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The "X" factor ... it's a great idea, but difficult to play out in the railroad business for several reasons. For one, the industry is standardized to a great extent, e.g., track gauge, making "outside-the-box" thinking difficult to implement. For another, capital requirements are high for almost any significant service innovation, so there is always competition between "maintenance and renewal" capital, e.g., roadway, locomotives, etc., and innovation capital. Add in the risk of innovation investment, and the former typically wins out. And, yes, the industry has a conservative management bent. Having said the above, though, innovation has been consistently encouraged and risks taken. Roadrailer is one example. BN built "TroughTrain" in the early 1990's, an innovation that would have vastly increased unit coal train productivity had it panned out. BN collaborated with innovative engineers and truck lines to develop dry van trailers that would carry automobiles in one direction, dry freight in the opposite. It proved too expensive and too complex. BN worked with others in the industry and supply industry to support development of the AC diesel-electric locomotive, then BN placed the first order in 1993 for 300 of these units. The benefits of this innovation have been significant for the entire industry. Innovation in the railroad business isn't as "flashy" as in the information technology industry. (Who outside the railroad industry was aware of "enthusiasm" for concrete ties? (:~) ) But innovation is supported, tested, promoted and implemented on a consistent basis in the industry.
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