Length Of Haul Research Articles

Freight activity-travel pattern generation (FAPG) as an enhancement of freight (trip) generation modelling: Methodology and case study

Trip-based models and activity-based models represent two extreme ends of the spectrum of travel demand models in data granularity requirement and ability to reflect the underlying motivation to travel. Modelling of representative freight activity-travel patterns (RFAPs) has the potential to serve as the bridge between these approaches. RFAP clusters represent homogeneous groups of establishments, where utility maximization models predict the probability that an establishment belongs to a particular cluster. However, it is still an open question how to define, interpret and model activity-travel patterns in the context of freight system. To answer this question, this study conducted a large-scale establishment-based freight survey (EBFS) in seven cities of India and resulted in a sample of 432 establishments and their 1613 shipment records. In the first part, this paper proposes a novel approach for identifying RFAPs based on the notion that “activities” that inspire trip-making for passenger is equivalent to “freight orders” in the case of establishments. The cluster analyses revealed the presence of three well separated main clusters and nine less separated nested clusters. Through interpretation and labelling of these RFAPs, freight travel market is categorized into useful segments. The results suggested that a priori industrial classification systems used in trip-based models are overly simplified representations of the complex structure of the travel patterns. In the last part, freight activity-travel pattern generation (FAPG) models are developed which predicts the probability that an establishment exhibits a particular RFAP. The FAPG models developed using these RFAPs could replace the traditional freight generation (FG) and freight trip generation (FTG) models due to its ability to convert the assigned activity-patterns to trips or tonnage. For example, FAPG model suggest that at an employment level of 120, there is a 56% probability that establishments will exhibit MDV-HFMH (medium duty vehicles - high frequency medium haul) pattern which, in turn, implies that FP = 1630 tons/year; shipment frequency, i.e., FTP = 8 trips/week; length of haul = 240.6 km and commercial vehicle type choice = MDV. Thus, FAPG models can present an enhanced representation of freight flows since both FG and FTG are jointly modeled in this approach. That is, the best features of both commodity-based modelling (i.e., ability to capture the fundamental mechanism that drives freight demand) and vehicle-based modelling (i.e., ability to capture freight traffic implications) are included in FAPG models. The study findings are expected to assist in identifying the variations in establishments’ preferences so that it is possible to identify the type of transport supply improvements that the establishments will respond to accurately, and thus prioritize the infrastructure investments. Moreover, the discussions on these findings are expected to improve the behavioral and spatial foundations of traditional freight models.

Exploring variation of length of haul and associated freight transport emission of Indian establishments: A survival analysis approach

Rise in length of haul (LOH) of business establishments and the associated greenhouse gas (GHG) emissions are a major concern for planners and policymakers, require extensive investigation. This paper quantifies various factors like business age, gross floor area, employment, the build environment variable on LOH, and associated GHG emission using EBFS data. Survival analysis has been utilized for the analysis. The aggregated LOH model provides a comparative analysis of LOH across different industry sectors and demonstrate that gross floor area, business age, and employment are positively associated with LOH. Subsequently, disaggregated LOH models are reveal the influencing parameter of LOH of a particular industry category. Lastly, GHG models show the influence of fleet ownership level on GHG emissions across different industry sectors. The outcomes will be beneficial for planners and policymakers to develop industry-specific regulations on land use, employment restructuring, and subsidies for owning different types of commercial vehicles.

