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Rail Building Booms

<p>Rail networks across the country are expanding -- the first advancement in rail in nearly 100 years.</p>
February 14, 2008, 9am PST | Nate Berg
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"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."

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Published on Wednesday, February 13, 2008 in The Wall Street Journal
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