Short-line railroad managers discuss their industry

Abstract

In the United States, the 1980 Staggers Rail Act created a positive regulatory environment for the creation of new short-line railroads. At present there are about 450 of these railroads that have less than 250 miles of trackage. This study asked managers/owners of these railroads two basic questions. First, what do you believe is the single most important trend that is currently taking place in your industry. The most frequently noted trend was the frustration of working with the larger Class 1 railroads. Five additional trends were also identified by the respondents. The second question asked the respondents if they thought the short-line sector of the rail industry will become more or less important in the next ten years and why. About 70% of the owner/managers believed their industry would become more important in the next decade. The most commonly expressed reason for this position is that the Class 1 railroads will increasingly specialize in mainline service only. Three other rationales were also enumerated. For the managers that thought their industry would become less important, the most noted reason was their trackage would not safely transport the newer very heavy bulk commodity freight cars.