Economic Impact Of Railroad Line Abandonment On Regional And Urban Areas: A Case Study

Abstract

This case study focuses on the economic and legal issues affecting a region or community as a result of potential railroad line abandonment. Railroad line abandonment, where rail service is being discontinued over a rail line or segment of a line, is becoming an increasing common practice in the United States. The loss to an affected community or a region can have significant economic and social consequences, especially when the rail line to be abandoned represents one of the principal modes of transportation into and out of the affected area. This can limit future growth and the marketing of an area to potential entrants. This case study analyzes the specific steps required by the railroad and interested parties in the rail line abandonment process as well as alternative arrangements to abandonment. It concludes by analyzing the economic issues related to alternative uses of railroad right-of-way, including its use as a rail trail. This case study offers students the opportunity to analyze the various economic and legal issues involved and develop alternative plans from both the perspective of the railroad as well as the affected community or region.