Freight railroads are the transportation backbone of America, connecting the U.S. by the most efficient, affordable and environmentally responsible rail system in the world.
Investing in our business keeps America in business
Our country's recession didn't stop our investment in America or our rail system. We are five time more capital-intensive than other industries, and last year, we spent near-record levels to maintain and modernize the nation's freight rail network. Since 1980, we have invested more than $460 billion in infrastructure improvements and maintenance—that's 40¢ out of every revenue dollar.
The U.S. Department of Transportation forecasts that freight railroad demand will rise 88% by 2035 from 2002 levels. Investing in freight rail keeps America moving forward. Based on U.S. Department of Commerce data, every dollar spent to expand our network – investing in tracks, equipment, locomotives and bridges – returns $3 for the American economy. That's a 200% return on investment. Making every dollar work harder is more important than ever. Investing in freight rail does just that.
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Delivering more of what America—and the world—wants and needs
From coal to cars and grain to groceries, freight rail delivers more of the goods we use every day. In fact, freight trains account for 43% of all city-to-city freight, more than any other form of transportation. Interestingly, freight rail hauls enough:
- Coal to supply electricity to every home in America
- Wheat to make a loaf of bread for every man, woman and child in America – every day
- Cars and light trucks to account for 7 out of every 10 sold in America
You might be surprised by who else relies on freight rail to deliver their goods. The trucking industry is our largest customer group, with companies like UPS relying on us for fast and dependable service from coast to coast.
Freight rail also helps connect American industries, business and consumers to world markets. No other form of ground transportation can move the sheer volume of goods and products to the global marketplace like freight rail does. Trains provide timely and efficient delivery, which helps keep America competitive.
Protecting America's pocketbook while staying competitive
Did you know that U.S. freight rail rates are the lowest in the world? World Bank data show that U.S. freight rail rates are roughly half of those in China and Japan, and two to four times lower than in major European countries. Current U.S. freight rail rates are, on average, half of what they were 25 years ago. And our rates have risen much more slowly than the cost of consumer goods and services, like cable TV and phone services or staples like bread, chicken and eggs. According to the American Association of State Highway and Transportation Officials (AASHTO), if all freight were moved by trucks instead of trains, costs to American shippers would jump by almost $70 billion a year.
