Shortline Railroad Operation in the US - Industry Market Research Report

Shortline Railroad Operation in the US - Industry Market Research Report

Shortline Railroad Operation in the US

The Shortline Railroad Operation industry has endured volatile conditions over the five years to 2023. The industry began the period at a low base as the global commodities bubble burst and demand for shortline railroad services plummeted due to falling commodity prices. After this, the global outbreak of the COVID-19 pandemic greatly disrupted operations, causing industry revenue to fall significantly, largely due to an overall decline in the value of trade and in the industrial production index. Despite volatile conditions and the global pandemic, industry revenue has managed to undergo a positive trend over the five years to 2023, as the total value of trade and industrial production index roar back to life after posting steep declines amid the pandemic. Shortline Railroad Operation industry revenue has been expanding at a CAGR of 1.2% over the past five years and is expected to total $3.1 billion in 2023, when revenue will fall by an estimated 1.0%. Despite increased performance, profit will fall due to rising purchase costs.

Industry companies fall into two categories: local railroads and switching and terminal railroads. Local railroads are line-haul railroads that generate less than $34.7 million in operating revenue. Switching and terminal railroads are those jointly owned by two parties to facilitate the transferring of cars between railroads. By conventional standards, all Class III railroads are called shortline railroad operators while Class II operators are referred to as regional railroads.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.