High-Speed Rail in the United States - Essay Example

Running Head: HIGH SPEED RAIL IN UNITED S This study is aimed at looking the benefits that USA would reap by developing a fast railroad infrastructure. The study will use various sources to elaborate on the subject topic. High-speed trains are said to be a type of passenger-train that move at a higher speed than in comparison to early traditional trains operated by coal and steam engines. The definition of high-speed train is mainly related to the train’s speed and the technology it uses. (Briney, 2009) In the European Union, high speed trains are mainly those that move at a speed of 250km/h or the existing rails that have been upgraded to speeds of 200km/h or the upgraded railway lines that are hindered by such factors such as topography and urban development. In the United States the government of America has documentation of what constitutes high-speed rail. The Department of Transports (DOT) and the Federal Railroad Administration (FRA) defines high-speed rail as a service which is time-competitive with air transport within the transport sector with an approximate speed of 100-500 miles per hour. (Peterman, 2010, p2) This study is set out to look at this issue of the development of high speed rail. USA is especially trying to catch up with the advanced economies in the globe which have applied this mode of transport. The projected impact of this development by the Federal government is that the economy will have many merits both at the aggregate economy level and at the business level. More specifically it is going to consider this topic in terms of how business will be impacted upon. To this, the study will seek to provide a vivid answer to the study question, “How would building a fast railroad throughout the US be beneficial to business?” The commitment of the USA government in the developing of high speed rail is captured in the recent speech by president Obama that: “We want to start looking deep into the 21st century and say to ourselves, There is no reason why other countries can build high speed rail lines and we cant", Right here in Tampa we’re building the future’’ (Walsh, 2010) "Building a world class transportation system is part of what made us an economic superpower."  "And now were going to sit back and watch China build newer airports and faster railroads - at a time when millions of unemployed construction workers could build them right here in America." (US High Speed Rail Association, 2011)  The above speeches by president Obama called for the creation of a high-speed rail so as to enhance economic productivity. According to Walsh (2010), on Thursday, January 28, 2010, the White House announced that it was to award $8 billion in efforts to stimulate the starting of high-speed rail projects and improve 13 other corridors across USA. President Obama and his deputy president Joe Biden travelled to Tampa, Florida in their campaign to announce the kicking off an 84 mile high-speed track project from Tampa to Orlando. (Walsh, 2010) General promotion of Economic development and Business Growth High-speed Rails brings about economic development creates employment and brings changes in land uses which are beneficial. nationalatlas.gov (2011) observes that Freight railroads are important for global competitiveness and the economic well-being of United States. These networks contribute to billion of dollars to the economy of US mainly through investment and taxes. In the process of planning, designing and building High-speed Rails, it is urged that jobs will be created. High-speed Rails will bring about economic development and the creation of jobs in the long run by improving accessibility to various regions. For example, according to California High Speed Rail Authority the proposed construction of High-speed Rails linking the northern and the southern California cities would create 160,000 construction related job in short term and 450,000 in long run. The launching of High-speed Rails can provide a boost to travel and tourism by facilitating leisure trips by families during weekend from one town to another. (elpc.org, 2011) The high speed railway contributes to the economic growth of a region either directly or in directly. The Direct economic growth involve the building of high speed railways and its related products while indirect growth would involve the reduction of cost, shortening of distance, improvement of transport network, reduction in traffic congestion and accidents. (Peng and et al, 2009, p3487) Specifically, how is constructing a high speed rail improve the economy and businesses alike, in the US? To answer the floated question, one can refer to the recently released report by (APTA) the American Public Transport Association that vividly tackles this question. It says that if the six-year plan by the Federal government turns out a success the prospects are that the investment in the project of High-Speed Rail is likely to trigger approximately 1.3 million jobs across the economy of US. It would bring-about easier intercity movements by passengers. This would bring about escalated job development, rebuild the manufacturing sector of US and raise