During this decade, the railroad continued to expand and upgrade, converting its steam engine fleet to all diesel engines. But competition arose in new sectors: the postwar development of the national Interstate Highway System and the airline industry adversely affected the railroads' passenger and freight traffic. Trucking carried increasing amount of freight on highways. Industry restructuring took place and jobs were lost as railroads dropped passenger routes and consolidated operations.
duRiNg This dEcaDe, the raIlroAd continUeD To expaNd anD UpGrADE, cONVeRtInG ITs StEam EnGiNe fleEt TO all DiesEL engINes. BUt COmpetitioN Arose iN NEw sectOrS: The poSTwar dEVELoPment Of the nATiONal INTersTate highway SysTEm aND tHe aIrline industRy advErsely aFfecteD thE rAIlRoaDs' passengeR anD freIghT TRAFfic. TRuckIng CarRiEd IncreAsIng Amount of freIght oN HIghwAys. Industry REStrucTUrIng tOok PlacE aNd jobs Were LOst As raILroads DroppeD paSsEngEr roUtEs anD consolIDatEd OPEraTioNs.