Edward Hamberger, president and CEO of the Association of American Railroads (AAR), recently testified before the House Transportation and Infrastructure Rail Subcommittee that Congress must make policies that encourage private-public investment in railways.
“While freight railroads operate and maintain their own infrastructure, most other transportation modes operate on infrastructure that is publicly funded,” Hamberger said. “Policymakers have a crucial role to play in ensuring that railroads can continue to make the kinds of investments that have made today’s U.S. freight rail network the envy of the world.”
America’s major freight railroads produced $274 billion in economic output and $88 billion in wages and supported 1.5 million jobs in 2014, Hamberger said.
By 2040, demand for U.S. freight will spike 41 percent, according to the Federal Highway Administration.
In order to prepare for the forecasted capacity demand, Hamberger said, railroads are investing in their infrastructure and equipment at an unprecedented rate. Between 2012 to 2016, the nation’s major freight railroads invested $135 billion, the equivalent of $74 million daily, of their own funds on infrastructure maintenance and capital expenditures, Hamberger said.
Amtrak also must receive adequate funding, Hamberger said, to maintain its infrastructure and to implement positive train control.
Policies also must allow railroads to develop and improve infrastructure performance and safety, Hamberger said.