FINANCING RAILWAY ELECTRIFICATION

Railroad electrification in the United States is constrained neither by technology nor by a lack of sensitivity to project costs. Rather, the reason investor-owned carriers hve not embarked on electrification is the inability to finance the undertaking attractively. The specific challenges and possible solutions to the funding obstacle are addressed in this paper. The formation of a consortium of interested participants to assemble financing is explored as well as several variations of the consortium idea. Included is the concept of the purveyors of engineering services, hardware, and equipment sharing in the financial risk. Participation by utility companies that seek load growth is suggested. Recent consumation of large mergers of rail systems and a relatively plentiful supply of railroad cars present a more attractive atmosphere in which to consider the application of capital to high-density routes. Utility companies may be more inclined to sell power at the catenary as contrasted with the primary busbar at the substation during this period of little or no growth in loads. Pursuit of these and corollary approaches could lead to successful financing of railroad electrification.