Rail freight market share decline addressed at U.S. Surface Transportation Board hearing

Growth in construction material traffic on New York area rail lines has benefitted shippers while keeping heavy trucks off the area’s highways, according to testimony delivered to the U.S. Surface Transportation Board (STB).

During a September presentation at the STB’s Growth in the Freight Rail Industry hearing, New York & Atlantic Railway (NYA) President Marlon Taylor provided details about a rail partnership that moves construction aggregate materials. The partnership with Providence & Worcester Railroad (P&W) has seen aggregate traffic grow by some 700% since it was started in 2000.

According to the STB, the hearing was convened because “the Board recognizes that some shifts in volume [away from rail] may not be primarily within the control of rail carriers, [but] the Board has observed that over the past ten years carload volumes have not grown and have, in fact, decreased.”

Taylor explained that short line railroads can offer a “substantial and flexible” alternative for moving products such as the aggregates being shipped into Long Island by NYA and P&W. The 7,000 rail carloads of aggregates moved by the railroads in 2023 are estimated to have kept more than 20,000 truckloads off area streets and highways.

Aggregates include materials such as gravel, sand, and crushed rock used in most construction projects.

Short-line and regional railroads are motivated to work closely with customers to attract new business, Taylor told the Board. In the case of New York aggregate shippers, including Rawson Materials and Tilcon, traffic has been won by the railroads as the result of “personalized, adaptable service to meet the specific requirements of these customers,” Taylor said.

Receivers of the aggregate shipments—including Astro Aggregate and Kings Material—have also benefitted from the reliable and efficient transportation provided by NYA and P&W.

“Through their long-standing partnership and continued innovation,” Taylor told the panel, “NYA and P&W offer comprehensive logistics solutions that enhance operational efficiency, reduce costs, and strengthen the entire supply chain in the NYC region.”

The ongoing involvement of NYA and P&W in aggregate shipments underscores their lasting impact on the rail industry and their critical role in supporting the infrastructure needs of one of the world’s largest urban markets.