Railroad Infrastructure Investment
Every year America’s freight railroads invest billions of dollars to build and maintain a system that is safe, reliable, efficient and affordable. Even during the economic downturn, railroads have continued making record investments—including more than $20 billion in 2011—to grow and modernize the national rail network. And, unlike trucks, barges and airlines, which operate on infrastructure paid for by taxpayers, America’s freight railroads operate almost exclusively on infrastructure that they own, build, maintain, and pay for themselves.
In recent years, freight railroads have spent approximately $12 billion per year on their tracks, signals, and other infrastructure, and another $9 billion on locomotives, freight cars, and other equipment. All told, from 1980 through 2010 they’ve reinvested $480 billion—more than 40 cents of every revenue dollar—to maintain and modernize the national freight rail network.
The freight railroad industry is far more capital intensive than most other industries. On average, railroads reinvest at five times the rate of the average manufacturer, building the rails upon which America’s economy rides. In fact, the four largest U.S. freight railroads each spend more on their infrastructure than most state highway agencies spend on roadways.
Policymakers can help ensure that America has the rail capacity it needs in the years ahead by keeping reasonable regulations that protect shippers and consumers while giving railroads the freedom to operate in the competitive marketplace; by reforming the corporate tax code to enhance economic development and promote job growth; and by entering into mutually beneficial public-private partnerships with railroads to solve critical transportation problems.
As our economy continues to recover, the demand to move more people and goods by rail will also increase. Railroads are the best way to meet this demand, and they are committed to making the investments needed to help ensure this happens.
More Information:
We Invest So America Moves: How Railroads Spend Their Money
How Freight Rail Works for Our Economy
Railroad Investment Projects
"America Needs More Rail Capacity" Background Paper