Describe private rail transportation


Private rail business refers to privately owned railcars and other rail infrastructure used in the movement of the firms primary product. May business purchase their own rail infrastructure such as hopper cars, tankers, and other items. Firms purchase these so that they have access to needed capacity during peak periods, such as harvest, when hopper cars might be in short supply. This makes sense because railroad companies typically do not have the capacity to meet requirements during peak demand. Therefore certain businesses, such as agribusiness, acquire private rail fleets to meet their needed demand.

However the intercity transportation of that private rail fleet is carried out by for hire rail road companies. Often time the private firm will have some type of rail infrastructure such as a private siding or spur to connect the firm to the rails main system.

Some large firms have built small rail systems within their own plants to shuttle materials economically. Such systems might equally be considered material handling systems that are part of the manufacturing infrastructure.

Business

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