The local rail service continuation program under the Railroad Revitalization and Regulatory Reform Act of 1976 does not promote improvement of the efficiency of local rail service because funds are prevented from being used to upgrade lines with potential benefit-cost ratios greater than 1.0. If such lines are permitted to deteriorate and if lines with ratios under 1.0 are subsidized but not upgraded, grain will tend to bypass both types of lines. Section 803 funds could be more effectively expended if the law were revised to provide for upgrading of marginal lines to increase the efficiency of local rail service, encourage adjustments in product flows and shipping facilities, and result in improved allocation of funds for rural freight transportation.

  • Supplemental Notes:
    • This paper was awarded first prize by the Review's editors in a competition dealing with railroads and rail problems. See also article on economics of upgrading branchlines by the authors in the American Journal of Agricultural Economics, Vol. 59, No. 1 (Feb. '72), RRIS 25 152654 7702.
  • Corporate Authors:

    University of British Columbia, Vancouver

    Faculty of Commerce
    Vancouver, British Columbia  Canada 
  • Authors:
    • Baumel, C P
    • Drinka, T P
    • Miller, J J
  • Publication Date: 1976

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 00152674
  • Record Type: Publication
  • Report/Paper Numbers: Analytic
  • Files: TRIS
  • Created Date: May 31 1977 12:00AM