Money Magazine online covers why Warren Buffet is buying railroads? The short answer is deregulation (investment incentive) + mergers (economies of scale) + improved technology and fuel efficiency.
- Sophisticated software calculates the best way to put different cars together into trains. And onboard electronics assess topography, track curvature, train length and weight to calculate the optimum speed for conserving fuel.
- The Environmental Protection Agency calculates that for distances of more than 1,000 miles, using trains rather than trucks alone reduces fuel consumption and greenhouse gas emissions by 65%.
