Containers, Coal, and Carbon: Freight Railways in America’s Transportation Landscape

Policy Punchline

Ian Jefferies is the President and CEO of the Association of American Railroads (AAR), an organization whose members include the major freight railroads of the U.S., Canada, and Mexico, and Amtrak. Chuck Baker joined American Short Line and Regional Railroad Association (ASLRRA) as President after a 15-year career in the railroad industry. In this interview, co-hosts Tiger Gao and Sullivan Meyer discuss with Ian and Chuck the basic functions of the American railroad system, business outlook, how the railroad system thinks about the climate challenge, policymaking in the transportation sector and beyond. Sullivan and Tiger start by asking Ian and Chuck what their respective organizations do. In short, the AAR and ASLRRA are trade groups representing their constituent industries in Washington. For the AAR, that means giving voice to the seven Class 1 railroads in the United States, as well as a few hundred other large railroads. The ASLRRA, on the other hand, represents the over 600 shortline and regional railroads all over the country. They then discuss the role of the railroad industry in America’s economic development and the nature of the rail economy. In the eyes of Chuck and Ian, strong railroads were and continue to be one of the defining characteristics of the American economy. Railroads still face tough competition against other forms of transportation, namely road freight. We also explore issues of sustainability of railroads and their role in the fight against climate change. Railroads are the most efficient form of ground transportation, and thus central to America’s fight against climate change. At the same time, however, railroads have traditionally carried coal and energy products, so their secondary carbon footprint, at least historically, has been huge. Chuck and Ian make the point, however, that the industry is rapidly shifting away from hauling coal to intermodal freight and dry goods. The interview wraps up with a discussion of politics and policy. In particular, Ian and Chuck differentiate policy for passenger and freight railroads. They argue that, while freight railroads run most efficiently and effectively with less regulation and government involvement, passenger railroads require government support. They also make a strong case for leveling the playing field between support for road freight and rail freight through shifts in government policy.