Booming U.S. Freight Rail Industry Could Run into Major Congestion Problems

SUGAR LAND--June 18, 2008--Researched by Industrial Info Resources (Sugar Land, Texas)--As oil and resulting gas prices continue to rise, more attention is being paid to the problems in the airline, automotive and trucking industries than ever before. Airlines are adding fees to help address rising fuel concerns; automakers are closing or idling plants and laying off workers as they adjust to demand corrections; and trucking companies are finding it increasingly difficult to make a profit with diesel prices increasing almost daily. Meanwhile, the freight rail industry in the United States is booming. The 140,000-mile rail network that crisscrosses the country carries everything from corn to coal to steel to automobiles to people. As oil prices continue to rise, more products and raw materials will be transported on freight cars rather than by trucks. The Association of American Railroads estimates that moving 1 ton of freight from coast to coast takes 27 gallons of diesel by truck, while it only takes 7 gallons of diesel to move the same amount by train.

Companies featured: United Parcel Service Incorporated (NYSE:UPS), Union Pacific Corporation (NYSE:UNP)