Investing.com -- The fragmented structure of America’s freight rail network is quietly limiting its potential, with less economic access across regions and dragging down logistics efficiency. Only about 12% of the U.S. economy currently enjoys direct rail connectivity to the rest of the country. That means nearly nine out of ten regions depend on interchanges between separate railroads, a process that adds cost, delays, and operational friction. For many businesses, this makes rail either less competitive or entirely unviable for long-haul freight. At the heart of the issue is the country’s division into four major rail “fiefdoms,” shaped by a century of industry history and regulatory constraints. These regional operators, while dominant in their geographies, rarely connect seamlessly. Freight originating in one railroad’s domain often has to be transferred mid-journey to a second carrier, a costly handoff that slows transit and complicates scheduling. Analysts at Bernstein say that this structural inefficiency could be solved by allowing mergers between eastern and western rail giants, transcontinental combinations that have been off the table since regulators imposed strict rules in 2001 aimed at protecting competition. But those rules, designed to preserve access, now stand in the way of stitching together a rail network that serves the U.S. as a unified market. The economic payoff of such integration could be significant. Single-line service, where a shipment stays on one carrier’s system from origin to destination, is not only faster and cheaper, it also enables better network planning and fewer handoffs. Every major rail merger since deregulation has cited these benefits. Reviving the idea of a coast-to-coast rail network, Bernstein frames the challenge in historical terms: connecting the country’s industrial heartlands in a way not seen since Abraham Lincoln signed the Pacific Railway Act in 1862. Whether regulators will revisit merger restrictions remains uncertain. But as pressure builds on supply chains and freight efficiency takes on new urgency, the case for a less fractured rail system may gain traction, especially if shippers themselves start demanding it. With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.

In 1975, the SBB (Swiss Federal Railways) opened its first new route in a long time: the just under eight-kilometre-long Heitersberg line between Limmattal and Lenzburg. The new inter-city Swiss Express train became an eye-catching feature on this new stretch of railway.

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