According to her cost of freight per mile per ton in a truck is 0.12 while on rail it's 0.04. She thinks with technology the cost will go down to 0.03 in trucks and it will outcompete rail.
It's kind of funny to assume trucking can reduce costs 3 fold while the railroad industry won't be able to improve even by 25%. I knew there was a gap between trucking and railroads but I didn't realize it's so big. Does this mean that if you find a cheap railroad stock, in the usa or outside, it's a buy most of the time? When talking about moats, being 3x cheaper than the closest competing industry seems like a pretty huge moat but idk.
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