RAILROAD TRANSPORTATION

Section 6.40.2.5
Encyclopedia of Life Support Systems

By

Carl D. Martland
Senior Research Associate & Lecturer
Department of Civil & Environmental Engineering
Room 1-153
Massachusetts Institute of Technology
Cambridge, MA 02139
Martland@mit.edu

August 2002

Summary

The introduction of railways revolutionized transportation and changed the economic geography of the
world. Higher speeds, greater comfort, and lower cost allowed the railroads to dominate transportation
for more than a century. However, the railways lost much of their allure with the introduction of
automobiles, trucks, and air transportation. The inevitable shrinkage of rail markets left many rail
networks in poor condition, both financially and physically, necessitating government ownership in
most countries. Public support of railroads has been justified for various reasons, including support of
local industry, promoting energy conservation, and providing an alternative to congested highway-
based systems.

This article provides an overview of the engineering, operating, and competitive issues facing
railroads. Understanding both the potential for and the limits of rail service is necessary in
considering the role for rail in achieving goals related to mobility and sustainability. Although rail is
no longer dominant, there are clearly markets where rail can still be very successful. High-speed
passenger services can, for some corridors, compete effectively with both airlines and autos, while
modern, heavy haul freight services are well-suited for long-distance, high-volume shipments.
Intermodal services are attractive both for freight and for passenger services, especially if there are
efficient terminals for transferring between rail and other modes of transportation.

----------------------------------------------------------------------

The Encyclopedia of Life Support Systems is a joint project of UNESCO and EOLSS. It is intended to provide:

“A source of knowledge for sustainable development and global security to lead to fulfillment of human
needs through simultaneous socioeconomic and technological progress and conservation of the Earth’s
natural systems”.

For more information on the encyclopedia, visit their website: www.eolss.com

1
 6.40.2.5

RAILROAD TRANSPORTATION

Carl D. Martland, Massachusetts Institute of Technology

Keywords: Transportation, Railroads, Freight, Passenger, Regulation

Contents

1. Introduction
2. Railroad Technology
3. Terminals
4. Railroad Cost Structure
5. Decreasing Marginal Costs & Regulation
6. Operations/Service Planning

Summary: Railroad Transportation

The introduction of railways revolutionized transportation and changed the economic geography of the
world. Higher speeds, greater comfort, and lower cost allowed the railroads to dominate transportation
for more than a century. However, the railways lost much of their allure with the introduction of
automobiles, trucks, and air transportation. The inevitable shrinkage of rail markets left many rail
networks in poor condition, both financially and physically, necessitating government ownership in
most countries. Public support of railroads has been justified for various reasons, including support of
local industry, promoting energy conservation, and providing an alternative to congested highway-
based systems.

This article provides an overview of the engineering, operating, and competitive issues facing
railroads. Understanding both the potential for and the limits of rail service is necessary in considering
the role for rail in achieving goals related to mobility and sustainability. Although rail is no longer
dominant, there are clearly markets where rail can still be very successful. High-speed passenger
services can, for some corridors, compete effectively with both airlines and autos, while modern,
heavy haul freight services are well-suited for long-distance, high-volume shipments. Intermodal
services are attractive both for freight and for passenger services, especially if there are efficient
terminals for transferring between rail and other modes of transportation.

1. Introduction

Railroads transformed the world in the 19th century, supported the industrial expansion of the early
20th century, then declined in the face of airline and highway competition. To survive, railroads were
forced to rationalize their systems, develop more efficient operations, and introduce new services.
Today, railroads remain dominant for bulk transportation, provide the backbone of rapidly growing
intermodal freight services, and compete successfully with airlines in mid-distance markets. Highway
congestion, limited airport capacity, and environmental concerns guarantee a continued role for rail
systems in the 21st century.

The introduction of railways reduced transportation costs and travel times by an order of magnitude,
changing forever the economic geography of the world. Railways integrated continents, escaping
geographic constraints dictated so long by the location of ports and inland waterways. Cheaper
transportation meant remote sources for raw materials and broader markets for products, enabling
economies of scale by consolidating production. Railways favored the development of cities that were
2
larger or better located and diminished the fortunes of those that were bypassed. In North America,
railways enabled rapid development of the mid-west and the west; Chicago became the “Metropolis of
the American West” and the largest rail hub in North America, quickly surpassing St. Louis and the
other cities along the Mississippi River. In South America and Africa, railways opened up the interiors
of the countries, often to enable export of coal, ore, or agricultural products. In China and India,
railroads provided the transportation links necessary to connect large, national economies

Railroads required vast amounts of capital. The possibilities and opportunities were evident to
investors – despite a suspicion that profits were in construction of lines rather than in operation. While
many companies failed in the recessions and “panics” of the 19th century, the best of the survivors
were highly profitable. Railroads became the first industrial superpowers, inventing management
structures as they expanded, establishing vast communication networks, and using military discipline
to control operations over thousands of route-miles.

Railway expansion continued worldwide into the 20th century. The expansion of the railways was
finally slowed or stopped by international turbulence and violence. The railways, like the countries
they served, suffered from the devastations of two world wars, the resulting shrinkage of world trade,
and the financial and social disruptions of the depression. By the end of World War II, railways were at
best worn out and at worst destroyed. Massive investment was needed to revitalize the systems; where
such investment was unavailable, the systems were destined to a slow, but certain decline.

The turmoil of war and depression masked the emergence of new modes of transportation. Military
logistics dominated freight transport, and military needs suppressed the growth of highway
transportation. With peace came the realization that railways were too slow and unreliable to withstand
the appeal of automobiles, the speed of airplanes, and the flexibility of trucks. The strategic question
was how best to respond, whether to hang on to the old systems, to try new approaches, or simply to
abandon the field. The struggle was difficult for railroads, their customers, and towns dependent upon
rail; loss of markets, price competition, and decaying infrastructure frequently led to bankruptcy.

By the end of the 20th century, railway networks were no longer ubiquitous. Where road networks
developed, automobiles and trucks carried most of the regional passengers and tonnage. For longer
trips, trucks captured some of the high value freight and airlines most of the passengers. In most
countries, the loss of traffic resulted in railroad bankruptcies, line abandonment, and government
ownership. In North America and Australia where the distances are favorable to rail, the railroads
survived, but primarily for freight; more tonnage was handled, but route-miles and market share
declined. In India and China, which still lacked modern highway networks and where air
transportation was expensive, railroads remained dominant and rail capacity was a major concern. In
Europe, the major concern was for passenger service, although there were hopes for freight. In Europe
and in Japan, high speed passenger services connected major cities, offering medium distance service
superior to that provided by airlines.

Despite the competition from other modes and the financial collapse of so many railroad companies
over the past 50 years, rail remains the mode of choice for several important markets: coal, ores, sand
& gravel, grain, and other bulk commodities; long-distance movements of containerizable freight; and
medium distance, high density passenger services. Since railroads are generally more energy efficient
than highway or air transportation, expanded use of rail will reduce both energy consumption and
emissions of green house gases. As railroads are flexible in their energy choice, especially for
electrified lines, they are not as dependent upon oil as other transport modes. Railroads also require
less land than highways for rights-of-way, which is important in urban areas and also in
environmentally sensitive regions. In undeveloped areas, e.g. interior regions of South America or
Africa, railroads are less intrusive than roads because access can be controlled, whereas new roads
3
generally entice new settlement. Thus, railways are generally viewed as a key element for sustainable
freight and passenger mobility in the 21st century.

2. Railroad Technology

The basic elements of the railway system are the track structure, locomotives, rolling stock, terminals,
and the control system. The essence of the railway system is the “steel wheel on the steel rail”,
implying both low rolling resistance and guided transport. With a durable, level surface, it is possible
to pull a car or, better, a “train of cars” (which is how the concept of a train was originally phrased)
with a minimum expenditure of energy, thereby maximizing the load pulled for a given source of
power.

2.1. Route & Track Structure

Route choice is important for engineering and marketing reasons. Engineers balance the costs related
to distance, curvature, grades, tunnels, and bridges. Marketing concerns include the ability to serve
current and potential markets, as well as location relative to competing lines and modes.

