Companies are getting the message. Under President Donald Trump, America is once again open for business.
Major manufacturers — from automakers to semiconductor makers — are reinvesting in domestic production. After decades of outsourcing, we're witnessing the return of "Made in America."
That resurgence is long overdue. But to ensure this manufacturing revival endures, our domestic supply chain must keep pace. The question is: How do we move raw materials and finished goods across a continent efficiently, safely and at minimal cost to taxpayers?
The recently announced merger of railroad operators Union Pacific and Norfolk Southern is a step in the right direction. The combination would create America's first transcontinental railroad, a long-overdue accomplishment that will accelerate domestic manufacturers' ability to quickly and cost effectively move goods and products from coast to coast.
This would be a profound change for the American supply chain. Over the past few decades, long-haul trucking has increasingly overtaken rail as the main mode of freight transportation. Last year, trucks moved 73% of all U.S. goods, up from 63% in 1990, according to data from S&P Global. Rail's share, meanwhile, has fallen to just 12%. That imbalance carries serious economic and safety-related consequences.
Our nation's growing dependence on trucking isn't free. The federal government spent $52 billion on roads last year, and roughly $20 billion of that came not from fuel taxes paid by drivers and truckers but from the general fund. In other words, every American, whether they drive or not, is subsidizing the upkeep of highways.
By contrast, railroads invest their own capital in maintaining their infrastructure. America's 150,000 miles of freight rail lines are supported by $23 billion in annual private investment. As freight volume is rebalanced back toward rail, the burden of investment and upkeep shifts from taxpayers to the private sector.
There are safety benefits too. Rail freight transportation results in one-eighth the fatalities and one-sixteenth the injuries per ton-mile compared to trucking. According to the Association of American Railroads, the derailment rate for the largest American railroads has dropped 40% since 2005.
The numbers tell a simple truth: Moving goods by rail is safer, cheaper and fairer to taxpayers. But if rail offers so many advantages, why has it lost ground to trucking? The answer boils down to logistics.
America's rail network is fragmented, split between eastern and western operators. That means freight traveling from one coast to another must be transferred from one operator to another at a handful of interchange points in the Midwest.
A container shipped from Los Angeles to New York, for example, might start on Union Pacific tracks but would need to switch to Norfolk Southern or CSX to traverse the eastern half of the country. Each railroad prioritizes its own trains, and that handoff can delay shipments by days as crews are swapped and paperwork is processed.
The headaches caused by interchange delays have made cross-country trucking an appealing alternative for shippers — even if it's more costly and less safe in the long run.
Creating a transcontinental railroad would help solve the interchange problem. A unified, coast-to-coast railroad could eliminate interchange delays altogether, streamlining cross-country shipping and restoring balance to America's freight market.
The timing is critical. As autonomous driving technology matures, trucking is poised to expand its dominance even further. If we don't act now, the gap between road and rail will widen, and our infrastructure — and taxpayers — will continue to bear the costs.
Creating a coast-to-coast railroad could also help shift freight volume from other forms of shipment like air cargo. While rail, even when moved by a transcontinental railroad, would still be slower than air cargo, it would be much more cost effective. Those savings would ultimately be passed on to consumers.
Trump's economic agenda is centered on rebuilding American strength at home and abroad. Reindustrializing the country will require more than factory construction. It calls for a modern, resilient supply chain to move what those factories produce.
The Union Pacific-Norfolk Southern merger represents a chance to rebuild a vital piece of that chain. It would bring competition and efficiency back to freight transport, relieve pressure on public infrastructure, and keep America's economic engine running safely and reliably.
Ken Buck served in the United States House of Representatives from 2015-2024 representing Colorado's 4th congressional district. He now serves as a Fellow with the Independent Center. To find out more about Ken Buck and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.
Photo credit: Acton Crawford at Unsplash
View Comments