SHORT-LINE RAILROADS PERFORMANCE

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.