NumBytes 17: Trails To Rails?

A 2008 Rand Corp. study found that in 2005 railroads hauled 10.33 million ton-miles per track mile -- about triple the 3.4 million ton-miles per track mile in 1980. That's a nice gain in productivity consdiering all the miles of track abandoned over the period, but a darker number may put fear into the hearts of shippers and retailers alike.

According to the head of the Federal Railroad Administration Joseph Szabo, the US railroad freight system moves an average of 40 tons of freight per person per year. He expects another 100 million people in the US by 2050, which works out to an additional 4 billion tons of needed freight capacity. Four billion?

Never Fear, HR 2091 is here: the Freight Rail Infrastructure Capacity Expansion Act of 2011 introduced on June 2, 2011. It offers tax credits to buy more locomotives, lay more track, and repair infratructure. Of course, in the first quarter 2011, almost all major railroads in the US and Canada recorded a nice jump in profits: Union Pacific (24%), Norfolk Southern (26%), CSX (30%), and Canadian National (31%). Only Canadian Pacific recorded a drop in profit, blaming bad winter weather.

Good profits and a tax break? John Henry, the US might have a hammer-ready project just for you.