I’ve been pretty vocal about the economic benefits of moving forward on American high-speed rail. And yesterday was no different, when I was honored to speak at the Indiana Rail Summit.
In addition to being the crossroads of America, Indiana is also the heartland of America’s emerging rail manufacturing industry. And these manufacturing jobs are proof that high-speed rail is already creating jobs and providing economic benefits.
With Mark Maassel, Northwest Indiana Forum CEO; photo courtesy office of Rep. Pete Visclosky
Skilled workers at Columbia City’s Steel Dynamics, Incorporated, are already forging the steel track for construction workers to install in New England. Engineers are busy grading new routes. These are good jobs that American workers and their families are benefitting from now.
Soon, factory workers will get to work building new locomotives and cars to race along the tracks. We have already secured commitments from 30 foreign and domestic rail manufacturers. If selected for high-speed rail contracts, they’ll establish or expand their base of operations in shuttered American manufacturing plants, hiring American workers. And our "100% Buy America" requirements ensure they'll be using American-made supplies and materials, so U.S. companies, workers, and communities will receive the maximum economic benefit of our high-speed rail investment.
And then there are the ripples of growth and expansion along the corridors and near stations. When America was building our Interstate highway system, other businesses followed. First, a few small businesses--like gas stations--planted their feet near off-ramps. Soon, entire towns grew, with grocery stores, restaurants, and other businesses benefiting from the activity that highway access created.
In Meridian, Mississippi, for example, a small town mayor leveraged $1.3 million of public dollars and $135 million of private dollars to build a downtown transportation hub. Now, Amtrak service comes to the station and brings 350,000 passengers a year through a town of only 40,000. Rail has breathed new life--and new business--into a historic community.
Finally, we must think about the economic consequences of not building an efficient alternative to our roadways. Four decades from now, America will be home to 100 million additional people. That's the equivalent of adding another California, Texas, New York, and Florida. If we settle for the status quo, our families and neighbors will fight ever-thickening congestion on their way from one place to another. If we fail to lay a new foundation for competitiveness, our goods will hit bottlenecks instead of markets and America’s next generation of entrepreneurs will find our arteries of commerce clogged.
Talking rail, jobs with Indiana Rep. Pete Visclosky
Let's not forget that it took ten presidential administrations and 28 sessions of Congress to make America’s roadways the best in the world. It took leaders who were courageous enough to think about the next generation, not just the next election.
Today, we have a President, a Vice President, and many governors and legislators from many states leading the way. But we need more leaders to help move this train further down the track. We need leaders with the vision to represent the two-thirds of Americans who are ready to ride high-speed rail. We need leaders with the vision to represent the more than two-thirds of Florida residents who support state and federal funding of high-speed rail.
We need partners who understand we're not building high-speed rail for ourselves. Like those who built the transcontinental railroad and the interstate highway system, we're building it for our children and for their children.
Right now, Americans of every party, across the country, are calling for increased high-speed rail investment. They see the path to winning the future, and this administration is doing everything we can to make sure the work gets done.
And when we bring this vision to life, our legacy will be much more than trains, tracks, and ties. It will be an American economy on the move for generation after generation.

Secretary Lahood,
As a citizen of Portland OR, and a member of the Columbia River Crossing Urban Design Advisory Group, I wish to thank you for ongoing support of innovation in Rail and Highway Transportation projects. In your upcoming Monday meeting with Governor Gregoire and Kitzhaber members of UDAG would like to emphasize the importance of this project for our communities. A coalition of neighborhood groups, pedestrian and bicycle alliances, and the UDAG will support a project that is affordable AND beautiful, safe and environmentally responsible and have repeatedly stated their desires to build a bridge that is sensitive to the natural beauty and grandeur of it's setting.
Thank you,
Jeffrey S.
UDAG
Portland, Oregon
Posted by: Jeffrey Stuhr | February 26, 2011 at 06:56 PM
Big kudos and support from Portland, Oregon. I have traveled internationally and have come to envy the consumer rail systems throughout Asia and Europe. I come from pretty humble beginnings (sell used cars in Portland) but it seems pretty obvious to me that the economy would benefit from a high speed rails system (more jobs on the rail and access to more jobs from rural areas), and would help to give consumers more transportation options. Right now if I want to travel anywhere in the U.S. I either have to fly, take Greyhound or take Amtrak (which is just too slow to be considered seriously for a traveler in a hurry). I'm hoping this plan takes shape and gains momentum.
Posted by: Kudos and support | February 26, 2011 at 11:22 PM
High Speed Rail will do a great deal to improve the transportation system for everyone. It has already proved itself in places like France, Spain, Japan, China, South Africa. While some in this country look to the past and don't want high speed rail, we should look to the future and a better transportation system with all the economic and social benefits for everyone that it will bring. Best wishes, Michael E. Bailey.
