Short Line & Regional Railroads Overview

Railroads represent the most economical, energy-efficient, and environmentally friendly mode of freight transportation. Small railroads bring efficient nationwide rail service to thousands of communities, making them a vital link in North America’s rail transportation infrastructure.

Approximately 550 short line and regional freight railroads exist in North America. By succeeding where others have failed, these businesses have saved thousands of miles of rail lines from abandonment, as well as countless rail, and rail-dependent, jobs in predominantly rural areas.

Together Class II and III railroads interchange 25% of rail freight traffic on Class I railroads.  Today, non-Class I railroads own, maintain, and operate 29% of the rail mileage in the United States, an amount equal to 40,000 miles of track. Found in 49 states, short lines employ 11% of all railroad workers and generate 8% of all rail freight revenue.

Short lines haul a vast array of commodities, including: intermodal trailers and containers, coal, farm products, primary metals, metallic ores, paper, chemicals, lumber, food, building products (including stone, clay, and glass), and minerals. In total, short lines transport 11 million cars each year.

Short lines take many forms. Some operate as privately owned companies, while others are publicly owned or grouped under holding companies. A number of short lines are controlled by the government, and yet others are subsidiaries of larger corporations.

As the rail network nears capacity in some areas of the country, small railroads can help bypass congested areas to keep freight moving. Each year, short line and regional railroads haul enough carloads to divert 26 million trucks from the nation’s highways. This reduction in highway traffic lowers pavement damage costs by an estimated $1.2 billion.

The United States’ short line and regional railroad infrastructure is an underutilized asset that offers opportunities for future growth.