The results of a survey on the modern educational needs of the railroad industry, conducted with more than 90 senior-level members of the railroad industry, government agencies, suppliers, consultants, associations, and universities, are discussed. The consensus view is that the industry's educational needs can best be met by a combination of focused and practical seminars and short courses for present and prospective professional employees, support for enrichment of the railroad content of university course offerings in transportation, a university railroad research program, and support of fellowships. The railroads are having little difficulty in attracting talented people, but these new employees typically have no specialized railroad knowledge, and this adversely affects job expectations, career motivation, and employee retention. Railroads actively recruit the small number of new graduates who have training in the rail field. The other segments of the industry have greater recruiting problems and correspondingly greater needs for improved education programs. It is concluded that the recommended university programs will have an immediate and positive impact on railroad job recruiting and will help to strengthen innovation in the railroad industry.