Disadvantages Of Rail Industry

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Choices in regards to transportation mode have significant effects on logistic companies, society, and infrastructure providers. In most cases, transportation modes that are optimal for the society are overlooked because of the specific interests of stakeholders. Decisions are made with quick calculation without considering the underlying assumptions. A typical scenario of such decisions is the trade-off between road and railroad transportation of freights. Freight transportation has replaced rail as number one form of transportation to moves from one point to the other. In the early 1900’s moving goods by rail was the best way to transport products from a place like New York to Georgia. Today, motor carriers have proven rail to be inefficient, slow, and less cost effective (Pazour, Meller & Pohl, 2010). Though motor carriers are more cost effective, transportation by rail has a number of benefits which are not limited to faster, greener, safer and more efficient way of transporting heavy loads.
History of Rail Industry
Railroads played a significant role in the development of the United States during the industrial revolution. The Transcontinental Railroad was formed in 1869 when the tracks of the Union Pacific Railroad and the Central Pacific Railroad joined. Railways linked cotton regions to the oceanic ports (Posner, 2008). Most of the farms were located near railways hence facilitating the shipments of grains, cattle, and hogs to the national as well as international
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