Rail Transportation and Its Needs for Continued Growth - Case Study Example

• Introduction

Rail transport is the way of conveyance of goods and passengers on rails. In United States, rail transportation consisted of freight shipments. Most of the freight rails are responsible for transportation of passengers from one place to another place. In the 19th century, during the Second World War, the rail road had a significant impact on the transportation system of America. The development of national market occurred due to the rail road. The aim of the paper is to point out the development, drawbacks of the rail transportation system of United States and provide them recommendations for improvement of the position in the transportation industry”. Rail transportation in United States has faced many developments and problems in its operations. Rail transportation, especially freight railroads contribute a major part in the economy of United States. The essay focused on the comeback of the rail transport of United States on recent years.

• • Growth of the rail transportation

Manufacturing of Public transportation system starting from subway cars to high speed trains are transferred to France, Germany, Japan, etc. During 1970s and 1980s manufacturing industry totally vanished from United States economy. Rail transportation of United States faced several challenges such as congestion of traffic, high gasoline prices, emissions of greenhouse gasses, etc. The growth of rail transportation forecasts a global demand of freight rail and passenger train infrastructures to $214 billion in 2016 (Los Angeles Times, 2016). In 2007, the value was $169 billion. In the freight rail market, North America ranks third among the other countries of the world. When the Federal government of United States witnessed a growth in the rail transportation system, they are likely to invest a huge amount in the infrastructures of intercity high speed rail lines. Railroads seem to experience competitive resurgence of viable service for passengers from one city to another city. It is also a good option of energy efficient transportation. In 2012, highest number of passengers travelled in the freight rail of United States. Almost 31.2 million passengers travelled in freight rail of United States in 2012 which is double the number of passengers travelled in the year 2000. The government is investing both on the infrastructures of passenger rail and freight rail such as in bridges, tunnels, etc. In 2010, 3100 miles of freight rail road is manufactured. $75 billion is invested in the infrastructures freight rail (Rail Safety and Standards Board, 2016). One of the most important advantages of freight rail of North America is the fares of the rail. The freight rates are lower compared to other countries. The transportation industry is capable to maintain lower freight rates by financing all the capital requirements of the industry without any support. Market share of the freight rail has witnessed a growth from 30% to 43% which is very high for any developed economy.

• • Cause of comeback of rail transportation

Once upon a time, United States had a widespread urban transit network and intercity rail. During the era of 1950s, Federal government of United States decided to invest decisively on the infrastructures of airports and highways which led a downfall in the development of rail transportation system. Rail transportation and rail road was a dying part of the transportation industry in United States (Dow Jones & Company, 2016). However, rail road have made a strong move in the transportation industry. It is poised in its expansion in busier places in the recent years. Growth of freight rails is forecasted that they will penetrate more cities by planning capacity additions. Federal government of United States is planning to launch a system called positive train control in order to handle faster passenger trains and installation of an extensive anti-collision system in the development of rail road. In recession of economy of United States, railroads forecasts remarkable ability in weathering the recession (National Institute of Standards and Technology, 2016). In the 1960s and 70s rail transportations are not so much flexible in dealing with economic recessions. However, railroads now deal with various levels of traffic swings very efficiently. Rail vehicles in United States account for one third of the total market of rail.

• • Expansion of rail transportation 500

After the civil war the construction of the railroads in US promptly increased in a rapid way. Over the years from 1865 to 1890 the miles of the railroad track in the nation expanded from 35000 to 200000. A wide expansion in the tracks led to boost in the US economy. The farming economy was hugely supported by the railroad system expansion. Railway transportation turned out to be among the key and highly effective ways for transportation of the farmers production that particularly supported the farms situated in remote areas. Rapid expansion of US transportation system facilitated the farmers to produce huge crops as the potential of the available shipping locations increased. Such railroad expansion also made the crops such as of corn and grain accessible to the areas where these crops were not produced. This made products which were considered luxury in certain regions a common product to buy (Baum-Snow, Kahn & Voith, 2005).

Expansion of railroad transportation turned out to be beneficial to certain cities economies in US those had tracks within them. It provided such cities with improved facilities of import and export of products that further helped produce or ship high quality products in a timely way to the people and businesses in the cities. The potential customers resulted to the larger factories and organizations that further led to larger firms and factories and along with that more jobs were available to the people. Such cities also resulted in increase in the travel of people through train. Expansion of railroad transportation in US offered the people with the time effective ways for travelling to their families (Handy, 2005).

Another way in which the railroad expansion transformed US cities was the way went about generally in their everyday life. Prior to the time of arrival and departure of trains the concept of time was not considered to be vital. However, later people turned out to be familiarized to advance certain things such as meeting people and getting on trains on a decided time. With the rail transportation expansion the distance became less important and time became very vital. Increased rail transportation in US resulted in the introduction of time concept that further carried over to the time people recently live in. People these days are more concerned regarding the time and dates from the arrival and departure of trains and from the schedules of work to community events. People no longer considers the world as a place where it takes time to travel places or export and import products and considers the timeframe to deliver the products (Baum-Snow, Kahn & Voith, 2005).

Expansion of the railroad transportation has facilitated the Americans who are capable to travel more and the businesses in the cities of US developed because of improved export and import through increased railroad transportation. Expansion of rail transportation had a considerable impact in US economy that brought together the people to and from the far off areas and also increased advancement and expansion of businesses. This was possible as rail transportation expansion helped farmers in remote areas to rapidly deliver products to US market that advanced US economy (Atack, Bateman, Haines & Margo, 2010).

• • Recommendations for improvement of rail transportation

During the late 19th century, Federal government of United States had not invested decisively on the infrastructures of passenger and freight rail. Since the freight railroads have a significant contribution in the economy of United States, investment on infrastructures such as rails, bridges, tunnels, etc is necessary. The government should also focus on the technological aspects of the trains and the base infrastructures of rail transportation. Rail is not only responsible for transport of the passenger but also for transportation of goods covering a very long distance. Increase in the railroads throughout the nation would increase in the movement of goods of import and export. The rail vehicle manufacturers have to use latest technologies that are affordable. The companies of rail must have to strengthen their network and upgrade the associated equipments which can handle situations of metal shipping. Improvement in the intermodal traffic should be kept in mind which is one of the fastest growing technologies within the segment. The rail vehicle manufacturers have to use technologies in the rail vehicle which would consume less fuel. Fuel efficient vehicle will help the industry in the generating more revenue. As the freight rate is lower, efficient use of technology in the manufacturing of rail vehicles and building of infrastructures will help the rail transportation industry to maintain its sustainable position in the transportation industry of United States as a whole.

• Conclusion

The rail transport system of United States in the early 20th century has widespread network of railroads across the nation. The rail department supported many sectors of industries such as manufacturing of rail vehicles, infrastructures of rail transport such as tunnels, parts of vehicles, bridges, etc. rank of United States is very high in the manufacture of freight rail. The government of United States is focusing on the increasing number of freight rails rather than using fastest train throughout the nation. The comeback of the rail industry is possible due to the investment of government on the transit networks and railway infrastructures. The essay successfully explains the thesis statement which is mentioned above. While in the coming years United States will witness more development of railway system.