Details:

Alternative Title:
A white paper prepared for the Federal Railroad Administration : draft
Creators:
Hopkins, John B.
Corporate Creators:
John A. Volpe National Transportation Systems Center (U.S.)
Subject/TRT Terms:
[+]
Coal Commodities Corn Economic Forecasting Economic Growth Forecasting Freight Transportation Grain Railroad Transportation Revenues Trend (Statistics) Wheat
Resource Type:
Research Paper
Geographical Coverage:
United States
Corporate Publisher:
John A. Volpe National Transportation Systems Center (U.S.)
NTL Classification:
AGR-COMMODITIES-COMMODITIES;AGR-COMMODITIES-Commodity Flow;AGR-COMMODITIES-Grain and Other Farm Commodities;AGR-FREIGHT-Commodity Flow;AGR-FREIGHT-FREIGHT;AGR-FREIGHT-Grain & Other Farm Commodities;AGR-FREIGHT-Railroads;NTL-ECONOMICS AND FINANCE-ECONOMICS AND FINANCE;NTL-ECONOMICS AND FINANCE-Freight Economics and Finance;NTL-FREIGHT-FREIGHT;NTL-FREIGHT-Freight Economics and Finance;NTL-FREIGHT-Freight Planning and Policy;
Abstract:
The railroad industry has historically been able to achieve only a low rate of return at best, constraining its ability to make the infrastructure and equipment investments necessary to sustain healthy growth and support a high level of improvements in efficiency and service characteristics. Although the industry as a whole has dramatically increased its productivity and efficiency since partial deregulation in the early 1980’s, the benefits have been reflected more in lower costs for its customers than in increased railroad profits. Rate of return on investment has increased significantly since 1980, but this highly capital-intensive industry remains in a “revenue inadequate” condition, with its return still lagging the cost of capital. This threatens future growth and raises concerns that railroads could, in the long term, find it a severe challenge to provide the quantity and level of service required if the nation’s steadily increasing freight transportation needs are to be met.

In order to provide insight into factors affecting the industry’s future ability to meet that challenge, this paper provides background information concerning current and recent trends in freight transportation generally, and in rail freight operations and performance in particular. It then explores the long-term outlook for coal and grain transportation requirements—two commodities historically of special importance to railroads.

This paper draws on a wide range of industry and government publications and data. In some cases it is useful to combine statistics from multiple sources, which could reflect different definitions, time frames, or original sources. The charts and tables herein are provided only to illuminate trends and provide perspective; in general, they should not be taken as either official or necessarily precise. In virtually all cases, economic measures are expressed in constant (inflation adjusted) dollars, based on the 1996 Gross Domestic Product (GDP) deflator.


Format:
PDF
Collection(s):
Volpe
Main Document Checksum:
[+]
urn:sha256:45c4bbde5877795aac6bd9f19a3548b920f5673ec54aaf8ffc1d603eab16e0eb
Download URL:
https://rosap.ntl.bts.gov/view/dot/12108/dot_12108_DS1.pdf
File Type:

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