Those of us who saw the beginning of deregulation, and the container revolution, could not imagine that this would also cause the RR's to drive off so many carload customers, not necessarily with high rates, but with crappy service, and high switching costs.

It does cost more to switch cars, maintain spurs, and the like. And ultimately, the market is the market but the way I've seen SP and then UP managed to drive away so much car business, even in bulk products like lumber, paper products, or scrap still amazes me.

Quasi monopolies were effectively created, over smaller carload users, with deregulation, which the mega mergers have only made worse. So the RR's saw more profit in dropping the expense of serving the carload business, assuming a significant number would be forced to move to intermodal.

Where there is more competition, interestingly enough, there is more carload business, and more short lines feeding them car business for the line haul. A short line operator has to provide reliable and cost effective service, like Sammy does. Because UP and BNSF have such a stranglehold over the Left coast in intermodal, we've probably seen more of this losses like this, or on the coast.

The changes in the land use in the Bay area, the long term changes in distribution channels, and the vast changes in our industrial methods and technologies have been the main culprits in the bigger loss of traditional carload traffic along the Peninsula.... So while a short-line operator likely would improve service, helping to gain or retain a few more potential carload customers, the "good old" days, of locals and haulers we all remember so fondly, are history.