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small unit trains
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Actually, the small unit train concept is one that has great profit potential for the railroads, yet has hardly been exploited due to hard wired misconceptions regarding the "efficiencies = profits" mindset. The small unit train concept is a perfect fit for short haul markets. <br /> <br />Assuming Ken is probably correct in his assessment, the per car cost for a 10 car unit train is about $1.18/car mile, which is a much higher cost than the longer trains. However, since the shorthaul market is one which the railroads have all but ceded to truckers, it is the truck cost structure that dominates rates in such corridors. Trucks probably can't handle a cost per mile lower than $1.50, and are probably more in the $2.00 - $2.50 range. On a ton mile basis, the 10 car short haul rail shuttle cost comes out to about $0.01/ton mile, while the trucker's ton mile cost is about $0.04/ton mile. Thus, there is a pricing opportunities for railroads in which the railroad can charge a higher rate than the usual long haul rates, yet still get the business because the higher rail rate still beats the trucker's break even rates. <br /> <br />The key of course is to haul a commodity that allows the train consist to remain intact, and to provide the service at a consistent availability interval so that timing constraints of the shipper don't force the traffic onto trucks as a last resort. <br /> <br />As for long haul, railroads do occasionally add 10 or so car sets to regular manifests and drags if the space is available.
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