(erielack) Lanesboro/Starrucca in the ABPR

["Paul Brezicki" <doctorpb_@_bellsouth.net>]

From an accounting standpoint, liquidating a redundant asset (or reusing it
where it's needed) improves a company's ROI (return on investment), which is
especially important for a capital intensive industry like railroads. That's
a major reason why RR's are so quick at times to pull up and tear down.
Occasionally, an unused rail line will be mothballed as you suggest, if it's
felt there's a good chance it will be needed in the foreseeable future. NS
did this several years ago with a line in Alabama. I recall hearing of an
industry-wide
"rail-bank" program; the lines would have to be acquired by some government
agency to get them off the books.

Paul B

The taxes on improvements to the property are quite substantial in NY, so
much so that CSX claimed they paid over 30% of their total property tax in
NY state, despite having relatively little track here. Anything that can
reduce that burden is seriously considered. Pulling up virtually unused
second track is a no brainer.

Tom B

- - ----- Original Message ----- 
From: "William Shultz" <wshultz1_@_twcny.rr.com>
To: "Jon Scaptura" <jscaptura_@_stny.rr.com>
Cc: "Erie Lackawanna Mail List" <erielack_@_lists.elhts.org>
Sent: Wednesday, February 22, 2006 7:04 PM
Subject: Re: (erielack) Lanesboro/Starrucca in the 2-22-06 ABPR


> Tax assessment, maintenance costs, track material reuse in other locations
> (relay rail, ties, etc.) and did I mention taxes?
>
> Will Shultz
>
> Jon Scaptura wrote:
>> My question is this: why do railroads pull unused track up? Why not leave
>> it in place and not maintain it? It would seem that if the need arose,
>> they could put it back into service quicker.
>>
>> Jon


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