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Abstract:Proponents of short line railroad development hypothesize that rail traffic volumes may increase under short line ownership as a result of better service to shippers. The objective of this paper is to assess the potential effects that short line operations may have upon the level of rail services received by grain shippers on light density rail lines. Results suggest that most grain shippers, especially rail sensitive multiple-car shippers, feel that they receive better service from short lines than they did from their former Class I railroad. Although not universally true, elevator managers in the Upper Great Plains also reported that they shipped more grain by the short line than by the Class I railroad. However, managers are not willing to attribute the increased rail traffic solely to better service, also citing the importance of changing market conditions and access to new markets.
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