The report asserts the probability of future widespread abandonments of branchline rail freight service. It stipulates the circumstances in which abandonments are most likely to occur, and assesses the negative impacts that may result. It is suggested that short line railroad operations may be an alternative to the complete loss of rail service. The report describes the savings that may accrue through a changeover from major railroad ownership to short line operation. Alternative institutional and financial mechanisms for establishing and operating short line roads are discussed. A broad description of capital and operating costs is given. Finally, several examples are provided of successful short line operations in the United States.