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Transportation Logistics Exercise Questions Ch5-7
Chapter 6 Exercise Questions
1. Railroads no longer dominate the freight transportation market, but they still lead the market in terms of freight ton-miles. What factors contribute to their leadership in this area? Why is their share of the total expenditures for freight movement so small if they lead in freight ton-miles?
2. Since the passage of the Staggers Rail Act of 1980, there has been an increase in the number of small railroads (Class III). Why has this number increased while the number of Class I railroads has decreased?
3. Explain the difference between intramodal and intermodal competition in the railroad industry. Which form of competition is most beneficial to shippers? Why?
4. One of the significant factors in rail development has been the number of mergers that have occurred, but there have been different types of mergers that have occurred over time. Discuss the major types of mergers and explain why they occurred. Will mergers continue to occur in the rail industry? Why or why not?
5. What factors have contributed to the decline in the volume of higher-value freight by the railroads? What changes, if any, could the railroads make to attract more higher-value freight from motor carriers?
6. Railroads have abandoned a significant number of miles of track (over 260,000 miles) since 1916. Why has this trend developed? Will it continue into future? Why or why not?
7. The railroad industry has developed a number of new types of equipment to replace the standard boxcar. What is the rationale supporting the diversification of equipment?
8. The railroad industry’s cost structure is different than that of the motor carrier industry. What factors contribute to this difference? What impact do these differences have for the railroads in terms of pricing, competitiveness, and investment?
9. Discuss the major current issues facing the railroad industry. Select one of these major issues and present appropriate recommendations for resolving the issue.
10. What factors have contributed to the success of intermodal rail service? What barriers exist to future expansion?
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