Railroads make consistently high capital investments, and the results are impressive: high-paying jobs within the industry, additional jobs that are supported by the industry, the connection of a wide swath of industries and consumers to the global market, and the growth of local communities because of the infusion of sizeable funds into the market and government budgets. These benefits come at a savings of billions of dollars each year for taxpayers because America’s freight railroads operate overwhelmingly on infrastructure that they own, build, maintain and pay for themselves.
“Railroads have a wide footprint on the economy, impacting many industries and occupations,” the Towson researchers conclude.
As our first State of the Industry Report released in January explained, railroads are part of an integrated system that also involves trucks, barges and pipelines, and moves 54 tons of freight per American every year. Second to none in the world, this transportation network enhances both our quality of life and standard of living in innumerable ways.
This critically important network would not exist if policymakers undermined the transformative measures enacted through partial deregulation.
The Towson University report makes clear that this economic powerhouse relies on forward-thinking policies that allow railroads to earn the revenues needed to invest back into rail infrastructure and meet demands in a changing marketplace. Without these policies, the nation would lack a sound freight network that safely, reliably and cost-effectively transports goods and provides a passageway for people each day.
This second report of 2016 makes the case that smart public policy, massive private infrastructure and equipment investments by railroads have had a strong economic impact on America at large. Throughout the report, outside experts provide context regarding freight rail’s economic impact.
Through a mix of content, the four chapters of this report show the many ways that railroads contribute to our nation’s economic vitality:
1. Impact on Nation’s Economy: A synopsis of the Towson study and commentary on the effect of railroads on the economy from issue area experts.
2. Impact on Customer: How railroad industrial development teams catalyze economic growth in communities; the impact of freight rail on small businesses and the relationship between freight railroads and local economic development.
3. Impact to Consumer: A look at how freight railroads help make Americans’ lifestyle possible by providing safe, efficient and environmentally friendly service that results in store shelves lined with goods, auto lots filled with vehicles and even commuter and passenger rail’s ability to speed people to work each day.