Do railroads actually increase trade/sheild like they say they do?

In Civ II railroads only increase production, not trade or food. The Superhighway improvement, however, does increase trade, and Supermarkets in combination with Farmlands increase food. There is no limit to production as far as I know (aside from what you can mod in).
 
Railroads only increase shield output. They increase it by 50% rounded down. Thus a tile must be producing at least 2 shields before railroad has any effect.
 
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