In John Armstrong’s book, Track Planning for Realistic Operation, he mentions that industries producing large numbers of carloads that are located several miles from the mainline would have considered creating their own common carrier shortline to handle the traffic instead of just having a 20 mile private spur off the primary railroad. The reason being that the short line would be entitled to a significant amount of the revenue generated by the traffic. The downside being held as a common carrier.
John’s book was originally published c. 1963, so my question is does his comment still hold true post Stagger’s Act / ICC? Are the costs and benefits/issues still the same?
I’m not smart enough on any of the finances to make an answer to the question, but I will mention a couple of other options out there, from the local area. One that seems common today is the local governement quasi corporation that owns & maintains the tracks for the overall local economy and then leases the railroad to an operator. The other being the industry contracts with the primary railroad to operate the line under some sort of arrangement.
Just two are Kentucky-based RJ Corman that you will see at a railroad crossing when you least expect it, and; the Reading Northern which is the surviving-successor to the Reading. Each of these two railroads also have “vintage” excursion train divisions.
It is interesting how at first glance these Class III railroads look like Class I railroads.
I’m sure there were industries that operated there own railroad…
However…
The Stagger’s Act opens up a whole new discussion since most “modern” short lines operates over former branch line,urban industrial branch lines that was spun off by major railroads to regional Port Authorities which in turn lease it to a short line operator,or the spun off track was bought/lease by a short line operator…
A word about short lines…Short lines need to keep a steady customer base in order to survive…Those that depends on 1 customer is living on borrowed time.
Now even today they are industries that own their short line one that comes readily to miind is the Old Augusta owned by GP Cellulose, LLC…The road is 2.5 miles long and was started in 1983.
The extent former PE line in my neck of the woods is simply known as the UP Torrance industrial lead, I suppose due to its termination point, never mind it begins near downtown LA, a good 20 miles to the east. The exciting part is an independent operator who’s renewed lease of former PE lines in the harbor area includes the option of restoring the Torrance cutoff, abandoned by the PE in 1940, UP is said to be in favor of the project.
I remember reading once that a railroad incurs most of its costs in the pickup and delivery of cars. When interurbans came on the scene, many railroads saw them as competitors, but Chicago Great Western recognized that the interurbans were going after marginal local business, and actually encouraged them as feeders for its long-haul traffic.
A few years ago, a guy holding forth at the LHS said that one of the large systems operating in my area (Chicago) was actually discouraging carload traffic from local businesses. I am not sure how true this is, but if the first sentence in my post is still true, then it seems the large systems would, if they could, spin off local traffic.
Dan,Some class 1s doesn’t want 1-2 car a week business and in some cases the railroad recommends piggypack service instead of boxcar-a lot of railfans isn’t aware of this approach.
However,some classe 1s and short lines are very aggressive and go after all lose car loads.