There will be continuing challenges to creating a rational and stable regulatory environment for the rail industry in 2011.
We know from experience that reasonable regulatory policies enabled the freight rail industry to invest $440 billion since 1980 to develop the world’s most efficient freight rail industry.
We know freight rail helps customers create jobs when their logistics supply chains are redesigned around the greater efficiencies of rail.
We know the efficiency of that freight rail network has helped the U.S. develop the lowest relative supply chain costs in the world compared to our global competitors. That’s something all members of Congress should understand because building on those supply chain cost advantages will play a critical role in improving the future competitiveness of the U.S. economy and its ability to create new jobs.
The policy discussion around maximizing the U.S. supply chain should include reasonable regulation that enables freight railroads to make reasonable returns to expand, and invest in new safety technology where the benefits justify the costs. Congress should enact reasonable tax policies to end the taxpayer subsidy of freight moving on the highway and pass the 25 percent tax credit to expand capacity investments by freight railroads and their customers.
Finally, we need an energy policy that enables freight rail to build on its environmental advantages without sacrificing the nation’s ability to provide low-cost electricity through clean-coal technologies.
Public policy discussions built around those kinds of economic benefits will increase private rail investment significantly and help create jobs.