Originally Posted By: rshunter
Originally Posted By: grampi
Originally Posted By: rshunter
Originally Posted By: grampi
Like I said, when the price of quick shipping becomes too high and bringing down those costs becomes more of a priority, then a more cost effective means will be utilized...
I'll make a deal with you...
You stop requiring that the World's resources be wasted, by asking that things like fresh foods and pharmaceuticals be available to you, and I'll stop operating a company that ensures that they are.
Do we have a deal?
That's a ridiculous statement. All I'm trying to point out is it would be more energy efficient to ship goods via rail vs OTR semis.
Corporations
will not spend a penny more than is absolutely necessary in order to achieve their desired revenue and service goals. They've already made it quite clear what the optimum transportation mode is in most cases. In many instances, railroads can't price their services low enough to even make it on the shipper's radar. And that's for just the minor percentage of markets that the railroads provide service to. Railroads have tried, repeatedly, to compete head-to-head with truck transport, and failed again, again and again.
The railroads have finally come to understand and accept this, as exhibited by where their infrastructure investments are being made. Railroads are moving away from marketing their services directly to customers, and are beginning to solicit trucking companies for their business, in those limited circumstances where it may be cost effective as a part of the overall service. This is an unusual situation, as it gives the trucking industry a position to demand a higher level of service than the average shipper is able to demand. A look at what railroads are lobbying against is also telling. Then you've got the federal government's studies on rural transportation which only reinforce the massive advantages provided by trucks, that simply cannot be overcome by railroads, under any circumstance.
There are many, many, many people, who know the business far better than you, who've long since recognized the economic dangers in taking such a simplistic view of freight modalities and their use.
I agree with everything you've said, but the reason the rail industy can't compete with the trucking industry is because the railroad system in this country is sorely outdated. If railways were expanded to meet the needs of the shippers, railroads would be very competitive with trucking. As it is, it's pretty tough to compete with railways that were designed 100+ years ago...