http://www.startribune.com/462/story/1026957.html http://wcco.com/local/local_story_057171637.html Just posting this I have no thoughts about it.
Hmmm. I just hope this doesn't come back to bite the opposition. Amongst other things, they're complaining about safety. If there's ever a big pileup, well, the upgrading money was made unavailable due to their efforts....... mg: :sad: Boxcab E50
The biggest factor "Derailing" the loan appears to be DME's ability to pay it back. $2.3 Billion is a lot of dough for a road that at least on the surface appears to have current issues with track infrastructure and safety. The bottom line is thi$, if the PRB extension will work, and if it can make money, private investors will line up. If they don't, or won't then the FRA may have gotten this one right. Brad
Having some familiarity with these matters, I understand the funding issue. My concern are those safety issues. No funding means no mitigation. Also, if I recall correctly, early on in this whole proposal, there was some possible private sector funding. Which likely dried up due to the length of these proceedings. :sad: Boxcab E50
From the UTU website... "DM&E President Kevin Schieffer said the project was too important to abandon, because of the strong support from utilities and the coal mines' plans to increase production. "This line will be built," Schieffer said before the loan decision. "It's a project that makes too much sense not to happen." On Tuesday, after the loan decision, he said: "This is not something that changes our focus on getting this project built or our confidence that it will be built." Complete article at: http://www.utu.org/worksite/detail_news.cfm?ArticleID=33848 I guess I'd have a few other questions now... If this project is that viable, why would it be necessary for the taxpayers to fund it? If Mr. Schieffer is so certain that it will be built and that it makes so much economic sense, why aren't the utilities, mines and other stakeholders lining up to contribute? How would the money be recovered by the Fed if it failed? Could it be the opposition is more than NIMBY based? Don't get me wrong, I'm not opposed to the project itself, we certainly need more rail capacity and the need will increase as time goes on...only the fact that yet another strictly for-profit enterprise went shopping for $2.3 BILLION in public money with what appears to be a shakey premise of ever paying it back. This isn't a public works project like a dam or a sewer plant, it's a corporate deal that may have public benefit in the long run, but only after the cream comes off the top for Wall St. When a fair share of American businesses, (particularly the freight railroads) are trumpeting their record breaking profits every quarter while demanding concessions from their workforce, it smacks of the bad old days of the robber barons or yet another corporate welfare program that my kids will pay for until the cows come home while the carrier either makes their fortune first...or goes belly up and leaves us all holding the bag. Just MHO but let businesses make as much profit as they can, that's the way it should be...but private sector investors will follow if the plan is sound, don't ask us to finance the entire risk with our taxes.
