In 1980, the Staggers Rail Act fostered substantial changes in the railroad industry. By 1995, fewer large freight railroads accounted for most of the industry's revenue and train miles. At the same time, these freight railroads substantially reduced their workforce and track networks. Congress and railroad labor have raised concerns that these changes in the industry could compromise safety. This report provides information on operational and safety trends in the railroad industry and describes how the Federal Railroad Admin. has responded to these trends by developing a new partnering approach for improving safety on the nation's rail lines.