electricron wrote:SouthernRailway wrote:There is a big market that the railroads are missing: the gap between FedEx-style overnight service or the like and railroads' multi-day delivery times. Even if railroads could speed up delivery by a day or two on long routes, they'd probably be able to recapture a lot of higher-margin business. When I mean "time-sensitive freight", I don't mean FedEx overnight delivery; I mean things that are more time-sensitive than, say, shipping sand.
But the railroads aren't setup to do that anymore. They don't have the infrastructure nor the manpower to handle fast freight. Additionally, 50 years ago most independent warehouses had rail access. That's not so today, I suggest less than 10% of the warehouses today have platforms leading to tracks. That means neither the railroads nor private enterprise have the facilities with rail access to handle the fast freight business.
I'm not talking about door-to-door shipments.
Railroads ARE set up to move things such as UPS packages, TOFC shipments, shipping containers, autos, etc. It takes several days to move those things even a medium distance. If railroads cut delivery times, say, for UPS and any of the items listed above, then railroads could capture more higher-margin business.
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Railroads DO want to handle fast freight, at least for the items I list above. Why else would Norfolk Southern be investing hundreds of millions of dollars in the Crescent Corridor? Why else would railroads be working to reduce shipping times for UPS? There are plenty of other examples.