| Freight railroads are vital to the economic health
and global competitiveness of the United States.
They move 42% of the country’s freight (measured
in ton-miles), involving commodities ranging from
produce and other food stuffs to automobiles and
chemicals. They also contribute billions of dollars
each year to the country’s economy through
investments, wages, purchases, and taxes.
In 2003, there were 550 common carrier freight
railroads operating in the United States, classified
into these groups:
1. Class I Railroads are those
with operating revenue of at least $277.7 million
in 2003. Class I carriers comprise only 1% of
the number of U.S. freight railroads, but they
account for 71% of the industry’s mileage
operated, 89% of its employees, and 93% of its
freight revenue. Such carriers typically operate
in many different states and concentrate predominantly
on long-haul, high-density intercity traffic lanes.
Currently, there are seven Class I railroads ranging
in size from just over 3,000 to nearly 33,000
miles operated and from 2,600 to more than 46,000
employees.
These railroads are:
- The Burlington Northern Santa Fe
- CSX Transportation
- Grand Trunk Corporation, which consists of the
U.s. operations of Canadian National, including
the former Grand Trunk Western, Illinois Central,
and Wisconsin Central
- Kansas City Southern
- Norfolk Southern
- The former Soo Line, owned by Canadian Pacific
- Union Pacific
2. Regional Railroads are linehaul
railroads with at least 350 route miles and/or
revenue of between $40 million and the Class I
threshold. In 2003, there were 32 regional railroads.
These railroads typically operate 400 to 640 miles
of road serving a region located in two to four
states. Most regional railroads employ between
75 and 500 workers, although a few have more than
600 employees.
3. Local Linehaul Carriers operate
less than 350 miles and earn less than $40 million
per year. In 2003, there were 304 local linehaul
carriers. They typically perform point-to-point
service, over shot distances. Most operate less
than 50 miles of road (more than 20% operate 15
or fewer miles) and serve a single state.
4. Switching and Terminal Carriers are railroads,
regardless of revenue, that primarily provide
switching and/or terminal services. They perform
pick-up and delivery service within a specific
area for one or more connecting linehaul carriers,
often in exchange for a flat per-car fee. In 2003,
there were 206 such carriers, with the largest
handling hundreds of thousands of carloads per
year and earning tens of millions of dollars in
revenue.
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