Railroad Economics
Published 14 Jul 2026Every day, thousands of freight cars are delivered by railroads you’ve probably never heard of. These smaller companies, known as shortline railroads, play a critical role in the North American freight network by serving customers that the major Class I railroads often can’t do efficiently.
In this episode of Railroad Economics, we explore why shortline railroads exist, how they make money, what they haul, and why the largest railroads depend on them to complete the “last mile” of freight service. From industrial switching to local customer service, these small railroads are an essential part of the railroad business.
If you’ve ever wondered why there are so many different railroad names on freight trains, this video explains the economics behind it.
November 1, 2026
Why Do Shortline Railroads Exist? | Railroad Economics 19
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