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Rail to riches? Rising fuel costs may mean comeback for freight trains.

Publication: Indianapolis Business Journal
Publication Date: 09-JUN-08
Format: Online
Delivery: Immediate Online Access

Article Excerpt
[ILLUSTRATION OMITTED]

Spiking diesel fuel prices have deflated trucking stocks and made road kill out of many a small motor carrier.

It's sweet irony for anyone who's worn a pinstriped cotton cap to work. The rising price of diesel is poised to invigorate a mode of transportation 40...

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...that trucks nearly annihilated the freight railroads crisscrossing the state.

The diesel-fueled locomotives that run on them have one giant advantage over the ordinary Freightliner or Kenworth: They're commercial transportation's version of the Toyota Prius hybrid.

By coupling diesel engines to electric generators that power steel wheels, your run-of-the-mill diesel-electric locomotive is at least three times more fuel-efficient than a semi. One gallon of diesel can move a ton of freight an average of 436 miles, the Association of American Railroads is fond of touting,

The president of Louisville & Indiana Railroad expects more new customers knocking on the door of his Jeffersonville headquarters.

"We haven't seen them flocking in yet," said John K. Secor, whose line runs everything from cement to grain to food products on 100 miles of former Pennsylvania Railroad track between Union Station and the Ohio River. But knock they will, "at some point," Secor predicts.

The trend clearly favors railroads if diesel prices remain...

NOTE: All illustrations and photos have been removed from this article.



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