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The Kyoto Protocol calls for industrialized nations to cut greenhouse gas emissions by 5% from 1990 levels by 2008-2012, so developed countries are presenting various policies to reduce greenhouse gas that is produced in transport fields. One of those polices is a modal shift that changes from road freight to sea, inland waterways and railroad transportation that is eco-friendly. The increase of road freight brings road congestion, accidents, logistic costs, air pollution and greenhouse gases. Railroads are superior to the other modes of transportation in mass transportability, high speed, timeliness, safety and environmental-friendliness, but the railway industry has been pushed behind in competition. Korean railroads were used by passengers and for freight transport popularly until the middle of the 20th century. However, because of the sudden change of logistics environments, having time efficiency being most important, railroads lost logistic competitive power against the transportation by truck. This paper intends to examine the modal shift to railroad transportation, which enjoys high interest as environmentally-friendly logistics, i.e., the modal shift strategy. Efficiency analysis is conducted using DEA and exploratory factors are identified for the modal shift of the companies. This paper also proposes an alternative plan for green logistics and environmentally-friendly logistics, by analyzing the characteristics of the railroad cargo transportation system and the conditions of local railroad cargo transportation. [ABSTRACT FROM AUTHOR]