RATIONALE FOR REGIONAL RAILROADS IN THE NORTHERN UNITED STATES
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Nationwide about 185 shortlines have begun operation in the United States since 1980. Formation of a railroad involves the purchase of lines by a private individual or firm. Much controversy of need for, efficiencies attained, and jobs lost has surrounded this developing modal structure. This paper reviews an in-depth study of eastern Washington railroad needs, examines the characteristics of regional railroads from Washington to North Dakota, and finally, develops some benefits associated with use of regional railroads. The study area in eastern Washington lost approximately one-third of its track since 1970. These abandonments raised concerns about the availability of transportation services. The study examined the remaining Union Pacific, Burlington Northern, and Camas Prairie Railroad rail lines in the region. Investigators found that major carrier operation of the existing or restructured system is unprofitable and most lines will, in the long term, become candidates for abandonment. A perceived opportunity for successful private operation of a regional railroad was identified. Simultaneously four major regional railroads have been developed in Washington, Montana, and North Dakota. The latter part of the paper reviews the economic environment by studying these railroads. Finally, a conceptual rationale for regional/shortline operation is developed.