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[CNJRoss]

Trains News Wire

 

Report urges railroads to adopt growth strategies to regain freight lost to the highway

 

By Bill Stephens | April 5, 2024

 

Oliver Wyman analysis recommends that Class I railroads focus on reliable service while offering new shorter-haul intermodal routes

 

Class I railroads can continue business as usual and watch their earnings stagnate and profitability fall as their freight volume declines through 2030.

 

Or they can make meaningful service improvements, become easier for customers to deal with, and launch new intermodal services that capture freight from trucks. Adopting a successful growth strategy will boost revenue, increase profitability, and produce the returns that will raise railroad stock prices.

 

That’s the choice facing the railroads and their investors, according to an Oliver Wyman report released this week. Report authors Matthew Schabas and Adriene Bailey focused on three potential scenarios: business as usual, holding market share, and pursuit of volume growth.

 

 

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