U.S. Railways Spend Billions on New Projects, Upgrades

Researched by Industrial Info Resources (Sugar Land, Texas)--U.S. freight railways have spent well over $600 billion since 1980 to maintain and upgrade the rail system, according to the Association of American Railroads (AAR). According to the trade group, America's freight railroads spend a higher percentage of their revenue on upkeep and improvements than other industrial groups--19% compared with just 3% by U.S. manufacturers.

Industrial Info is tracking 41 active U.S. rail-related projects worth $3.19 billion that are expected to kick off in the next 12 months.

Click the icon at right to see a graph detailing U.S. project kickoffs by market region.

By value, the top five freight-related projects include:

• $500 million: Burlington Northern Santa Fe's (BNSF) (Fort Worth, Texas) Southern California International Gateway Intermodal Facility in Los Angeles, California. The project includes a 153-acre, near-dock, 2.8 million container unit-per-year intermodal rail facility. Construction is anticipated to begin in spring 2017 and completion is anticipated in summer 2019.
• $400 million: Union Pacific Corporation's (NYSE: UNP) (Omaha, Nebraska) Rail Switching and Classification Yard in Hearne, Texas. Located on a 700-acre site, the yard will receive inbound trains, to sort rail cars and assemble outbound trains serving the Houston, Dallas, Austin and San Antonio areas. Construction is anticipated to begin in fall 2016 and completion is anticipated in fall 2018.
• $300 million: Union Pacific's Grassroot Classification Railyard in Red Rock, Arizona. It comprises a 6-mile railroad switching yard on a 950-acre site. Construction is anticipated to begin early 2017 and completion is anticipated in summer 2019.
• $150 million: Savage Services Corporation's (Midvale, Utah) Crude Oil Rail Unloading Terminal in Vancouver, Washington. Located in the Port of Vancouver, it includes six tanks with a total shell capacity of 380,000 barrels and a working capacity of 340,000 barrels. It will be able to unload 30 train cars at a time. Construction is anticipated to begin in spring 2017, with completion in summer 2018.
• $130 million: Palmetto Railways' Brownfield Navy Base Intermodal Facility in Charleston, North Carolina. Located on the former Charleston Naval Complex, the 90-acre facility will also include a 1.2-mile road and a new road interchange. Construction is anticipated to begin early 2017, with completion in winter 2018.

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