Moving goods on trains instead of trucks provides positive externality by reducing congestion and greenhouse gas emissions. Freight rail industry can increase economic competitiveness of regional and local economies. Access to rail network is often a critical component of a logistics center that serves as an anchor for the local economy. However, impacts of rail freight on the economy of local areas through which railroads move goods, operate terminals, manage operations, and carry out corporate business activities are not well understood beyond anecdotal and/or isolated cases. This study will examine impacts of railroad facilities and operations on local economy using cross-sectional and longitudinal analysis of large data. While the main focus of the study will be quantifying the impacts on local jobs and business establishments, selected study areas will be analyzed in detail to document the process by which the presence of freight rail affect the economy.