[IMAGE]Amtrak-full-3.jpg[/IMAGE]Greater investment in the U.S. rail industry could revive America’s former leadership in the world rail industry — and potentially create hundreds of thousands of jobs, according to a new report prepared by the Worldwatch Institute and the Apollo Alliance.
The report, Global Competitiveness in the Rail and Transit Industry, draws on lessons from dominant international rail manufacturing countries.
“Rail and transit is a fast-growing international market in which the U.S. currently has little role,” said Worldwatch senior researcher and lead author of the report, Michael Renner. “Our study shows the path forward if the U.S. is to reclaim some of its past glory as a railroad pioneer.”
Case studies of four of the leading countries in intercity rail and urban transit — Germany, Spain, Japan and China — illuminate a set of common principles that those countries have used to nurture and grow some of the largest, most successful railroad manufacturing companies in the world. Among them are:
Sustained, long-term national investment in rail and transit far and above the one-time injection of $8.3 billion provided by the 2009 American Recovery and Reinvestment Act. In terms of investment in rail infrastructure, the U.S. currently lags far behind countries like Austria, the Netherlands and Russia, and just ahead of Turkey. China alone is investing as much as $149 billion every year for the next five years.
Commitment to protecting and nurturing young industries until they have achieved the economies of scale necessary to compete globally. All of the countries in the report were served for decades by strong and competent national rail monopolies, which helped ensure robust demand for rail products and technologies.
A national vision that ensures that rail development will be linked with other forms of urban transit; use an integrated, uniform system of operations; provide extensive geographic coverage; and be well run. The report shows that systems that do this help produce a strong domestic market for rail transit, thus ensuring continued growth.
“Growing a strong rail transit industry demands large and sustained capital investment combined with national vision. Rail ridership in the U.S. is going up, but that demand alone won’t generate the private investment necessary to compete globally,” Renner said. “The federal government needs to be committed to building a strong, national system with competitive prices, solid geographic reach, and reliable trains. If it does that, not only will people ride it, but the United States will create hundreds of thousands of new jobs as well as internationally competitive companies.”
The report contains a wealth of facts and statistics that show the U.S. position relative to other countries, as well as the potential for growth.
Facts at a Glance
Global Market and Competition
China invests far and above the most money in its rail network relative to its economy, spending $12.5 dollars for every $1,000 of GDP. In contrast, the United States spends $0.8 dollars per $1,000 of GDP.
United States