Why is Rail Frieght dying in NE?

Back in the early eighties, when I was working for General Electric in Lynn. An article came out in the company paper, stating that GE would contribute money to the B&M to upgrade the old Saugus branch thereby alowing the company to ship their gearboxes by rail. I have know idea what happened other then the Saugus branch is abbandoned and GE now ships its gearboxes by a special Haulmore trailor. Granted this all came about around the same time that Gilford took over the reins of the B&M, but who am I to speculate ?

Just a couple observations, not really rail oriented. First, the flaws of "just in time" truck freight have been plainly exposed by the Hurricanes this year. When things are disrupted by a disaster, there are no warehouses full of supplies to fall back on. People go hungry (unless they are among the few to properly prepare), there is almost no fuel for cars, trucks and generators because of no electricity to pump the fuel.
Second I believe the much ballyhooed trade globalization will ultimately result in a global catastrophe. Everything works well if there are no problems, but if things go to hell, what then? I don't know how or when, but sooner or later bid flu, terrorism, war, natural disaster etc. will so disrupt things as to cause cascading problems worldwide. When a product is made in only one country or region, the whole world is more vulnerable. What will NIMBYdom do when they discover they can't eat microchips? Just my humble opinion.

These are very good observations that do relate. With the combination of just-in-time delivery and using trucks, one crucial cost of doing business is greatly minimized in a highly competitive business environment. That cost is called "inventory". Businesses some time ago realized that inventory is cash that is tied-up for a certain length of time and speculative in some cases. This is where trucking holds a greater business advantage over rail. Unfortunately, rail cannot compete in too many cases except as mentioned for bulk commodities. Even then, freight that is in transit is still inventory. No one wants to be saddled with excess inventory and at warehousing costs determined by the square foot.

NYNE wrote:There are some big differences between NYC and New England.

Certainly. Though my main point is that freight was in decline here. The industrial base, particularly in queens and brooklyn, is all but gone. Same story as everywhere else: old warehouses being converted to housing. If anything housing and people have become the industry base for freight here: building materials inbound, trash cars outbound.

Which raises a question: how is trash handled in new england? Here there's private companies that handle commerical refuse and send it down south via rail. The city closed it's landfill and is shipping that out of state too, with the vague occasional rumor that MSW trash will be containerized and shipped out either by rail or barge in the years to come.

If landfills are closing in NE like they have here, that trash has to go somewhere, and trucking it all is the most expensive way to go. I doubt WM would be making what they do here if they were trucking it all instead of loading up a lot of cars to ship outbound 6 days a week.

Had the status quo stayed in place, that is, conrail monopoly and a commuter agency running freight (lirr), rail freight within nyc and long long island would be on it's death bed right now. No one would have thought to get the trash traffic.

I suspect part of new england's problems with freight is Guilford. They don't seem to care much about attracting customers, thus csx doesn't worry about competition much. They can focus their marketting people elsewhere...

again, just some outside observations/perspective. pick it apart if need be...

I also agree a lot with what everyone has said re: trucking, warehousing, supply chain. etc: It's all a perscription for disaster. Most people don't think about these things much and are in for a surprise when they're left to fend for themselves without any real supplies to speak of...

If you look at what CSX is hauling these days through MA, you'll see the majority of railcars carring trash and crushed vehicles west, and new vehicles heading east. That says a lot. And didn't Guilford make a good chunk of money some years ago with fiber optic cables buried along the right-of-way? It's not surprising that if Guilford, like any business, could make money and a better return on investments other than improving track or service, it would.

I would reply to this question, but I think I'd type for too long a time and say some things I shouldn't... ehem...

Guilford seems to do what it can to discourage the small shipper, even if they are close to the main line.

Not that long ago they got rid of Key Packaging in Salem NH and Merrimack Paper in Lawrence. Merrimack Paper was very close to their main line.

From what I hear, and I could be misinterpreting what I'm hearing, G does not provide good service to anyone except possibly the paper mills in Maine.

I had heard that even the paper mills are not happy but they're afraid to do anything about it.

Anyone have any thoughts on what rail traffic would be like if we had a different company in the area instead of Guilford?

I have studied logistics. There are some small high priority loads that are better suited to trucks. On the other side, I have seen railroads throw away business. Especially the class 1 lines like to handle large blocks of cars. They try to get rid of the 1 or 2 cars every other week businesses. They would rather have unit trains. Even in car load busines, CSX would rather get 10 cars from mass Central, 30 from NECR, and 30 from P&W. Remember, P&W and MECR are lines spun off by class 1 lines. I do not totally agree with this. The big lines want home runs every time at bat. Base hits win games.

