It is estimated that around 40% of long distance freight volume in the US is moved by railroad. This figure reflects the importance of rail freight in moving goods across the country. Many reasons account for the popularity of rail freight in America including efficiency, cost effectiveness, reliability, safety, and sustainability. Transporting goods by rail is a more sustainable option than using roads as it produces fewer greenhouse gas emissions (GHG) and reduces traffic congestion. Obviously, while rail freight has many advantages, its suitability hinges on several factors such as the distance, type of goods being moved, and availability of rail infrastructure. In US regions that have well-developed railroad networks, rail freight is a popular and efficient choice for moving cargo.

America Has an Impressive Rail Network

The United States has the biggest freight rail network in the world boasting of roughly 7 major Class 1 railroads and around 140,000 route miles of track. Railroads play a significant role in the transportation network which makes up of several types such as train, truck, plane, and barge. Another impressive fact is that rail was responsible for around 28% of the total US freight movement by ton miles in 2020 says the US Department of Transportation. Bulk commodities including agriculture and energy products, automobiles, chemicals, construction materials, food, metals, minerals and so on represent most rail movements. In addition, there are several compelling reasons why freight rail dominates in the US and is the preferred method of transport for goods. The land area of continental US is massive covering 3.12 million square miles. This means that an efficient transportation system is vital to move goods efficiently. Therefore, the freight rail system is perceived to be the most efficient and cost-effective transportation network to serve the US.

Advantages of Freight Rail

American railroads are mostly owned and operated by the private sector. This means that the private sector can easily raise billions of dollars in private capital to finance maintenance and expansion rather than depend on taxpayers’ money. Thus, the freight rail industry can adapt quickly and serve the transportation needs of businesses across the country. The US rail industry continuously strives to improve processes and looks for new technologies to make sure that the network is safe and efficient. Therefore, it invests in infrastructure, technologies, and equipment. According to the AAR report, Union Pacific, one of the largest Class One freight railroads in the US, updated its traditional wooden rail ties and replaced them with recyclable composite materials that have 50-year life spans.  Moreover, for every million composite ties laid, roughly 90,000 tons of plastic are diverted from landfills. BNSF, a leading freight transportation company in North America, partnered with Bakken Energy to explore clean hydrogen production and distribution using railroads. Furthermore, Norfolk Southern Corporation exchanged 22 of its 68 diesel cranes for hybrid or fully electric ones with the aim of eventually eliminating all diesel-powered cranes within the next decade.  All in all, important players in the industry are working hard to ensure that the railroad system in the US is safe, efficient, and sustainable.

With an extensive railroad system, the US can move more freight at one time compared to other countries with fewer railroads. Furthermore, trains are some of the most efficient methods of cargo transportation. In addition, trains, on average, are three to four times more fuel-efficient than trucks saving money. Hence, moving goods by rail rather than trucks lowers greenhouse gas emissions (GHG) by up to 75% according to the Association of American Railroads (AAR). In short, shipping freight by rail not only saves money, but also reduces carbon footprint. US railroads also employ over 122,000 people in 2023 across the country based on the IBISWorld industry report. Furthermore, international trade is supported as well by the cargo rail network connecting both sellers and buyers to markets around the world.

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Rail freight offers several advantages such as lower carbon emissions, cost-effectiveness, reliability, and efficiency. Depending on the types of goods being transported as well as the distance, a combination of rail and road transport may be the most efficient and sustainable option, in some cases.

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