Posted by RR Joe on 7/22/2009, 9:22 am, in reply to "Mingo Junction Ohio"
Are you serious? You may be dumbfounded about the shutdown of an outdated manufacturing facility during an economic crisis but I'm dumbfounded that you think a transportation company (ANY transportation company) could successfully operate a steel mill!
Even if they wanted to, the W&LE does not have the capital to purchase the mill. The scrap value alone would push $100 million. If the W&LE had that type of money, it would be better spent establishing a new traffic base through the construction of a new line or connection. Not by purchasing an outdated manufacturing facility.
History repeats itself. The country when through an economic downturn during the 1980's. (And that one was nowhere near as sever as this one!) During that time, many of the steel mills in Pittsburgh closed. For the most part, they were outdated facilities with expensive labor costs, high transportation costs, and a declining market share. If you're up for good reading, find the book "And The Wolf Finally Came". It details the decline of the steel industry in Pittsburgh's Mon Valley. There is a lot of similarity with today's Ohio Valley.
W&LE buy a steel mill? DUMBFOUNDED!
--Previous Message--
: As I sit here this Morning, still
: dumbfounded about the shutdown of
: Servestal at Mingo Junction and its
: effects on this railroad, why
: doesn't the WLE RR make a offer to
: purchase this mill, start it back up
: and start making steel again ?
:
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