An impact study of the economic and highway changes of abandoning the Chicago and North Western Transportation Company's rail line between CHandron and Norfolk, Nebraska. This study was requested by Senator Howard Lamb in 1990.

Railroad abandonment applications submitted to the I.C.C. for disposition have traditionally been supported by substantial evidence accumulated by the railroads' legal staffs. Individual users and communities faced with the loss of railroad service have lacked the organization and expertise to present effective counter arguments. In order to attain a more even balance between contending parties, abandonment proceedings should consider the impacts on shippers, consumer prices, industrial development, other transport modes, and the environment. In this report, issues in these areas are examined from the viewpoint of transport economics and technology, business logistics, and industrial location theory. The report presents recommendations concerning the organization of the analysis process. In particular, effective analysis requires coordination of all of the evidence, preferably by qualified personnel at the regional or state level who would develop expertise in this area.

The report asserts the probability of future widespread abandonments of branchline rail freight service. It stipulates the circumstances in which abandonments are most likely to occur, and assesses the negative impacts that may result. It is suggested that short line railroad operations may be an alternative to the complete loss of rail service. The report describes the savings that may accrue through a changeover from major railroad ownership to short line operation. Alternative institutional and financial mechanisms for establishing and operating short line roads are discussed. A broad description of capital and operating costs is given. Finally, several examples are provided of successful short line operations in the United States.