U.S. Rail Projects Worth $25 Billion Planned to Begin in 2012

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Researched by Industrial Info Resources (Sugar Land, Texas)--Throughout the tough economic times that have been causing problems across the United States, the rail sector has managed to find ways to move forward with its planned projects. Each and every year, billions of dollars are allocated for rail projects in the U.S. Funding sources are identified, and these projects are moving forward, even as foreclosure rates are skyrocketing, the federal government struggles to meet its budgetary needs, and virtually every state in the union has budget problems. Looking ahead at what is planned for 2012 in this important sector, Industrial Info is tracking more than $25 billion in U.S. rail projects that are currently scheduled to begin construction in 2012.

The West Coast region will once again lead the way when it comes to planned rail projects. Just about every community in the state of California is involved in some way with a rail system, and more are planned each and every day, while projects in both Oregon and Washington are flourishing. Despite the significant financial problems that the state of California is facing, it is leading the way in the U.S. in rail spending and will continue to do so in the future. For 2012, there are a dozen rail projects currently planned for this key region, mostly involving light or commuter rail, and if they all make it to the construction stage this year, this will mean thousands of jobs will be created from the $13.6 billion worth of project activity.

The Southwest region is expected to see resurgence in rail spending in 2012. Currently, some $3.4 billion worth of rail projects are in the planning stages for this year, a number that should increase as the year progresses. Rail has become very hot in both Dallas and Houston in Texas, and that has driven spending in this region. The Great Lakes region will also see some expanded rail spending during the year. Currently $3 billion in rail projects are planned for the region, but the state of Illinois just received a $186 million award from the Department of Transportation to help develop a rail corridor between Chicago and St. Louis, Missouri, which will lead to increased rail spending in the region.

In recent years, rail spending has been on the rise in the Rocky Mountains region, as well. Colorado, Arizona, Utah and other states have been investing heavily in commuter and light rail systems to help reduce congestion on their roads, and the projects have been developing very rapidly. In 2012, another $2.8 billion of rail projects are currently scheduled to begin construction, but additional projects are expected to be added to the list during the year, which could conceivably double that total by the end of 2012.

There will also be some significant spending on the nation's freight rail systems as well. Billions are spent each year to maintain, upgrade and expand the freight rail networks that are the backbone of transportation in the U.S. Each of the major freight rail companies allocates at least $1 billion per year to maintain and upgrade their respective systems, and additional funds are allocated for expansion throughout the country. Much of the track that criss-crosses the country is very old and in need of replacement or at least refurbishment, and that requires significant investment each year.

Hopefully, the majority of the $25 billion in planned projects will reach the construction stage this year, although this rarely happens. Projects are delayed for various reasons, especially permitting and funding delays. But for every project that is delayed, two more are planned, and it is likely that by the end of 2012, the total spending for this key sector will have eclipsed the initial $25 billion that was planned, which is certainly a good thing in terms of the jobs these projects will create and the money they will bring to the states that are lucky enough to host the projects.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.