Posted by: Michael E. Bailey | February 27, 2011 at 01:46 PM
Dear Mr. Secretary,
I have recently read the proposal by President Obama to build a High-Speed Rail system in the US. He cited the success of rail in Spain and France (not to mention Japan and Germany) as the model for which this system would be based. If you don’t mind, I would like to comment on this proposal, as I have traveled on European rail on several occasions and even traveled somewhat on America’s system.
First and foremost, the American Government is already running one of the most inefficient rail systems in the world, Amtrak. At a time when American railroad companies are among the most profitable companies in the world and have been profitable for over 30 years, Amtrak continues to lose money each and every year (requiring a government infusion of over $1 billion per year since 2003, http://www.fra.dot.gov/rpd/passenger/274.shtml). Warren Buffett’s continuing investment into Burlington Northern Santa Fe is more than enough evidence that railroads are not only a good investment, but a good long-term investment.
So understanding that railroads are profitable, the first order of business to introduce High-Speed Rail in America would be to make Amtrak a profitable endeavor. This can be initiated by the US Government divesting itself from Amtrak and selling it to the private sector (much like the government did with Conrail in 1987).
This can be accomplished in many ways. An outright sale of the entire network, parceling it out based on different markets, allowing lease-options and all the while maintaining overall governance, similar to the over watch of the airlines by the FAA. But in order for this administration, or the government in general, to have any credibility on rail, we must first clean up our current system and make it attractive.
The second point on this road to High-Speed Rail would be to set up the support system for our travelers. One does not merely purchase a ticket on a train and then disembark at the destination station. Travelers go places. They go places for work and for pleasure. But their destinations are never train stations. So a support system of public transportation or stations placed in locations where transportation is not required must be a primary consideration. Also, train stations would need areas for automobile parking or position stations co-located with intra-city trains and buses. Trains to and from the large airports would be an excellent starting point.
Going back to the European model, Germany has a very efficient and functional rail system. Not only does their system provide travel to all of their cities, but also to most of their small towns. One can ride the trains from those small towns to every large airport and into every city downtown area. Also many of their tourist areas (mountain resorts, lakes, museums, and sports arenas) have train stations within walking distance (less than 1 kilometer).
But the key point here is that in order for a High-Speed Rail system to be successful, these support systems must be in place prior. After reviewing your High Speed Rail Strategic Plan (HSRSP) submitted to Congress in April of 2009, I found little reference to plans for passengers once they reach the end of the High-Speed line. The only actual reference called for “State Rail Plans (future)”. Some of the larger cities on the East Coast have intra-city trains however, outside of those areas intra-city trains are few and far between. So looking at where city connecting lines are already in place, a faster, more efficient rail line can be successful. But in most of the proposed Intercity Passenger Rail Network (figure 6, page 7 of the HSRSP) there is no rail infrastructure in place.
The third and final point of this paper is that once all of the systems are in place, Americans will have to actually purchase tickets and ride these vehicles. It is not part of our travel routine to take trains other than the aforementioned intra-city commutes to places of business. Having traveled on trains in Europe, and using these trains as a primary source of transportation, it is my experience that Americans will choose not to ride trains (as many Americans choose not to ride the trains when they visit or live in Europe). As it stands now, trains in America are less convenient, slower and more costly than traveling by auto or aircraft.
Thus, in order to justify the expense and even make it attractive to the American traveler, trains will have to become a part of the daily life of America. This can only happen through generational change or by creating a demand based on a better product. The US Government has proven time and time again that it cannot deliver a better product.
Sir, I am not trying to rain on anyone’s parade. I am a HUGE supporter of a rail system for America. But by simply stating that High-Speed Rail is the Future of America and “high-speed rail proposal will lead to innovations that change the way we travel in America” will not make it true.
In order to make rail and high-speed rail a mainstay and travel option for Americans, it must be done efficiently and be presented as an attractive alternative to current modes of travel. History has shown us that changing the behavior patterns of a nation requires a catalyst to spark the movement. But in order to sustain and drive a demand, an incentive, usually economic, must be present and constantly updated.
By all means we should invest in rail and the infrastructure of traveling within the US. But by investing, we need to put money into lasting projects that will create long-term dividends and be self-sustaining. A rail system that works will intersect with many facets of American society. A system that works will be able to be utilized by every type of traveler. A system that works will use existing assets and make them more efficient.
I have studied rail for many years and even once taught a course on The Principles of Transportation for Embry-Riddle Aeronautical University. Rail is an excellent form of transportation and can alleviate a lot of congestion on highways and in cities. Rail has historically proven to be a profitable and sustainable form of transportation. But merely throwing money at trains (re: Amtrak) will not create the type of long-lasting infrastructure our country needs.
I am merely a concerned citizen who would like America to continue to be the best country ever to grace this planet. Thank you for allowing me to add my two cents to this topic. I hope it has helped by providing a little bit of perspective from a traveler.
