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The game interface is in full 3D, with free camera movement. The square grid is no longer rigid, as it was in Railroad Tycoon and Railroad Tycoon II - rail and structures can now be rotated 360 degrees.
The economic model has been reworked. In previous games, goods could only be picked up at a station, and revenue depended on the distance between stations. Carloads in Railroad Tycoon 3 slowly move across the map (representing road and water transport) along the gradient of a scalar field representing price, where supply and demand sites function as sources and sinks. Revenue depends on the price difference between pick-up and delivery. This has several effects; raw materials can find their way to industries and get processed, without any trains involved, and a train does not need to pick up goods at the source.
Other changes include: each carload of mail, passengers and troops now has a destination; car setup can be automated, so that trains always pick up the cars that yield the most revenue; warehouse buildings also appear in the game, completing the commodity market the same way as ports do; trains can pass each other on a single track (as in the original Railroad Tycoon on lowest difficulty level); no need for signal towers, as well as station improvements (post offices, restaurants etc.), are placed individually on the map; players can buy industries, and also build processing industries wherever they like; processing industries have limited capacity, but they can be upgraded.
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