> I have understood the efficiencies in rail since I was maybe 12. It blows my mind that it is such a niche mode of transport (especially for goods, transporting humans isn't where the real savings are) in so many places around the world.
Interestingly, the US is actually pretty good at rail freight. They de-regulate most rail freight a few decades ago and are doing fine. The Economist had a special report about it a few years ago (https://www.economist.com/briefing/2010/07/22/high-speed-rai...) proudly proclaiming: "America’s system of rail freight is the world’s best."
> Amtrak's passenger services are sparse compared with Europe's. But America's freight railways are one of the unsung transport successes of the past 30 years. They are universally recognised in the industry as the best in the world.
> Their good run started with deregulation at the end of Jimmy Carter's administration. Two years after the liberalisation of aviation gave rise to budget carriers and cheap fares, the freeing of rail freight, under the Staggers Rail Act of 1980, started a wave of consolidation and improvement. Staggers gave railways freedom to charge market rates, enter confidential contracts with shippers and run trains as they liked. They could close passenger and branch lines, as long as they preserved access for Amtrak services. They were allowed to sell lossmaking lines to new short-haul railroads. Regulation of freight rates by the Interstate Commerce Commission was removed for most cargoes, provided they could go by road.
> Before deregulation America's railways were going bust. The return on capital fell from a meagre 4.1% in the 1940s to less than 3% in the 1960s. In 1970 the collapse of the giant Penn Central caused a huge shock, including a financial crisis. By 1980 a fifth of rail mileage was owned by bankrupt firms. Rail's share of intercity freight had slumped to 35% from 75% in the 1920s. Tracks were neglected and fell into disrepair, leading to a downward spiral of speed restrictions and deteriorating service. The term “standing derailment” was coined to describe the toppling-over of stationary freight wagons when the track gave way beneath their wheels.
(You can use outline.com to get past the Economist's paywall.)