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 SIX MONTHS
                                                    ENDED JUNE 30,         ENDED JUNE 30,
                                                 --------------------   ------------------
                                                     1997     1996        1997     1996
                                                    ------   ------      ------   ------
<S>                                                 <C>      <C>         <C>      <C>   
PRIMARY EARNINGS PER SHARE CALCULATION:                                
Net income ......................................   $2,418   $2,621      $3,993   $4,804
                                                    ======   ======      ======   ======
Weighted average number of common stock and                            
common stock equivalents outstanding:                                  
    Weighted average number of shares of                               
      common stock outstanding ..................    9,158    9,111       9,145    9,111
    Weighted average number of common                                  
      stock equivalents applicable to stock                            
      options ...................................       65      124          68      119
                                                    ------   ------      ------   ------
    Common stock and common stock                                      
      equivalents ...............................    9,223    9,235       9,213    9,230
                                                    ------   ------      ------   ------
    Earnings per share - primary ................   $ 0.26   $ 0.28      $ 0.43   $ 0.52
                                                    ======   ======      ======   ======
                                                                       
FULLY DILUTED EARNINGS PER SHARE CALCULATION (1):                      
                                                                       
Net income ......................................   $2,418   $2,621      $3,993   $4,804
                                                    ======   ======      ======   ======
                                                                       
Weighted average number of common stock and                            
common stock equivalents outstanding:                                  
    Weighted average number of shares of                               
      common stock outstanding ..................    9,158    9,111       9,145    9,111
    Weighted average number of common                                  
      stock equivalents applicable to stock                            
      options ...................................       67      132          68      130
                                                    ------   ------      ------   ------
    Common stock assuming full dilution .........    9,225    9,243       9,213    9,241
                                                    ======   ======      ======   ======
    Earnings per share - fully diluted ..........   $ 0.26   $ 0.28      $ 0.43   $ 0.52
                                                    ======   ======      ======   ======
</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%.