The structure of the US freight railway industry has changed dramatically since economic regulation of the industry was downsized after 1975. The Class I sector of the industry has become highly concentrated. Paradoxically, the increase in concentration has been paralleled by a significant and almost continuous decline in rates, which poses potentially deleterious consequences for the recapitalization of rail infrastructure. Additionally, financial practices in some mergers have had negative impact on the ability of carriers to meet public service needs. Possible remedies for these conditions are presented.
All Science Journal Classification (ASJC) codes
- Business and International Management
- Sociology and Political Science
- Management, Monitoring, Policy and Law