We’re partnering with leaders on both sides of the aisle and in both houses of Congress—particularly Sens. Mike Crapo (R-Idaho) and Ron Wyden (D-Ore.) and Reps. Mike Kelly (R-Pa.) and Mike Thompson (D-Calif.)—to find a tax legislative vehicle to modernize the successful 45G short line tax credit. And we’re working to partner with regulatory agencies to ensure that any new initiatives are safety-focused, data supported, and implementable by small business railroads.
Another critical partnership—that of short lines and Class I’s to create an affordable, reliable, and seamless freight network for our customers—is also top of mind for 2026.
Senior Class I railroad executives came out in force at the most recent 2025 ASLRRA Region meetings in Charlotte and New Orleans, and there was much to like about what they had to say. Presentations by Stefan Loeb of Norfolk Southern, Christina Bottomley of CSX, Jim Gunther of CN, Kenny Rocker of Union Pacific, Coby Bullard of CPKC, and Mark Ganaway of BNSF focused on the importance of their short line connections, the efforts they are making to strengthen those connections, and the work they are doing to accelerate carload opportunities.
Each presented encouraging operational data, industrial development and real estate initiatives, and technology innovations. Some showcased new programs to track Class I/short line interchange performance, jointly market certified sites, share railcars, or create new short lines.
Each showcased their short line management teams, which these days have evolved well beyond just managing legal agreements and joint facilities to become potent teams dedicated to creating carload volume growth. The expansion and elevation of these teams into Class I senior management is a relatively new development and one that has significantly benefited short lines and their customers by increasing their visibility throughout the Class I organizations.
The presentations were first-rate, informative, and encouraging, and there is no doubt that short lines liked what they heard. But as the saying goes, the proof of the pudding is in the eating.
To quantify success, or the lack thereof, which is just as important to know, short lines would be interested in seeing metrics tracked over time, such as on-time delivery and pickup at Class I/short line interchanges, “same store” volume growth from short line originations and terminations, total short line volume growth (including new short line creations and—God forbid—any short lines that go away), the percentage of Class I volume that touches a short line, the success rate of how often short line business development opportunities turn into actual carloads, the average speed from a requested rate quote to a delivered quote, how often a paper barrier was modified to increase volume or improve service, and how often service frequency was increased to improve volume or service.
These are admittedly my layman’s version of metrics that might be used to judge success. Some of these already exist but are generally kept private or not widely reported, while for others the railroad experts in the room could no doubt develop better metrics or the best way to measure. And I’m sure I missed dozens more that could be measured. Either way, I would urge short lines and their Class I partners to devote some time and effort to considering how these kinds of metrics could be developed and utilized in measuring the progress envisioned in the presentations made at our Region meetings.
Recently, ASLRRA worked with Railinc to gather and publish the number of individual carloads that were handled in origination, termination or bridge movement by at least one short line in the U.S. The results for 2017-2023 show Class I U.S. carload originations (non-intermodal) declining from 16.1 million to 14.1 million, while short line carload originations remained flat at 2.7 million. On the termination side, Class I volume decreased from 15.9 million to 14.3 million carloads while short lines remained flat at 3 million.
There are many ways to look at that data, but what I see is a good news/bad news story:
The good news is that short lines represent an increasing share of carload volume in the rail industry (from 14.5% to 16% of originations, and from 15.6% to 17.4% of terminations) and thus an obvious place for our Class I partners to focus to grow business.
The bad news is that total carload volume is down across the industry and even short line volume is mostly flat. That is the needle that needs to be moved. I believe paying closer attention to the kinds of metrics noted earlier will help get those numbers going on the upward trajectory that both the short lines and Class I’s are hoping for.
An oft-used sentiment is that “a new year is another chance to get it right.” Short lines and their partners have a compelling opportunity to do just that in 2026!
