Rail Building Booms

Posted by: Nate Berg

14 February 2008 - 9:00am

Rail networks across the country are expanding -- the first advancement in rail in nearly 100 years.

"For the first time in nearly a century, railroads are making large investments in their networks -- adding sets of tracks, straightening curves that force engines to slow and expanding tunnels for bigger trains. Their campaign is altering the corridors of American commerce, more so than any other development since interstate highways spread to the interior."

"For decades, railroads spent little on expansion, even tore up surplus track and shrank routes. But since 2000 they've spent $10 billion to expand tracks, build freight yards and buy locomotives, and they have $12 billion more in upgrades planned."

"The buildout comes as the industry transitions away from its chief role in recent decades of hauling coal, timber and other raw materials in manufacturing regions. Now, increasingly, railroads are moving finished consumer goods, often made in Asia, from ports to major cities. Their new higher-volume routes, called corridors, often serve the South, where the rail system is less developed and the population is rising."

Full Story: New Era Dawns for Rail Building

Source: The Wall Street Journal, February 13, 2008

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The lesson of Big Rail

Submitted by freeyoke on Thu, 02/14/2008 - 11:33.

We've heard plenty about of pejoratives tossed around when discussing Big Business, Big Oil, Big Tobacco, the Big Three (auto manufacturers). . . but it should recalled that the railroads were hated for their monopolistic tendencies and power in Congress. The switch to more roads, cars and trucks; as well as, more competition from airports reduced the role of rail to the point where most Americans haven't ever been on a train before. The industries we think are so big they can't die should look at the railroads and more recently the decline of American car makers which many thought were monopolistic. If there's big money to be made, competition eventually arises wanting a piece of the action.

I've always thought moving more freight and more passengers on heavily used rail lines made sense. It's a proven mode of transport capable of moving large amounts of goods with less use of fossil fuels. Our ancestors had built an extensive rail network only to watch it fall into disrepair. If the peak oil theory turns out to be true, doesn't it seem only natural that we would turn to the railroads as the preeminent provider of freight shipment and mode of choice for long distance travel?