In the United States we have far too many industrial dinosaur industries. I have nothing against the strength of our industrial capacity, but there's no reason to use 19th-century technologies when we now live in the 21st century. Let's talk about the railroad industry in this country. Yes, we can move freight inexpensively on tracks, and we can move a lot of it. It makes sense to do this as it is a good distribution method, especially during periods of drought, and the reality that we don't have large canals moving from market to market over mountains and through the passes.
Still, we can do better than this. The current railroad technology isn't exactly adequate, the track is too narrow, and the railcars are too wide, and they go up too high. They fall over too much to be quite blunt, that is to say they often derail. The railroad also makes too much noise, and the reason that it gets away with all this is because it has been grandfathered into our current rules and regulations. Why you ask, well because the railroad lobby is quite strong, and it is a key element in our economy. It is also controlled by the unions.
Interestingly enough, this is perhaps why Warren Buffett has invested in the railroad. This fits in his scenario of a good investment because it has "motes" around the business model protecting the castle or the company. That is to say there are barriers to entry, and no one can buy up all the land and put down a railroad track to compete. In many cases it's a monopoly or at least duopoly in some places at worst. This is not to say that there isn't at least some innovation in the railroad industry, it's just that there isn't enough. Still, maybe some of that is changing.
In the Austin Business Journal was an interesting article posted on December 12, 2012 titled; "Union Pacific opens tech development center in Austin," by Christopher Calnan which stated;
"Another major company has opened a tech development center in Austin TX. This time it is Union Pacific Corp. the nation's largest railroad operator. The company will open a software development center in Northwest Austin that could employ up to 40 workers."
Yes, software and computer systems can make the railroad more efficient, safer, and eventually all the trains will be autonomous without drivers or in this case conductors. This saves labor costs, and makes the railroad more efficient, but what about everything else? What about all the new materials, why are we still making the tracks and wheels out of steel? Steel rusts, and steel on steel makes too much noise. I think we can do better than this. This is why I believe we need a railroad think tank for future innovations.
Not just for software and the computer systems, but all components. General Electric is making better locomotives, and there are new designs on the horizon, we need not stop there, and so, I hope you will please consider all this and think on it.
