The $48 billion railroad industry transports more than 40% of the country's freight. It covers 140,000 miles and moves more freight than any other rail network in the world. Railroads transport almost 70% of all automobiles and 30% of all grains produced in the US. About 65% of the nation's coal is transported via rail.
The aggressive expansion during last 8 years may now turn out to be a short-term headache.Especailly in the Atlantic coasts of the US and in the NAFTA zone btw the US and Mexico, railroads may find it difficult to fill trucks. Three railroads-CSX Corporation, Union Pacific and Kansas City Southern may have to wait longer for these corridors to pay back. Things are not rosy for Midwestern railroads either. They depend on coal freight and exports for revenues. In 2009, coal output is expected to slip 2.6% to 1,148 million. Further, lower global consumption will pare US coal exprts 13% to 71.9 million.
Railroads companies are now one of the most financially sound entities in the US. Falling fuel costs coupled with lower labor costs should provide some succor to railroads.