After reaching record levels in 2006, intermodal volumes declined 2.1% in 2007, to 12.0 million trailers or containers. In the first two weeks of 2008, intermodal units were down 5.7%.

S&P's longer-term outlook for railroads is favorable, with the industry's core traffic base (coal, grain, and chemicals) increasing volumes in line with the economy. Kirkeby sees railroads' greater fuel efficiency relative to other transportation modes, along with highway congestion and driver availability, as factors that could drive more industrial and intermodal shipments to the rails over the longer term. However, he notes that the rail carriers face considerable infrastructure expenditures before they can accommodate these additional volumes. Over the past five years, capital expenditures by the leading railroads exceeded 14% of annual revenues.

full article:

http://www.businessweek.com/investor/content/feb2008/pi20080212_249617.h...