Rail Transportation After Deregulation

Profitable marketing of most minerals is dependent upon the total delivered cost to the user. Transportation costs are often greater than the value of the mineral f.o.b. the mine or processing facility. In some cases, transportation costs are three to five times the mineral cost. For many years, transportation costs were controlled by a complex system involving the transportation companies and supervised by regulatory agencies. This paper will deal with the effects of deregulation on rail costs and outline the major changes in transportation economics.