Intermodal Rail Freight: A Role for Federal Funding?

As Congress considers reauthorization of federal highway and transit programs and funding, currently provided by the Transportation Equity Act for the 21st Century (TEA-21, P.L. 105-178), one issue being discussed is the role of freight rail in the nation’s transportation system. Economic and trade growth, along with growing congestion on certain parts of the nation’s interstate highway system, has focused attention on the ability of the railroads to divert more truck traffic to rail. However, the railroads are currently operating at close to capacity. Many rail analysts question whether the railroads are making sufficient profit to add adequate capacity to their intermodal network. This raises the issue of whether the government could or should assist the railroads in expanding the capacity of their infrastructure. And if so, how a funding program could be arranged.