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PROGNOSIS * USA - Future of Highways Bodes Well For Rails
Plano,TX,USA -GuruFocus.com, by Mike Rubsam -20 Dec 2007: -- Much of the conventional wisdom regarding railroad investing centers around high oil prices. While high oil prices do enhance the economics of rail operators when compared to truckers, as rail transport is much more fuel efficient, there are a few other oil-centric aspects to the long term thesis for rails... One aspect is the gas tax and the condition of the nation’s interstate system. When the interstate system was funded and initially constructed in the middle of the 20 th century, the United States had the enviable position of having the world’s strongest economy, by far. Additionally, construction costs were low, land for expansion was more readily available, and the U.S. still produced much of their own oil, keeping gas and diesel costs very low... Currently the tax on gas, collected on a state and federal level, pays for repairs on our nation’s roads and bridges, but the overall state of disrepair of many of these roads and bridges, as well as lack of capacity on the roads, is a daunting challenge. This challenge is almost sure to become more difficult in the next 20 years... (Video from YouTube, by roundhouses -December 10, 2006 : " Rochelle 2004 " - Two locomotives pass Rochelle in 2004)
Labels: prognosis railroad
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