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The US Railroad Industry Is Highly Concentrated As the 50 Largest Companies Hold Nearly 100 Percent of the Market

Posted on: Wednesday, 27 June 2007, 12:01 CDT

Research and Markets (http://www.researchandmarkets.com/reports/c60926) has announced the addition of Railroads - Industry Profile to their offering.

Covering over 175 industries and updated every 90 days, the First Research Industry Profiles do the "heavy lifting" for you saving your sales team valuable research time, enhancing client communications and giving you the competitive edge to win more business.

Easy-to-use and up-to-date, the Industry Profiles provide you with the industry research necessary to stay on top of constant changes in select industries.

The First Research profiles help target your products and services directly to prospects. The Industry Profiles provide the information and understanding you need to engage new prospects during the sales process, deepen customer relationships and strengthen your own bottom line.

Brief Excerpt from Industry Overview Chapter:

The rail transportation industry includes about 350 companies with combined annual revenue of $50 billion. Major cargo companies include Union Pacific, BNSF Railway, and Norfolk Southern. Amtrak is the sole nationwide passenger rail service. The industry is highly concentrated: the 50 largest companies hold nearly 100 percent of the market.

The government classifies freight railroads based on annual revenues. Seven line-haul Class I railroads operate nationwide on high-density, intercity traffic lanes. Class I carriers comprise just 1 percent of freight railroads but account for over 90 percent of the industry revenue. The 30 regional Class II railroads typically operate routes of about 500 miles within two to four states. Over 300 short-line Class III railroads haul cargo 250 or fewer miles on local rail lines. Amtrak is included in this industry, but commuter, switching and terminal, and tourist railroads are not.

COMPETITIVE LANDSCAPE

Demand is driven by consumer spending and fuel prices, as high gas prices shift freight transport from trucks to rail. The profitability of individual companies depends on efficient operations and controlling maintenance expenses. Large companies have advantages in owning substantial miles of railroad track connecting major cities. Small companies can compete effectively by servicing local routes and transporting a wide variety of commodities. The industry is highly capital-intensive: average annual revenue per worker for a typical Class I railroad is $250,000.

Railroads compete with trucks, vessels and barges, ...

Industry Overview

Quarterly Industry Update

Business Challenges

Trends AND Opportunities

Call Preparation Questions

Financial Information

Website and Media Links

Glossary of Acronyms

For more information visit http://www.researchandmarkets.com/reports/c60926

Source: First Research

Source: Business Wire

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