AAR to Congress: Don’t hurt private investment

Testifying on Tuesday, Feb. 3, 2015 in Washington before the House Transportation and Infrastructure Subcommittee, Association of American Railroads President and CEO Edward R. Hamberger cautioned lawmakers not to tamper with a successful formula for U.S. freight railroads.

Hamberger said U.S. freight operations are unparalleled, with their functionality “a direct result of a balanced regulatory system that allows railroads to spend record amounts of private capital used to maintain and modernize a nationwide rail network that benefits shippers and consumers alike,” an AAR release Tuesday summed up.

“The last thing this country or taxpayers need right now are policies that discourage private investments and spending,” Hamberger said. “At a time when government is looking for monies to shore up infrastructure across the land, America’s railroads are doing their part. They operate almost exclusively on infrastructure they own, build, maintain and overwhelmingly pay for themselves. That’s in stark contrast to trucks and barges, which compete against railroads for freight traffic, but mainly use infrastructure supplied and paid for by taxpayers.”

The industry’s private investment, “estimated to be a record-setting $29 billion in 2015,” AAR asserts, is key to keeping economic recovery on track and enhancing the country’s global competitiveness, Hamberger noted..

“The public interest is best served by polices that let the market work and incentivize investment while avoiding those which discourage investment. The demand to move goods will only continue to grow, and it’s critical that the freight system be able to make the investments necessary to meet this demand,” Hamberger said.

Responding to proposals floated by some shippers both on Capitol Hill and before the Surface Transportation Board (STB) that would cap railroad earnings and hamper future ability to make necessary service and safety investments, Hamberger said the recovering U.S. economy cannot afford to lose rail’s annual private investments.

“Railroads provide a vital link for our farmers, manufacturers and resource producers to the domestic and global marketplace, but the challenges of creating, maintaining and operating a rail system capable of meeting present and future needs will require the benefit of effective public policy,” Hamberger stated.