Association of American Railroads assesses international rail trade

Association of American Railroads assesses international rail trade


The Association of American Railroads (AAR) has released an assessment of trade’s impact on the freight railroad industry, finding that at least 42% of US rail carloads and intermodal units, and more than 35% of annual rail revenue, are directly associated with international trade.

Approximately 50,000 domestic rail jobs, accounting for more than $5.5bn in annual wages and benefits, depend directly on international trade, the analysis of 2014 data also found. If rail traffic indirectly associated with trade was included, the figures would be notably higher.

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“With ample discussions in Washington policy circles today on the role of trade, imports versus exports and manufacturing, the data provide a reminder that today’s global economy is firmly established and cannot be easily undone with rushed policy modifications,” the AAR said in a statement. “Doing so could have damaging and counterproductive effects on American workers and various industries – including a freight rail network that serves nearly every industrial, wholesale, retail and resource based sector of the economy.”

“Efforts that curtail overall trade would threaten thousands of US freight rail jobs that depend on it and limit essential railroad revenues used to modernise railroad infrastructure throughout North America,” said AAR president and CEO Edward R. Hamberger. “For a highly capital-intensive industry that has spent $26bn annually in recent years, private investment is the lifeblood of a freight rail sector that must devote massive sums to safely, efficiently and affordably deliver goods across the economy. Upending the ability of railroads to do so by undermining free trade agreements that have done far more good than harm would have far reaching effects.”

For more information visit www.aar.org

3rd April 2017