A tracking system for railcars is configured as a dynamic local area network having a master tracking unit and a plurality of slave tracking units, each tracking unit being affixed to a separate railcar. To improve reliability of communications between railcars, the distance from a master unit to a slave unit is estimated by comparing phase of a transmitted signal with that of the transmitted signal returned by another tracking unit in the network. Optionally, a determination is made as to whether the slave unit is "ahead" of or "behind" the master unit. Communication path loss between the master and slave units due to frequency selective fading may also be determined. A spectrum survey determines quality of the channel as to its capacity for passing data from the slave unit to the master unit.