Can American Rail Survive Without Government Support?

 

Key Points:

  • The current US infrastructure bill aims to invest $66 billion in passenger and freight railing improvements, which could help numerous rail projects.
  • Leveraging private capital has been crucial to bridging the funding gap left by a lack of federal rail support.
  • Growth in communities can’t be addressed through highways but rather by investing in real transit systems.

Commentary:

The railroad industry is something that America has depended on for centuries. Whether it is transporting goods or people, legacy rail infrastructure is still in use today and a vital piece of the logistics supply chain. But like much of the US’ infrastructure, railroads, especially passenger rails stunted by a lack of federal dollars, are in dire need of upkeep and investments. Where is that money supposed to come from?

Lewis Rand, Associate Director of Turner & Townsend, gave MarketScale his thoughts on how these systems can be updated to account for city growth, needed renovations, and to ensure longevity. Besides natural growth and upkeep, investment in the railroad industry is one of the major tenets of President Joe Biden’s recent infrastructure bill and executive order, hoping to revitalize infrastructure and promote competition within the industry. Rand also explains how the executive order could help or hurt the railroad industry.

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