Route selection is dominated by the need for a nearly level route. If grades are too steep, tremendous
energy will be expended, and the benefits of low rolling resistance will be lost. Railroads can operate
with grades of 4% (a rise of 4 feet in a distance of 100 feet), but only with difficulty; normally, the
maximum grade will be 1-2%. Railroad routes therefore tend to follow the natural features of the
landscape, using cut & fill, tunnels, and bridges as necessary to maintain a nearly level route.
Operating savings over the life of these circuitous routes justifies the added construction expense.

Train size and speed are limited by engineering factors related to safety and cost. The main
consideration is that the train should stay on the track, despite dynamic interaction between the train
and the track. Rail and wheels are designed to minimize energy dissipation at the wheel/rail interface
and to provide strength to resist the forces of the operating environment. For any curve, lateral forces
are a function of wheel and rail profiles, car weight, center-of-gravity, and train speed. Since the
running surface of a wheel is conical, the rolling radius increases as lateral forces shift cars toward the
outside of the curve. This difference in rolling radius allows cars to navigate modest curves without
initiating flange contact. For sharper curves, the flange comes into contact with the rail; at a
sufficiently high speed, the lateral forces will cause the wheel to climb up and over the top of the rail,
causing a derailment. This destructive possibility limits train speeds and curvature.

To allow higher speeds, the outside rail can be superelevated, which allows gravity to offset some of
the lateral forces. The maximum superelevation is determined by the requirement that equipment with
the highest center of gravity must be able to stop safely on the curve; the gravitational force acting on
the center of gravity of the car must fall within the rails. Superelevation is problematic in locations
where several kinds of trains operate at different speeds, such as curves located close to passing
sidings. Passenger trains may run along such curves at high speeds, whereas low-priority freight trains
will frequently be stopping at the siding. If superelevation is maximized for passenger trains, then
freight trains will tend to crush the low rail. If superelevation is designed to accommodate the low
speed freight trains, then the passenger trains may have to slow down to negotiate the curves.

Variations in track geometry and stiffness will stimulate dynamic activity and increase the probability
of a derailment unless speed is reduced. Issues of track-train dynamics therefore underlie railway or
regulatory standards for track geometry and track strength. Track geometry standards define limits for
such measures as variation in track gage (distance between the rails), crosslevel (relative height of
rails), and vertical or horizontal alignment (variation between the center of the track and the design
4
location). Track stiffness is a measure of the deflection of the track structure under load. As a train
moves along the track, there will be a slight deflection of the rail under each wheel; the greater the
deflection, the greater the interaction between the equipment and the track structure and the more rapid
the deterioration of the track geometry and the track components. To minimize the risk of derailment,
train speeds must be reduced where there are significant variations in track geometry or where the
track structure is weak. Or, from a track standards perspective, the track geometry needs to be better
and the track structure stronger to support higher speed operation

Economic considerations may further limit train speeds and track quality. For low density lines,
minimizing maintenance cost is much more critical than train speed. For major freight lines, speeds of
40- 70mph are almost always deemed sufficient, and lower speeds are often acceptable. Higher speeds
are desirable for intercity passenger operations, requiring better track geometry for passenger than for
freight operations.

Engineering departments ensure that track geometry and strength are adequate by selecting, installing,
inspecting, maintaining, and eventually replacing track components. A basic challenge is that the “steel
wheel on the steel rail” concentrates loads in a contact patch that is smaller than 0.25 sq. in., creating
pressures greater than 100,000 lb/sq.in. The track structure must spread these loads over a wide
enough area that they will not deform the natural subgrade, which commonly supports only 10-20
lb/sq.in. While many different approaches have been tried, the typical track structure has rail installed
on steel tie plates that are attached to wooden or concrete ties (sleepers) that are embedded in ballast
that may be sitting on a layer of sub-ballast that is sitting on the natural sub-grade. The larger the
cross-section of the rail head, the better it is able to withstand the extreme stress; the larger the tie
plates and the better the fastening system, the lower the pressure on the ties; the larger and more
closely spaced the ties, the lower the pressure transmitted to the ballast; and the deeper the ballast and
sub-ballast, the lower the pressure transmitted to the subgrade. The choice of components determines
how the pressure is distributed and the maximum loads that can be safely transported over the route.

Economic limits will be tighter than safety limits for axle loads in mainline operations, because
heavier loads increase deterioration rates of some track components. Although operating expenses
generally decline for heavier loads, these savings may be offset by higher expenditures for inspection,
maintenance, and replacement of track components. Higher quality materials can be used to reduce
deterioration, and research has helped the industry introduce more durable steel, premium fastenings,
concrete ties, premium turnouts, and other improvements in track components. For example, concrete
ties are more costly than wood ties, but they are frequently used in passenger routes and on curves in
high tonnage freight routes because they are more durable, hold gage better, and provide stiffer
support.

Route and track characteristics also determine the size of equipment that can be carried. Clearances
limit the width, height, and shape of equipment. Sharp curves limit the length of vehicles, as very long
vehicles may derail. Bridge characteristics limit the maximum loading density, i.e. the gross weight of
a car divided by the length of a car. Clearances, maximum axle loads, and maximum loading density
are therefore key design parameters for rail equipment.

2.2. Locomotives

Locomotives provide or apply the power required to move the trains. The basic engineering concerns
are maximum power, tractive effort, adhesion, and sustainable operation on grades at low speeds.
Energy is needed to overcome rolling resistance, curve resistance, and wind resistance; to climb
grades; to overcome curve resistance; and to operate lighting, air conditioning, and other external
loads. For high-speed operations, maximum power requirements are critical, as it is the power that
allows operation at high speeds up the ruling grades. Power is generally not critical for freight trains,
5
which simply slow down when going up grades. For heavy freight, the main concern is that the
tractive effort is sufficient to start a heavy train up a grade. Tractive effort is the product of the weight
of the locomotive and the coefficient of friction at the wheel/rail interface (i.e. adhesion). Tractive
effort therefore represents the force that can be applied to overcome initial rolling resistance and
gravity. Heavy, six-axle locomotives with high adhesion are preferred for heavy freight trains.

The typical freight locomotive has a diesel engine that produces electricity to drive traction motors that
are mounted on the axles and that actually turn the axles. The ability of the traction motors to sustain
maximum loads without overheating provides a lower limit on the speed of operation up grades, which
thereby provides an equivalent limit for the minimum power requirements for the locomotive. Diesel-
electric units can be coupled together and operated by a single crew; heavy trains may be pulled by
three, four, or more units.

Steam locomotives have largely been replaced, because of major disadvantages relative to diesel-
electric locomotives. First, they required a separate crew for each unit. Second, they operated with a
driving action that imparted extreme forces to the track structure, resulting in faster track deterioration
and a need for stronger bridges. Third, they belched vast quantities of smoke and soot - highly
romantic in dreams, but actually an environmental nightmare

Electrified railways are common, especially for passenger systems. In an electrified railway, the power
is produced off-line and delivered to the locomotive through the overhead catenary. With this system,
the maximum power is no longer limited to what the locomotive itself can produce, so that peak power
can be provided to operate up grades at high speed. Because of the high cost of the catenary, electrified
operations are generally found to be too expensive for freight operations.

2.3. Freight Equipment & Commodities

A freight car (wagon) is a platform or box designed to carry certain commodities and equipped with
couplers to allow assembly into a train. The classic boxcar is just that – a box with one or two doors
mounted over two trucks (bogeys). A covered hopper car, which is loaded through hatches at the top
and unloaded through hoppers at the bottom, is commonly used for grain, fertilizer, plastic pellets or
other bulk commodities that need to be protected during the trip. An open hopper, commonly used for
coal, has no top, so it can be loaded more easily. Gondola cars are open, without hoppers, and must be
unloaded from the top. For coal, gondola cars are equipped with rotary couplers so that the whole car
can be grasped, twisted, and unloaded by a “rotary dumper” at a port or power plant.

