US Future Transportation Construction

Katherine Doerr Associate Economic Analyst

High Way Construction Proposition

Does not include construction of lanes being added to already existing highways. Black lines represent only new highway construction.

Total Construction

Railway Construction

Railway Construction

Project 110% growth in rail freight ton-kilometers from 2005- 2050 for the U.S. and Canada. Addition of 900,000 railcars over that time frame. Unsung transport successes of the past 30 years. Universally recognised in the industry as the best in the world. Obama gave a stimulus package in 2009 of $8 B, plus $1 B a year, to help construct rail tracks around the United States. Low railway costs Currently, plans are under consideration to connect San Diego, Los Angeles, San Francisco and Sacramento roughly 504 miles of rail-tracks
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Success Story

Rejuvenated Rail Industry Since 1981 productivity has risen by 172%, after years of stagnation due to deregulation brought on by the Staggers Act of 1981 Adjusted for inflation, rates are down by 55% since 1981 Making the expected rise in freight rates of 3% to 4% over next 12 months negligible compared to long run prices Rail's share of the freight market, measured in ton-miles, has risen steadily to 43% about the highest in any rich country
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Coal Production

Natural Gas Production

Oil Production

Hurricane Isaac

Investors Thoughts

Warren Buffet made a $34 B purchase of Burlington Northern Santa Fe (BNSF), one of the seven main freight railways Fear: Increased federal spending in rail will lead to the Federal Railraod Administration (FRA) - the industry watchdog - once again imposing tough regulation

Undoing the Staggers Act passed in 1981 Sending Rail Prices & Rail Productivity

Newest technology in the hands of the Japanese and Europe where transportation engineers are eyeing the American market as their emerging market for rail construction Curren

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Introducing Bob Wynne

Trinity Industries
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