Bipartisan Senate Bill Tackles Nation's Transportation Needs

WASHINGTON, April 17 /PRNewswire-USNewswire/ -- Bipartisan legislation harnessing the private sector to combat congestion across the nation's increasingly clogged transportation network was introduced today in the United States Senate by Senators Trent Lott (R-MS) and Kent Conrad (D-ND). The Freight Rail Infrastructure Capacity Expansion Act (S.1125), will help expand the freight rail infrastructure to meet the 67 percent spike in freight traffic predicted by the Department of Transportation by the year 2020.

The proposal would provide a 25 percent tax incentive for capital expenditures by any business investing in new track, intermodal facilities, rail yards, locomotives or other rail infrastructure expansion projects. Railroads, ports, shippers, trucking companies and other transportation businesses would be eligible to receive the tax credit.

"We thank Senators Lott and Conrad for their foresight and leadership. This legislation is good news for the nation's economy and for the future of transportation," said Edward R. Hamberger, president and CEO of the Association of American Railroads (AAR). "It offers a proactive approach to dealing with the central challenge of how to move more freight without causing more gridlock on our highways.

"Railroads are an integral part of the solution to congestion, offering a better alternative to highway transportation. Freight railroads not only reduce highway congestion and pollution, they help America conserve energy."

Hamberger noted that a freight train can move one ton of freight 414 miles -- all the way from Baltimore to Boston -- on a single gallon of fuel.

The legislation has the backing of key businesses, business organizations, trade associations and ports that depend on an efficient, seamless freight rail network, including the U.S. Chamber of Commerce, the National Retail Federation, the American Association of Port Authorities, the National Mining Association, Arch Coal, Chevron Phillips Chemical Company, Evergreen America and the Waterfront Coalition.

Janet Kavinoky, Director of Transportation and Infrastructure for the U.S. Chamber of Commerce, said, "Investment in the nation's freight rail infrastructure is critical to meet growing transportation demands. This legislation will significantly help provide new capacity for America's businesses to move their products to marketplace."

"The U.S. retail industry is a major user of intermodal rail," noted National Retail Federation Vice President Erick Autor. "As commerce continues to expand, retailers support this and other efforts to ensure the nation's rail system can make necessary investments to meet growing demand from all rail customers well into the future."

National Mining Association President and CEO Kraig Naasz said his organization also supports the legislation.

"America's railroads are vital for transporting coal and minerals to U.S. power plants and factories," he said. "Record-breaking demand for coal is a major reason why freight rail shipments are expected to triple over the next decade."

AAR's Hamberger noted that the rail industry already invests billions every year into maintaining and expanding its infrastructure.

"In 2007 alone, that figure is projected to be a record $9.4 billion," he said. "This measure will ensure that railroad capacity expands to help meet the public policy goals of reduced pollution and highway congestion."

In its Freight Rail Bottom Line Report, the American Association of State Highway and Transportation Officials (AASHTO) called for public investment in rail transportation to encourage more freight to move by rail.

"The highway system is increasingly congested and the societal, economic environmental costs of adding new highway capacity are prohibitively high in many areas," said AASHTO, which is made up of all 50 state Department of Transportation leaders from around the nation.

Further, in a recent statement before the Surface Transportation Board, the group noted that, "Public participation in rail investment would produce an industry that provides the cost-effective transport needed to serve national and global markets, relieve pressure on overburdened highways, and support local social, economic and environmental goals."

  Below is a list of current supporters of the legislation.

 Organizations and Businesses Supporting the Freight Rail Infrastructure
                     Capacity Expansion Act (S. 1125)

                          Shippers/Organizations

  -- AAPA (American Assn of Port       -- Maersk Line
      Authorities)                      -- National Association of
  -- Alliance to Save Energy               Railroad Passengers
  -- American Council for an           -- National Mining Assn (NMA)
      Energy-Efficient Economy          -- National Retail Federation
  -- Arch Coal                         -- Owens Corning
  -- ASLRRA-American Shortline         -- Plum Creek
      and Regional Railroad Assn.       -- Port of Oakland
  -- Associated Industries of          -- Port of Portland
      Florida                           -- Port of Seattle
  -- BTI                               -- Port of Tacoma
  -- Chevron Phillips Chemical         -- Port of Vancouver
  -- Essroc                            -- Portland Cement Association
  -- Evergreen                         -- Railroad-Shipper
  -- Foundation Coal Corporation          Transportation Advisory Council
  -- Headwaters, Inc.                      (RSTAC)
  -- IANA - Intermodal Association     -- Railway Supply Institute
      of North America                  -- Robbins Reload Inc.
  -- IARW-Intl Assn of Refrigerated    -- SC State Ports Authority
      Warehouses                        -- TXU Corporation
  -- Iowa DOT & Dept Eco.Dev           -- U.S. Chamber of Commerce
  -- IRTA-Intl Refrigerated            -- Waterfront Coalition
      Transportation Assn.
  -- Jacksonville Port Authority