THE EFFECTS OF FIXED PLANT AND ROLLING STOCK TECHNOLOGY ON RAILROAD TRACK COSTS

Due to advances in railroad track technology from 1970-2000, U.S. Class 1 Railroad mainline steady-state track costs declined from 20-67%, depending on traffic density. Four main factors governed these track cost productivity improvements: economies of traffic density, technological innovations, network rationalization, and equipment productivity. Disentangling the effects of each of these 4 phenomena presents a difficult challenge, as the effects of technology change are not readily apparent in the historical records. This research employed engineering-based computer modeling techniques in order to attain a more reliable conclusion as to the effects of technology on railroad track costs.