip of the chart below).
However, as part of the bidding activities INDOT posted an analysis of the various cost elements which is somewhat similar to what Amtrak is charging the states (appears to be short-term cost plus additives which is consistent with the PRIIA rulemaking).
Now, I often stress that the Total Cost numbers are purely assigned by some unknown formula that matches company wide costs with reveneus. So, at the following known values:
With private operators bidding to run this service, I wonder if any of them have pockets deep enough to buy their own rolling stock? If your in for a penny, might as well be in for a pound. On another facet of this topic, and at the risk of flogging a dead horse, I posted a comment last fall concerning my experience riding a bus. I am sorry if I caused any offense to anyone with it. I only wanted to say that while the purpose of passenger travel is to get from point A to point B, not all modes are the same. Each has its strengths and weakness.
They probably would not buy any rolling stock. They would lease it! In fact, Amtrak leases most of its equipment. A private operator would only enter the business if he had a strong reason to believe that he could recover the costs and enhance shareholder wealth.
Doesn’t Ed Ellis’s (fomer?) operation have enough equipment to cover the service without making any dents in other operations? May that is what gives them a head start, that they have the equipment on-hand and operational.