Press Releases

Increasing Investment in Freight Rail Will Have Immediate and Long-Term Stimulus Impact
February 26, 2009

Washington, D.C., February 26, 2009 - Members of the American Short Line and Regional Railroad Association (ASLRRA) joined over 300 representatives from the railroad industry today for Railroad Day on Capitol Hill to brief members of Congress and their staff on the importance of freight rail including how increased investment in freight rail projects can stimulate the economy by adding jobs, lowering shipping costs, improving infrastructure and preserving an environmentally friendly shipping mode.

"America's short line and regional railroads play a critical role in our nation's transportation infrastructure by connecting rural communities, strengthening local economies and protecting our environment," said Richard F. Timmons, president of the American Short Line and Regional Railroad Association.  "The stimulus package overlooks the critical role played by private freight railroads in our economy, and the potential economic benefit of investment in freight upgrades."

Legislation introduced in the House by Reps. Pomeroy (D-ND) and Moran (R-KS) (H.R. 1132) and the Senate by Sens. Lincoln (D-AR) and Crapo (R-ID) (S. 461) would extend the Short Line Rehabilitation Tax Credit, which allows short line railroads to undertake critical projects, assuring continued investment in the nation's transportation infrastructure.   

The Short Line Rehabilitation Tax Credit helped the Pioneer Valley Railroad in Westfield, Massachusetts complete a track improvement project that helped protect thousands of local jobs by securing rail service to their customers and employing contractors to do the rail work.

Many short line customers also joined the briefings to explain the importance of the tax credit and what it means for local businesses hard hit by the recent economic downturn.  "The short line tax credit helped us lower our transportation costs and sell more lumber to more customers. We are one of the largest employers in rural Oregon and an efficient local railroad like the Portland & Western Railroad helps keep it that way," said George Bonner, Director of Transportation of Hampton Lumber in Portland, Oregon.

America's short line railroads provide fuel savings and environmentally friendly shipping for small businesses and communities around the country.   One freight rail car can carry a ton of cargo 436 miles on just one gallon of fuel.  Short line railroads take the equivalent of nearly 33 million truck loads off the highways, saving the country over $1.4 billion annually in highway repair costs and improving highway safety and congestion.

The American Short Line and Regional Railroad Association represents over 550 short line and regional railroads, which operate over 50,000 miles of track, employ nearly 20,000 people and support local economies by providing competitive rates and fuel efficient shipping to businesses around the country.  For more information, please visit our website, www.aslrra.org.

To set up an interview with representatives from your local railroads, or for information about completed tax credit projects or potential projects that offer significant economic benefits to the communities, please contact Anne Duke at aduke@stratacomm.net or (202) 289-2763.