For these cars, key design issues relate to tare weight, dimensions, payload, and loading density. Since
cost per unit capacity declines as cars get larger, there is an incentive to make larger cars with lighter
tare weights, subject to the size and weight limits defined by the operating environment. In North
America, the standard coal car in the 1960s had a carrying capacity of 70 tons and a tare weight of 30
tons; the standard in the 1980s was a similar, but larger steel car with a carrying capacity of 100 tons
and a tare weight of 31.5 tons; today, the standard is an aluminum car with a carrying capacity of
nearly120 tons and a tare weight of 22 tons. Thus the ratio of net load to tare weight has increased
from 2.5 to more than 5 over a 30-year period for heavy haul operations.

Other cars are designed for efficient loading and unloading for special commodities. Flatcars can be
used to transport loads that are too big or too heavy to fit easily into one of the other kinds of cars.
“Heavy duty flats” with 3-axle trucks can carry very heavy loads. “Auto racks” can be attached to a
basic flat car to create a “multilevel” car that provides one or two additional levels for carrying
automobiles. After a number of multi-levels are placed at an assembly plant for loading, a ramp is
moved to the front of the first car and raised to the proper height to reach the first, second or third level
of the auto rack. Steel panels bridge the gap between the rail cars, so that automobiles can be driven
6
from the first rail car through to the following cars, allowing rapid loading and loading. Auto racks
today are generally closed to prevent damage from the weather or falling or thrown debris.

A variety of innovative equipment types have been developed to facilitate intermodal transportation,
i.e. the movement of trailers or containers using some combination of rail, highway, and waterway
operations. At first, standard flat cars were used to carry trailers or containers; portable steel panels
could be used to bridge the gap between cars so that trailers (or containers on chassis) could be loaded
by backing them up a ramp and along several flatcars. A standard 89-foot flat car could handle two
trailers (40- or 45-feet long) or four 20-foot containers. This process required a very heavy flatcar to
act as a bridge handling the full weight of a trailer.

If trailers or containers are loaded and unloaded using cranes, then lighter designs are feasible. The flat
car can become a “spine car” that only has a small landing area for the wheels of a trailer or the
corners of a container. To save more weight, multiple cars can be permanently coupled, creating an
articulated set of platforms with just one truck under each articulated joint. Containers handled with
cranes do not have to be on a chassis, so the vertical clearance required is less than what is needed for
a trailer. In fact, if clearances permit, it is possible to stack containers two high on flat cars. The
“double stack” car has a “well” for the first container (or two 20-foot containers). The second
container is held in place, in one design, by bulkheads at the end of the flat cars. In another design, the
second container is attached using “interbox connectors” at the “corner posts” (the corners of
intermodal containers have steel columns to make them strong enough to be stacked in terminals or on
container ships; the interbox connectors lock into the hollow columns and hold the containers in
place).

The need for expensive lift equipment to load and unload trains tends to limit intermodal operations to
high-density corridors. Other types of equipment allow efficient intermodal operations with cheaper
terminal operations. One approach is a modern version of the original flatcar that, in North America, is
called the “Iron Highway”. This equipment is a long, articulated platform designed to handle a dozen
or more trucks or containers; the ends of each unit drop down to serve as ramps, allowing truck drivers
to load the train in the old-fashioned way. Since the platform is continuous, it is possible to handle any
length container or trailer or truck-trailer combination. This type of equipment is used in Europe to
shuttle trucks through tunnels in the Alps rather than allowing them to drive over the congested,
environmentally sensitive passes. In North America, this equipment has been tested, but is not in
widespread use.

Another low-cost approach is the “roadrailer”. The original concept was to add a rail axle to a highway
trailer, so that the same trailer could move as part of a train or on the highway. To operate on the
railway, the highway axles would be raised and the rail axle would be lowered (using a hydraulic or
pneumatic system); trailers could be coupled to one another with a slackless coupling system that
provided a very smooth ride. There were two problems with this system: the trailer was expensive and
the weight of the axle limited the loads that could be carried on highways. The solution was to create a
special rail car that consisted merely of a truck (bogey) with a small shelf designed to support the
roadrailer trailer and facilitate connections for the trains electrical and braking systems. A train could
be assembled by first using a small forklift to position the bogeys along a track at appropriate
intervals; drivers could then position each roadrailer for coupling and raise the wheels. This system
provides the low cost of a double stack system by reducing the cost of the rail equipment, improving
fuel efficiency, and eliminating the need for complex terminals. This system is used in North America
on routes that do not justify double stack; it is operated as a separate intermodal system, imitating a
service conscious trucking operation.
7
2.4. Passenger Equipment & Markets

Rail passenger equipment has evolved to satisfy customers’ desires for efficiency, comfort, amenities,
and safety. At the dawn of the rail era, a ride in any railcar was a vast improvement over the confined,
slow, tortuous trip in a horse-drawn stagecoach. Third class passengers crowded onto hard seats in
unheated, poorly ventilated cars, while first class passengers enjoyed padded armchairs, coffee tables,
carved wooden interiors, and exquisite service. Sleeping cars and dining cars allowed the rich to travel
long distances in luxury. Railroads competed for passengers by providing the most elegant furniture,
the best dining, the fastest schedules – and even the best destinations, as railroads built many grand
hotels to attract people to fashionable vacation settings. Technological developments led to smoother
rides, better heating and ventilation, electric lighting, toilet facilities, and other amenities. By the
1930s, streamlined passenger trains achieved 100 mph operation and captured the imagination of the
public.

Railroads sought modern designs, modern images, and modern conveniences, but it was airlines that
revolutionized long-distance passenger travel. Travelers who demanded luxury were the ones who
most needed or most wanted speed, so they chose to fly. As airlines prospered, railways suffered;
railways were forced to seek less extravagant designs for less-ambitious services.

For shorter distances, the highways all but destroyed the rail market. As more people acquired
automobiles, and as buses offered even cheaper scheduled service to those without cars, fewer people
looked to the railroads. In North America, where the highway system and the “car culture” developed
most rapidly, the railroads lost most of their market share by the 1960s. In 1971, Amtrak began
operations as an independent, federally supported company that was created to take over inter-city
passenger service. The freight railroads, all of which were losing money on passengers, transferred
their passenger operations to Amtrak. Amtrak operates primarily over lines owned by the private
railroads, but its densest operations are on the northeast corridor from Boston to Washington DC,
which Amtrak owns. Amtrak introduced new equipment designed to reduce costs and to provide clean,
comfortable, but not luxurious service. In 2000, Amtrak completed electrification of the Northeast
Corridor and introduced Acela service in an attempt to compete more effectively with airlines between
Washington DC and New York and between New York and Boston. The Acela train uses tilt
technology to allow faster speeds on curves; the train is designed and marketed to give passengers
productive time, e.g. through use of laptop computers at any seat. Acela operates at a maximum speed
of 125 mph (200 km/hr).

In Europe and Japan, city spacing, population density, and government policy were more conducive to
rail. In these countries, beginning in the 1960s, the nationalized railroads responded to the air
competition by introducing high-speed passenger trains that reach speeds as high as 150-200 mph
(250-300 km/hr). These streamlined trains typically are designed as train sets, with first class and
standard cars, dining cars, and/or baggage cars. Electric propulsion is necessary in order to achieve
maintain high speeds up grades. The equipment is lightweight, but designed so that the ends of the
vehicles will collapse and absorb the extreme impacts in the unlikely event of a high-speed collision.

Research and tests have been demonstrated the feasibility of magnetic levitation for even faster speeds.
However, existing high speed rail services are more cost effective and much more flexibile, as trains
can operate at their highest speeds where the right-of-way is suitable, then run at slower speeds
throughout the rest of the rail network.

Passenger transportation is now designed to maximize rail’s advantages over air travel. For trips of up
to 300 miles (500 km), high speed train service provides competitive door-to-door travel times within
a much more comfortable environment than is feasible within the confines of an aircraft. For a short

8
plane trip, most of the travel time is wasted on activities that are at best unproductive and at worst
stressful and frustrating: airport access, standing in lines, getting on and off the planes, and waiting for
baggage. If the same trip is made by train, the access is easier, the processing less complicated, and the
travel time more comfortable and more productive. Railways and airlines both try to enhance the time
spent in terminals by providing opportunities for shopping, eating and entertainment in their terminals;
downtown railway stations have the edge, however, where they are embedded within the fabric of a
vibrant city. Railways also have the edge in accessibility, since they can easily serve several stations
within a metropolitan region.

