ABSTRACT
The rehabilitation of the North American railroad industry that followed regulatory reform has been referred to as a renaissance. The policies embodied in the Staggers Rail Act of 1980, as well as other reform legislation, were the product of urgent compromise and were vigorously implemented by market-oriented reformers. Congress had given the Interstate Commerce Commission authority to exempt “matters relating to a common carrier by railroad” in Section 207 of the Railroad Revitalization and Regulatory Reform Act of 1976. Railroads could offer competitive rate and service packages to induce a customer to locate at a particular site, or to expand an existing facility. The capital cost issue is an important element in the larger matter of railroad revenue adequacy which may, in fact, be the most important of all issues.