First off, New England years ago had a lot more than just textiles etc. Just
take a ride through the cities of Connecticut, the Naugatuck Valley is a
good example, Derby had machine shops, Ansonia had brass mills and
more machine shops (some of the buildings are still there in a state of
decay), Naugatuck had rubber and chemicals, Waterbury had brass mills
big time and other heavy industry, Torrington had various machine shops
plus a big operation of American Brass.
Hartford, New Haven and Bridgeport had big operations manufacturing
guns, arms, typewriters, machinery, brass and much more, all gone now.
The situation is pretty much the same everywhere else in southern New
England, the heavy industry is gone. We do not need to get into an
argument or extended discussion as to why, but it is goon and will not
come back again.
In 1957 the New Haven Railroad had over 70 through freight trains running over its four state system. Today the former New Haven trackage
has NONE, that's right NONE. Local freight is even worse, between
Bridgeport and New York on the former New Haven main line there
remains just two places where freight is handled, Rings End Lumber in
Darien and Mamaroneck.
Between Waterbury and Devon the only freight business that amounts to
anything for Guilford is at Beacon Falls and it probably only gets switched
once or twice a week. There is still a little bit left in Waterbury but it is
not very much.
If it were not for the passenger trains, both commuter and Amtrak, there
would not be much railroad track left in Connecticut.
Who ever thought the day would come when railroad lines would have
"passenger service only"?
Noel Weaver

Now, I'm really depressed.

It's not surprising Noel that you didn't see a lot of textile in your travels because the industry had collapsed in the 1930s and by the middle of the 20th century it was just a shell of what it had been. All one has to do is trace the fortunes of the Dumaine family to trace the decline and fall of the textile industry. The Dumaines, while known to many railroaders for their involvement in the B&A, the New Haven and the D&H, were primarily known for the Amoskeag Mills in Manchester, New Hampshire. That is where the family money was made and that is where the old man first learned how to slowly strip a company down to the bone to maximize profits.

I also came across another little factoid that might put the entire discussion into perspective. In 1950 40 percent of all non-agriculture jobs in New England were in manufacturing. By 1998 this had dropped to 16 percent, according to one report.

In another report from Boston University I found the following. In 1989, manufacturing still made up about 20 percent of Massachusetts jobs but by 2001 that had fallen to 13 percent.

I worked in the New England Industrial Park in Needam a few years ago. (It is now called the New England Business Center.) The entire park was laid out with railroad spurs. They ran through parking lots, along side buildings, etc. When I was a kid I remember cars being switched in and out. When I started working there in the 1990s no trains came into the park anymore. The Bay Colony came as far as Newton, but the tracks were pretty much gone after that point.

The tracks in this area are among the oldest in the U.S. They were first laid out to haul rock and dirt into Boston to fill in Back Bay. The bottom line is times have changed. Once canals and boats ruled the world. Just look at Norwich, Connecticut. It was once a very busy port and rail facility. Now when you walk along the Norwich waterfront if you didn't know it was once criss-crossed by rail and hosted steam ships from New York there would be little to tell you of its history.

New England's economy is becoming more and more people oriented, as is the rest of the United States. And as everyone wants their kids to grow up, go to college and get a good job this is only going to continue. I think it is inevitable that the future of rail in New England is as a people mover. It is a shame that this reality hasn't caught up to our elected leaders. Imagine how much more efficient the region would be if Springfield and Boston were linked by regular rail service? People make commutes that long in and out of NYC every day yet we are startled at the thought in New England.

And why stop there? Why not a web that links Boston, Hartford, Providence, Manchseter and Portland and all points in between? I honestly think it will happen at some point, but I am not sure when or how.

Not all the news is bad!

Our region, well, our country has changed. The folks that make the investment choices, choose companies that have a high return on investment, ususally these days that means that its goods (or services) are produced or secured overseas. I don't think that these factors are healthy for the long term interests of our country but there are a few bright sopts in rail transportation here in New England.

We are home to some very aggressive and vibrant short line/regional railroads. they are as diverse as the Providence & Worcester, M.M.&A, Vermont Railway, New England Central, Mass Central and the Pioneer Valley. These roads and others like them do amazing things to keep and grow their business. There are also a lot of hard working railroaders that help keep their companies competitive.

My railroad has the old reliables like building materials, energy products, paper, solid waste, interchange and manufacturing raw materials but it never seems to cease looking for new opportunities. New England's railroads also found a niche in multi-modal logistics. Most of the food sweeteners, cement products, lumber products, paper and propane moves into our regions distribution centers for reload and ultimate final delivery.

These railroads offer great value as well. Sure there are always obstacles to overcome but the businesses located along the tracks of our regional railroads receive a level of service unheard of at the larger railroads. Service is really just a phone call away in most cases.

Our railroads each with their own distinct personality none the less have a get it done attitude, perpetuated by its employees.

The old days are long gone but take a closer look at what is happening on our local railroads, you may be pleasantly suprised.

SnoozerZ49 wrote:Not all the news is bad!

Our region, well, our country has changed. The folks that make the investment choices, choose companies that have a high return on investment, ususally these days that means that its goods (or services) are produced or secured overseas. I don't think that these factors are healthy for the long term interests of our country but there are a few bright sopts in rail transportation here in New England.

