Industry Information
Over their more than 175-year history, freight railroads have played a central role in America's economic development. Today, America’s freight railroads serve nearly every industrial, wholesale, retail, and resource-based sector of the economy. Operating over a network of more than 140,000 miles, they account for 43% of intercity domestic freight — more than any other mode of transportation. Together with their counterparts in Canada and Mexico, America’s freight railroads form 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.
There are several types of freight railroads:
Class I railroads account for 67% of the industry’s mileage, 90% of its employees, and 93% 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 Trunk 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 2007. 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 operate fewer than 75 miles in a single state and earn less than $5 million per year. There were 324 local linehaul railroads in 2007.
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 delivery services within a specified area, or funnel traffic between other railroads. In 2007, there were 199 S&T railroads.
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 2008, railroads re-invested some $440 billion of their own funds on locomotives, freight cars, tracks, bridges, tunnels and other infrastructure. Railroads have been re-investing record amounts back into their systems, and they are committed to continuing to make the substantial investments a first-class rail system requires.
For more information on America's freight railroads please click here.