US railroads spend big on new equipment and capacity

BNSF freight in Crozier Canyon, Arizona, in 2007 (Darryl Bond)

Spending by America's 'big four' Class 1 railroads - BNSF, CSX, Norfolk Southern and Union Pacific - is collectively put at $US 12.4 billion this year, while that of Canadian National and Canadian Pacific adds another $2.9 billion. (The other Class 1 US railroads are Grand Trunk [the holding company for Canadian National in the US], Kansas City Southern, and Soo Line [a Canadian Pacific subsidary].)  Spending on new freight cars is actually 15% above what it was in 2007, the last year before the recession hit. Meanwhile intermodal traffic - where truck trailers 'piggyback' on flat cars - has recovered to its pre-recession level.  That doesn't mean that the economy in general is yet back to that level, more that the share of total freight transport moved by rail has increased at the expense of road.

Trucks on American roads may look big, but they aren't always that full.  The inter-state weight limit remains at 80,000 pounds (36.3 tonnes) following the Congressional defeat of a bill to increase it to 97,000 pounds (44 tonnes).