Industry Information
Freight railroads have played a transformational role in America’s development revolutionizing transportation and sparring this country economic development for more than 175 years. America’s freight railroads today serve nearly every industrial, wholesale, retail, and resource-based sector of the economy, operating over a network of more than 140,000 miles. Rail Freighters carry 43 percent of intercity domestic freight – more than any other mode of transportation. Together with their counterparts in Canada and Mexico, America’s freight railroads from the world’s most efficient, lowest-cost freight rail system. In addition to providing shippers with an affordable and efficient way to move their products, freight railroads provide enormous public benefits, including increased fuel efficiency, lower greenhouse gas emissions, and less highway congestion.
In the U.S.:
The overwhelming majority of U.S. freight railroads are privately owned and operate on tracks that are owned, built, and maintained by the railroads themselves. From 1980 to 2009, railroads re-invested some $460 billion of their own funds on locomotives, freight cars, tracks, bridges, tunnels and other infrastructure.
Class I railroads account for 67% of the industry’s mileage, 90 percent of its employees, and 93 percent of its freight revenue. They operate in many states and concentrate largely (but not exclusively) on long-haul, high-density intercity traffic lanes. There are seven Class I railroads: BNSF, CSX, Grand Truck Corporation (owned by Canadian National), Kansas City Southern, Norfolk Southern, Soo Line (owned by Canadian Pacific), and Union Pacific.
Regional railroads operate at least 350 miles and/or have revenue of between 40 million and the Class I threshold. There were 33 regional railroads in 2008. They typically operate 400 to 650 miles in two to four states and have 75 to 500 employees.
Local railroads operate less than 350 miles and earn less than $40 million per year; the vast majority operates fewer than 75 miles in a single state and earns less than $5 million per year. There were 326 local line haul railroads in 2008.
Switching and terminal (S&T) Railroads primarily provide switching and /or terminal services. Rather than point-to-point transportation, they usually perform pick-up and deliver services within a special area, or funnel traffic between other railroads. In 2008, there were 199 S&T railroads.
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