Ladies and Gentlemen, Can someone please explain Trackage and Haulage rights to a nonrailroad type person? What is the difference between the two?
TIM A
This sounds like a job for…gdc!!
Trackage rights mean you can operate your train on their tracks. The whole train, locomotives and crew included. Host RR generally provides nothing but the track and train dispatching. They collect a fee based on the contract for the service, usually so much per car mile.
Haulage is when you move your cars on their train. They provide the train to move your cars from A to B. You remain responsible for the shipment and collect and keep all the revenue. Still a contract deal and fee is usually a per car mile deal, same as trackage rights.
Both are different from interchange operation since the host RR does not participate in the revenue, they just collect a fee for services provided.
I will add one thing here on most trackage rights they will sign a lease. time of lease is usually 99 years. this is done so as tonage decreases then they stop running that track when it increases again they start using it again.
Questions on Trackage rights.
1.Can the railroad that owns the track limit you as to when you may use it. Could they limit you from 7:00 PM to 7:00 AM usage only?
2.How do the railroads that own the track, keep tracked of how many times you used there track and how much to charge? Do they charge by the month?
3.Do other railroads have to give you trackage rights? What if you are railroad A and you have two branch lines. Railroad B owns the track that connect’s them. Does railroad B have to give you track rights? Or is railroad A at the mercy of railroad B. Is there a governing board that railroad A can go too that will give judgement on any dispute’s?
TIM A
Tim i can answer a few of these question. in the lease it will state when you can use it or if there is no restrictions. As far as keeping track its not hard since the dispatcher moves the trains and the superatendant knows what is going on. it is logged. as far as trackage rights if railroad “a” dont want you on thier tracks you wont get on them. And there is no board that can tell otherwise. It is like if i wanted to use your house for weekend parties and you dont want me to is there anyone i can go to do get judgement against you. NO and i guess you are thankfull for that. same with the railroads. you cant get judgement to use anothers property. last as far as price goes it is agreed between the 2 parties in the lease, either by car count or tonage or both.
Thank you Sir. Again, you have been most helpful. Are you a Foreman or Superviser on the railroad? You seem very knowleged.
TIM A
In the past, trackage rights were negotiated by the railroads involved under the jurisdiction of the ICC and were mandated in some cases such as the extensive rights granted to D&H at the time of the Conrail merger. Trackage rights have often been granted as a merger condition.
none of the above just a engineer
i heard a federal court required the up to allow other r.rs. to use up’s tracks to move the other r.r’s. trains, due to the foul-up up had when they took over another r.r… would the other r.r. owe up the usual fees? (was it in the '80s or '90s?)
I believe that happend in the 1996-1997 time frame. I thought that was just a temperary deal. If anyone can help please jump in.
This situation appears to be a Directed Service Order rather than trackage rights. Best-known examples are operation of Rock Island by Kansas City Terminal in 1980-81 and Delaware & Hudson by Susquehanna prior to merger of D&H into Canadian Pacific.
What is a Directed Service Order? I do not know much about railroads so can you please explain?
TIM A
A Directed Service Order is issued by the ICC or STB to another railroad to continue service when the railroad in question is about to suspend operations.
Does this railroad have a right to charge any price it wishes? Are they governed on how much they can charge?
TIM A