The synergies among railroads, trucks and ocean carriers will expand in 2012 to meet the growing need for U.S. freight transportation, which is expected to increase more than 60 percent in the next 30 years. These intermodal alliances benefit shippers and consumers with the best attributes of different transportation systems, aligned to yield highly efficient and cost-effective overall freight movement.
All of this points to intermodal traffic remaining on a growth trajectory that reflects the shift toward offshore manufacturing, the demand for greener supply chains and the challenges facing the trucking industry that include higher fuel costs, fewer drivers and congested highways. More goods on trains mean fewer goods on the roads.
The new year also could usher in more clarity around policies that support intermodal growth and realistic ways to address the nation’s aging transportation infrastructure. In a recent report, the American Society of Civil Engineers estimated that to bring surface transportation infrastructure up to desired levels, policy makers would need to invest approximately $1.7 trillion between now and 2020 in highways and transit systems.
Railroads are doing their part by investing in new infrastructure and equipment, improving reliability and adapting technology that improves precision and efficiency. These investments total more than $480 billion since 1980 and approximately $12 billion in 2011. But such investments depend on the existing regulatory framework. Any regulatory action that limits long-haul freight rail movements or forces the opening of private rail networks would reduce those investments and limit job creation.
Railroads are ready to keep America moving, leveraging intermodal opportunities while serving the nation’s industrial base. 2012 could be a turning point, if private enterprise and public policies align to build the transportation infrastructure and systems that meet America’s needs.