The competitive position of railways is strongly affected by the available infrastructure and
government transportation policies. In Europe and Japan, highway tolls and gasoline taxes greatly
increase the out-of-pocket cost of automobiles, while governments have chosen to invest in high speed
rail. In North America, the opposite is true: tolls (where they exist) and fuel taxes are much lower, and
public support for rail infrastructure is much less, making rail a relatively expensive option. In China
and India, where air transport is expensive and highways are poor, railways carry by far the largest
share of intercity passengers. In much of South America, the bus system is better developed than the
rail system and competes effectively with both rail and air even for very long trips.

2.5. Control Systems

The same features that promote rail efficiency make control essential. Low rolling resistance means
long stopping distances, and the train has no option but to follow the rails. Even in daylight, the train
engineer cannot always see that the track is clear because of curves or bad weather. The basic control
problem is to ensure that two trains do not collide, either because they were erroneously routed toward
each other on single track or because a train overtakes a slower or a stopped train. Operating rules and
control technology have evolved over the years to deal with these problems.

The key concept is “operating authority”, which is the authority for a train to proceed into and along a
section of track. Operating authorities are created by dispatchers and communicated to train crews by
signals, by voice radio, or by digital radio. It is the responsibility of the dispatchers to ensure that the
operating authorities given to trains result in safe operations; it is the responsibility of train crews to
stay within the limits of their operating authorities.

Railroads commonly install signal systems for lines with more than a few trains per day. Signals
convey operating instructions to on-coming trains, e.g. proceed at track speed, proceed with caution, or
stop. Train engineers must observe the signals and respond accordingly. As long as the signal system is
functioning reliably, the train crew is alert, and the braking system functions properly, this system
creates safe operations.

Signal systems are based upon track circuits that are established in the rails within “signal blocks”,
which are segments of track separated by insulated joints. Normally, a weak electrical current
circulates through the rails of each signal block. When a train enters the signal block, the current
passes through the wheels & axles of the train, causing a short circuit that is detected by the signal
system. Once a train is detected, the signals at each end of the block and adjacent blocks will change.
Opposing trains will see these signals and slow down or stop if necessary; following trains will
maintain a safe following distance and will not enter the same signal block as the preceding train. For
high speed operations, “cab signals” display the signals directly to the engineer.

The length of the signal block affects system capacity, as there normally must be at least one empty
block between trains traveling in the same direction to ensure safe stopping distance. If the safe
stopping distance of some trains is longer than 1 block, then two or more blocks will be needed to
9
separate the trains. With shorter blocks, the complexity and cost of the signal system go up, but it is
possible for trains to operate more closely.

Even in the best-maintained systems, there can be problems with signal systems. Lightning strikes can
disable signals, causing delays and congestion on busy lines. Leaves or other debris on the tracks can
cause “loss of shunt”, i.e. the track circuit is not completed and the system does not recognize the
presence of a train. Loss of power results in the most restrictive signal, as systems are designed to “fail
safe”. The greatest risk with signal systems, however, is human not mechanical error. Possible sources
of error include a) dispatcher errors in issuing operating authorities, b) mistakes by dispatchers or train
crews in communicating authorities, or c) train crews ignoring authorities.

Technology can enhance train control. Dispatching software can prevent issuing overlapping
authorities, and digital communications can reduce communication delays and mistakes. Accurate
information concerning train locations and speeds can be obtained from positioning systems based
upon in-track transponders or GPS (Global Positioning Systems). Since GPS systems cannot
determine which track a train is on, transponders must be used to detect which route trains take
through turnouts. With transponder systems, locomotives need odometers to calculate distances. With
either system, location data can be received or calculated by on-board equipment and translated into
speed and location information for train crews. With a digital communications system, this data can be
forwarded to dispatchers for better planning. An on-board computer, continually updating the train’s
braking capabilities, can use positioning information to determine if the train will be able to stop
before exceeding its operating limits. If not, then the computer can initiate braking activity in order to
slow or stop the train.

On-board computers, digital radio links, and electronic positioning systems are the enabling
technologies for what has been called “Advanced train control systems (ATCS)”, “Positive train
control (PTS)”, “Positive train separation (PTS)”, and other automated control systems. ATCS assumes
that the digital communications link is used for sending work orders, monitoring locomotive
performance, and other business tasks as well as for train control. PTC is a more restrictive concept, as
it focuses on safety aspects of ATCS. PTS shares the focus on safety, but allows for new technological
approaches; for example, if trains broadcast their positions and speed to nearby trains, a collision
avoidance system might be feasible without requiring a digital radio link to headquarters.

With ATCS or PTC systems, it is possible, in principle, to eliminate the wayside signals, since
operating authorities could be transmitted directly to each train. Trains could then be protected by a
“moving block”, i.e. a buffer in front of and behind each train to allow safe stopping distances for this
train and the following train. Line capacity would no longer be limited by block length, and the costs
associated with wayside signals would be eliminated or reduced. One important concern regarding the
elimination of signals is that the same track circuits are used to detect broken rails. If a rail breaks, the
signal system will protect most on-coming trains from a potential derailment (but not a train that is
already within the signal block approaching the broken rail). For this reason, the rail industry is
investigating alternative methods for detecting broken rails.

3. Terminals

Railroads are extremely efficient at moving large numbers of people or large quantities of goods along
the line. The problem is how to assemble enough people or goods to justify running a train – and then
how to actually assemble the trains.
10
3.1. Passenger terminals

As railroads prospered, passenger terminals often became symbols of progress and prosperity. In large
cities, they served as grand gateways, with sterling location, compelling architecture, and grandiose
waiting rooms. In smaller cities, stations were smaller, but still had style and taste. Railroads were
critical to cities, and railroad stations reflected the success and importance of the services they offered.
When railroads lost their dominant position, the terminals declined as well. In many cities, railroads
sold the aging terminals and constructed smaller, utilitarian stations. In others, they worked with local
authorities to redevelop the stations, incorporating retail and other commercial services, thereby
adding new sources of revenue as well as attracting new rail customers.

From a functional standpoint, the main task of a gateway terminal is to allow people easy access to and
from the trains and to allow trains easy entry and exit from the station. There must be enough tracks to
service the peak demand for trains, and enough room to handle the flow of passengers through the
station. Increases in capacity can be achieved by adding tracks, reducing the time required per train, or
increasing the number of passengers per train. In a stub-end terminal, the station sits at the end of the
tracks, and passengers access trains via long platforms between the rails. In this kind of a terminal, all
trains enter and exit the terminal area via the same track and congestion within the throat of the yard
may therefore limit capacity. In a through terminal, train flows are easier, but it is more complex to
provide access to the tracks. The station can be built over the tracks or under the tracks, or an elevated
walkway can be constructed.

Rail terminals at airports are becoming increasingly important, as railways are providing access to
major airports and also replacing short flights between airports. Access is key for these terminals, as it
is important to minimize the time and complexity of the transfer. In some cases, it is possible to check
into a flight and check baggage at a downtown rail station, then take the train to the airport.

3.2. Freight Terminals and Operations

Rail yards provide locations where it is possible to sort cars or to store cars. Freight terminals include
classification yards, industrial support yards, intermodal terminals, and bulk transfer terminals. Most
trains originate and terminate at major classification yards, where cars from inbound trains are sorted
into blocks of cars for outbound trains. A block includes cars with common destinations, commodities,
or characteristics. For example, a classification yard in Kansas may make a “Chicago Merchandise
Block” that includes all merchandise traffic headed for Chicago or points east; when that block reaches
Chicago, it will be sorted into blocks headed for local destinations and for classification yards in, say,
Cleveland, Buffalo, and Philadelphia. The two types of classification yards are “flat” yards and
“hump” yards. Industrial support yards and bulk transfer terminals are small flat yards that provide
space for cars waiting to be loaded or unloaded at industry, a transload facility, or a port.

