Association of American Railroads (AAR) announced that the U.S. railway companies are projected to spend an estimated USD 22 billion to maintain and upgrade the private rail network in 2017.
The projected private investment covers upgraded track and locomotives, as well as technological advancements needed to meet demand and make a safe network even safer. Freight companies spend six times more of revenues on capital expenditures than the average U.S. manufacturer. The most recent statistics available show that freight rail companies created nearly USD 274 billion in economic activity, generated nearly USD 33 billion in state and federal tax revenues and supported nearly 1.5 million jobs nationally in 2014 alone.
“This year’s private network spending, a combination of capital expenditures and maintenance, is part of a continued trend of remarkable proportions, including more than USD 630 billion since the industry was partially deregulated. As the House of Representatives convenes to discuss a ’21st Century Infrastructure’ and policymakers continue bipartisan discussions with the Trump administration, we hope these leaders realize how important America’s private freight rail network is in moving raw and finished products, supporting the U.S. manufacturing sector, providing a foundation for commuter and passenger rail and lessening deterioration of this country’s public infrastructure,” AAR President Edward R. Hamberger said.
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