Why is it useful for railways to expand?

Question

Looked all over the internet. I know how they do it, but how is it useful. Homework question.

Answer 1

Its useful because railways can move bulk traffic/material from one place to another. So the the cost is very low as compared to Road way or Air way.  Secondly it will be less harmful to the environment than a single person driving a truck from East coast to west coast.

Answer 2

Railroads are no different than any corporation.  If poor management can't show progress in getting more profitable, or more traffic, expand and let the capital expenditures hide the fact that they're not making profit.

Of course, the most efficient way to do this is buy a competetor, especially of someone else is already trying.  Nothing creates debt and lowers expectations of near-term profits, like a bidding war.

I forgot, they get nice raises for the idea.

Answer 3

A larger network will cover a greater area, therefore providing a larger traffic base, which hopefully will encourage greater useage.....and increase profits!!! £££££$$$$$$$££££$$$$$$$

:o)

Answer 4

It is useful, because it means that more money can be brought in, and it provides a cheaper way of moving more goods!