Are Railroads Slowly Committing Suicide?
North America’s remaining six major freight railroads appear to be committing slow motion suicide, according to testimony offered by rail customers, industry analysts and labor to regulators on the Surface Transportation Board (STB) at two days of public hearings held last month.
STB Chairman Robert E. Primus contended that the industry’s growth has not measured up to all of the opportunities that were presented to it over the past seven years, after Wall Street activist investors ignited the fad of Precision Scheduled Railroading (PSR), an operations model sold to investors as a Holy Grail by prioritizing squeezing out costs over growing the business, and which has persisted since gaining widespread acceptance among investors in 2017.