WASHINGTON, D.C. – Joint Economic Committee Democrats today released a report on the growing economic impact of United States freight railroads. The volume of commerce crossing our borders has more than tripled in the last 25 years and U.S. freight shipments are expected to increase by 41 percent by 2040, placing a growing demand on America’s freight rail system and the 30 rail ports of entry (POEs) along our borders. As Congress considers border policies and solutions in the coming months, investment in border infrastructure to ensure our rail POEs can operate at full capacity should be an important part of the conversation.
The report, “Growing Economic Impact of U.S. Freight Railroads,” details the role of intermodal hubs in the freight rail system. The volume of goods flowing through these hubs has increased 335 percent since 1980 to 13.5 million trailers and containers in 2016. These hubs drive exports—New Mexico exports to Mexico almost doubled from $802 million to $1.5 billion in one year after the opening of the Santa Teresa Intermodal Ramp and Refueling Station, an intermodal hub in New Mexico.
“American freight continues to create jobs, drive economic development and support businesses,” said U.S. Senator Martin Heinrich, Ranking Member of the Joint Economic Committee. “In my state of New Mexico, the intermodal hub in Santa Teresa has spurred significant economic development. Ensuring our rail ports of entry systems are able to securely operate at full capacity is key to our 21st century economy. It is important for Congress to discuss ways that prepare our country’s infrastructure to meet the growing demand of freight railroads that continue to support the American economy.”
The report also highlights how the freight rail industry supports 1.5 million U.S. jobs—including jobs in retail, manufacturing, transportation and warehousing—and directly employs 170,000 workers. Approximately 85 percent of Class I rail employees are unionized. These unionized positions have negotiated collective bargaining agreements providing rail workers with good wages, health care, and other benefits.
Click here to view the report online.
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For more information, please contact Latoya Veal at Latoya_Veal@jec.senate.gov or 202-224-0379.