Expenditure-based segmentation of freight travel markets: Identifying the determinants of freight transport expenditure for developing marketing strategies

There is a substantial body of literature relating to freight transport sector's economic impact at the macro-level, but less is known about how freight demand gets translated to an establishment's expenditures at the micro-level. This paper addresses this research gap by collecting data about expenditure patterns of establishments and applying market segmentation technique based on finite mixture models. Three latent segments - heavy spenders, medium spenders and light spenders – and their associated profiles are identified. The results indicate that significant differences exist between the three expenditure-based segments of establishments in terms of spending patterns, business size indicators, locational characteristics and freight travel patterns. The heavy spenders tend to be strongly influenced by employment, gross-floor area, business age and fleet ownership levels. The length of haul and truck type choice have a strong incremental effect on the volume of expenditures and larger shipment sizes are associated with expenditure reduction due to economies of scale. The diverging characteristics of expenditure segments emphasizes the need of the logistics providers to “identify their markets” and planners to “identify how demand translates to transport expenditures”. The overall conclusion is that segmenting establishments based on unobservable heterogeneity with respect to their freight transport expenditure is preferable and more informative than treating them as one homogeneous group. The study findings provide important information that planners and logistics providers can utilize in developing effective logistics plans and marketing strategies.

Assessing sustainable supply chain enablers using total interpretive structural modeling approach and fuzzy-MICMAC analysis

PurposeThe purpose of this paper is to model the enablers of an integrated logistics. The integration is accounted for incorporating sustainability, thereby aiming in its theory building. Existing models have focused on enablers of sustainable supply chain independently which lacks a holistic view in understanding the integrated logistics for sustainable supply chain.Design/methodology/approachAn extensive literature review, expert opinion from both industry and academia based on questionnaire survey, is conducted to find the relevant enablers. The modeling of these enablers is done using total interpretive structural modeling (TISM). Finally, TISM along with its respective fuzzy-matriced impact croises multiplication applique (fuzzy-MICMAC) analysis is depicted.FindingsThe result of the survey and TISM model with its respective fuzzy-MICMAC has been used to evolve the mutual relationships among the important enablers of integrated logistics of consumer durables. The strategic factors obtained from TISM are integration and collaboration in the supply chain, vehicle type, and capacity; reduction in average length of haul; and real-time information system. Route selection and scheduling, reduction of fuel consumption, customer relationship management, green technology, cost reduction, etc., are some of the operational factors. Sustainable environment performance is obtained as the performance factor. Fuzzy-MICMAC is more responsive than the traditional MICMAC analysis.Research limitations/implicationsThe study has limitation for the development of a conceptual framework for integrated logistics in uncertain environments. So it can be extended by combining soft computing methodologies. There is a lack of mathematical quantification of the proposed model where the enablers of sustainability can be measured.Practical implicationsThe study on integrated logistics for sustainable supply chain is itself a new area to be explored, as very few studies on this relevant topic exist. The research concentrates on TISM for the integrated logistics and the movement of consumer durables through different distribution channels of a supply chain. The study has implications for practitioners, academicians, and policy makers. For practitioners, it provides a list of strategic factors, operational factors, and performance factors. For academicians, this methodology can be opted to conduct an exploratory study by identifying the essential enablers. For policy makers, the regulations can be developed using the above model.Originality/valueIt is an effort to model the important enablers and establish sustainability in integrated logistics of consumer durables.

PROSPECTS OF THE PRIVATE LOCOMOTIVES USAGE FOR GOODS TRAFFIC IN THE DIRECTION OF SEA PORTS

Purpose. At the present time, Ukraine's mainline railway transport is entirely in state ownership. Ukraine has undertaken to implement the European Union Directives providing of non-discriminatory access to the railway infrastructure of independent carriers. A considerable quantity of options significantly affects the working conditions of carriers that do not depend on Ukrzaliznytsia. One of the tasks that arises when performing transportation by independent carriers is the organization of private locomotives operation and their servicing by engine crews. The purpose of the article is to evaluate the technical characteristic of the private locomotives usage in order to perform goods traffic in the direction of sea ports. Methodology. The researches were carried out on the basis of methods for organizing the operational work of railways and methods of traction calculations. Findings. The paper highlights the problem of goods traffic organization to seaports by independent carriers. It determines the requirements for equipment for diesel locomotives and electric locomotives depending on the distance of transportation. Permissible distances that can be served by engine crews in performing the requirements for the duration of their continuous operation were also determined. Schemes of infrastructure objects location for the locomotives and engine crews operation have been developed. It was established that diesel locomotives of independent carriers will be able to serve transportation between loading and unloading stations up to 822 km, and electric locomotives up to 1000 km with the construction of the main part of the locomotive infrastructure at the port station. The performed calculations show the potential coverage of rail transportation to sea ports by independent carriers with the use of its own locomotive infrastructure. To define more exactly the haul length of train servicing by locomotives and locomotives by engine crews, it is necessary to perform additional calculations based on detailed service section profiles. Originality. Access circuitry of locomotives and engine crews of independent carriers when servicing sea ports by them were obtained. Practical value. The results of the research allow evaluating the needs in the locomotive infrastructure that arise at opening of the rail market for independent carriers.

