Financial and regulatory developments since 1970 have encouraged forma
tion of many short-fine railroads. This trend continues as Class I rai
lroad mileage declines. While short-lines are important to some rural
and small-community based shippers, many short-lines are less that pro
fitable. Shipper groups and economic development interests are likely
to put increasing pressure on states to financially assist short-line
development and operation. This article reports on how some shippers v
alue short-line rail service compared to alternatives - information to
assist transportation policy makers evaluating the feasibility of sta
te assistance for short-line railroads.