Railroads

Railroads

Brief Excerpt from Industry Overview Chapter:

Companies in this industry transport freight and passengers by rail. Major companies include Amtrak, BNSF Railway, CSX, Norfolk Southern, and Union Pacific (all based in the US), along with Deutsche Bahn (Germany), East Japan Railway (Japan), RZD (Russia), and SNCF (France).

COMPETITIVE LANDSCAPE

Demand is driven by sales of bulk commodities and other items best transported by rail. The profitability of individual companies depends on operating efficiently and controlling maintenance expenses. Large companies have advantages in owning systems that connect numerous markets and enable them to serve national customers. Small companies can compete effectively by serving local markets.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major services are the transport of commodities, including coal, grain, crushed rock, and chemicals; containers of consumer goods; automobiles; and passengers. The overwhelming majority of railroad revenue comes from transporting commodities. Container transport, also known as intermodal rail traffic, moves consumer goods to ships and trucks without unloading the freight from containers between modes of travel. Intermodal rail traffic accounts for about 25% of rail transportation revenue in 2022, according to the Association of American Railroads (AAR).