ПЕРСПЕКТИВЫ УПЛОТНЕННОЙ ПОГРУЗКИ АВТОМОБИЛЕЙ В ЖЕЛЕЗНОДОРОЖНЫЕ ВАГОНЫ

Motor car competitiveness in markets distant from motor car manufacturing area depends on the value of logistics outgoings. A motor car compact loading in special railroad cars allows reducing considerably outgoings mentioned. According to a common loading order a railroad car capacity within the limits of extreme dimensions throughout the height is not completely used as it exceeds considerably a total height of two motor cars. In this connection it is possible to compact a loading layout only through the location of a motor car rear part of a front motor car under the engine jacket of it following motor car at their inclined fixation and longitudinal orientation. It allows stowing additionally two motor cars in every railroad car. The motor cars of some models cannot be stowed in two rows in one deck. It is caused with that a total width of two motor cars exceeds extreme dimensions of a railroad car allowed for railway operations. The problem could be solved, if motor car loading in every deck is carried out on load floorings the surfaces of which have a tilt from the center of a railroad car to its side walls. At the inclination of about 100 the projection on a horizontal plane of maximum cross dimension of a motor car on a level of passenger seats decreases by 25 mm. Space saving makes 50 mm on two parallel rows. As a result a two-row rail freightage of motor cars becomes possible in every motor car deck with the width 1680 mm common for products of Volzhsky Motor Car Works. At the expense of this way a length of haul economically feasible increases considerably.

Establishing Values of Time for Freight Trucks for Better Understanding of Impact of Toll Policies

Many freight models have considered only travel time as the path building criterion, but truck drivers are sensitive to both time and cost when choosing routes. In addition, a key variable in understanding a driver's choice when in the presence of tolls is the value of a driver's time. Research has suggested that values of time (VOT) vary considerably by the parameters of the haul, principally the type of truck and the commodity carried. Behavioral methods of ascertaining passenger VOT are limited by the variety of VOT that can be conveniently obtained, while the number of commodities and truck types to carry them are large. Fundamentally, truck drivers attempt to minimize costs, although they may do so imperfectly. This paper uses a policy-sensitive truck cost model to obtain VOT and tests those on a full-scale simulation. A highly-detailed cost model of trucking was previously developed by the research team for the purposes of policy analysis. This cost model originally followed industry practice by basing most cost components on the length of haul, which would imply that truckers would mostly minimize distance when choosing routes. However, many cost components are more logically related to the time duration of the haul. This leads to two possible hypotheses, time- and distance-based costs and distance-based costs, each resulting in different VOT. VOT were tested by simulating truck traffic in a 10-state region that included numerous toll facilities. Comparisons of the simulation results to actual traffic data from automatic traffic recorder stations from the State of Ohio and from counts provided by the Ohio Turnpike Authority suggest that VOT more closely follow the time- and distance-based cost hypothesis.