A small flat yard will have several tracks, any of which can be used for receiving or assembling trains
or for storing or sorting cars. A larger yard will have designated areas for each function. The receiving
and assembly tracks ideally are long enough to handle an entire train, so that it is easy to terminate and
originate trains. Sorting tracks can be shorter, only needing to be long enough to assemble blocks.

Sorting requires a switch engine working with one or more yard helpers who throw switches and
uncouple cars. The switch engine couples to a “cut” of cars sitting on a track, pulls back along a
“switching lead”, then moves forward to shove one or more cars into one of the available tracks; after
a yard helper uncouples the cars, the switch engine pulls back, a yard helper realigns one or more
switches, and the switch engine shoves the next car or cars into another track. Depending upon the
layout, the switch engine does not necessarily need to go into each sorting track, as the cars can be
uncoupled on the lead while moving and then be carried by their momentum into the appropriate track
11
(a process called “kicking” the cars). In a small yard, sorting may require multiple stages. A skilled
yard foreman will figure out how best to use the available tracks to sort cars with minimal effort.

The time required for “flat switching” is limited by the slow speed of the switch engine and the
complexity of the work to be done. To sort 100 cars into a half dozen blocks will take several hours. A
large yard may have room for several switch engines to work simultaneously, and the largest flat yards
have a throughput of 1000 or more cars per day.

Hump yards use technology to reduce the time, labor, and space required for switching. The name
reflects the central feature of this type of yard. A long switching lead climbs up a small hill or “hump”;
a switch engine pushes a cut of 100 or more cars up the hump at a constant speed; a yard helper
uncouples cars at the crest of the hump; and the cars roll down the hill through a series of switches
onto the proper classification track. In large hump yards, there will be 50-80 classification tracks in
what is called the “bowl”. When first introduced circa 1900, hump yards were operated with a team of
“hump riders”, one of whom would climb onto each car and ride it down into the bowl, using the hand
brake to slow to a safe coupling speed. Needless to say, this was a dangerous job, particularly in bad
weather. A person in a tower controlled the switches, toggling levers that would cause the appropriate
switches to change position.

In a modern hump yard, automated retarders are installed to limit the speed of cars as they roll down
the hump. Retarders apply pressure to wheel flanges, slowing cars down to the desired speed. The
switches are automatically aligned for each car to roll to the class track assigned to its block. As the car
rolls down from the crest, radar is used to measure the speed of the car. The hump computer
determines if the car is rolling fast or slow for its weight and calculates the desired speed for the car to
roll into the proper track and couple at a safe speed with the cars already in that track. If the car is
going too fast, then retarders will provide enough force to slow it down. In the oldest yards, there was
a single retarder just below the hump, but in newer yards there are also group retarders for each of
several sets of tracks. There are even retarders designed so that cars can be accelerated as well as
decelerated when they pass through. In a modern hump yard, it is possible to operate with the switch
engine pushing up the hump at 3-5 mph, which will give a humping rate of 3 or more 50-foot cars per
minute. This means that a 100-car train can in be sorted in a half hour, i.e. 20-40% of the time required
in a flat yard. This productivity improvement results in higher sorting capacity and allows throughput
of more than 2,000 cars per day at a hump yard.

If precise speed control is not available, it is possible that the speed at coupling may result in severe
impacts. In these yards, cars containing hazardous materials or cargoes subject to excessive damage
from such impacts (e.g. automobiles) will not be humped. Both the hump engine and the pin-pulling
operation can be automated.

In both flat yards and hump yards, switch engines pull blocks from the class tracks and assemble trains
on a departure track. An inspector checks each car for obvious problems related to brakes, worn
wheels, or bad couplers. If necessary, cars are “bad-ordered” and moved to the shop for repairs. The
train crew then couples a locomotive to the cars, tests the brakes, and departs when given proper
authority by the dispatcher.

3.3. Intermodal Yards and Operations

Intermodal yards provide the interface between rail and truck operations for the movement of
containers and trailers. The earliest yards had a “ramp” that led to one or more stub-end tracks. A
switch crew would position flat cars on these tracks so that it was possible for truck drivers to a trailer
or container up the ramp and along one or more flat cars, uncouple and “tie down” the trailer or
container to the flat car, drive back along the empty flat cars to the ramp, and pick up another trailer.
12
This cheap, but cumbersome process took 5 minutes or more to load each trailer or container. And it
was necessary to assemble several cuts of cars to make a train.

If lift equipment is available, then truck drivers can leave containers or trailers (“boxes”) at trackside,
for loading with an overhead or mobile crane. The process can be set up so that the boxes are dropped
or picked up at trackside by draymen who move them between the terminal and the customer. More
often, the draymen drop and pickup boxes from a parking area; yard hostlers then move the boxes
between the parking areas and the loading tracks. Trains can be loaded or unloaded at the rate of 20-30
boxes per hour per crane. Since multiple cranes can work on the same train, it is possible to unload or
load a train carrying 250 containers in just a few hours. A single, long track can therefore be used to
handle the unloading and reloading of 2 or even 3 trains daily, which is equivalent to 100,000 to
200,000 containers per year.

The design of modern intermodal yards is very simple. For small yards serving a few trains per day, a
pair of loading/unloading tracks long enough to handle the longest trains (i.e. 5-7,000 ft.) will be
sufficient. Next to the loading tracks, there must be a flat, open area next to the tracks that is wide
enough to allow the cranes to operate (overhead cranes require less space than mobile cranes). Next,
there must be room to store trailers and containers; typically, parking spaces are provided along the
entire length of the track. Finally, there must be a fence around the terminal for security and a gate
where the terminal operators allow truck drivers to enter and depart the terminal.

Gate processes include inspection of equipment, exchange of waybill information (origin and
destination of the shipment, billing information, special handling instructions, etc.), and assigning
parking places. These processes can be simplified with information technology. Major customers may
transmit waybills electronically, allowing terminal operators to assign parking spaces before the
shipment arrives and avoid paperwork delays at the gate. Inspectors may use handheld computers to
record any defects in the trailer or container, transmit data to the terminal computer, and print an
interchange receipt for the truck driver. Truck drivers can be certified for access to the facility, and
drivers who fail to obey instructions regarding where to drop off equipment can be prevented from
using the facility. Containers or trailers can be equipped with bar codes or radio frequency tags so that
scanners can identify them before they reach the gate. A terminal employee with a handheld scanner
can use these same bar codes or tags to update the inventory of the terminal by driving along the rows
of parked trailers and containers.

In larger terminals, additional pairs of loading tracks can be added, leaving enough room for storing
boxes. A very large facility might have 20 loading/unloading tracks with storage for 5-10,000 boxes.
Such a facility will also have a support yard for storing and sorting intermodal rail cars, storage areas
for empty equipment and chassis, and a maintenance shop. Where space is at a premium, overhead
cranes will be preferred to mobile cranes, and stacked storage of containers will be preferred to storage
of containers on chassis; greater incentives can also be given to customers to pick up containers soon
after they arrive in order to increase the utilization of parking spaces.

4. Railroad Cost Structure

Cost experience from the U.S. can be used for a rough comparison of rail and truck costs, as both the
rail and the highway systems are well developed and railways and motor carriers are highly
competitive. Costs in other countries may be considerably higher for rail or trucking if the
infrastructure is not as developed or as highly utilized.

For new systems, infrastructure costs are dominant. Construction of a new line costs approximately
$500,000 per mile for the track structure, $100- 200,000 per mile for signaling systems, upwards of $1
million per mile for grading, plus whatever is needed for bridges, tunnels, and structures. The total
13
costs can exceed $2 million per mile and the carrying costs on the initial investment can therefore
exceed $100,000 per mile per year. In the 19th century, the fixed carrying costs were often 40% or
more of the total annual budget of a railroad; financial restructuring through a series of bankruptcy
proceedings eventually eliminated these fixed costs as common stock was issued to replace bonds.
Today, maintenance costs - including depreciation of the track components as well as maintenance
expense - are perhaps $5-10,000 per mile per year on a light density line and $50-75,000 on a high-
density line with 100 times as much traffic.

