Railroad Cost Conditions – Implications for Policy , is the first comprehensive analysis of rail costs in twenty years. Earlier studies found that railroading is a decreasing cost industry -- requiring differential pricing to recover full costs. That finding became the basis for much of the economic regulation embodied in the Staggers Act, and its subsequent implementation.The rail industry has changed dramatically since that time, both in size and organization. This new study revisits the economic issues to assess their relevance today. Specifically, the study examines the present cost structure of the industry, and the resource cost (social welfare) implications of parallel mergers, end-to-end mergers, and “open access” – two or more railroads operating over the same network.
 

The Federal Railroad Administration’s Office of Policy and Program Development sponsored the following document.

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