Freight Railroads Plan to Invest $24.5 Billion in
Private Dollars in 2013
On America’s Rail Network, So Taxpayers Don’t Have
Includes Estimated $13 Billion in CapEx, Industry
Targets 11,000 New Hires
D.C.—Feb. 6, 2013—The Association of American Railroads (AAR) today
announced the nation’s major freight railroads plan to invest an estimated
$24.5 billion in 2013 to build, maintain and upgrade America’s rail network to
ensure freight railroads can continue to deliver for the nation’s economy. This
investment includes $13 billion in projected capital expenditures, or CapEx,
which go toward upgrading or enhancing rail network capacity in the year ahead.
most other transportation modes rely on government funds, America’s freight
railroads operate on infrastructure they own, maintain and upgrade to serve
their customers and power our economy,” said AAR President and CEO Edward R.
Hamberger. “This year, freight railroads plan to continue to focus on
investments that maintain and enhance our physical infrastructure and safety
systems, including cutting edge technology that ensures we are ready to deliver
for the future.”
hundreds of transportation infrastructure projects underway nationwide,
railroads are investing in projects such as intermodal terminals that
facilitate truck to train freight transport; new track; bridges and tunnels;
modernized safety equipment; new locomotives and rail cars, and other
components that ensure the U.S. freight rail network remains the most reliable
and efficient in the world.
recent years, railroads have been spending roughly 17 percent of their annual
revenue on capital expenditures, compared with the average U.S. manufacturer
that spends roughly 3 percent of revenue on capital expenditures.
freight railroads also estimate they will hire more than 11,000 employees this
year, primarily in response to retirements and attrition for positions that can
be found across the U.S. With approximately 22 percent of the industry’s
workforce eligible to retire in the next five years, railroads are dedicated to
recruiting highly skilled people interested in making railroading a career. In
the first five months of the year, railroads are participating in more than 70
career fairs across the country. For more information on where, please go here:
are looking for employees who want a true potential life-long career and will
want to help make the railroads safer and more reliable than they have ever
been,” said Hamberger. “The success of our industry—from our importance to the
economy to our continually improving safety record—can be attributed to the
hard working men and women who make their careers with the railroads.”
employee compensation, including benefits, averages roughly $107,000 per year,
with jobs ranging from engineers and dispatchers, to law enforcement, to
information technology and industrial development.
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AAR: The Association of American Railroads (AAR) is the world's leading
railroad policy, research and technology organization focusing on the safety
and productivity of rail carriers. AAR members include the major freight
railroads of the U.S., Canada and Mexico, as well as Amtrak. Learn more at www.aar.org. Follow us on Twitter:
@AAR_FreightRail or Facebook: www.facebook.com/freightrail.