SHORT LINE RAILROADS AS AN INVESTMENT

This study examines the investment potential of shortline railroad ownership in the light of potential abandonment of over 33,000 miles of light-density lines in the U.S. Such abandonment includes some line segments that could be transformed into short lines. Local development agencies as well as individuals and other investors are evaluating either an equity or debt position in shortline railroads. The study is specifically about three shortline railroads operated by the Delaware Otsego Corp. of New York State, two of which are former branches of Class I railroads. Although the management of Delaware Otsego believes in the long run its three railroads can be a profitable investment, the financial position in their early years of operation has not been favorable. Capital requirements are high and the Corporation's existence is mainly attributable to two grants from the State of New York.

• Corporate Authors:

  Small Business Administration

  Office of Planning, Research and Data Management
  Washington, DC  United States  20416
• Authors:
  • DENNIS, C N
• Publication Date: 1977-5

Media Info

• Features: Figures; References; Tables;
• Pagination: 60 p.

Subject/Index Terms

• TRT Terms: Abandonment; Branch lines; Economic development; Financing; Government funding; Industry structure; Investments; Profitability; Railroad traffic; Short line railroads; State government; Traffic density
• Identifier Terms: Railroad Revitalization and Regulatory Reform Act of 1976
• Uncontrolled Terms: Industrial development
• Geographic Terms: New York (State)
• Old TRIS Terms: Light density lines; Regional rail reorganization act; Short line
• Subject Areas: Administration and Management; Economics; Finance; Railroads;

Filing Info

• Accession Number: 00165082
• Record Type: Publication
• Files: TRIS
• Created Date: Nov 23 1977 12:00AM