THE ECONOMICS OF SHORT-LINE RAILROADS IN NORTH DAKOTA

Three sets of light density lines in North Dakota were analyzed with respect to the potential economies to be gained from short line operation. The three networks consisted of: (1) a single, 81-mile branch line with a density of nine cars per mile; (2) a 667-mile regional network with 20 cars per mile; and (3) a 211-mile network with 35 cars per mile. Each network was analyzed first as a light density subsystem of the Burlington Northern Railroad, and then as an independent short line operation. The results of the study in general suggest that some economies of size and/or density are necessary in order to operate short line networks profitably. The single, light density branch line failed to show any improvement in profitability under short line operation. However, the regional network showed a simulated cost savings of 26% in on-line operating, maintenance, and capital cost. The 211-mile network with a relatively high traffic density also fared well under simulated short line operations, showing a potential gain of 31% in on-line costs. The conclusions of the comparative analysis are that short line operations are not likely to make a substantial difference in profitability on single branch lines of very light density. But on larger, regional networks or medium-sized networks with sufficient economies of density, short line operations can offer significant gains in railroad efficiency. The principal gains in efficiency under short line operations came from a reduction in train crew size and crew wage rates. Other simulated efficiencies were derived from maintenance of way costs, a lower cost of capital, and other transportation costs. Some increases in operating costs were noted. These included primarily administrative costs, but were overshadowed by efficiencies in other areas.

• Record URL:
  https://www.ugpti.org/resources/reports/details.php?id=226
• Record URL:
  https://rosap.ntl.bts.gov/view/dot/59803
• Corporate Authors:

  North Dakota State University, Fargo

  1301 12th Avenue North
  Fargo, ND  United States  58105

  North Dakota State Highway Department

  State Highway Building, Capitol Grounds
  Bismarck, ND  United States  58505

  Federal Railroad Administration

  1200 New Jersey Avenue, SE
  Washington, DC  United States  20590
• Authors:
  • Tolliver, D D
• Publication Date: 1989-8

Media Info

• Media Type: Digital/other
• Features: Appendices; Figures; Tables;
• Pagination: 18 p.

Subject/Index Terms

• TRT Terms: Alternatives analysis; Capital costs; Economic efficiency; Economics; Employee compensation; Labor; Maintenance management; Operating costs; Profitability; Railroad traffic; Railroads; Short line railroads; Traffic density
• Uncontrolled Terms: Class I railroads; Efficiency; Maintenance costs
• Geographic Terms: North Dakota
• Old TRIS Terms: Labor requirements; Light density lines
• Subject Areas: Economics; Highways; Railroads; Society;

Filing Info

• Accession Number: 00493659
• Record Type: Publication
• Report/Paper Numbers: UGPTI Report No. 78
• Files: NTL, TRIS, USDOT, STATEDOT
• Created Date: Apr 30 1990 12:00AM