Gathering Team Member
- Aug 24, 2003
NEW YORK — Railroads have a stark choice. They can maintain their focus on the operating ratio, continue to bleed traffic to the highway, and lose $177 billion in revenue by 2030. Along the way railroads would shrink in line with declining volume, meaning track would be torn up, real estate sold...
The question is which way will they go? Chasing Operating Ratios to oblivion or changing to move out of the 20th century and finally arriving into the 21st century. Many of the technical improvements have been forced by issues that they were unable to control, and had to accept kicking and screaming, while steadfastly continuing with operations that without fail lost them market share year after year. Now is the point when they will either change for the better or go the way of the dinosaurs and Dodo birds. Not that railroads will disappear, but their Wall Street masters will cease to tolerate them and force restructure them in ways that will be out of their control, unlikely for the better.