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The rail industry has faced significant competition since the national highway system was built. As a result, the rail industry has steadily declined in performance, but it still plays a significant role in the transport network.
The observation that there has been a decline in the percentage of all ton-miles moved by rail roads indicates that they are losing out in the transport industry. The figures have continued to decline, but it is noted that the real number of goods being transported by rail roads have been increasing steadily. For example, in 2001, the rail roads shipped 41.7 percent of total ton miles but it has never increased (Coyle, Barti & Novack 95).
The figures of the actual tonmiles show that in the 1980s, the railroads transported a total of 932 billion ton-miles. In 2001, the ton miles increased to 1558 billion ton-miles. This is evidence that the rail roads continue to move goods but they have lost a good size of their market to the other modes of transport which are growing at a very fast rate (Coyle et al 120).
As a result of this trend in the rail road industry, the small line or short rail roads, also known as local, have been increasing. The class1 railroads, also known as the regional, have continued to decline since the other modes of transport had taken this market. Thus, the increase in the locals or small line railroad was better in capturing back the market.
The class 1 rail roads were broken up or switched to small lines. These small lines were contributing more to the overall freight network. The locals or the small rail roads were making losses because of the stiff competition which was in the transport industry. These small rail roads were increased in order to recapture the lost business circles. This can be attributed to the inter-modal competition (Coyle et al 120).
Inter-modal competition is the competition between different modes of transport. The rail roads have faced stiff competition from the national high way system that is the motor carrier. Intermodal competition is supported by the government as it spends on infrastructure and gives more support to the development of other modes of transport.
Intra-modal competition is competition between different railways. It is where different geographic regions have several railway lines and they are controlled by different investors. This is good for the railway industry as it tends to increase performance and services by the rail roads. The investors have reduced this intra-modal competition by cutting back on the railway lines in different areas to only a few and in others only to one (Coyle et al 110).
Intra-modal competition is beneficial to shippers because they are able to get better services from the railroads. This is through the improvement in the rail road industry. The rail equipment will be improved to ship more products and at competitive rates. Intermodal competition might not very much affect the transport market because the dimensions are already mapped out. But it is also important but those who prefer rail transport are those who wont mind about time as long as the rates are fair where as the ones who prefer the trucks or motor carriers are in need of fast delivery thus this comparison shows inter modal competition is not likely to have a great impact like intra-modal competition (Coyle et al 115).
Reference
Coyle, John C., Barti, Edward J. & Novack, Robert, A., 2006, Transportation, 6TH e.d. New York: Free Press, 95-126.
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