A Shot In The Arm: How Rail-Served Properties Can Be An Antidote To A Volatile Industrial Economy


A Shot In The Arm: How Rail-Served Properties Can Be An Antidote To A Volatile Industrial Economy


The industrial sector brings trillions of dollars to the U.S. annually, with manufacturing contributing more than $2.9T. However, with talks of tariffs leading to higher import costs for materials and machinery and supply chain disruptions, some industrial owners are searching for ways to reduce expenses and their tax burden.   

One solution to keep things moving is railroad distribution. The rail market operates on a privately funded and maintained infrastructure that reduces strain on taxpayer-funded roads and highways and is a more viable form of intermodal transportation to help move a larger cargo of goods across long distances. Railroads have a yearly economic impact of nearly $234B and contribute to 750,000 jobs throughout the U.S.

Shortline and industrial railroads, often referred to as terminal switching railroads, are usually located on the perimeter of larger accessed rail networks. These are focused on local industrial needs compared to the broader reach of larger Class I railroads. Fulcrum Rail Founder and Managing Partner Max Callahan said the owner-operators of industrial properties along these railroads are offering full-service logistics and warehousing, but unlike those on Class I railroads, they are paying a premium to do it...


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RSK No doubt rail access can increase the value of certain properties and short line railroads are helping to contribute to that...

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- - Volume: 25 - WEEK: 25 Date: 6/17/2025 7:52:13 AM -