IMPACT OF RAILROAD REGULATORY REFORM ON RAILROAD CAPITAL INVESTMENT

The Staggers Rail Act of 1980 made the most extensive changes in the Interstate Commerce Act in more than 50 years. It represented a major shift in government policy toward the rail industry. This paper examines the probable impact of the act on railroad capital spending. The primary findings are (a) the rate regulation provisions of the act will enable the railroads to improve their profitability, (b) improved profit potential will increase the attractiveness of many investment opportunities available to railroads, (c) the act is unlikely to decrease the industry's cost of capital, (d) increased amounts of money capital should be available for investment, and (e) railroad capital spending should increase. The types of capital projects likely to be affected are also discussed. (Author)

• Record URL:
  • http://onlinepubs.trb.org/Onlinepubs/trr/1981/804/804-005.pdf
• Record URL:
  • https://scholar.google.com/scholar_lookup?title=IMPACT+OF+RAILROAD+REGULATORY+REFORM+ON+RAILROAD+CAPITAL+INVESTMENT&author=W.+Martin&publication_year=1981
• Availability:
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• Supplemental Notes:
  • This paper appeared in Transportation Research Record No. 804, Surface Regulatory Reform: Rail, Truck and Intermodal. Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved.
• Authors:
  • Martin, William R
• Publication Date: 1981

Media Info

• Media Type: Print
• Features: References;
• Pagination: pp 24-27
• Monograph Title: Surface Regulatory Reform: Rail, Truck, and Intermodal
• Serial:
  • Transportation Research Record
  • Issue Number: 804
  • Publisher: Transportation Research Board
  • ISSN: 0361-1981

Subject/Index Terms

• TRT Terms: Capital investments; Competition; Deferred maintenance; Deregulation; Financial capital; Impact studies; Investments; Management; Policy; Pricing; Profitability; Profits; Railroads; Return on investment
• Old TRIS Terms: Management policies
• Subject Areas: Administration and Management; Finance; Highways; Policy; Railroads; I10: Economics and Administration;

Filing Info

• Accession Number: 00342135
• Record Type: Publication
• ISBN: 0309032180
• Files: TRIS, TRB
• Created Date: Oct 28 1981 12:00AM