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To: Wayne J. who wrote (3684)1/30/1999 1:17:00 AM
From: Dwayne Hines  Read Replies (1) | Respond to of 4304
 
Here is an interesting post from the Norfolk Southern thread on Yahoo!, particularly point #2:

Dynamics at work here:

1. System capacity is starting to get maxed out for the first time since staggers act (1980).

2. NS + CR intermodal traffic has the potential to be high margin business (40%+), vs NS alone intermodal, which was 10% margin on avg.

So, NS culled the low or no margin traffic to make room for more high margin traffic on their lines.

This "at capacity so choose customers by profit" is a new issue for the rail industry - the old paradigm for years was growth revenue as long as it was profitable. With limited resources, they now have the ability to pick and choose.

Regards