TLDR:

The sale has already happened. Norfolk Southern bribed Cincinnati politicians and funded shittons of ads to trick Cincinnati citizens to sell their government-owned railroad to them for cheap.

More info:

• https://jacobin.com/2023/10/cincinnati-public-railroad-norfolk-southern-east-palestine-disaster
• https://jacobin.com/2023/10/cincinnati-ohio-rail-worker-publicly-owned-privatization-norfolk-southern
• https://www.governing.com/infrastructure/say-goodbye-to-the-last-city-owned-interstate-railroad
• https://www.derailthesale.org/economics.html
• http://archive.today/2023.12.16-020729/https://www.cincinnati.com/story/news/politics/2023/12/15/norfolk-southern-paid-6m-convincing-cincinnati-voters-to-sell/71745654007/

The Cincinatti government possessed the last municipally owned interstate railroad in the USA, running from Cincinnati, Ohio to Chattanooga, Tennessee. It leased the railroad to Norfolk Southern (of East Palestine disaster fame) for $25 million per year, and it was indispensable for Norfolk Southern’s operations.

Norfolk Southern (NS) funded a PAC, Building Cincinnati’s Future, and donated tons to the Cincinnati mayor’s election campaign. Together, they made tons of ads to convince Cincinnati citizens to sell the railroad for $1.6 billion to NS, to be put in an investment trust fund.

If you calculate from the previous per-year lease, Cincinnati would have made that $1.6 billion off of the lease anyways after 64 years. A report commissioned by Cincinnati even showed that due to the railroad’s importance to NS’s operations and NS’s impressive financial profits, the city could actually get away with raising the lease to ~$70 million per year. At that rate, the city would have made $1.6 billion back in less than 23 years. Even better, the city would have been able to continue making money on the railroad forever, and be able to raise the lease to match inflation, thus making even more money.

Now that the city has sold the railroad, it has lost that guaranteed income stream forever. That $1.6 billion now sits in “The Building Our Future Trust Fund”, and the city will try to make money from it by paying professional money managers to invest in the unstable market. Data shows that more than 90 percent of professional money managers underperform the market in the long term. Not only that, these Wall Street bankers will take a cut of the money that belongs to the people of Cincinnati for the privilege of doing so. If the fund does end up losing value, the city receives nothing.

Any person with basic money sense knows that a stable asset that makes guaranteed money over time is better than a random lump sum which may or may not perform well when invested into stocks and bonds. After all, its why landlords buy and rent houses instead of just flipping them.

Along with the loss in money, Cincinnati has also lost the ability to use access to the railroad as leverage to force NS to do good stuff. For instance, they could have forced NS to add safety features, modernize the track, and let Amtrack run on the line. Now, NS is free to pour toxic waste all along the right-of-way, and the city can’t do anything about it.