What if today’s regulations are kept in place?
Since 1980, a balanced regulatory environment has turned freight rail into one of the great economic success stories of the last century. Freight railroads today are once again profitable, and they are using their returns to maintain and invest billions of dollars each year into the most efficient and cost-effective network in the world.
Maintaining the current regulatory environment would ensure that this competitive and cost-effective service will continue. If today’s regulations remain consistent, here’s what the nation can expect:
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- Private Investment Continues
- An Industry Remains Nimble
- A Network that Feeds the Economy
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PRIVATE INVESTMENT CONTINUES
Each year, railroads invest billions of dollars to maintain, modernize and grow the freight rail network.
These private investments continue, ensuring the safety and productivity of this robust network continues without relying on taxpayer dollars
$575 BILLION
That’s the amount railroads have invested in the freight rail network since 1980. In 2015 alone, the industry expects to spend $29 billion to grow and maintain the nation’s world-class rail network.
140,000-MILE NETWORK
America’s freight rail network operates across 49 states and reaches communities large and small. In a balanced regulatory environment, even customers in remote locations have the option to ship goods and commodities on a reliable and efficient freight rail network.
THE BEST TECHNOLOGY
The industry’s Transportation Technology Center (TTCI) in Pueblo, Colorado provides a glimpse at the innovation that drives modern railroads. From wayside detectors to positive train control safety systems, investment in innovation means that U.S. freight railroads will continue to lead the world.
Watch the video to see what’s happening at TTCI.
BEING RESPONSIBLE CORPORATE CITIZENS
As the world tries to combat the effects of climate change, rail is a key player in sustainability efforts. Railroads can move one ton of goods an average of 479 miles on a single gallon of fuel, and in recent years freight railroads have purchased thousands of new, more efficient locomotives to improve efficiency even further. Many of the new locomotives are so-called “Gensets” that have independent engines that turn on and off depending on how much power is needed. As a result of innovations like these, moving freight by rail instead of trucks reduces greenhouse gas emissions by an average of 75 percent.
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AN INDUSTRY REMAINS NIMBLE
The boom in energy resources in the Bakken region of North Dakota, the growth of domestic intermodal and the demand for ethanol as a fuel additive are stunning examples of how railroads must respond to meet customer demands.
Under existing balanced regulations, today’s railroads are able to respond quickly to meet the country’s changing economic needs.
HIRE WHEN NEEDED
Unburdened, railroads can make swift decisions to increase the workforce to serve shippers’ needs. In 2013, freight railroads had more than 185,000 employees. Approximately 84 percent of Class I rail employees are unionized, and nearly a quarter of all railroad employees have served in our nation’s military.
MAINTAIN MODERN TRACKS
With capital to reinvest, railroads have the resources to maintain reliable and cost-effective service even in the face of challenges such as natural disasters or record demand from shippers.
KEEP SAFETY FIRST
From first-responder training to advocating for safer tank cars, the industry has the ability to coordinate and manage resources so that an increased workload never leads to unchecked risks. Despite increasing volume, 2014 saw the lowest train accident rate in rail history.
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A NETWORK THAT FEEDS THE ECONOMY
The Federal Highway Administration forecasts that total U.S. freight shipments will rise from an estimated 19.7 billion tons in 2012 to 28.5 billion tons in 2040 — a 45 percent increase. Railroads stand ready to handle this growth quickly, efficiently and cost-effectively.
INNOVATING FOR A GLOBAL MARKET
Railroads are the foundation for the U.S. economy, moving cargo across the country in a productive, efficient and cost-effective way.
In the years since the passage of the Staggers Act of 1980, huge productivity gains have been realized through railroad innovation. From larger grain hoppers to double stacking of intermodal containers, today’s railroads can move more freight than ever before.
Partly as a result, U.S. rail rates, adjusted for inflation, fell 43 percent from 1981 through 2014. In fact, U.S. freight rail rates are among the lowest in the world, saving U.S. businesses and consumers billions of dollars each year. Today, railroads haul about one-third of all U.S. exports and about 40 percent of all intercity freight volume — more than any other mode of transportation — and help give the U.S. its competitive edge in the global economy.
SUPPORTING GOOD, WELL-PAYING JOBS
Railroads feed employment in the U.S. well beyond their tracks. In addition to the rail industry’s 185,000 employees, millions of Americans work in industries that are more competitive thanks to the affordability and productivity of railroads. According to a U.S. Department of Commerce model, the rail industry supports more than one million jobs across the country.
And rail jobs are well-paying. In 2013, the average Class I freight rail employee earned $114,700 including benefits, more than double the compensation for the average, full-time U.S. employee.
SHORT LINES CONTINUE TO THRIVE
Today, America’s more than 560 short line railroads — smaller rail operations that connect rural and small-town populations to the larger network — compete directly with truck traffic and help lower transportation costs for businesses.
A thriving short line network translates to a growing economy; with lower transportation costs, American businesses can compete in today’s globalized world. Short lines provide local businesses with a competitive edge, enabling them to earn enough to hire and expand, bolstering local economic development and jobs.
Short line and regional railroads also take trucks off local roads and highways, reducing fuel consumption, congestion and highway repair costs.
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