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Railroad and railway are both words referring to 'tracked' roads, where a guides (rails) keep the wheeled vehicle on a specific route. The earliest known reference to the word "railroad" is in 1757 and referred to a mine tram on wooden rails and moved either by animals or men. Tracked tramways have been around since antiquity.

The usage for modern railroads hauling freight and people is from the 1820's.

Railroad is a typical American English usage. Railway is more typical British American usage. However there is considerable crossover is usage. For example the "South Pacific Railway Company" (1887) was originally incorporated as the "South Pacific Railroad Company" (1876).

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Q: Where does the word railroad come from?
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