Railroad Operational Performance in the United States

This paper examines the effects of increased car weights, train size, and distance on railroad operational performance, which is measured in revenue ton-miles per train hour. A statistical model is estimated from Class I data that explains most of the variation in this index, while controlling for commodity and fixed network effects. The results suggest that length of haul, net load, and train size contributed significantly to performance gains from 1987 to 2006. However, train miles per track mile increased by 89% during the same period, resulting in line and yard congestion.

Investigating relationships between road freight transport, facility location, logistics management and urban form

This paper examines road freight transport activity and its relationship with facility location, logistics management and urban form through an analysis of 14 selected urban areas in the UK. Improved understanding of this relationship will assist planners when making transport and land use decisions. The findings suggest that several geographical, spatial and land use factors have important influences on freight activity in urban areas. Commercial and industrial land use patterns affect the types and quantities of goods produced, consumed, and hence the total quantity of freight transport handled. This also influences the distances over which goods are moved and by what specific mode. There has been relatively low growth in warehousing in many of the selected areas over the last decade compared to the national average as well suburbanisation of warehousing in some locations. This affects the origin and destination of journeys visiting these facilities and typically increases the distance of such journeys. A greater proportion of road freight has been shown to be lifted on internal journeys in large urban areas than in smaller ones. Journeys within urban areas have been shown to be less efficient than journeys to and from the urban area in the 14 locations studied due to the much smaller average vehicle carrying capacities and lower lading factors for journeys within urban areas. The length of haul on journeys to and from urban areas studied was found to be greatest for those areas with a major seaport and/or which were geographically remote. This affects the road freight transport intensity of goods transport journeys.

The relationship between measures of operations efficiency and financial success of truckload motor carriers: An empirical analysis

This research paper examines the statistical relationship between clay to day performance and effi­ ciency measures and financial performance in the motor carrier industry. Key findings are that carriers with more miles per tractor per year, a larger average length of haul, more revenue per mile, and more revenue per tractor per week tend to perform better financially as measured in three separate models by operating ratio, return on assets, or return on equity. Unexpectedly, for the eight publicly traded carriers included in the analysis, there was a negative relationship between empty mile percentage and financial performance, indicating that carriers with a higher empty mile percentage have better financial perfor­ mance. Possible explanations for these counterintuitive results could be due to a focus on better cus­ tomer service or driver satisfaction causing slight increases in empty miles. Therefore the increased costs resulting from empty miles could be offset by higher revenue or decreased costs in other aspects of the operation. These results suggest that managers should focus not on minimizing empty miles but rather on keeping them within an acceptable range.

Employing a Novel Series Optical Carrier Suppressed and Separation Technology in DWDM Transmission System

In this paper, we propose and demonstrate a novel type for Serial Optical Carrier Suppressed and Separation (SOCSS) structure in Dense Wavelength Division Multiplexing (DWDM) transmission system. The proposed SOCSS technology in DWDM transmission system, the laser source of transmitter using SOCSS technology that the original 20 laser sources to spread 80 channels Dense Wavelength Division Multiplexing (DWDM) wavelength and channel spacing 0.4 nm. The proposed 80 channels of SOCSS technology that power flatness ±0.38 dB and using Single-mode Fiber (SMF) and Reverse Dispersion Fiber (RDF) for transmission scheme, combined Raman Amplifier (RA) in C and L band wavelength ranges. The proposed SOCSS technology in 80×10 Gbit/s DWDM scheme using Non-return to Zero (NRZ) modulation to transmission 20 spans total 1540-km long―haul length which can maintain Q factor should be greater than 6 dB excellent transmission performance.