billions in business revenues. The focus by the report is upon the major issues that are of essence to private entrepreneurs in the processes of their considering future expansions of their operations and further investments as the market of rail-passenger expands. The investment in the high speed rail as well as the intercity connection development will have both direct merits and indirect ones. From the national perspective, this investment can lead to the creation and supporting of around 1.3 million jobs. The federal investment will further be catalyzed by the alluring of local, state as well as private capital which is likely to lead to the creation and support of even more jobs. The construction of this new design in the 21st Century railway construction and design developments, will have a basket of merits since there will be a rise in the construction-job market and in the long-term it will give a sustainable and new service and manufacturing jobs all over the nation. The most evident thing is that this investment type brings about one of the fastest and clear way to give avenue to green American jobs and in the long-run result to the growth of the economy. As the economy seeks to bring into the economy a sustainable, modern system of transport and that is environmental friendly besides the reduction of the energy challenges as the country steers to the future, the high speed rail will see to all that. APTA’s report puts it that for every USD1 billion put into the project of high speed rail, the prediction is that it will create as well as support about 24,000 jobs. Besides the thousands of jobs created by the investment, the whole economy of the US will be jumpstarted to higher levels of performance. According to the research group for Economic development for the US mayors’ conference made a study on the impact of the businesses in the US by the high-speed rail in numerous urban areas. For instance, there is the study of the impact on California, and Los Angeles showed that the project would generate around $7.6 billion in revenues from sales. In Chicago according to the same group it would generate approximately $6.1 billion in sales revenues. The investment by the Federal government in the high speed rail project will serve as a way to trigger and attract private investors to create more investments according to the sentiments by McFall Kevin, who is a senior Vice President at an investment company by the name, Stacy and Witbeck. This is a leading construction firm for public transit. The project can be of positivity since most people are desperately seeking jobs in the rail infrastructure building. While the US has been known for its high-level innovations and technologies in business according to the words by Wharton Jeffrey the president of IMPulse National Corporation and that is a positive thing. Thus, what the country needs in this context of rail transport is to employ expertise who will create employment opportunities and provide business opportunities as well in the process of getting to the level the rest of the world is as regards high-speed rail and the merits that go in tandem. As a result, Wochele Charles, who serves as the Vice President at Alstom Transport for the Industry and Government relations setion, Americans will be exhilarated in entirety since the economy will be forging ahead economically. Therefore, what remains is the implementation of the project on the ground since all the plans and logistics are in place. (apta.com, 2011) While concluding this work, the essential thing to note is the impact on the people of the US by the construction of high-speed rail. As can be noted from the findings of the study as per the aid of the various authors’ views, macro-economically the impact will be a recovery and growth of the American Economy while at the business level private investors will be attracted to invest in the various interlinked states. These are the findings that have been gotten in the bid to answer the study question, “How would building a fast railroad throughout the US be beneficial to business?” References: Apta.com. (2011). Federal Investment in High-Speed Rail Could Spur 1.3 Million Jobs. Retrieved on 22nd October 2011 http://www.apta.com/mediacenter/pressreleases/2011/Pages/110406_HSR_Business.aspx Briney, Amanda. (2009). High Speed Trains. Retrieved on 22nd October 2011 http://geography.about.com/od/urbaneconomicgeography/a/highspeedtrains.htm elpc.org. (2004). Overview of U.S. Freight Railroads. Retrieved on 22nd October 2011 http://elpc.org/benefits-of-high-speed-rail Peng, Q et al (2009). International Conference on Transportation Engineering, 2009: proceedings of the Second International Conference, July 25-27, 2009, Southwest Jiaotong University, Chengdu, China, Volume 1. La Fontaine de Siloë, P. 3487) Peterman, D.R. (2010). High Speed Rail in the United States. DIANE Publishing, PP. 2-17. US High Speed Rail Association. (2011). US High Speed Rail. Washington, DC. Retrieved on 22nd October 2011 http://www.ushsr.com/ Walsh, Bryan. (2010). Can High Speed Rail Succeed in America? Retrieved on 22nd October 2011 http://www.time.com/time/health/article/0,8599,1957575,00.html Read More