Railroad Ton-Mile Rates?

Question

Is there a formula for the rates that short-line railroads charge for Ton-Mile fees of cars transported over their railroad? Or do they only use rates of larger railroads? Is there a higher rate for railroads in hill territory or mountain territory, and if so, what is that formula?

Answer 1

Since de-regulation many moons ago, railroads set their own rates.

When deciding what they'll charge (what you'll pay), the price quoted is from point A to point B.  The price is inclusive of everything; equipment charges, switching charges (spotting for loading and unloading), etc.  

The railroad will of course try to move to destination on their own system, but, if the freight is interchanged (likely, in the case of a short line), that cost is included in the original price.  

They choose the routing (where there are options), and will charge more for "expedited" freight.

The fee splitting between all the carriers has been around forever, and how they determine their rates varies from carrier to carrier, but I don't know what sorts of formula are  in place.