Estimating gear efficiency in a combined acoustic and trawl survey, with reference to the spatial distribution of demersal fish

Abstract Doray, M., Mahévas, S., and Trenkel, V. M. 2010. Estimating gear efficiency in a combined acoustic and trawl survey, with reference to the spatial distribution of demersal fish. – ICES Journal of Marine Science, 67: 668–676. Few analyses have been performed to estimate the efficiency of trawls targeting demersal fish using the ratio of catches and acoustic densities. In summer 2006, acoustic and fishing data were collected simultaneously over 3 d by three fishing vessels equipped with identical pelagic trawls in the Bay of Biscay. Variography identified moderate spatial autocorrelation in the acoustic backscatter at a mean scale of 3 km, a scale slightly smaller than the mean haul length (3.5 km), indicating that fish horizontal availability did not influence trawl efficiency. Acoustic backscattering densities expressed as nautical area scattering coefficients (NASCs) recorded in the trawled layer were compared with equivalent NASC (ENASC) values calculated from the species composition in the trawl, fish-length structure, and available relationships between target strength and fish length. Estimates of trawl efficiency for hake-dominated trawls were computed as the slopes of the relationships ENASC = 0.008 NASC and ENASC = 0.18 NASC0.31 for trawls made by day and night, respectively. For the whole demersal community, the relationships were ENASC = 0.022 NASC and ENASC = 0.17 NASC0.33 for trawls made by day and night, respectively.

Decomposing road freight energy use in the United Kingdom

Applying the techniques of decomposition analysis we estimate the relative contribution of ten variables (termed ‘key ratios’) plus GDP to the change in UK road freight energy use over the period 1989–2004 inclusive. The results are best interpreted as an estimate of the percentage growth in energy consumption that would have resulted from the change in the relevant factor (e.g. length of haul) had the other factors remained unchanged. The results demonstrate that the main factor contributing to the decoupling of UK road freight energy consumption from GDP was the decline in the value of domestically manufactured goods relative to GDP. Over the period 1989–2004 this largely offset the effect of increases in GDP on road freight energy consumption. While the decline in domestic manufacturing was to some extent displaced by increases in imports, the net effect of these supply factors, together with shifts in the commodity mix, has been to reduce UK road freight energy consumption by 30.1%. The net effect on global carbon dioxide (CO 2) emissions is likely to be somewhat less beneficial, since many freight movements associated with the manufacture of imported goods have simply been displaced to other countries.

A fuzzy logic model for competitive assessment of airline service quality

The purpose of this paper is to develop an operational performance model with direct applicability to the post-9/11 US airline industry. The premise is to come as close as possible to ideal performance goals for five operational parameters i.e., on-time arrival, turnaround time, cascade delay percentage, taxi-out time, and taxi in time, based on length of haul. Since airline-operating performance depends upon several factors that cannot be described in crisp terms, these data fit within fuzzy logic set descriptors and theory. A database of numerical scores is transformed into a fuzzy database, and then fuzzy probabilities are used to assess the belief that the scores fall within the desired range for each criterion. Industry data are used to compare individual airline carrier performance measurements to anticipated industry operational goals. Application potential for the model is not restricted, however, to this industry.

