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Editorials

Posted on Monday, July 14, 2008
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Time to Help Freight Rail Grow and Improve
Developing alternative energy sources has become a national objective. The same kind of attention could be in order for freight transportation.

America’s highways are loaded with big trucks hauling freight of just about every description, contributing to increasing traffic congestion problems and deteriorating roads in need of almost constant repair activity that creates frequent delays.

Shifting some of that load to other transport methods could dramatically reduce highway congestion and also cut pollution and fuel use in urban areas.

There could be a way to do that without unfairly burdening taxpayers, suggests Wendell Cox, a Heartland Institute Senior Fellow.

Cox has written a study released July 1 by the Association of American Railroads showing that by shifting 25 percent of freight from trucks to rail by 2026, each commuter on average would save 41 hours of drive time, $985 in congestion costs and 79 gallons of fuel each year.

“In order to realize the full potential of freight rail in reducing highway congestion and saving commuters’ time and money, we need to ensure there is sufficient rail capacity,” Cox believes.

Commuters across the country are having to deal with rising gas prices and increased road congestion. Cox’s study found Las Vegas, Nev., and Riverside-San Bernardino, Calif., commuters would see the greatest impact, saving more than $2,000 and 85 hours of congestion delay hours per year.

In a related study for The Heartland Institute, Cox determined, “Unless action is taken soon, freight rail bottlenecks will cause shippers and consumers to pay higher prices, causing business productivity to fall and more congestion on the nation’s highway system to impose billions of dollars of losses on commuters and consumers.

The capacity and reliability of the nation’s freight system can be improved by changing public policies to direct more capital to expanding freight rail infrastructure at key bottleneck cites around the country, it is pointed out.

By unshackling freight rail from excessive regulation and by encouraging private investment through public-private partnerships and tax incentives, Cox suggests, problems handicapping increased rail freight utilization could be solved with minimal cost to taxpayers.

Benefits from expanding rail’s share of total freight shipment include higher productivity growth, lower prices for shippers and consumers and less highway congestion.

A market approach to reform could enable freight railroad to maintain its current market share, Cox said, while a public approach would expand rail’s share of the freight market.

Public policies have given passenger rail service preferential treatment, Cox noted, even though utilization of that service is not great. Policies giving freight shipment more track access could boost freight hauling, especially in the Northeast portion of the country.

Despite policies that have imposed excessive regulation on freight rail it has continued to provide a share of service that is becoming more highly appreciated. It certainly makes sense to look at viable ways to help it grow and improve.

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