In my opinion, motor carriers are able to generate more revenue compared to railroads as they have a competitive advantage in terms of their services at where they are able to do things that railroads couldn’t. Railroads are an efficient transport system that could transport large tonnage over long distance associated with less expensive per freight ton at where the variable operating cost are lower. However, motor carriers have relatively small fixed investments in terminal facilities and operate on publicly maintained highways at where the expenses are directly related to the number of over-the-road units and miles operated with higher variable cost. In comparison to railroads, motor carriers are best suited to handle small shipments moving