THE EVOLUTION OF THE SHORTLINE RAILROAD INDUSTRY

Since the mid-1970s, Class I railroads have been attempting to rationalize their rail networks by either abandoning or selling their light-density branch lines. Since 1970, almost 40,000 miles of track have been abandoned. During the same time, 240 new short lines operating almost 21,000 miles of track have been created. Short lines created since 1970 are much different from short lines created before 1970. They operate over more miles of line with fewer employees. Traffic densities are much lower for the short lines created since 1970. The newer short lines are more likely to be dependent upon one connecting carrier. Given the nature of the newer short lines, public policies and private decision-making must recognize that the new short lines require a more flexible cost structure to operate economically. The paper is organized in five sections: Introduction; Data sources; Development of short lines; Short line characteristics; and Summary and conclusions.