From Supply Chain Digest:
Growth of Imports, Fuel Costs, Green Movement, and Congestion all Favor Rail over Trucks; Return to “Working on the Railroad” in Big Numbers
For the first time in nearly a century, US railroads are massively investing in their networks and other infrastructure. The end result could have a substantial effect on transportation management for many companies.
As railroads add and upgrade track and purchase engines and cars, capacity and service should continue to improve, negating some of the factors that serve as barriers to more companies to move from truck to rail.
Finally, Returns on Invested Capital
The railroad industry has traditionally had among the worst financial returns on its invested capital among all industries in the US. For decades, volume growth was slow, as a changing US economy and supply chain dynamics favored trucking to move freight....MORE