THE AMERICAN RAILROAD INDUSTRY: TWENTY YEARS AFTER STAGGERS

This paper is the second in a 3-part series on American freight transportation 20 years after deregulation. Air cargo deregulation has been a success story, since both carriers and shippers are generally satisfied with its results. Conversely, deregulation of the railroad industry, the topic of this paper, is considerably more controversial. While railroads have exploited the relaxed rules since 1980, their customers (shippers) are complaining about the lack of competition, high rates, and poor service. In response, Congress is considering re-regulation of the railroad industry. The history and major developments of railroad deregulation are traced and, current and future issues and policy matters are examined.