As the economy continues to strengthen, growing additional capacity in the U.S. rail network is a necessity as we move into 2015 and beyond. Rail volumes have steadily increased since the economy began to expand again in 2010, accelerating more rapidly in 2013. In 2014, the industry experienced volume growth across multiple segments, including grain, energy and intermodal. The entire industry must continue to invest in growing capacity at a higher rate than GDP in order to effectively and efficiently manage this increasing demand for service.
The good news is that the rail industry has not been sitting still. The overall economic growth we have experienced is why America’s freight railroads cumulatively have been spending more than $20 billion annually of their own funds to improve the safety and reliability of our nation’s rail networks and to expand capacity to accommodate customer growth. In fact, from 1980 through 2013, freight railroads invested $550 billion in maintaining and growing their networks.
Most recently, following the Great Recession, the U.S. Class I railroads have been investing record amounts on tracks, signaling systems, locomotives, freight cars and more, including more than $25 billion in both 2012 and 2013.
This high level of investment by the industry not only has to be sustained, but increased — as volumes continue to increase. Collectively, as an industry, we must invest at higher levels than we ever have in our history to build sufficient capacity to handle our customers’ future growth. These investments will benefit all of the traffic growth and improve service on our networks. They are also a critical part of our efforts to maintain the high level of safety of our railroads for customers, employees and the communities we serve.
Carl Ice, President and CEO, BNSF Railway