REBUILDING AMERICA’S RAILROADS: Class I CEOs address the issue in a Railway Age Special Report

How will North American railroads meet the rising demand for their services that economists say lies head?

For a special report in its September 2011 issue, Railway Age put the question to the chief executive offices of North America’s seven largest railroads.

Following are excerpts from their replies:

Matthew K. Rose, president and CEO, BNSF Railway: “National transportationpolicy should prioritize freight mobility, in planning, programmatic, and funding decisions, especially in a tight budget environment where sustainability is at a premium. If we maintain public policy that ensures railroads can increase investment levels ($13 billion in 1911), railroads will continue to invest in projects that strengthen and expand their role in the supply chain.”

Jim Young, chairman, president, and CEO, Union Pacific: “If freight rail were to carry 50% of the freight market that moves 500 miles or longer by 2035, as suggested by the Federal Railroad Administration’s National Rail Plan, it will need to carry roughly 60% more containers than today, and that doesn’t include other types of growth, like boxcars and coal cars.”

Wick Moorman, chairman, president, and CEO, Norfolk Southern: “Public-private partnerships are an effective way to fund railroad capacity projects that benefit both the railroad and the public, but which neither party would be able to support on their own.”

Michael Ward, chairman, president, and CEO, CSX Corp.: “Railroads are ready to get America moving again, creating new transportation infrastructure, tremendous economic growth, and good jobs for many Americans. The next few years could mark the greatest opportunity for American rail if we line up our policies with our ambitions.”

David L. Starling, president and CEO, Kansas City Southern: “Truckers are embracing the strategy that the most cost-effective way for them to add capacity and increase profitability is not through investing in new tractors and recruiting more drivers but by putting their containers or trailers on trains.” 

Claude Mongeau, president and CEO, Canadian National: “Railways are crucial to the economies of the U.S. and Canada and their competitiveness in global markets. These economies simply cannot afford the risk of additional, burdensome, and unwarranted rail regulation.”

Fred Green, president and CEO, Canadian Pacific: “I am particularly excited by the evolution of technology in our industry, which enhances safety and helps deliver improved service reliability and productivity.”

In his introduction to the Special Report, Railway Age Publisher Robert P. DeMarco notes: “This issue of Railway Age will be featured at our own Railway Interchange 2011 exhibit. At 155 years, I believe we may be the oldest railway supplier at the show.” He invites any challengers to look him up at Minneapolis, where Railway Interchange 2011 will take place September 18-21, 2011.