Based upon revenue per ton-mile, which is useful
surrogate for railroad rates, on average it cost
29% less to move freight by rail in 2003 than
it did in 1981, and 60% less in inflation-adjusted
dollars. These rate reductions have saved American
consumers $10 billion or more per year. A number
of independent and peer-reviewed studies confirm
that rail rates have fallen sharply since passage
of the Staggers Rail Act of 1980, which partially
deregulated the rail industry. The rail rate performance
since Staggers is in sharp contrast to the period
prior to Staggers, when rates were generally stagnant
in real terms and rising in constant-dollar terms.
More than 90% of U.S. freight railroads, including
all Class I and all but one regional railroads,
are privately-owned and operated. Major U.S. freight
railroads receive no appreciable government funding.
By contrast, U.S. passenger railroads, and both
passenger and freight railroads in nearly every
other country, are heavily subsidized.
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