We are home to some very aggressive and vibrant short line/regional railroads. they are as diverse as the Providence & Worcester, M.M.&A, Vermont Railway, New England Central, Mass Central and the Pioneer Valley. These roads and others like them do amazing things to keep and grow their business. There are also a lot of hard working railroaders that help keep their companies competitive.

My railroad has the old reliables like building materials, energy products, paper, solid waste, interchange and manufacturing raw materials but it never seems to cease looking for new opportunities. New England's railroads also found a niche in multi-modal logistics. Most of the food sweeteners, cement products, lumber products, paper and propane moves into our regions distribution centers for reload and ultimate final delivery.

These railroads offer great value as well. Sure there are always obstacles to overcome but the businesses located along the tracks of our regional railroads receive a level of service unheard of at the larger railroads. Service is really just a phone call away in most cases.

Our railroads each with their own distinct personality none the less have a get it done attitude, perpetuated by its employees.

The old days are long gone but take a closer look at what is happening on our local railroads, you may be pleasantly suprised.

Yes, I visited parts of New England this past summer and I was quite
impressed with the Housatonic in Connecticut, the NEC and the VTR systems in Vermont among others.
The old CV now the NEC was always a decent line for local service and I
recall not too many years ago that they had a rather large local business
in Connecticut and Massachusetts. Suspect that NEC still has a good
business in southern New England.
The problem with the former New Haven lines is simply that they had
more heavy industry than box car like stuff. The loss of the brass industry
in the Naugatuck Valley of Connecticut was a huge blow to the New Haven
and Penn Central and so were the closings in Bridgeport, Hartford and
other major cities in the area.
I know a lot of people do not like Guilford but the fact that they have been
able to stay in business in Connecticut never ceases to amaze me. While
I was in Waterbury in August, I saw very little signs of freight business, a
car or two in the yard and one or two more spotted around but very little
in a city of over one hundred thousand people and at one time one of the
largest terminals on the NHRR so far as origination and termination of
freight. I believe at one time it was second only to Boston in all of New
England.
The Brass Mill Mall is a nice addition to Waterbury but it is no where near
as valuable an asset as the old Scovill Manufacturing Plant that was there
before the mall. The plant employed thousands at decent pay and
conditions and was a huge customer of the New Haven Railroad, they had
a switcher that spent most of the middle trick working just that one
Scovill plant during the 1950's and early 1960's. Thanks to that one
factory, the Dublin Street Branch was a very important part of the New
Haven's operations in Waterbury.
Noel Weaver

The fact that the short lines are vibrant and are working hard to get and keep business is an example of an important fact about business: factories and businesses whose owners live in the same area as the business are often less likely to move elsewhere than are businesses that belong to large corporations whose owners live all over the place and therefore no place. For example: Cranston Printworks, RI and Mass, with some offices in NYC, is basically a NY and RI company, and its become one of the last textile busineses in NE. Malden Mills, a much newer company, is also run by local folks. When Dexter Shoe's old Yankee owners sold it to a big shoe corporation, that corporation promptly closed the shoe factory in Maine and sent most of the business to China.
(I assume a lot of short-line owners and managers get a lot out of being able to live and work where they do, instead of where a large RR company might send them.) Small local companies have more incentive to stick it out and keep working in their hometowns, even if they could conceiveably make higher profits someplace else, because their owners have financial and personal and emotional investments in their towns and regions, not just in their balance sheets. I am not just sentimentally longing for a golden age of NE manufacturing. I am arguing that a world economy made up of small companies with local ties would produce more stable economies and make people everywhere better off. Maybe they wouldn't produce as much profit as big corporations that can flit around the world, opening and closing various plants to get the cheapest, least savvy labor force they can for their least appealing work. But they would save a lot of people the heartache and hassle of having their job continually running away from them in the search for a few more fractions of a point on Wall Street.
Note: Sometimes I do get nostalgic about the golden age of New England manufacturing -- until I remember that the Lynn shoe companies reduced a lot of independent shoemakers to poorly paid factory workers, and simultaneously put a lot of shoemakers overseas out of business; that the textile mills ran for decades on child labor, poor pay for women and immigrants, and dumping practices that turned the Merrimack all colors of the rainbow; etc. Unions and environmental laws were a good thing and they fixed a lot of those problems. New England lost manufacturing jobs because other parts of teh country and world were willing to take bad pay and dangerous pollution, not because NE workers were greedy or because of unreasonable NIMBYS. Big corporations, seeking high profits, want to do things we've decided are unfair and dangerous; they build factories someplace where wages are lower now than they were in NE in 1920 (a dollar or two a day in some parts of Asia, Central America, and the Caribbean) and where politicians accept pollution to get jobs for their people, without necessarily giving those people the information they need to decide whether pollution for jobs is a good deal (Such as Brazil in the 1980s).
I apologize for the long post.

Well put Arborway!