EXHIBIT 11.1

                         RAILTEX, INC. AND SUBSIDIARIES
                       COMPUTATION OF NET INCOME PER SHARE
                    (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
                                   (UNAUDITED)
<TABLE>
<CAPTION>
                                                                FOR THE THREE MONTHS            FOR THE NINE MONTHS
                                                                 ENDED SEPTEMBER 30,            ENDED SEPTEMBER 30,
                                                               ----------------------          ----------------------
                                                                1997            1996            1997            1996
                                                               ------          ------          ------          ------
<S>                                                            <C>             <C>             <C>             <C>   
PRIMARY EARNINGS PER SHARE CALCULATION:

Net income .............................................       $2,830          $2,308          $6,823          $7,113
                                                               ======          ======          ======          ======
Weighted average number of common stock and
  common stock equivalents outstanding:
    Weighted average number of shares of
      common stock outstanding .........................         9,161           9,110           9,150           9,110
    Weighted average number of common                                                                                 
      stock equivalents applicable to stock                                                                           
      options ..........................................            67             121              74             120
                                                                ------          ------          ------          ------ 
    Common stock and common stock                               
      equivalents ......................................         9,228           9,231           9,224           9,230 
                                                                ======          ======          ======          ====== 
    Earnings per share - primary .......................        $ 0.31          $ 0.25          $ 0.74          $ 0.77 
                                                                ======          ======          ======          ====== 
FULLY DILUTED EARNINGS PER SHARE CALCULATION (1):

Net income .............................................       $2,830          $2,308          $6,823          $7,113
                                                               ======          ======          ======          ======

Weighted average number of common stock and
  common stock equivalents outstanding:
    Weighted average number of shares of
      common stock outstanding .........................        9,161           9,110           9,150           9,110
    Weighted average number of common                                                                                
      stock equivalents applicable to stock                                                                          
      options ..........................................           67             122              74             122
                                                               ------          ------          ------          ------
    Common stock assuming full dilution ................        9,228           9,232           9,224           9,232
                                                               ======          ======          ======          ======
    Earnings per share - fully diluted .................       $ 0.31          $ 0.25          $ 0.74          $ 0.77
                                                               ======          ======          ======          ======
</TABLE>
----------------

(1) This calculation is submitted in accordance with item 601(b)11 of
    regulation S-K although it is not required by APB Opinion No. 15
    because it results in dilution of less than 3%.