The Railroad Industry: A Vital Link in the Global Economy

Network of Rails.

The railroad industry involves the sale, manufacture, and operation of railway technology¹ that facilitates the flow of goods, people, and information² through networks of rails and railcars². It is one of the oldest⁴ and largest⁴⁵ industries in the United States, providing more than 167,000 jobs⁵ and offering benefits such as reducing road congestion, fuel consumption, and greenhouse gases⁵. The industry is composed of seven Class I railroads²⁵ and hundreds of regional and local/short line railroads⁵, which are owned by private organizations⁵ that are responsible for their own maintenance and improvement projects⁵.

How, What, and Where Freight Moves

Freight railroads are a safe, cost-effective and sustainable transportation solution today and are investing billions of dollars for an even brighter future. Rail is more than a service — it provides a robust, efficient and climate-friendly way to keep American industries connected². Freight railroads carry a wide range of commodities across the country, such as coal, chemicals, metals, agricultural products, intermodal containers, automobiles, and consumer goods. In 2019, U.S. freight railroads moved 1.7 billion tons of freight over 140,000 route miles⁵. The following table shows the top 10 states by freight rail tonnage in 2019:

State	Tons (Millions)
StateTexas	Tons (Millions)282.8
StateIllinois	Tons (Millions)177.3
StateWyoming	Tons (Millions)156.6
StateCalifornia	Tons (Millions)139.7
StateNebraska	Tons (Millions)101.8
StatePennsylvania	Tons (Millions)100.9
StateMinnesota	Tons (Millions)94.8
StateIndiana	Tons (Millions)91.6
StateOhio	Tons (Millions)88.9
StateMissouri	Tons (Millions)85.0

Source: Association of American Railroads⁵

Fuel Efficiency

Rail is the most fuel-efficient way to move freight over land, with railroads carrying the load of more than several hundred trucks and moving one ton of freight an average of nearly 500 miles per gallon of fuel². Efforts to preserve the environment and mitigate climate change are bolstered by innovations such as fuel management software and zero-emission cranes². According to a study by the Federal Railroad Administration (FRA), railroads are four times more fuel efficient than trucks on average³. The FRA also estimates that if just 10% of long-haul freight currently moved by truck was shifted to rail, annual fuel savings would exceed one billion gallons³.

The Future

The railroad industry is constantly evolving and adapting to meet the changing needs and demands of its customers and society at large. By using a wide range of cutting-edge technologies — such as smart sensors, data analytics, artificial intelligence, automation, and blockchain — railroads are improving safety, reliability, efficiency, and customer service². Railroads are also investing in new infrastructure projects to expand capacity, enhance connectivity, and reduce bottlenecks². Some examples of these projects include:

• The CREATE Program: A public-private partnership to improve rail transportation efficiency and safety in the Chicago region by eliminating rail conflicts, reducing delays, increasing speeds, and modernizing infrastructure.
• The Heartland Corridor: A cooperative effort among Norfolk Southern Railway (NS), several states, and the federal government to improve rail service between the Mid-Atlantic ports and the Midwest by increasing vertical clearances along NS's route to accommodate double-stack intermodal trains.
• The National Gateway: A multi-state initiative led by CSX Transportation (CSXT) to create a more efficient rail route between Mid-Atlantic ports and Midwestern markets by upgrading tracks, bridges, tunnels, and terminals to handle double-stack intermodal trains.

These are just some of the examples of how the railroad industry is working to create a better tomorrow for its customers, workers, communities, and the environment.

Conclusion

The railroad industry is a vital link in the global economy that provides many benefits to society. It is an old but dynamic industry that is constantly innovating and investing to meet the challenges and opportunities of the 21st century. By moving freight and people safely, efficiently, and sustainably, railroads are making a positive difference in the world.

Source:

(1) Rail industry worldwide - Statistics & Facts | Statista. https://www.statista.com/topics/1088/rail-industry/.

(2) Railroad 101 - Association of American Railroads. https://www.aar.org/railroad-101/.

(3) Railway Industry Overview 2.1 Introduction T - AREMA. https://www.arema.org/files/pubs/pgre/PGChapter2.pdf.

(4) Rail Transportation: An Industry Overview - tstar.com. https://www.tstar.com/blog/rail-transportation-an-industry-overview.

(5) Freight Rail Overview | FRA - Federal Railroad Administration. https://railroads.dot.gov/rail-network-development/freight-rail-overview.

Image Attribution: Mark S Jobling, 4141 Kinchley Lane, marked as public domain, more details on Wikimedia Commons

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