Shortlines


rodney mcgiveron

rodney mcgiveron

Member
G'day all....A real quickie.....when we use the term "shortline"...Is there a general classification for a shortline ie..length or type of route or is there other reasons why a railroad/railway is a shortline..?.....Just curious....Cheers Rod...
 
As opposed to a longline?

Sizing downward:
- continental
- regional
- shortline

I'm sure there are others. Would trackage within an industry be considered a shortline? Now I'm just adding to the question.
 
That fount of all knowledge, Wikipedia, identifies a short line, or Class III, railroad as one with annual revenues under $20 million a year (in 1991 dollars, however) and sources that to a U.S. government document. I had thought that there was some cut-off point for number of miles of track, but there doesn't seem to be.

Wikipedia also reports that "Switching and terminal railroads are excluded from Class II status," but doesn't put them in Short Line classification either.
 
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G'day all...Thanks for that...the term shortline is somewhat vague...and would be in many cases up for interpretation I suppose ....Still interesting though..Cheers Rod
 
JazzDad said:
Would trackage within an industry be considered a shortline? Now I'm just adding to the question.
Click to expand...

Applying the Class 3 rule that a shortline is a revenue road i.e. operates to generate profit for itself as an entity in it's own right, then trackage that serves an industry as a cost to that industry should preclude it from shortline status.
 
If it is incorporated as a separate railroad, then its a shortline, if it just part of the industry no. It doesn't have to generate a dime of profit, it has to be legally incorporated as a railroad.
 
dave1905 said:
If it is incorporated as a separate railroad, then its a shortline, if it just part of the industry no. It doesn't have to generate a dime of profit, it has to be legally incorporated as a railroad.
Click to expand...

From a profit/loss point of view to the industry using it, what would be the advantage? I would assume any arrangement would be done to maximise tax breaks. Would there be a greater benefit in claiming hireage fees rather than actual operating/plant costs, or would it be done (incorporating) more as an accounting strategy?
 
Railroads get a division of revenue. Industries don't. Industries pay demurrage, railroads pay car hire. Car hire is less expensive than demurrage.
 
Seems that if it was owned, lets say by a steel mill, and engines and cars do not go off of the mills property. then engines would be the same as fork lifts,trucks. Track as road ways and such.
They incur depreciation, and maintenance cost the same as other items used for working.

But since I only owned a small business that never used a railroad I am only thinking out loud.:rolleyes:
 
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