THE RATE STRUCTURE OF UNIT COAL TRAINS IN THE 1970S

Although railroads have aggressively attempted to exploit their potential monopoly power in moving Western coal, utility resistance and ICC constraints appear to have limited carrier ability to produce the potential net from unit train operation that should result if they were free to act as profit-maximizing monopolies. The authors' analysis shows a fundamental shift in rate-making from 1973 when a monopoly rate model fitted the data quite well to 1978 when it failed to give an adequate representation. With Western coal mining still in its infancy, it is suggested that the rate-making process will increasingly be a system of negotiations among parties with relatively equal bargaining powers, giving railroads more incentive to employ unit trains that will control costs and maintain their profit levels.

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  • Corporate Authors:

    Blackwell Publishers

    108 Cowley Road
    Oxford,   United Kingdom  OX4 1JF
  • Authors:
    • Friedlaender, A F
    • Ferguson, W L
    • Sloss, J
  • Publication Date: 1980-3

Media Info

  • Features: Figures; References;
  • Pagination: p. 269-286
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00331898
  • Record Type: Publication
  • Files: TRIS
  • Created Date: Jun 12 1981 12:00AM