Short line railroads may be small in scale, but they are mighty in impact. Operating nearly 30% of the nation’s freight rail network, these local and regional railroads provide vital first-mile and last-mile service to thousands of rural and industrial communities across America. A new report by Hitarth Joshi and Colin Gibson highlights how short lines like Pennsylvania Northeastern Railroad (PN) are crucial to economic vitality—and what must be done to secure their future.
Why Short Lines Matter
Short line railroads operate over 47,500 miles of track and support nearly 10,000 customers across agriculture, energy, chemicals, manufacturing, and more. They originate one-third of rail loads and provide vital connectivity to the larger Class I railroad network. For regions underserved by trucking or major rail lines, short lines are often the only affordable, reliable option.
Challenges They Face
Despite their importance, short lines face major hurdles:
- Aging Infrastructure: Many run on outdated tracks and bridges not suitable for modern railcars.
- Limited Capital: Profit margins are tight, making investment in upgrades difficult without public support.
- Labor Shortages: Rural operations struggle to recruit and retain skilled rail workers.
- Technological Gaps: Many lack modern tracking, scheduling, and data systems.
- Competition from Trucks: Faster and more flexible, trucking continues to lure shippers away from rail.
Strategies for Success
To overcome these barriers, the study offers several key recommendations:
- Adopt Modern Technology: Tools like RAILPulse and RFID can boost visibility, reduce demurrage charges, and enhance logistics integration.
- Leverage Federal and State Grants: Programs like CRISI and the Infrastructure Investment and Jobs Act (IIJA) provide billions in rail funding for safety and modernization.
- Build Workforce Pipelines: Summer camps, college degrees, and training partnerships are key to replenishing the rail talent pool.
- Embrace Intermodal Partnerships: Collaborating with trucking and logistics hubs can make short lines more competitive in last-mile delivery.
Real-World Success
Examples like Genesee & Wyoming’s centralized operations center and California Northern Railroad’s low-emission upgrades show that investment pays off—improving service, reducing costs, and enhancing environmental performance.
Conclusion
Short line railroads are essential to America’s freight network, especially in underserved regions. With strategic investment in technology, infrastructure, and workforce development, these railroads can continue to deliver economic and environmental benefits for decades to come. Lansdale Warehouse and other logistics leaders stand to gain by embracing the short line advantage.
This information is the result of a Spring 2025 Penn State student project in collaboration with Lansdale Warehouse. Download the full report below (947KB):
Comments are closed