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Opinion: Railroads solved their profit problem. Can they solve their growth problem?
['Bill Stephens']
Trains
Granted, not every sector of GDP generates freight demand, nor translates into rail growth, but the divergence is significant.
From deregulation to PSRThe Staggers Rail Act of 1980 fundamentally reshaped freight rail economics.
Many rail customers responded by diversifying transportation options or even by modifying their products, making them safe for over-the-road transit.
Although intermodal now represents a much larger share of rail traffic, it is fundamentally different.
Rather than growing volume to spread fixed costs across the network, railroads largely rationalized their networks to meet financial targets.