Plan tweeted this link, which I thought was really good:
https://www.aar.org/keyissues/Documents/Background-Papers/A-Short-History-of-US-Freight.pdf"Between 1970 and 1979, the rail industry’s return on investment never exceeded 2.9 percent and averaged just 2.0 percent. The rate of return had been falling for decades: it averaged 4.1 percent in the 1940s, 3.7 percent in the 1950s, and 2.8 percent in the 1960s."
"Railroads are stronger financially. Return on net investment, which had been falling for decades, rose to 4.4 percent in the 1980s, 7.0 percent in the 1990s, and 8.5 percent from 2000 to 2011. Improved rail earnings are a positive development because they allow railroads to more readily justify and afford the massive investments needed to keep their track and equipment in top condition, improve service, and add the new rail capacity that America will need in the years ahead."
I think I have seen some railroads like UNP and CNI say their ROICs are in excess of 10%. Now that ROICs are much higher than previously we are seeing record capital invested (as opposed to no capital invested) and a much better rail system.