Equipment is another major capital expense. A modern locomotive costs $1.5 million, and freight cars
cost $60,000 or more. A train with 4 locomotives and 100 cars therefore represents a capital
investment of $12 million and equivalent lease rates of perhaps $4,000/day. Equipment utilization is
therefore critical. A unit coal train may handle one trainload per week, and intermodal trains may
handle 2 or more loads per week. However, equipment in general freight service, which must be
handled at many classification yards, may only get 10-20 loads per year, and equipment becomes the
largest cost element. Poor equipment utilization is a major reason that general freight service has lost
market share to trucks.

Direct operating costs include crew and fuel, with crew costs much higher for short trains, but fuel
costs being somewhat higher for efficient unit train operations. Terminal handling costs are on the
order of $50 per car handled, with switch engine expense accounting for most flat yard expense and
car time for most hump yard expense.

The overall costs of efficient unit train operations on high density lines are on the order of $0.01/ton-
mile; costs for general service freight vary from $0.02 to $0.08 (or more) depending upon the nature of
the commodity, the route, and the train service. Intermodal costs are approximately $0.40-$0.50 per
mile plus terminal costs for double stack and $0.75-0.85 per mile for traditional trailer-on-flatcar
service. For comparison, truck costs are on the order of $0.05-$0.06/ton- mile or $1.00 to 1.20/mile for
long haul moves over limited access highways. Comparing these costs, it is evident why bulk unit train
and modern intermodal services have prospered, while traditional carload services have struggled in
competition with trucks.

In passenger services, the capital costs of providing the right-of-way, stations, and equipment dominate
operating costs. It is almost never possible to fund the capital costs without public assistance, although
passenger revenue from high-speed services can cover operating costs.

5. Decreasing Marginal Costs & Regulation

Railroads benefit and suffer from the characteristics common to all network operations. Network
growth brings new markets and opportunities for more efficient operations. As traffic on each route
increases, track is better utilized, trains are longer, and unit costs of management decline. As new
services are developed, fixed costs are spread across more customers. Strong economies of scale,
density, and scope create declining marginal costs and two seemingly contradictory problems: if one
carrier gets large enough, it can undercut its competitors and potentially establish a monopoly position,
to the possible long-term detriment of customers and the economy. On the other hand, if there is
sufficient competition, prices fall to marginal cost, which is less than average cost, and carriers go
bankrupt.

These problems have been common historically, with monopolistic pricing and overbuilding a greater
concern in the 19th century and carrier bankruptcy a greater concern in the last half of the 20th
century. In fact, competition can drive down prices in one part of the network, while the railroads
seeks monopoly profits elsewhere. These problems are aggravated by business cycles; in boom times,
demand is high and rates rise quickly to the dismay of many customers. In recessions and depressions,
14
prices collapse, to the dismay of the weakest railroads. Monopolistic pricing practices, destructive
competition, and sensitivity to business cycles have generally led to regulation as a means of gaining
the benefits of network economies without the extremes of pricing. Some of the main features of
regulation are discussed below.

Public convenience and necessity for construction of new lines: there is a clear public interest in
having safe, efficient infrastructure for freight and passenger systems. Governments typically either
construct the infrastructure or charter private parties to do so; either way, public power of eminent
domain is necessary to acquire the land. Since it is not in the public interest to have excessive capacity,
there may be a public role in determining how much capacity is required or in deciding who builds and
operates the railway system.

Common carrier obligation: this was the quid pro quo for public support in creating the rail system.
The railroads were required to publish rates and to treat all customers equally, i.e. all customers who
qualified for a particular rate would get the same rate, and the railroad was required to publish a rate
for all possible services. The railroads could not choose to carry only profitable commodities or to
serve only the largest customers.

Line abandonment: when changing economic and competitive conditions result in diminished traffic,
railroads may be able to maintain and operate a line only at a loss. If the railway is allowed to abandon
the line, then customers and communities along that line may be hurt. Line abandonment may
therefore be regulated by public agencies that balance the interests of the railway against those of the
community. In the U.S., line abandonment was a highly emotional issue; railroads facing bankruptcy
viewed operation of light density lines as a major cause of their financial difficulties, while
communities viewed these lines as critical to their survival. Regulatory changes in the 1970s defused
these issues. Railroads were required to a) give advance notice of potential abandonments, b) continue
operating if subsidized by users or governments, and c) allow government agencies to acquire the
lines. Governments or companies that protested abandonments were required to provide sufficient
subsidies to cover operating costs. These changes prompted reassessment of the lines and helped
promote alternatives to abandonment. Customers and governments found it difficult to justify the
subsidies, so governments shifted their efforts toward keeping the rights-of-way available as potential
transportation corridors, e.g. by helping to transform some light density lines into trails. In many
instances, the major railroads found that it would be better to have short-line or regional railroads
operate the lines. These new railroads generally had a non-union labor force or labor agreements that
allowed lower cost operations, as well as clear incentives to market rail services locally.

Pricing: in regulated regimes, railroads have been required to publish all rates, subject to approval by
the regulatory body. Customers and others can object to rate increases, and the regulatory agency can
invoke economic theory or other rationales for not accepting proposed rates. The initial impetus for
rate regulation in the US was complaints about inequitable rates at the time of rail dominance in the
late 19th century. Some notable problems included predatory pricing (strong carriers pricing below
cost in order to drive weak carriers from the market) and higher rates for short hauls from intermediate
points than for longer hauls from major cities where competitive routes were available. The latter
problem led to the “long-haul, short-haul clause”, which prevented rates from being higher for a short
haul than for an overlapping longer haul. Regulation also promoted “port equalization” by requiring
similar rates from an interior point to competing ports.

Regulation resulted in extremely detailed rates, since separate rates could be quoted for tiny
differences in commodities (potatoes in bulk vs. potatoes in bags), in location (Boston vs. Eastern
Massachusetts), or shipment size (less-than-carload vs. carload vs. multi-car shipments vs. unit trains).
Before the age of computers, it was a nearly impossible task to compare the cost and revenue for every
single shipment. Thus, the regulatory agencies determined whether total revenues were adequate to
15
cover total costs. Under regulation, rate structures were established that incorporated wide
discrepancies in rates, so that one group of customers cross-subsidized other customers based upon the
“value of service” to those customers. Government agency also imposed low rates on, say, export
grain, because of the importance of grain to the economy. Both railroads and government agencies
often used general rate increases as the best way to deal with inflation, while both at times would seek
specific changes in prices to reflect opportunities or complaints from particular customers.

Price regulation assumes that railways have a potential monopoly on transportation, which was true in
the 19th century. With the development of the truck and with dramatic improvements in waterway
transport, railways found that they had to compete for many commodities. Price competition from
motor carriers disrupted the rate structure, as motor carriers were able to capture the traffic with the
highest rates and leave the railroads with the low rated traffic. For bulk commodities, railroads
developed new technologies and operations that allowed them to lower their costs and compete more
effectively with efficient barge transportation – but they were stymied for years in the U.S. by
minimum rate regulations.

An increased level of competition forces consideration of rates and regulation on a route- and
commodity specific basis. Computers allow estimation and allocation of costs to particular shipments
and it is feasible to estimate long-term variable costs. Hence it is possible for regulatory agencies to
fine-tune regulation and to consider specific costs. It is also feasible, in many markets to, eliminate
regulation as unnecessary because of the existence of intermodal competition. In the U.S., this logic
led to sharply reduced regulation of rail rates with the passage of the Staggers Act in 1980. Although
the railroads expected rates to rise after the burden of regulation was eliminated, rates in fact dropped
nearly in half in response to the increased competition.

