REGIONAL AND SHORT LINE RAILROADS IN THE UNITED STATES

Abstract

Since the Staggers Act of 1980, the number of nonclass I freight railroads has grown by about 260%, and there are now 574 nonclass I freight hauling railroads in the United States. While nonclass I rail holding companies (companies owning multiple nonclass I freight railroads) existed prior to Staggers, the existence of such holding companies proliferated post-Staggers, particularly in the 1990s. Today 341 (59%) of the nonclass I freight railroads and 54.6% of the nonclass I mileage are owned/controlled by 81 holding companies. The buying and selling activity in this market is very active. This article documents this growth and notes the participants in this dynamic industry. In addition, the changing ownership of individually owned nonclass I freight railroads is also documented and problems faced by nonclass I freight railroads are discussed.