Rail Transport and LIT

trucks are suited for

time sensitive and high value goods transported over short/medium distances

rail is suited for

heavy freight over long distances

waybill AKA bill of lading

document prepared by the carrier of a shipment of goods that contains details of the shipment, route, and charges

railroads are classified by their annual operating …

revenues

class 1 railroads

• must have USA tracking

• revenues above $1.05 billion

• there are 6 of them

class 2 railroads AKA regional railroads

• revenue between $47.3 million and $1.05 billion

• there are about 20 of them

class 3 railroads AKA short line railroads

• revenues with less than $47.3 million

• there are about 600 of them

operating ratio=

• operating expenses/ operating revenues

• we want it to be LOW

% change =

(new-old)/old

• ultimate goes is to grow revenues and reduce expenses

1. attributes

1. service plan (integrate all departments and processes)

2. management by exception (know what to expect)

3. guiding principles (value leadership and innovation)

4. focus on control (optimize the whole operation)

asset turnover rate =

net sales / average total assets

precision railroading goal

grow revenues and reduce expenses