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"An efficient supply chain makes U.S. goods and labor more competitive overseas and powers U.S. economic recovery," testified BNSF Chairman, President and CEO Matt Rose before a Senate Commerce Committee hearing on freight transportation in America.

Rose noted that while enormous efficiencies were realized with deregulation of the railroad industry in the 1980s, supply chain costs began to increase in 2003 as the economy began to outgrow capacity.

The biggest challenge to an efficient freight system in this country, Rose said, is the lack of a national freight policy. 

"Now, more than ever, the government’s role in providing a vision and funding for freight mobility is so important," said Rose.  "The challenges around capacity, environmental requirements, and even fuel costs, can be managed – if there is a coherent  federal policy framework." 

Rose focused much of his testimony on mode optimization within the U.S. supply chain which involves moving more long distance freight via rail.  To increase freight rail market share by 10 percent, an additional $700 million in annual investment would be necessary.

Rose outlined a policy roadmap to meet these goals that includes a national vision for freight projects, balanced economic regulation, tax incentives to spur infrastructure investments, increased use of public-private partnerships, and performance based-transportation funds.