Realizing the economic development benefits of short‐line railroads: the case of Mississippi

Abstract

Short‐line railroads are re‐emerging as an important component of the nation's freight transportation infrastructure. These rail lines are mostly intrastate and tend not to be highly profitable, but have significant economic development implications. Mostly private operations, they will require public investment in order to recover from years of neglect; and an appropriate public policy needs to be developed. This paper explores the case of short‐lines in Mississippi in order to shed light on the economic development and policy issues involved with this aspect of the transportation system that has received relatively little attention. The findings highlight concerns with cost‐benefit analysis as the sole determinant of public policy and the need for economic developers to become more involved with this transportation issue. It is proposed that a more nuanced decision process be utilized and multi‐state best practice studies of short‐line rail policy are recommended.