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Originally Posted by Dengler Avenue
A comment in the Ottawa subforum (possibly under Sandy Hill Tunnel) said that long-distance haul (if not general trucking) is also subsidized. Is that true???
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It was me who said that, and I was alluding to the fact that, as ScreamingViking says below, trucks get to use publicly funded highways, but the railways need to maintain their own right of ways.
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Originally Posted by ScreamingViking
The modes bicker over who is subsidized more or who has more regulation that impedes their competitiveness (e.g., there's an argument that roads and highways being paid by the public gives trucking companies an advantage... the trucking companies would argue they're taxed and regulated appropriately to compensate).
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I don't buy that argument. It isn't as if the railways don't have any regulations either and I can't imagine any difference in regulations making up for the fact that trucks get basically free access to the public highways.
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Originally Posted by ScreamingViking
The reality is the freight system has largely been rationalized around what makes economic sense for each type of cargo. Some goods are best shipped by truck, some by rail, some by air, some by marine, and some by pipeline. And many by a combination, depending on where they come from and where they're going. There are margins that can be debated, but they're small in the grand scheme of things.
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But the economic balance that we are currently at is based on current realities of the cost of doing business. The only reason the railways can compete with long distance trucking is that trucks are incredibly labour and fuel inefficient. If we were to charge the trucking companies more to use the roads, that balance would shift more towards the railways. Now if that happened, the truckers would revolt because they would be loosing jobs.
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Originally Posted by ScreamingViking
That's a very simple view of things, I admit. But overall, it's a result of government divesting itself of pieces of the transport sector over the past decades.
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Agreed. The government has taken an economic view of things and has let everything just happen based on the realities that were in place at the time without any consideration of what is best for the country. The problem is they can't go all in and divest themselves of the highways (they tried with the 407 and look what has happened there). If the government did privatize all highways, we would start to see railways become much more popular.