Freight Transportation: Preserving the Rail Service Option

Abstract

In 1990, approximately 101 million tons of freight were hauled by railroads in North Carolina. Because rail service is required by many of the state's basic industries, there is a need to support an adequate and efficient railroad system. Although railroads are crucial to the transportation requirements of many of North Carolina's industries, the state's rail system miles have been shrinking at an alarming rate. Many factors have contributed to the poor financial health of the railroad industry. These factors include poor labor productivity due to inefficient work rules, loss of revenue base to trucking competitors, poor investment decisions, government subsidies of competing modes and government regulation.