The Staggers Rail Act of 1980 allowed freight railroads (FR) to get rid of unprofitable lines and to consolidate their operations. It also allowed the FR to charge lower rates to their customers who operated in a competitive environment, and higher rates to customers who were captive to one FR carrier for transportation service. This review of the Class I FR's recent financial results shows that the Staggers Act's goal of restoring financial stability to the U.S. rail system has been achieved and has produced a rail renaissance. The four Class I railroads that today dominate the U.S. rail shipping market are achieving returns on revenue and operating ratios that rank them among the most profitable bus. in the U.S. Charts and tables. A print on demand report.38 Post-Staggers Act industry consolidation and capacity reduction slowly eliminated the excess supply of rails and rail service, while the railroads invested in making their remaining operations more productive. One industry analyst estimates that the ... Conference Call (July 13, 2010). 38 Wolfe, Training Manual at 9.
|Title||:||Current Financial State of the Class I Freight Rail Industry|
|Publisher||:||DIANE Publishing - 2011-06-01|