Oregon Places: Forty-One Cents: The Pendleton—Pilot Rock Stage Line

OREGON PLACES Forty-One Cents The Pendleton-PilotRock StageLine byJamesJ. Kopp AQUARTER, A DIME, A NICKEL, a penny. One coin from each of the slots in the cash register drawer. Fast, efficient, and simple enough that many of thosewho had topay itcould retrieve the coins without looking. Forty-one cents. For nearly three decades, from the early 1950s through the 1970s,forty-one cents was the charge for shipping as much as thirtypounds on the freight linebetween Pendleton and Pilot Rock, two easternOregon towns separated by fifteenmiles of wheat fields, a bowl ing alley, a grange hall, a reservoir, a golf course, some sagebrush, and, on many days, a strongwest wind. Over those years, forty-one cents repre sented the simple and sincere service that characterized this small business and the families that operated it. And in the twentyplus years since the last package was transported between Pendleton and Pilot Rock for that amount, forty-one cents continues to be remembered as the symbol of the Pendleton-Pilot Rock Stage Line. It is also the basis for family lore,because the storyof thePendleton-Pilot Rock Stage line isasmuch about family as it is about business. Family-run "short-haul carriers," such as the Pendleton-Pilot Rock Stage Line operated throughout the state formost of the twentieth cen tury,with routes from Coos Bay to Powers; fromBaker toHalfway; from The Dalles to Shaniko, Arlington, and Heppner; and from Portland to many different cities and towns. One of the few documents that provides a snapshot of these common carriers is a report issued in 1969 by the Trans port and Logistics Research Center of the College of Business Adminis tration at the University of Oregon. The forty-eight-page report, Oregon Short-Haul Regularly Scheduled Com mon Carrier Trucking Characteristics, examines some of the reasons for the severefinancial problems encountered by the short-haul carriers. Thirty-two ? 2oo6Oregon Historical Society Kopp, The Pendleton-Pilot Rock Stage Line 607 short-haul carriers are included in the study, fourteen of them with fewer than ten employees in 1968.Of those, fivewere included inClass III of the Oregon Public Utility Commission Classification, with operating revenues of less then $50,000 ? Halfway Garage & Sales, Pendleton-Heppner Freight Line, Pendleton-Pilot Rock Stage Line, Sandy Truck Line, and Tigard-Sher wood Truck Service.1 The average length of haul for the short-haul carriers was 59miles (one way), with the longest distance being 201miles and the shortest being 15miles. The 15-mile trekwas that covered by the Pendleton-Pilot Rock Stage Line. IT WAS IN1926 THATMY FATHER, Bill Kopp, was asked todrive a truck for a friend ofthe family,Evan Cameron, who ran a stage line between Pendle ton and Pilot Rock for freightand pas sengers. When Bill agreed to drive the Model T truck for a few days, neither he nor anyone else imagined that he would be operating the freight line for the next sixty years. Cameron was at tending a convention inPortland and injured his legwhile on the trip, somy father's short-term commitment was extended. The injurydid not heal in a timelyfashion, and Cameron askedmy father to join him in a partnership in the company. Soon, Cameron decided to get out of the business altogether and offered the company to Bill. In the agreement between Evan Cameron andWilliam J. Kopp, dated October 22, 1926,my father purchased "the Buss [sic] line between Pendleton, Oregon, and Pilot Rock, Oregon, for the sum of $600.00." He also agreed "to carry theUnited States Mail, on said Buss line From Pendleton, Oregon, to Pilot Rock, Oregon, and From Pilot Rock, Oregon, to Pendleton, Oregon." The operation of both the freight and mail component and the passenger business, then consisting of a seven passenger Paige touring car,was more than a one-person operation, so my father asked his older brother Joe to join him in the business. In late 1926, the Kopp brothers took over ownership and management of the Pendleton-Pilot Stage Line and were issued permit number 83 from the Public Utility Commission.2 Bill and his brother JoeKopp were the sons of Franz (Frank) Kopp (1858-1930) and Katharina Adams Kopp (1864-1951...

Southern Ocean deep-sea isopod species richness (Crustacea, Malacostraca): influences of depth, latitude and longitude

We examined deep-sea epibenthic sledge isopod data from the Atlantic sector of the Southern Ocean (SO) (depth range=742–5,191 m). Samples were taken during the expeditions EASIZ II (ANT XV-3) in 1998 and ANDEEP I and II (ANT XIX3/4) in 2002. A total of 471 isopod species were recorded from 28 sites. The species richness of the epibenthic sledge samples was highly variable (6–82 species). Species richness was highest at site 131-3 in 3,053 m depth in the north-eastern Weddell Sea. The highest numbers of species were sampled in the middle depth range and lower species richness was found in the shallower and deeper parts of the study area. Depth is suggested to explain isopod species richness better than both latitude and longitude. Between 58°S and 65°S, the number of species ranged from 9 to 82 (mean=35.9). Further south in the Weddell Sea, between 73°S and 74°S, species richness was lower and the number of species ranged from 6 to 35 (mean=19.2). With regard to longitude, the highest species richness (up to 82 species) was found between 50°W and 60°W in the area of the South Shetland Islands and around the Antarctic Peninsula, while numbers did not exceed 50 species in the eastern Weddell Sea. The haul length, ranging from 807 to 6,464 m, was positively correlated with depth; however, there was no linear relationship between haul length and species richness. We therefore suggest that depth was the most important factor explaining isopod species richness. However, only 28 sites were visited and the statistical power is thus limited. Sampling in the deep sea is expensive and time consuming and as yet this is the best isopod data set available from the Atlantic sector of the SO. Future expeditions are therefore important to better explain the current patterns of benthic diversity in Antarctica.

