Heavy Duty Trucking Logo
MenuMENU
SearchSEARCH

Railroads Ready to Compete With Trucking

Several major railroads are gearing up to offer new freight services specifically designed to win business from the trucking industry

by Staff
November 6, 2000
3 min to read


Several major railroads are gearing up to offer new freight services specifically designed to win business from the trucking industry.

According to a recent article in the Wall Street Journal, Burlington Northern Santa Fe Corp., with its Ice Cold Express, is reviving refrigerated trains for carrying fruits and vegetables east from California, and Union Pacific Corp. is planning fast shuttle trains from one shipping dock to another. Even Amtrak, the nation's passenger railroad, is hauling express cargo shipments on its long-distance trains.
Though they are updated with modern technology, the article said that some of the new services borrow from concepts that were around when railroads still dominated the freight market after World War II.
The moves are part of the railroads' attempt to boost revenue, which has been sluggish in recent years.
“Particularly with the economy slowing, the rails need to provide better service offerings to stimulate revenue growth,” said Jill Evans, an analyst at J.P. Morgan Securities.
Railroads say they now are in a position to improve service because they have spent billions of dollars in recent years to remove bottlenecks, and can now reap the benefits of mergers, such as Union Pacific's takeover of Southern Pacific Rail Corp.
Union Pacific officials launched their Express Lane service earlier this year to haul perishables from the West Coast bound for East Coast cities. The move put Union Pacific back in the transport of fresh fruits and vegetables, a business that had for the most part gone to trucks, according to the article.
The railroads are also seeing opportunities for business growth because trucking competitors are struggling driver shortages, record-high fuel prices and high interest costs.
However, Mike Russell, spokesman for the American Trucking Associations, told the Journal, “we don't anticipate that railroads will take a lot of business away from the trucking industry. No matter what they try, they can't match the efficiencies and customized service we provide.”
The railroads’ track record of freight congestion, delivery delays, and erratic services, says the article, gives rail customers reasons to be skeptical.
However, Burlington Northern Santa Fe, Fort Worth, Texas, is offering money-back guarantees if shipments fail to arrive on time or in good condition. The company is also spending about $100 million for 700 new refrigerated cars that are nearly twice the size of previous models and equipped with satellite tracking devices to warn of mechanical failures or temperature fluctuations that endanger perishable shipments. And it has boosted car deliveries to 90% on time across its 33,500-mile network, compared with 79% two years ago, the article said.
"The world has shifted to a much faster-paced economy,” said Chuck Schultz, Burlington Northern Santa Fe’s chief marketing officer. “And we have to line up with that."

More Fleet Management

Illustration with ATRI logo and square blocks spelling out "research"
Fleet Managementby Deborah LockridgeApril 20, 2026

'Beyond Compliance,' Regulations, Driver Coaching on ATRI’s 2026 Research List

The American Transportation Research Institute will examine driver coaching, regulatory impacts — including the "Beyond Compliance" concept —and weather disruptions that shape trucking operations.

Read More →
Brian Antonellis, senior vice president, fleet operations, Fleet Advantage.
Fleet Managementby Jack RobertsApril 17, 2026

Fleet Advantage's Brian Antonellis on the Growing Need to Replace Old Trucks

Fleet Advantage's Brian Antonellis says it's time for fleets to get back to the fundamentals of good maintenance practices. And that includes replacing older, inefficient equipment.

Read More →
Illustration of computer and mobile screens with load matching software superimposed over photo of an oversize load
Fleet Managementby News/Media ReleaseApril 17, 2026

Truckstop.com Adding to Open Deck, Heavy Haul Offerings

Load matching for flatbed, lowbed, oversize and overweight loads can't be automated like basic van freight, but Truckstop.com is adding more high-tech tools to help.

Read More →
Ad Loading...
Trucker Path, Truckstop.com partnership expands.
Fleet Managementby News/Media ReleaseApril 14, 2026

Trucker Path, Truckstop.com Expand Load Access Partnership

An expanded Trucker Path and Truckstop.com integration brings more freight opportunities into the TruckLoads app while emphasizing security and network quality.

Read More →
DAT TVI March 2026.
Fleet Managementby News/Media ReleaseApril 14, 2026

Truckload Rates Hit Two-Year Highs as Diesel Costs Surge, DAT Says

Strong March freight demand combined with a spike in fuel costs pushed both spot and contract truckload rates to their highest levels in more than two years.

Read More →
Cloud computing concept background with human and robot hands concept
Fleet ManagementApril 14, 2026

The AI Conversation You Need to Have with Your TMS Provider

Everyone’s talking about AI — but is your transportation management system actually built for it?

Read More →
Ad Loading...
Sharp Transportation tractor-trailer
Fleet Managementby News/Media ReleaseApril 14, 2026

Kriska Buys Fellow Canadian Carrier Sharp Transportation Systems

Being part of KTG will allow Sharp to expand and improve its services.

Read More →
Illustration with stacks of money and a shattered car windshield
Fleet Managementby Deborah LockridgeApril 13, 2026

Bill in House Would Raise Minimum Insurance for Motor Carriers to $5 Million

The Fair Compensation for Truck Crash Victims Act would increase insurance requirements for interstate motor carriers by nearly seven times.

Read More →
FTR market report for February 2026.
Fleet Managementby News/Media ReleaseApril 10, 2026

FTR Trucking Conditions Index Hits Four-Year High in February

Strong freight rates push TCI to 10.2, but FTR expects fuel-price volatility to skew March results.

Read More →
Ad Loading...
C.H. Robinson intermodal.

C.H. Robinson Offers Carriers Relief as Diesel Prices Surge

C.H. Robinson is waiving fees on fuel cards and cash advances for April and May, aiming to help carriers offset rising diesel costs tied to geopolitical instability.

Read More →