Accession Number : ADA262146


Title :   Baseline Analysis: American Class 1 Freight Railroads


Descriptive Note : Research rept.


Corporate Author : INDUSTRIAL COLL OF THE ARMED FORCES WASHINGTON DC


Personal Author(s) : Cassano, Jr, Anthony J


Full Text : https://apps.dtic.mil/dtic/tr/fulltext/u2/a262146.pdf


Report Date : Apr 1992


Pagination or Media Count : 43


Abstract : After a decade of deregulation, the American railroading is a $40 billion dollar industry. American Class I freight railroads account for $30 billion in annual operating revenue. American Class I railroads can rightfully boast of a decade of success. Specialized contracts and price arrangements are now the norm. Alliances with drayage firms, innovative routings, cavernous new freight cars, new labor agreements, and promising technology are cutting operating costs. Equipment maintenance and maintenance-of-way efforts have remarkably improved the condition of the system's infrastructure and rolling fleet. The industry safety record has never been better. But doubts remain whether cutting below the line costs can save the industry. As the railroads, like their cousins the airlines, continue their consolidation into a handful of mega carriers, there remains a pressing need to improve system utilization and return on investment. The railroad industry needs a plan for growth. It needs to build value-added services that pay better margins. This paper was prepared in support of the ICAF Truck and Railroad Defense Industry Study (DIS) Group to serve as a DIS primer on the railroad industry. It charts from 1980 the changing nature of the industry, identifies the players, points out the rules of the game, interprets the language, explains new marketing techniques and innovative services, and identifies performance trends. The paper concludes with an analysis of the relative financial health of the top seven American Class I freight railroads.


Descriptors :   *COST ANALYSIS , *LAND TRANSPORTATION , *RAIL TRANSPORTATION , *UTILIZATION , *COSTS , MAINTENANCE , HISTORY , SAFETY , TRUCKS , PASSENGER VEHICLES , RAILROAD CARS , LABOR , SALARIES , CARGO , RAILROADS , INDUSTRIES , MARKETING , INVESTMENTS


Subject Categories : Economics and Cost Analysis
      Surface Transportation and Equipment


Distribution Statement : APPROVED FOR PUBLIC RELEASE