Getting back to basics is the name of the game for freight railroads in 2024. This means a focus on fundamentals — safety, service and competitive offerings — as well as core matters of public policy led by the Association of American Railroads (AAR). This is the key to meeting challenges in rail and across surface transportation.
An election year tends to mean two things for trade associations focused most squarely on the laws and regulations that impact their members. First is an active regulatory state. And second is a condensed legislative calendar with limited time to move bills. Against this backdrop and with a desire to commensurately channel a streamlined approach, this year is all about advancing central themes for current and potential policymakers.
First is that railroads are unbelievably safe by any key metric. The mainline train accident rate, hazmat accident rate and employee injury rate continue to decline. Any policy that delves into operations must be shaped to address specific and demonstrated market inefficiencies. They should be designed to solve a known problem and rooted in sound data. They must not cater to narrow interests or be built on belief alone.
Next, railroads are also critical to meeting current and future demand, particularly in an intermodal sector linked to growing consumer demand. As more companies reconsider sourcing choices and locations — including nearshoring — and seek environmental savings from shipping, and as visibility and reliability improves in rail movements, AAR members are positioned to grow. This requires feasible environmental policies, the continuation of sensible market policies and the rejection of outdated and failed utility-style regulatory models sometimes pondered in Washington.
Last, a level playing field across modes, be it for automation policy, environmental regulations or infrastructure funding will ensure a healthy transportation network. Railroads will fight for parity as they compete for growth.