(The Associated Press circulated the following on October 15.)
WAHPETON, S.D. — BNSF Railway and Canadian Pacific dominate railroad shipping in North Dakota, but they’re not the only ones that haul cargo by rail.
Short line railroads like the Red River Valley & Western, which is celebrating its 20th anniversary, are playing a growing economic role both regionally and nationally.
The nation’s 550 short lines in 2004 employed about 20,000 people, had gross revenue of $2.8 billion and operated about 50,000 miles of track, according to the most recent numbers available from the Washington, D.C.-based American Short Line and Regional Railroad Association.
Much of that track is in rural areas that otherwise might not have rail service. Short lines play a particularly big role in agriculture-heavy North Dakota and western Minnesota, where they haul mainly grain, said Jack Olson, senior planner for the North Dakota Department of Transportation.
“Long trains, big trains, fast trains – nobody in the world does that as well as the big U.S. railroads,” said Dan Zink, director of administration for Red River Valley & Western. “Where the short lines shine is in really getting to know our local markets and customers and offering them flexibility.”
Small railroads played a big role in America’s economy in the first half of the 19th century, but the role later declined. The federal Staggers Rail Act of 1980 gave new life to short lines, the American Short Line and Regional Railroad Association said.
The act allowed big railroads to shed marginal and unprofitable lines, creating opportunities for smaller, nimbler operators.
Between 1980 and 1999, 332 short lines formed, including all five that serve North Dakota and western Minnesota.
Short lines typically collect commodities such as grain or manufactured goods from customers along low-density routes, then take the goods to a central location where a big railroad picks them up to transport over longer distances.
The opposite also holds true – big railroads bring goods to a central location, where a short line picks them up and distributes them to customers.
For example, Fergus Falls, Minn.-based Otter Tail Valley Railroad Co. connects with BNSF Railway in Dilworth.
“We serve complementary roles,” said Pete Rickershauser, a BNSF vice president.
Because of their small size, short lines can tailor their schedules to fit customer needs, said Pam Slifka, vice president and general manager of Otter Tail Valley Railroad.
“We don’t tell a customer what we’re going to do. We listen and find out what works best for them,” she said.
Terry Hall, manager of Munich Elevator & Oil Co., said his business probably would have closed without service from a short line railroad.
“I just don’t think trucking would have worked,” he said. “Having them come in pretty much saved us.”