Short Line Railroads Benefit From the Growth in Intermodal Networks

Short distance freight train companies have managed to carve out a niche market and these companies are currently benefiting financially for the overall growth of intermodal networks in the United States. This assessment was made when rail and business leaders met in Chicago inOctober 2013 to discuss the impact of short-line railroad companies on United States domestic business as well as global business. The impact of the short line railroads is that they help to create connections between regions and larger rail networks for businesses needing to transport goods from regional locations. The Staggers Railway Act of 1980 served to create this niche market because many of the larger rail networks gave up their influence over the short line networks due to the costs. The slack was then picked up by entrepreneurs who creates the systems that are in place today. Short line railways are also becoming more in demand because regulations are changingin the truckingindustry which is increasing the cost of moving freight via truck. Therefore the short line railways are increasingly appealing to businesses as a more cost effective way of moving freight. An example of the evolution is that of the short rail line company South Shore Freight which began in Chicago in 1909 as a commuter and freight shipping company. In, 1989, South Shore Freight went bankrupt and was subsequently re-envisionedshort line operator Anacostia and Pacific Co.Anacostia and Pacific Co.purchase the short line rail company in order to sell it to Northern Indiana Commuter Transportation District. In another case, the short line rail company Indiana Rail Road Co. was created in 1986 and is stillthe only all-rail intermodal service for trans-Pacific trade in Indiana. This short line rail company makes it possible for companies to move goods out of Indiana and connect with larger rail lines. Today there are more than 500 short line rail companies across the United States. This is a huge increase from just 200short linerailway companies back in the 1980s. The number of short line railways has been able to increase by building up their infrastructure over railways that were previously abandoned. In addition, these companies are able to remain competitive because of the fact that the regions that their rail lines service are still very much economically viable and will aid businesses in their freight transportation needs.