FORECASTING OF RAILWAY FREIGHT VOLUME: APPROACH OF ESTONIAN RAILWAY TO ARISE EFFICIENCY

The local railroad was substantially deregulated and prepared for privatization by Estonian government in 90's. Changes in commodity mix, length of haul, shipment size, loading weight, equipment ownership, railroad costs, competition from other modes, and demand for railroad transportation have all played a significant role. This paper introduces the importance of forecasting a railway freight volume using the methodology of international knowledge.

Measuring technological change in the U.S. motor carrier industry

This paper re-examines the impact of deregulation and technological change on U.S. motor carrier costs for the period 1976–1987. A truncated, third-order translog cost function, developed by Stevenson (1980) allows us to decompose technological change into three components: input bias, output bias, and characteristics bias. We examine the source of these biases and use the model to test the Schumpeter hypothesis, which asserts that large firms innovate at a faster rate than small firms. We show that technological change has been labor-saving and purchased capital-using, and that these input biases were induced by changes in output level. The increase in the capital cost share and the decrease in fuel cost share are attributed to deregulation. Over time, the LTL sector of the motor carrier industry has become more capital intensive, resulting in even higher entry barriers. The output bias of technological change on the representative firm is not significant and our results do not support the Schumpeter hypothesis in the LTL sector of the motor carrier industry. Technological change has increased the economies of larger shipment size over time, but has not significantly altered the impact of average load, average length of haul, or insurance per ton-mile on costs over time. Also we find that deregulation, through its negative impact on technological change, has resulted in higher industry costs.

Changes in railroad rates since the Staggers Act

The railroad industry was substantially deregulated by the Staggers Act in 1980. While railroad rates, as measured by industry-wide revenue per ton-mile, declined since that time, it is unclear why rates declined. Changes in commodity mix, length of haul, shipment size, lading weight, equipment ownership, railroad costs, competition from other modes, and demand for railroad transportation have all played some role. This paper assesses the importance of each of these factors in explaining the decline in railroad rates since the Staggers Act. After controlling for changes in commodity mix, the analysis indicates that shippers received nearly $28 billion per year in rate reductions as a result of changes that took place between 1982 and 1996. The reduction in productivity-adjusted railroad costs explains almost 90% of the reduction in railroad rates, with other factors playing much lesser roles.

Determinants of profitability of grain dependent short line railroads

Abstract This paper is the first empirical analysis of U.S. short line railroad profitability using primary cost and revenue data. Models of short line profitability are developed using Earnings Before Interest and Taxes (EBIT) as the profitability measure. The sample includes 34 short lines operating in 17 states in the midwest region of the U.S. for the fiscal years 1986–1995. The models are estimated by OLS regression and explain up to 75% of the variation in short line profitability. Nearly all the explanatory variables have the theoretically expected sign and are statistically significant. The variable DENS (number of carloads per mile of main-line track) is the most important influence on EBIT. However, several other variables are identified as important including management ability to control expenses, type of short line ownership, size and ownership of the short line’s network, composition of traffic, and length of haul. The empirical results of the study indicate that a short line operating at the mean values of the explanatory variables is likely to only break even. About 25% of the sample short lines have a high probability of requiring government assistance to continue operating.