Economy

Whenever Americans grow something, eat something, mine something, make something, turn on a light, or get dressed, it’s likely that railroads were involved somewhere along the line.

Operating on a network of more than 140,000 miles spanning from coast to coast, railroads account for 43 percent of intercity freight volume — more than any other mode of transportation.  They form the most efficient and cost-effective freight rail system in the world, saving American consumers billions of dollars each year — while using less energy, reducing pollution, lowering greenhouse gas emissions, and cutting highway gridlock.

Freight railroads have invested more than $480 billion since 1980 to maintain and improve their tracks, bridges, tunnels, locomotives, freight cars, and other infrastructure and equipment — and those investments continue to pay dividends to our nation’s economy:

• Average inflation-adjusted rail rates have dropped by 51% since 1981, meaning billions of dollars in savings for American consumers every year.
  
• Rail productivity is up 164 percent.
  
• According to an analysis from the American Association of State Highway and Transportation Officials a few years ago, it would cost shippers almost $70 billion more per year if all freight moved by rail were shifted to truck.  That figure is undoubtedly higher today.

The health of our economy rides heavily on the rails.  According to U.S. Department of Commerce economic models, every dollar spent on investments in our freight railroads — tracks, equipment, locomotives, bridges, etc — yields $3 in economic output. In addition, each $1 billion of rail investment creates more than 17,000 jobs.

Rail is the smart choice for America’s economy — now and in the future.

More Information:

 Freight Rail: Supporting American Jobs, Moving the American Economy“ One Pager (PDF)

 “The Economic Impact of America’s Freight Railroads” Background Paper (PDF)

 “The Cost-Effectiveness of America's Freight Railroads” Background Paper (PDF)