Lodamun

[imperialpearl]

Lodamun to nationalise freight rail; LodRail to take control

Federal Government nationalises "flailing" inter-state freight rail under National Freight & Rail Corporation with plans to bring private operators under federal management in 10 years

ⓘ: A freight train operated by the Packard Freight Company, hauling containers in southern Millford.

With the administration having been extremely tight-lipped on news related to the industry’s fate, there have been growing concerns among numerous analysts and investors that the federal government’s long-articulated overtures towards nationalising the nation’s freight rail sector were part of an elaborate hoax to ‘shock’ the industry into self-correcting decades-long issues. Following a report from the Department of Infrastructure and Transport into logistical bottlenecks throughout Lodamun’s domestic supply chain, wherein the lacklustre state and performance of the nation’s freight rail companies/operators had been identified as a major contributing factor in ‘stunted economic growth and development’ in parts of the nation, the Stedman Administration floated the idea that perhaps nationalising and restructuring the sector might be a solution to its chronic woes. Some outspoken investors connected to the sector stated that the federal government’s ‘vague overtures’ to nationalisation were “mere attempts at coercing action.” According to Scott McBride, an investor in Noel International, one of the country’s largest freight rail companies, “I think this is an elaborate attempt by the federal government to coerce the industry into acting on their largely unwelcomed agenda. I think it is irresponsible that the Secretary [of Infrastructure and Transport] and the President would attempt to manipulate the markets like this, to cause confusion in the markets. It is completely uncalled for.” As if not to be doubted by commentators, at a press conference held at Whitehall in Kensington, President Stedman announced that the federal government would indeed be nationalising the entire freight rail sector, bringing the operations of some fifteen (15) companies under public ownership/management, and thus ending the centuries-long private enterprise in freight rail in the country.

At the press conference, Assistant Secretary for Rail Transport and Logistics Donald Hurst stated that on the advice of the Secretary of Infrastructure and Transport, a committee had been established to determine the best possible approach for nationalisation without causing considerable disruption to the already troubled industry. This committee, headed by former Commissioner of the Federal Railroad Commission Dr Peter Roy, proposed that the nationalisation process be spread over a period of time to culminate with the suspension of licenses and contracts to operate on the Lodamese railway network. According to Dr Roy, as the FRC maintained the statutory monopoly on the construction and maintenance of the nation’s railroad infrastructure, freight and passenger companies obtained contracts and licenses from the commission to operate on the tracks themselves. Dr Roy’s nationalisation plan would see the commission suspend negotiating new contracts and, instead of re-tendering contracts to other companies, the government would bring said contracts into public ownership under a nationalised operator. “What we have proposed is that instead of becoming engaged in an extremely costly and potentially litigious battle with these firms, we can simply leverage the terms of our contracts and bring freight rail under public ownership, route by route over a 10-year period,” Dr Roy, who was present at the press conference, explained. This approach, according to both Dr Roy and Secretary of Infrastructure and Transport Henry Bishop, has the potential to save the Lodamese Government up to 30 billion LOD by simply avoiding having to buyout contracts and/or compensating private firms. “The companies would have very little to stand on, should they choose to challenge this in the courts,” Dr Roy added.

This nationalised operator is reportedly already constituted in the form of the National Freight & Rail Corporation (NFRC or LodRail). President Stedman has stated that the federal government has no interest in nationalising passenger rail, stating that the sector has not faced the significant challenges freight rail has faced. The nationalisation, according to Secretary Bishop, will come with a much-needed re-investment in railroad infrastructure, particularly on upgrading existing tracks and constructing newer tracks/routes. Some have noted that in not buying out the contracts of the existing private companies, it would ultimately mean that said firms will likely maintain their locomotives and that LodRail would likely have to purchase its own. However, Dr Roy stated that the sector’s slow winding down would be such that firms would have no choice but to sell their locomotives to the new entity. Veteran railroad engineer and former Chief Engineer at Falkner-Trent, John Marshall, has reportedly been tapped to run LodRail as its CEO, whilst Dr Roy has been tapped as the Chairman of the Board of Directors. The first company to have its contract expire would be United Railway Corp, which operates routes throughout Berkwaki and into parts of Millford and Newchester.