Operational improvement at the expense of safety? An analysis of precision scheduled railroading implementation

Abstract

This paper examines the impact of precision scheduled railroading (PSR), an efficiency-driven reform, on the safety and operational performance of US Class I freight railroads. Leveraging Competing Institutional Logics and Stakeholder Theory perspectives, the study explores how PSR institutionalizes efficiency logic while constraining safety logic, generating performance gains at the expense of elevated operational risk. Using archival data from 2011 to 2024, the study employs a panel dataset of Class I railroads to assess changes in operational metrics (e.g. train length, locomotive utilization, workforce size) and safety outcomes (e.g. accidents, derailments) following PSR adoption. A difference-in-differences approach with carrier fixed effects and information-theoretic model comparisons is used to assess the robustness and heterogeneity of effects across rail carriers. Results indicate that PSR is associated with improvement in operational efficiency through longer trains, increased locomotive utilization and workforce reductions; yet these improvements are accompanied by higher derailment and accident rates. The pattern reflects an institutionalized safety–efficiency paradox, where efficiency logic dominates organizational priorities, advancing shareholder interests while compromising safety considerations for frontline stakeholders. Notably, in the rail industry, the safety–efficiency paradox impacts extend beyond frontline operational workers, also negatively affecting communities where rail carriers operate. Through integrating Competing Institutional Logics with Stakeholder Theory, the study reveals how PSR prioritizes efficiency logic while subordinating safety priorities, producing uneven outcomes across stakeholder groups. These insights refine the boundary conditions of the safety–efficiency paradox and offer theoretical and practical guidance for balancing operational performance and safety in infrastructure-intensive transportation systems.