The freight railway industry is enjoying its biggest building boom in nearly a century, a turnaround as abrupt as it is ambitious. It is largely fueled by growing global trade and rising fuel costs for 18-wheelers. In 2002, the major railroads laid off 4,700 workers; in 2006, they hired more than 5,000. Profit has doubled industry-wide since 2003, and stock prices have soared. The value of the largest railroad, the Union Pacific, has tripled since 2001.Why the "future"? Here's one major reason:
This year alone, the railroads will spend nearly $10 billion to add track, build switchyards and terminals, and open tunnels to handle the coming flood of traffic. Freight rail tonnage will rise nearly 90 percent by 2035, according to the Transportation Department.
The zeitgeist has even dropped a "green" gift in the industry's lap. A train can haul a ton of freight 423 miles on one gallon of diesel fuel, about a 3-to-1 fuel efficiency advantage over 18-wheelers, and the railroad industry is increasingly touting itself as an eco-friendly alternative. Trucking firms also use the rail lines; UPS is the railroad industry's biggest customer.Read the entire Washington Post article here.
UPDATE: Kunstler writes about this issue in his Monday column:
Now get this: we are sleepwalking into a transportation crisis. As I already said, the airline industry is dying. The price of petroleum-based aviation fuel is killing it. And forget the fantasies about running it on bio-diesel or used french-fry oil. Driving cars will not be an adequate substitute, either. It's imperative that this country gets serious about restoring the passenger rail system. We can't not talk about it for another year. We must demand that the candidates for president speak to this issue. If you who are reading this are active reporters or editors in the news media, you've got to raise your voices behind this issue.