Southern Pacific Switching Layout

[Brakie]

...The other result was that the class one railroads divested themselves of local branch lines, which were then sold off to smaller operators if the traffic warranted. These smaller non-union operators and in some cases union operations just specialized in serving local industries and acted as feeders to the class one's.

I assume they have a much lower labor cost structure permitting labor intensive work. On the other hand I assume they are short on capital and reuse older equipment to prevent capital expenditures and high depreciations in their balance sheet.

Don't tell that to R.J.Corman or GWI since these short line operators operate top notch short lines and utilize 2-3 men crews as needed..They also keep their equipment in top notch condition.There are several others as well.

There are some short lines that is barely inking out a living and their equipment and tracks reflect that..