Thank you for your time,
Sincerely,
Randy Rooker
Posted by: Randy Rooker | February 27, 2011 at 02:48 PM
Great news for Americans, we need more companies expanding and providing more employment for the county
Posted by: Mobile Disco | February 28, 2011 at 06:02 AM
What about all of the people negatively effected by this change. Those currently providing this service and those supporting them. The businesses effected who support the current mode of trabsportaion along those routes. As a truck driver I see all of the changes effecrting freight and intermodal use. Also see effects montarily. Now do we continue on to another area. How many folks are being replaced when the train hits the tracks. Anyway. Not that it makes a hill of beans and am sure those that have a vested interest will have oh so many reasons to support it. Personally, I don't see where it benefits a lot of people who are not in the immediate vicinity of these propsed lines. Historically, what happened to towns where rail was once prominent and disappeared. Towns along major routes that were moved. Just some thoughts. Yes I already know some of the ways it benefits temporarily, production, shipping, etc. But feel it has far reaching negative effects far beyond the pluses. Particularly, given the current economic situation. A concerned second or third class citizen AKA an American Trucker
Posted by: Robert Cowens | February 28, 2011 at 02:33 PM
Thank you for letting me talk to you on your way out the door at the Indiana Rail Summit! It was a great event and your support of high-speed rail is so appreciated. Hope you had a chance to look at the Midwest High Speed Rail Association's plan for 220-mph between Chicago and St. Louis.
Posted by: Madeline | February 28, 2011 at 06:32 PM
In Florida, LaHood wants to spend approx. $2.4 billion for a high speed rail from Orlando to Tampa (84 miles). With hundreds of bridges and thousands of miles of roadway in the State of Florida that are decaying and need repairs or replacement immediately, plus, the state of our economy, why is this even the slightest consideration? I haven't the slightest idea how Gov. Scott was elected, but I actually agree with him on this issue. Don't waste our tax dollars - wake up!
Posted by: William Dougherty | March 01, 2011 at 08:07 AM
Mr. Rooker, please do your research. The reason Amtrak is not profitable is twofold: first, it pays all its costs, while competing modes of travel are heavily subsidized (roads, except toll roads, are free to the driver and paid for largely from property taxes); second, the trains are too slow. Even when competing against subsidized roads, passenger rail turns operating profits if the trains are fast enough.
Amtrak was taken from the private sector in the 1970s when the private railroads decided they didn't want to provide any passenger service. Every other country in the world with passenger rail service runs it as a national operation, not a strictly private operation. And every country with *high speed rail* shows a profit.
Accordingly, if you want Amtrak to make a profit, the recipe is simple: keep it under government ownership and build some fast tracks for it to run on. Which is what Mr. LaHood is supporting.
Posted by: Nathanael Nerode | March 28, 2011 at 04:01 PM
Mr. Cowens, I am sorry that your livelihood as a trucker is being impacted by the increased prominence of freight rail, but please understand that this was inevitable due to the fact that we have hit Peak Oil and gas prices will only go up. Increasing gas prices make long-haul trucking unsustainable. Either we can all face exorbitant increases in the cost of every product shipped everywhere, or we can move the freight to the rails.
Posted by: Nathanael Nerode | March 28, 2011 at 04:03 PM
Two more minor points for Mr. Rooker:
"So a support system of public transportation or stations placed in locations where transportation is not required must be a primary consideration. Also, train stations would need areas for automobile parking or position stations co-located with intra-city trains and buses."
This is in fact official and stated policy for the development of all passenger train stations.
Second point: Amtrak, outside the Northeast Corridor, doesn't control the rails, but instead runs on the "freight" railroads, and pays large access fees to do so. The construction of independent fast tracks is the only way to make this sort of situation viable as an independent operation, making it impossible to sell off any part of it until this is done.
Posted by: Nathanael Nerode | March 28, 2011 at 04:06 PM
Very helpful information given here for the taking better job opportunities in Rail. It is also beneficial for reducing unemployment in country.
Posted by: job opportunities | April 06, 2011 at 04:37 AM
I love your site, It is a pleasure to visit.I don't see where it benefits a lot of people who are not in the immediate vicinity of these propsed lines. Historically, what happened to towns where rail was once prominent and disappeared. Towns along major routes that were moved. Just some thoughts.
Posted by: הסעות | April 07, 2011 at 04:10 AM
Maglev technology, particularly SkyTran or SkyPod, is a better solution. China has been using magnetic levitated trains for many years and is allegedly working on a maglev train the goes 1,000 kilometers per second. MIT macro engineers designed transcontinental magnetic levitated trains, situated within a decompressed tunnel that, in the absence of wind resistance, reach up to 5,000 mph.
High-speed rail is looking at around 100mph? Maglev does 300mph hovering 1 cm above land, with no friction, no wheels, no heavy equipment, no moving parts, minimal maintenance and can be built above existing infrastructure. Personal Rapid Transit and SkyPods achieve speeds of 150 mph, and use the same amount of energy as two hand-held hair dryers, operating on a rail only 1 foot wide. The braking system recycles back into the power supply, so it is self-sustaining. It gives off no exhaust, and no noise.
If anyone knows supporters of Maglev in America, or SkyTran, please put us in contact. Thank you.
Posted by: Luke Entzel | April 08, 2011 at 12:28 AM