(FORTUNE Magazine) – Says Michael Walsh, CEO of Union Pacific, about April's 19-hour rail strike: ''For one brief moment the nation finally riveted on how important the industry really is.'' But plenty of troublesome issues remain for the freight- and passenger-train companies that play an essential role in the U.S. economy (see table). By the end of this summer, a three-member panel to be appointed by President Bush is expected to resolve the contract disputes between the freight companies and the 11 unions that represent their 200,000 workers. The biggest issue: renegotiating the many outdated work rules that remain in effect. For example, a railroad worker gets a full day's pay once a train has traveled 108 miles, a distance now often covered in five hours. The freight lines say they can't compete with the trucking industry under such constraints. The railroads also want to shrink the size of some train crews. Says Arnold McKinnon, CEO of Norfolk Southern: ''There are over 20,000 brakemen for whom there is really no work because of all the new technology. They are costing the industry about $1.5 billion a year.'' The special panel's conclusions also could affect Amtrak, which is in the middle of union talks. Says Amtrak President W. Graham Claytor Jr.: ''We have some of the same work-rule issues, and everyone is waiting to see what happens. The financial viability of the freight industry is critical to us as we operate over their tracks.'' For the year ahead, commuter travel looks smooth. The prospect of shutdowns caused by strikes is remote. - K.B.

CHART: NOT AVAILABLE CREDIT: FORTUNE TABLE/SOURCES: AMTRAK, AMERICAN PUBLIC TRANSIT ASSOCIATION, ASSOCIATION OF AMERICAN RAILROADS CAPTION: WHAT U.S. RAILROADS DO