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House T&I Committee Examines the Economic and Environmental Benefits of Freight and Passenger Rail

The House Transportation and Infrastructure Committee’s Subcommittee on Railroads, Pipelines and Hazardous Materials held a hearing on January 28, 2009 to examine the important role that freight and passenger railroads play in the U.S. economy; the impact of the current economic crisis on the industry; the enormous economic and environmental benefits of freight and passenger rail; and rail investment needs now and in the future. Witnesses included representatives from the freight and passenger rail industry, rail supply industry, labor, think tanks, and state government officials. Below are notable quotes from the submitted testimony of those witnesses.

“From 1980 through 2007, freight railroads invested approximately $420 billion in both operating expense and capital investment…This investment generates billions of dollars in economic activity to the rail supplier community…In fact, we estimate that for every billion dollars in increased rail investment, 20,000 jobs are created.”

“When one considers the amount of freight we carry, our investment in American jobs and infrastructure, the safe and efficient manner in which we operate, and our benefits to energy consumption, the environment and congestion relief, the industry provides enormous benefits to the country. When comparing those benefits to the total cost to shippers and taxpayers, we have the world’s best, most cost-effective, environmentally friendly freight system in the world – one that keeps American industries competitive in the world marketplace.”

James Young
Chairman, President and CEO of Union Pacific Corporation and
Chairman of the Association of American Railroads

Click here to view the testimony

“Enhancing our rail network would provide a framework for successful public-private partnerships. Because most rail infrastructure is privately operated and maintained, there can be significant public benefit is shifting a greater share of freight to rail through reduced costs for new highway capacity and ongoing maintenance, as well as reduced energy use and GHG emissions.”

Anne Canby
President, Surface Transportation Policy Project and
Member, One Rail Coalition

This remarkable [rail] network provides surface connectivity for passengers and freight from coast to coast, and border to border. Congressional interest must make this investment a national priority for the next decade or beyond if we are to remain a competitive and healthy economic engine in the world.”

Joseph Boardman
President and CEO
National Railroad Passenger Corporation (Amtrak)

Looking toward the future, the potential of a 21st Century rail system to improve national life is truly astonishing...In a peer-reviewed study recently presented to the Transportation Research Board, the Millennium Institute, a non profit known for its expertise in energy and environmental modeling, calculated the likely benefits of a $250 to $500 billion expenditure on improved rail infrastructure. It found that such an investment would get 83 percent of all long-haul trucks off of the nation’s highways by 2030.”

Phillip Longman
Schwartz Senior Fellow; Research Director, Next Social Contract Initiative
New America Foundation

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