RAILWAY ENTERPRISES AND THEIR ECONOMIC/POLITICAL ENVIRONMENT

This article considers how changes in US transport policy could lead to a broader-based, environmentally sensitive intermodal transport system, with opportunities for expanded use of railways and wider application of advanced technology rail systems. This possibility is now being discussed actively in the USA, and could apply to various other countries. Railways in both private and public sectors are entering a phase requiring profound change, as they are being affected by many political and economic factors. Railways must develop strong strategies that not only allow them to remain competitive, but also help society to meet the challenges of improving an environment where all transport modes operate. The new US transport legislation seems likely to be based on: (1) the concept of a mature road system, more concerned with improved management and maintenance than with expansion; (2) recognition of the need for new methods of financing, including public-private sector partnerships, to meet US infrastructure needs; (3) a new attitude of support for America's rail passenger service (Amtrak) and intercity bus system; (4) emphasis on intermodalism, smooth connections between modes. Conventional and high technology passenger and freight rail systems provide a low-cost solution to urban congestion, because their routes are already in place. The author concludes that rail will play a leading part in meeting 21st century transport needs.