Ch. 6 Railroads

Covered hopper

A hopper car with a roof designed to transport bulk commodities that need protection from the elements

Equipment -- Types of rail car

- Boxcar - Hopper car - Covered hopper - Flatcar - Refrigerated car - Gondola - Tank car

Current issues (smaller railroads)

- Cost disadvantage - More flexible and adaptable - Usually not unionized - Financial assistance from local and state governments

Why are tracks abandoned

- Early over-expansion, increased competition between modes, and railroad bankruptcies led to track abandonment - Most abandonments involve duplicate track after mergers, both rural branches and mainlines - Some tracks were taken over by smaller railroads - Alternative uses for land

Current issues (technology)

- Important enablers of service and operations

Current issues (energy)

- Large element of variable costs - More energy efficient and less environmental damage than motor carriers

Top 3 commodities hauled by rail

- Miscellaneous mixed shipments (mostly intermodal traffic) - Coal - Chemicals and allied products

Current issues (substance abuse)

- Nature of railroad work (long hours, away from home, and low supervision) - Employee assistance programs (EAPs)

Current issues (customer service)

- Needs to improve

Significance of railroad industry

- Railroads are the largest, safest, and most cost efficient - Owned by private organizations

Intramodal competition

- Refers to competition among carriers within a particular mode - Reduced intramodal competition due to mergers, with limited competition between railroads serving the same geographic region

Intermodal competition

- Refers to the number of transportation modes available to prospective users - The major source of competition in the industry, particularly from the motor carrier industry for non-bulk traffic

Current issues (local drayage)

- Scarce availability - High rates of service - Additional transit time

Hopper car

A freight car with the floor sloping to one or more hinged doors used for discharging bulk materials

Trailer on flatcar (TOFC)

- Transports highway trailers on railroad flatcars - Combines line-haul efficiencies of rail with the flexibility of motor transport - On-time deliveries, regularly scheduled departures, and fuel efficiency major reasons for growth

Container on flatcar (COFC)

- Transports shipping containers on railroad flatcars - Land-bridge operations key component of international trade - Double stack container trains greatly improves rail equipment and train productivity

Gondola

A freight car with a flat bottom, fixed sides, and no top used primarily for hauling bulk commodities

Flatcar

A freight car with no top or sides used primarily for TOFC service, and movements of machinery and building materials

Refrigerated car

A freight car with refrigeration equipment for temperature control

Cost structure

High fixed costs: - Right of way ownerships - Terminal facilities (e.g., freight yards, terminal areas and sidings) - Equipment (especially locomotives) and various types of rolling stock Low variable costs: vary substantially with traffic volume - Labor cost: largest element, multiple labor unions, outdated work rules - Fuel and power costs: second largest, more productive and fuel efficient locomotives Semi-variable costs: include maintenance of rights-of-way structures and equipment - Necessitated by exposure to weather rather than use - Often deferred during financial difficulties

Tank car

Specialized car used for the transport of liquids and gases

Boxcar

Standardized roofed freight car with sliding doors on the side used for general commodities (plain); can be specially modified (equipped) for specialized merchandise, such as automobile parts