CNBC: Why U.S. Freight Trains Are So Much Better Than Passenger Rail

[Rover]

Feb. 2, 2022
CNBC explores how freight railroads became so profitable and how the industry plans to evolve to stay on top.
The United States lags behind the rest of the world when it comes to passenger trains but when it comes to the freight railroad the U.S. is dominating. The U.S. freight rail network operates over 140,000 miles of privately-owned track in every state except Hawaii, according to the Association of American Railroads. It moves one-third of all U.S. exports and roughly 40% of long distance freight volume.

 

[BlackDiamond]

Interesting. Although comparing "profitable" freight vs "unprofitable" passenger is apples and oranges since passenger operations are more of a service and aren't profitable anywhere in the world.

 

[MARC Rider]

If the US freight railroads keep giving the same stellar service they've been giving their shippers in recent years, there's the chance that they'll be losing a lot of business to the truckers. The only thing saving the railroads' bacon is that there's a shortage of truck drivers.

Precision scheduled railroading strikes again!

 

[MARC Rider]

Interesting. Although comparing "profitable" freight vs "unprofitable" passenger is apples and oranges since passenger operations are more of a service and aren't profitable anywhere in the world.

And, "profitable" is a slippery, hard-to-define term. At the risk of sounding like a broken record, I refer everyone to the term "Hollywood accounting." Besides, what's so great about making gobs of money if you're doing so by providing substandard service under semi-monopolistic conditions?

 

[Chris I]

This has more to do with geography than any particular policy decision. Most large European and Asian cities have direct navigable river/canal or ocean access, so boats are used for a lot of bulk shipping. Outside of the Great Lakes region, the US really doesn't have this. If you want to send 100,000lbs of goods from Los Angeles to Chicago, a train is really your only option.

When you start comparing non-bulk freight by rail (high-value freight), the US leadership diminishes.

 

[Tlcooper44]

Wow this video had some infuriating moments.

The freight execs they interviewed were spewing some serious rhetorical crap if you ask me. Especially when they talked about supply chain issues and making sure nothing interfered with their uses of their tracks...

 

[jis]

Wow this video had some infuriating moments.

The freight execs they interviewed were spewing some serious rhetorical crap if you ask me. Especially when they talked about supply chain issues and making sure nothing interfered with their uses of their tracks...

Specially when arguably, perhaps one of the biggest thing standing in the way of using their tracks effectively to grow their share of the overall freight market is themselves. They have a long and hoary track record of staying put or shrinking their overall market share as the market keeps growing.

 

[fredmcain]

Given the hostility that the U.S. Government has shown to the rail industry in the United States, it is a testimony of the incredible efficiency of steel wheel on steel rail that railways have survived at all in this country - never mind prospered.

A great read on American Railroads is the book Railroads Triumphant by Albro Martin. It's now about 30 years old but it provides a great perspective on the rise and fall and rise again of American railroading.

 

[Tlcooper44]

Specially when arguably, perhaps one of the biggest thing standing in the way of using their tracks effectively to grow their share of the overall freight market is themselves. They have a long and hoary track record of staying put or shrinking their overall market share as the market keeps growing.

This video didn’t really effectively address why passenger rail is bad. It only addressed why freight rail seems to be good.

If they are going to interview freight execs, why haven’t they interviewed any passenger execs?

 

[jis]

Another perspective on the trials and tribulations of the American freight railroads...

https://prospect.org/economy/how-americas-supply-chains-got-railroaded/

 

[west point]

IMO it is all about PSR. The freights have implemented extra-long trains that do not fit on most sidings. Can any federal agency step in to correct this problem? Very much doubt it. FTA maybe by performance of stalled trains where train blocks line for hours as conductor tries to fix problem?

 

[neroden]

STB and FRA both have regulatory authority which can stop the fake PSR (which is neither precision nor scheduled). They haven't used it... yet.

 

[Bonser]

Feb. 2, 2022
CNBC explores how freight railroads became so profitable and how the industry plans to evolve to stay on top.
The United States lags behind the rest of the world when it comes to passenger trains but when it comes to the freight railroad the U.S. is dominating. The U.S. freight rail network operates over 140,000 miles of privately-owned track in every state except Hawaii, according to the Association of American Railroads. It moves one-third of all U.S. exports and roughly 40% of long distance freight volume.

Their share of freight though has dropped considerably in the past 50 years.

 

[jis]

Their share of freight though has dropped considerably in the past 50 years.

Indeed! They have been able to retain a progressively smaller share of a growing segment, so they are still able to show a slow growth in business while losing market share.