AAR Announces Record Investment for 2012

The American freight rail industry will experience one of its greatest years for capital investment, according to a recent report by marketwatch.com.  The Association of American Railroads (AAR) announced a plant to invest $13 billion in 2012 to expand, upgraded and enhance the national freight rail network.  The investment total of $13 billion is a record high mark.  In addition to improving the railroad infrastructure, it is projected that that 15,000 rail employees will be hired in 2012.  According to AAR President, R. Hamberger, “These investments help businesses get their goods to market more efficiently and affordably, so they too can innovate, invest and hire. That’s how freight rail spurs the American economy and supports jobs all across the country.”

Railroad investment has been on an upward trend the last several years.  Railroads spend 17% of annual revenue on capital expenditures, which is significantly higher than the 3% average among U.S. manufacturers.  Railroad investments include building intermodal terminals, new track, and bridges, as well as modernizing equipment.

Record breaking investments in the railroad industry is great news for freight rail and the nation’s economy as a whole.  Improvements to railroad infrastructure translates into faster and more efficient, affordable shipping for American goods and products.  As the railroad industry continues to improve, more manufacturers will turn to rail to ship their goods.  Hopefully this announcement is the beginning of a positive year for the railroad industry.


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