Industry Analysis & Industry Trends
Chugging along
The Shortline Railroad Operation industry comprises railroads that primarily handle the switching of Class 1 railroad cars, forming an important part of the short-range logistics of long-distance rail transport. Like the other rail industries, demand is tied closely to the performance of the economy at large, particularly the mining, agricultural and manufacturing sectors. Thus, the recession caused industry revenue to fall sharply in 2008 and 2009, and with the uptick in downstream markets in 2010, the industry recovered quickly. Changing environmental concerns, however, such as the trend away from coal and toward natural gas, may damage the industry's long-term prospects.... purchase to read more
Industry Report - Industry Locations Chapter
Shortline Railroad Operation industry establishments generally follow the location of consumer and production centers and ports of transit. Since operators transport goods from city to city and from production centers to consumption destinations, industry operators seek to locate their business in these areas. These areas are close to Class 1 railroads and allow companies to retain business from this market.
The Southeast region has the largest number of shortline railroads, primarily due to the number of seaports located in the region, including the largest tonnage port in the United States, the Port of Southern Louisiana. This region accounts for 26.4% of shortline railroad establishments... purchase to read more