Nearly every business has to change how they operate when the economy slows down. How do railroads typically cope with downward cycles?
The worst part is laying off help. Other than that, consolidating trains, mothballing cars and locomotives, not renewing lease agreements on power, postponing purchase of new power while idling and even scrapping or selling old, postponing capilal expenditures, even reducing the fanciness of business car meals.
Because the business is cyclical, are there set procedures already worked out at each railroad: “Let’s see…here’s our current projections, looks like it’s time to implement plan #29”?
There is a discussion on another thread of (IIRC) 6 locomotives being built by EMD for the BNSF being diverted to the Aussies. That looks like an example of stretching new equipment deliveries out in response to a slowing business cycle. Apparently, the purchasing company was really power short, so it is even conceivable BNSF profited from the deal.
From what I’ve read, some RR’s decrease their track maintenance spending. Southern Rwy. had a pretty intensive track maintenance program, and during economic downturns they would slow down the maintenance spending.