While relatively small in scope, with 11 operators and approximately 500 miles of track, short line railroads play a significant role in supporting the state’s core economic drivers .... short line railroads account for approximately 1,821 direct and indirect jobs in the state, many of which are located in parishes with limited employment opportunities.... More importantly, short line railroads directly support the State’s leading industries (i.e., agriculture, oil and gas, etc.) which represent the major drivers of the State’s overall economy. These major industries support over 260,000 jobs in the Louisiana economy or close to 15 percent of all jobs in the state. In addition, these core industries create the opportunity for other businesses to be successful.

In terms of state and local tax revenue, short line rail operations also provide a substantial contribution to the state economy. The authors estimate that, on average, short line railroads in the state of Louisiana bring in approximately $44.5 million in annual revenues that generate approximately $3.5 million in state tax revenues and $2.86 million annually in local revenues. Additionally, the presence of short line rail operations reduces the need for freight transportation by truck which results in approximately $21 million in annual pavement damage savings according to outside research groups.