Safety: even after economic deregulation, there remains a public interest in safety. Accidents involving
passenger trains can potentially cause dozens of fatalities and hundreds of injuries. Although less
severe than crashes of passenger jet aircraft, such train collisions are highly visible tragedies. Public
agencies and railroad officials are anxious to reduce the risks associated with these accidents. Track,
equipment, and operating standards may be specified in order to limit the probability and severity of
accidents. For higher train speeds, cab signals are required that display the signal indications directly
to the engineer. Regulation may specify a minimum crew size and procedures to be used for training
crews, signalmen, and track workers.

Hazardous materials are another concern for public authorities. While accident probabilities depend on
various operating parameters, the consequences of accidents vary greatly with the location. Hence,
governments may restrict the routing for certain types of commodities (notably radioactive wastes) and
require high quality equipment for transporting hazardous materials.

Train collisions are potentially catastrophic, but the vast majority of railroad fatalities involve
trespassers or accidents at grade crossings. The term “trespasser” has the connotation of someone
entering someone else’s property with mischief in mind, but in fact a trespasser may be a child playing
on the tracks, an old man crossing the tracks as a shortcut to the store, a hiker crossing a stream on a
railroad bridge – or someone attempting suicide by jumping in front of a train. Grade crossing
accidents occur when someone attempts to cross in front of train, or is stuck on the tracks in front of a
train, and the train with its limited braking capabilities is unable to stop. Signs, flashing lights &
warning bells, and automated gates reduce but do not eliminate the risks at grade crossings. More
advanced techniques involving wireless communications between the oncoming train, the crossing
protection devices, and certain types of highway vehicles (e.g. school buses) are under consideration.
16
6. Operations/Service Planning

Service design and operations planning are tightly linked. To provide safe and efficient service, it is
necessary to have a clear operating plan, the resources to implement the plan, and a control system to
ensure that the plan is implemented properly. The operating plan includes train schedules, a blocking
plan, and terminal operating plans. The train schedules must be feasible, given the characteristics of
the route segments. The blocking plan, which determines workloads at each terminal, must be
consistent with terminal capacity. Terminal budgets must provide the resources to handle the inbound
trains, make the necessary blocks, and assemble outbound trains. The physical limitations of the
network and the terminals are intimately tied to the feasibility of the plan and therefore to the quality
of service that can be provided

For passenger trains, unit trains, and most intermodal trains, train performance is what is important.
For general freight, yard performance is more critical, as the time spent in yards is far greater than the
time spent in trains, and the reliability of train connections is far more important than the reliability of
train performance. If resources are provided for implementation, then the plan will produce the desired
levels of train, yard, and system performance. Even though service requirements for major customers
are likely to drive key portions of the plan, it is ultimately the operating plan that determines how
trains and yards are operated and what service levels are provided. In this sense, the operating plan is
really an “operating/service plan”, and “service design” is a term that is used to describe the
development of the operating plan.

6.1. Train Schedules

Train schedules specify train arrival and departure times, including the time at intermediate stations.
Passenger operations depend upon reliable train schedules, but train schedules may only be a rough
guide for freight system operations. If line capacity is adequate, then train schedules can be developed
using average travel times between major stations. As the train volume grows, it is necessary to
consider whether or not the train schedule is feasible.

Meet/pass planning: dispatchers determine how opposing trains can meet safely and how faster trains
can overtake slower trains. Average train speeds depend upon the effectiveness of meet/pass planning,
as well as the distances between passing sidings, and the nature of the traffic. As traffic grows, it
becomes more difficult to arrange for meets and passes without extensive delays. In busy passenger
systems, line operations are planned months in advance. The objective - for planners or dispatchers –
is to minimize meet/pass delays, where delays may be weighted by train priority. If the line is
operating at or near capacity, maximizing throughput may of necessity be the objective.

For a long single track line, the maximum throughput is achieved by operating alternating trains, in
opposing directions, e.g. one eastbound and then one westbound. The capacity of such a line is
determined by the capacity of the line segment that requires the most time for a pair of trains to
traverse the segment, taking into account the need for a buffer against routine problems plus time for
maintenance. The annual capacity is less than 365 times the daily capacity in order to accommodate
peaks in demand associated with harvests or major holidays.

6.2. Blocking Plans

The blocking plan specifies which blocks are made at each yard, which determines how cars move
from yard to yard. The blocking plan historically was represented as a set of lists, one for each yard,
that defined the proper block for each possible destination station. Today, the blocking plan is
embodied in a database, and more complicated criteria are used to define blocks. Blocking models
balance yard-switching costs and train costs to determine what blocks should be made at each yard.
17
6.3. Terminal Operating Plans

The blocking plan plus system traffic flows determine yard workloads. Terminal operating plans
determine how the work will be done, i.e. how many switch engines will work in each part of the
terminal, how many inspectors will be available, how many clerks will be working, and what resources
will be available for fueling trains, repairing equipment, and maintaining the facility.

To estimate trip times, it is necessary to determine how much time will be needed in each classification
yard, which depends upon the time required for the various task, i.e. inspection, classification, train
assembly. To facilitate scheduling, “cutoffs” are established for outbound trains; if cars arrive in the
yard before the cutoff time for a train, then they should be able to make that connection. Given train
schedules and cutoffs, it is possible to determine the proper outbound connection for any inbound car
and therefore to develop a “scheduled yard time” for train connections and for the yard. Cutoffs reflect
the processing capabilities of the terminal, so they should allow sufficient time for cars to make
reliable connections. Nevertheless, variations in train performance, bad weather, yard congestion, and
lack of outbound train capacity all introduce unreliability into connection reliability. Typically, 80 to
90% of cars make their scheduled connections.

Different strategies for operating terminals can result in markedly different levels of performance. In
North America, where blocks typically move once per day, cutoffs are typically on the order of 12
hours, and average yard times are 20-30 hours. In China, where blocks typically move every 6-8 hours,
cutoffs are much shorter and average yard times are less than 10 hours for major classification yards.
The reason for the difference is that the North American yards are trying to minimize labor costs and
are generally attempting to send cars as far as possible in the next block, whereas in China, the
emphasis is on minimizing capital costs, which means keeping the cars moving without worrying
about the number of yard employees or train length.

In developing terminal plans, it is important to determine if the plan is “achievable”. The operating
plan gives the time of train arrivals and departures and the work to be done at each yard, which
determines the activities in the terminals. If the sequence of events can – with high probability - be
completed in time to allow on-time departure of the scheduled trains, then the plan is “achievable”. If
not, then the plan is unachievable and train schedules, terminal resources, or processing capabilities
must be increased in order meet the plan. A continuing problem with rail freight is that the traffic
volumes occasionally overwhelm terminal capabilities, so that it is impossible to find achievable plans.
This results in congestion, missed train connections, extensive delays to lower priority traffic, and
delays to trains trying to enter the terminal. In extreme cases, the terminals approach gridlock and it is
necessary to limit the freight shipped to the congested terminal or to ship freight, unsorted, to other
terminals in order to create room to maneuver. Congested conditions may persist for months if a
railroad’s resources are inadequate to handle the traffic. Terminal managers are well aware of these
dangers and work hard to “keep the terminal fluid”.

6.4. Car Scheduling

Given the train schedules, blocking plan, and cutoffs, it is possible to predict O-D and system
performance. Car scheduling systems create trip itineraries for individual cars by finding the
appropriate sequence of blocks and trains based upon the blocking plan and calculating scheduled yard
times as discussed above. Car schedules are created for every car expected to be in the system,
providing the data needed to predict yard workloads and train consists. If the workload assigned to a
yard or train is too high, changes can be made well in advance. Car scheduling systems with these

18
capabilities are commonly used by major freight railroads. The major limitation to the car scheduling
systems is the difficulty in predicting train performance and yard processing capabilities, and these
systems have proved better in guiding operations than in predicting service. Various strategies have
been suggested for improving car scheduling by taking into consideration train length constraints,
traffic priorities, and other factors, but these have not yet been implemented.

