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Major Investment Plans for American Rail Networks

With forecasts of significant growth in the quantity of goods that will be transported in the coming years it is vital that the intermodal freight networks continue to be developed and upgraded in order to be able to accommodate that increase. After enduring a period of decline the American rail network has seen a return to relevance in recent years as the road transport that had largely displaced rail became much more expensive. This focus on efficiency in freight transport has inspired redevelopment and expansion of the American rail networks as the cost effectiveness of rail freight continues to surpass trucking costs. This development of the American rail networks and freight handling facilities is being backed by an investment of $24.5 billion in the rail networks by the nation’s major freightrailroad companies. Of this, $13 billion is earmarked for capital expenditure to be used for the enhancement of their physical infrastructure and safety systems1 that is necessary to keep pace with the increased capacity being demanded of the system. This expenditure is being used in part to create more intermodal freight terminals to facilitate an ever greater efficiency of train to truck transfers. There are also significant investments being made by many companies in new rolling stock with the aim… read more »