Industries that rely on short line transportation services provided $56.2 billion in value added to the U.S. economy in 2016, according to an economic impact report released recently by the American Short Line and Regional Railroad Association (ASLRRA).
These industries also provided 478,820 jobs and $26.1 billion in labor income, according to the report.
The report also found that, since the Short Line Tax Credit was enacted, derailments have decreased by 50 percent. The credit’s extension is estimated to be driving a 63 percent reduction in the cost of capital.
Short lines directly employ 17,100 people, and its indirect and induced impacts support an additional 43,970 jobs at suppliers, contractors, and other businesses. The total direct, indirect and induced impact of the nation’s 603 small business short line railroads for 2016 was 61,070 jobs, $3.8 billion in labor income and $6.5 billion in value added to the U.S. economy.
“The report definitively shows what the industry has long known, Judy Petry, chair of ASLRRA and president and CEO of Farmrail, Inc., said. “Short lines are a critical piece of the U.S. transportation network, and in fact the entire U.S. economy. Moreover, the report clearly shows the tremendous and far-reaching impact on our ability to provide value to our customers and the economy of the ‘45G’ short line tax credit. Our very future hangs in the balance as the credit has expired in December of 2017. The time is now to make the Short Line Tax Credit permanent.”
Professional services firm PricewaterhouseCoopers LLP (PwC) prepared the report.