7. Concluding Comments

Railways have changed dramatically in the last 50 years. They have lost market share, their networks
have shrunk, they have merged into larger systems, they have been nationalized (and some have since
been privatized), their work force has declined – but they have survived. Loss of the 19th century
networks was inevitable and should not be overly lamented. More important is what can be done to
extend late 20th century technology around the world so that railroads can play a more limited, but still
valuable role in the transportation system. Railroads still have outstanding potential for mid-distance
passenger services, for heavy freight, and for mid- to long-distance intermodal services. Worldwide
concerns about dependence upon oil, emissions, highway capacity & congestion, airport costs and
delays all suggest a greater role for rail systems.

Technological development continues to advance railroad capabilities. The world’s heavy haul
railroads meet regularly to exchange research results and operating experiences, and substantial gains
have been achieved for moving coal, grain, and other bulk commodities. For passengers, technological
development has focused on high-speed trains. Less R&D effort has been devoted to the problems of
general freight or traditional passenger services, where the problems are more complex and also more
broadly relevant throughout the world.

Investment and capacity are concerns for the future. For example, double stack container trains have
been extremely effective in North America, but the necessary infrastructure is lacking in most other
areas and terminal capacity will be needed everywhere. Where clearances are low and expensive to
increase, as is the case in much of Europe, it will be infeasible to install double stack container trains,
but it may be feasible to achieve higher loading density through the use of wider containers or the use
of smaller containers that can be packed so as to use more of the available clearances. New ways of
handling containers, especially within urban regions, may provide ways to reduce dependence upon
truck transportation for short-distance freight movements.

Information technology (IT) is very important for the railroads. For intercity passenger services, it will
be critical to have web-based reservation systems, advanced on-board IT capabilities, and links to
other modes and travel services. For intermodal freight, more powerful IT is needed to coordinate
carriers, customers, and urban traffic control systems. For general freight, IT offers the potential to
provide better planning, marketing, and control of reliable service. One important possibility is
creating a reservation system for general freight that, coupled with better terminal control systems,
would improve the ability to provide reliable service to carload customers. Communications-based
train control is cheaper, safer, and more powerful than existing systems, but requires major
investments. For new systems, this technology offers considerable cost savings as compared to
traditional signal systems.

Public policy offers greater challenges than technology, especially for passenger and intermodal
transportation. Recently, considerable attention has focused on institutional solutions to railroad
problems: privatization of the national railways, separation of ownership and operation, or various
forms of open access. To the extent that government ownership restricts initiative, innovation, and
productivity, privatization may indeed provide some benefits. To the extent that operating and service
design are hampered by conservative, incompetent, or inefficient railroad bureaucracies, separation of
ownership and open access might provide some benefits. However, the institutional arrangements
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have, in principal, little to do with the technological capabilities or competitive position of the rail
industry. Blaming the railroads or government agencies for problems that actually reflect competitive
realities is quite likely to be counterproductive.

It will be more useful to consider how infrastructure investments, user fess, fuel taxes, land use
controls, and regulation affect the competitive position and growth of all modes. Understanding the
true social costs of highway, air, and rail systems will provide better insight into the best roles for each
of them. For both passenger and freight, opportunities for intermodal cooperation abound, especially
as IT provides a means for achieving the necessary degree of coordination and control to provide the
quality transportation and the customer interfaces needed to market the services.

Glossary

Advanced Train Control System: ATCS usually refers to a specific set of technologies that allow better control of trains,
better management of line operations, and quicker response to customer needs. ATCS includes, as a minimum, a
digital communications link with headquarters, on-board computers, and a positioning system. Additional
features could include meet/pass planning algorithms, locomotive health monitoring systems, pacing trains to
conserve fuel, and communications to support local switching.
Aluminum car: A car constructed with an aluminum supercarriage that is attached to traditional steel bogies. Reducing the
tare weight allows the car to carry more freight.
Block: A group of freight cars that are gathered together so that they can be moved to a subsequent yard or terminal for
further classification.
Blocking plan: Instructions for assigning cars to blocks at each yard
Car Schedule: The itinerary for a car, giving the specific trains that a car will move on as it moves from its origin to its
destination through a series of yards.
Classification: The process of sorting freight cars into blocks.
Flat yard: A yard where switch engines classify cars by pushing them onto the proper tracks (see “hump” yard).
Heavy haul railroading: A term that refers to modern methods for moving long trains of heavy cars over a track structure
designed to handle the excessive stresses of such operation.
Hump yard: A yard where a switch engine pushes cars up to the crest of a hill (the “hump”) where a yard helper
uncouples the cars so that they can roll down the hill; computer programs determine how to set the switches and
how to use the retarders so that the car ends up rolling at the desired speed onto the proper track.block . A hump
yard includes three main sections: receiving tracks where inbound trains are inspected; classification tracks (the
“bowl”) where cars are sorted into blocks; and departure tracks, where outbound trains are assembled.
Intermodal: In the context of freight transportation, this term refers to the movement of trailers or containers on a
combination of rail, truck or ocean carriers.
O-D movement: Movement of a car from its origin to its destination.
Operating authority: A dispatcher gives a train the right to use a designated portion of track.
Operating plan: Guidelines for operations, including train schedules and the blocking plan
Positive Train Control: A type of train control which prevents a train from exceeding its speed limit or going beyond the
limits of its operating authority. PTC generally is used in discussions of rail safety, as opposed to management.
Positive Train Separation: A type of train control which prevents a train from runing into another train (PTS is broader
than PTC).
Superelevation: Raising the outside rail on a curve to allow higher train speeds through the curve.
Track geometry: Aseries of measurements (including gauge, cross-level, and alignment) that can be used to compare the
actual location of the rails compared to their planned location. Gauge is the distance between the rails; cross-
level refers to the relative height of the two rails; alignment refers to the deviation from the center design route.
Turnout: A track component that allows trains to move from one track to another; its primary elements are “switch points”
that can be moved to shift the train onto a diverging route and the “frog”, which is where the diverging rail
crosses the straight rail.

Bibliography

Ambrose, Stephen E., “Nothing Like it in the World – the Men Who Built the Transcontinental
Railroad 1863-1869”, Simon & Schuster, NY, 2000 [An interesting account of the financial, political
th
and engineering efforts required to build a railroad across vast distances in the 19 century.]
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American Railway Engineering and Maintenance-of-Way Association, “Manual of Railway
Engineering”, AREMA, Washington DC (updated annually) [This is the basic North American
reference for engineering standards for railway track and structures.]

Chandler, Alfred D. Jr., “Strategy and Structure: Chapters in the History of the American Industrial
Enterprise”, The MIT Press, Cambridge, MA 1962 [This book highlights the role played by railroads
in inventing the communications and organizational tools required for modern corporations.]

Cronon, William, “Nature’s Metropolis: Chicago and the Great West”, W.W. Norton & Co., New York
and London, 1991 [This thorough history examines the way in which rail transportation changed the
size, location, and functions of cities in the American west.]

Hay, William W., “Railroad Engineering”, 2nd edition, John Wiley & Sons, 1982 [Although
technologically outdated, this text still provides an eminently readable summary of railroad
engineering issues and concepts.]

Locklin, D. Phillip, “Economics of Transportation”, Richard D. Irwin, Inc., Homewood, IL, sixth
edition, 1966 [This is the classic text for understanding the economics and the history of railroad
regulation.]

Muller, Gerhardt, “Intermodal Freight Transportation”, Third Edition, Eno Transportation Foundation
and Internmodal Association of North America, Lansdowne, VA, 1995 [This is a useful introduction
to all aspects of intermodal freight transportation in North America.]

Vance, James E. Jr., “Capturing the Horizon: The Historical Geography of Transportation since the
Sixteenth Century”, The Johns Hopkins University Press, Baltimore and London, 1986 [This is a very
thorough study of the development of transportation systems over the past 400 years, with examples
primarily from Europe and the US. The main theme is that improving transport capabilities were
harnessed to overcome geographical barriers, thereby changing the economic geography of the world.]

-------, “Jane’s Intermodal Transportation”, Jane’s Information Group, Coulsdon, Surrey, U.K., annual
[An excellent reference for basic information on equipment and routes.]

-------, Car and Locomotive Cyclopedia of American Practice, Simmons-Boardman Publication Corp.,
New York, various editions [An excellent reference for details on rail equipment.]

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