RAIL SYSTEM INVESTMENT ANALYSIS: ANALYSIS OF INVESTMENT PROJECTS FROM THE RAILROAD INDUSTRY PERSPECTIVE
This study deals with the impact of railroad investments on the profits of all the affected companies in the railroad industry, not just the railroad making the investment. It draws upon interviews with executives at 13 railroads, data on 96 investment projects undertaken or proposed by these railroads, and numerous published sources. The study demonstrates that the investments made by individual railroad companies are sometimes not the best investments from the industry point-of-view, and occasionally do more harm than good. This disparity stems from three factors: the railroads' indifference to the impacts which their investments have on other railroads; the limitations on the size of investments caused by the fragmentation of the industry's capital resources; and the administrative barriers to the undertaking of joint projects within the industry. The study describes each of these factors and discusses their implications for railroads and governments.
- Prepared in cooperation with R.L. Banks & Associates, Inc., Washington, D.C.
Ernst and Ernst1225 Connecticut Avenue, NW
Washington, DC USA 20036
- Publication Date: 1978-5
- Pagination: 68 p.
- TRT Terms: Capital investments; Consolidations; Industry structure; Joint use; Management; Policy; Return on investment
- Old TRIS Terms: Government policies; Joint facilities; Management policies
- Subject Areas: Administration and Management; Economics; Policy; Railroads;
- Accession Number: 00188699
- Record Type: Publication
- Source Agency: Office of the Secretary of Transportation
- Report/Paper Numbers: DOT-TPI-10-78-35 Final Rpt.
- Contract Numbers: DOT-OS-60097
- Files: TRIS, USDOT
- Created Date: Feb 27 1979 12:00AM