Railroad Capacity Issues

Capacity, or rather the lack thereof, is getting a lot of attention in transportation circles these days. Especially in the West, railroads have absorbed huge increases in both train miles and ton-miles in recent years. But many railroad mainlines are now at or near capacity. Railroads have responded by adding capacity as well as shedding some low-margin traffic to make room for higher-margin business. This paper discusses railroad capacity as a national transportation issue and as a freight and passenger issue. An historical perspective is provided and comments are made on the vital role of technology in increasing railroad capacity. Also discussed are: a safe railroad enhances capacity; high-quality, reliable service requires sufficient capacity; capacity is costly; all capacity solutions require long lead times; various ways to address capacity challenges; Wall Street is more tolerant of capital expenditures; and where research and development can help.