Thought Leadership Archives - RSI https://www.rsiweb.org/category/thought-leadership/ Tue, 01 Jul 2025 21:52:37 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.2 On the Ground at Railway Interchange 2025 https://www.rsiweb.org/overheard-at-railway-interchange-2025/ https://www.rsiweb.org/overheard-at-railway-interchange-2025/#respond Thu, 19 Jun 2025 16:43:50 +0000 https://www.rsiweb.org/?p=6173 By RSI Staff Thank you to everyone who attended Railway Interchange 2025. The event included over 4,000+ attendees from almost every state, 43 countries and nearly 500 exhibitors. While in Indianapolis we interviewed speakers, attendees and exhibitors about projects on the horizon, collaboration with others in the rail industry and evolution in technology in the […]

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By RSI Staff

Thank you to everyone who attended Railway Interchange 2025. The event included over 4,000+ attendees from almost every state, 43 countries and nearly 500 exhibitors.

While in Indianapolis we interviewed speakers, attendees and exhibitors about projects on the horizon, collaboration with others in the rail industry and evolution in technology in the rail supply industry.

Check out the videos below to see their responses.

A special thank you to our interviewees:

Miranda Cross, Cummins Inc.

Kevin Cook, Modern Rail Capital

Robert Pearsall, US High Speed Rail Association

Mike McClellan, Norfolk Southern

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Laying Down the Tracks for Success https://www.rsiweb.org/laying-down-the-tracks-for-success/ https://www.rsiweb.org/laying-down-the-tracks-for-success/#respond Tue, 20 May 2025 20:19:14 +0000 https://www.rsiweb.org/?p=6127 By RSI President Jim Riley Earlier this year, I was honored to step into the role of president for RSI, filling “big shoes” being preceded by Patty Long. The vision she and the board have laid out has significantly strengthened RSI. It’s clear I’ve been set up for success. It’s my intention to build upon […]

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By RSI President Jim Riley

Earlier this year, I was honored to step into the role of president for RSI, filling “big shoes” being preceded by Patty Long. The vision she and the board have laid out has significantly strengthened RSI. It’s clear I’ve been set up for success. It’s my intention to build upon the solid foundation she established. I am deeply grateful for the warm welcome extended to me by the members, board, and staff of RSI.

With nearly 25 years of experience in trade associations, including experience within the transportation sector, I bring a wealth of knowledge and familiarity to RSI, and I look forward to showing you that as my time in this role goes on. My professional journey has been marked by a profound passion for railways, having worked on rail issues across various industries. Personally speaking, I’ve been a dedicated commuter rail rider for over two decades. My lifelong interest and commitment to the rail industry drives my determination to make a meaningful impact for RSI.

Our association has a rich history we can be proud of, dating back to 1908 when we were established as the Railway Business Association. In our more than a century of existence, we’ve experienced much evolution. Our historical journey underscores the enduring significance and impact of RSI in the railway supply industry.

If you’re curious about our impact, let me point to the data. RSI represents an industry that encompasses over 1.6 million railcars, drawn by more than 28,000 locomotives on 140,000 miles of rail. Our members build and maintain 70% of freight rail cars and 95% of tank cars operating on the North American railway system. This makes RSI the largest trade association in the railway supply industry, representing the full supply chain — from the smallest parts manufacturer to the largest railcar builders and lessors.

I was immediately struck by the impressive advocacy work and high regard in which RSI is held by congressional and administration officials. With nearly 200 members, 725 locations, and representation in 277 congressional districts, we carry significant weight in the legislative arena — something that will serve us well as we face an increasingly complex and rapidly changing regulatory landscape.

Transportation is one of the most bipartisan areas in Congress, and we have the potential to accomplish a great deal. Our members are deeply connected and involved with elected officials; their ability to advocate for themselves is a testament to their dedication. It is through these relationships with elected officials and their effective lobbying efforts that we can achieve significant progress. 

Beyond maintaining our high standards for advocacy work, my primary objectives as president are threefold:

  1. Continue growing RSI’s membership.
  2. Enhance its recognition among the administration, Congress, media, and the association community.
  3. Establish RSI as the foremost source of information about the railway supply industry.

The Board of Directors, in collaboration with myself and staff, will develop a new three-year strategic plan from 2026-2028, which is an opportune time to outline how we can achieve the goals I’ve mentioned.

Listening to our members will be at the core of this approach. The most successful associations are those that truly understand the needs of the individuals and companies they serve. I am committed to hearing from you and adding your insights into our strategic plan. This will involve engaging with members through our various volunteer committees, understanding the challenges they face with passenger and freight rail, and addressing concerns related to tax, trade, and regulatory matters, among other key topics.

I am thrilled to lead RSI at this pivotal moment. Together, we will continue to advocate for our industry, foster innovation, and build strong relationships across the railway ecosystem. I look forward to working with all of you to achieve our shared goals and make RSI the foremost authority in the railway supply industry.

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How the Current Legislative Landscape Is Impacting the Future of Passenger Rail  https://www.rsiweb.org/how-the-current-legislative-landscape-is-impacting-the-future-of-passenger-rail/ https://www.rsiweb.org/how-the-current-legislative-landscape-is-impacting-the-future-of-passenger-rail/#respond Tue, 22 Apr 2025 14:23:53 +0000 https://www.rsiweb.org/?p=5942 By RSI Staff As predicted by many at Railway Interchange last year, the Trump administration is bringing political changes that will significantly impact transportation funding. Ahead of this year’s event, we spoke with two Railway Interchange speakers, Husein Cumber, senior advisor, Brightline Holdings, and Robert Pearsall, partnerships director at U.S. High Speed Rail, to understand the […]

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By RSI Staff

As predicted by many at Railway Interchange last year, the Trump administration is bringing political changes that will significantly impact transportation funding.

Ahead of this year’s event, we spoke with two Railway Interchange speakers, Husein Cumber, senior advisor, Brightline Holdings, and Robert Pearsall, partnerships director at U.S. High Speed Rail, to understand the current state of passenger and transit funding and how leaders should position their organizations in this new environment.

What are the most significant political changes impacting transportation funding that stakeholders should be aware of?

Husein Cumber: Each administration brings expected change to funding and policy that requires all of us to adapt and react. In less than 100 days, two things are apparent: the administration demands a return on investment for any project receiving taxpayer dollars; secondly, they want to see projects that have a clear path for completion.

In the past, projects have received the benefit of the doubt that they’ll be built in a timely manner while providing a public benefit. Now, we’re hearing, “Prove it.” This is a good thing and will ensure the best projects rise to the top.  

We’ve also seen this administration move swiftly to reward large-scale investments by removing red tape that typically delays critical infrastructure. President Trump is a developer who wants to incentivize investment and has signaled from his first day in office that he intends to cut red tape. Historically, this process causes delays, adds cost, and leads to uncertainty. A streamlined process that takes a set amount of time will likely motivate more private sector involvement and eliminate public skepticism that big infrastructure and transportation projects will get done. Again, this is a great thing that will ensure the best projects are prioritized.  

Robert Pearsall: The Trump administration is pulling back a lot of federal funding for high-speed rail (HSR) and other transit projects. In the HSR space for example, Department of Transportation Secretary Duffy and other administration officials have expressed public support for the Brightline West (mostly) private capital model for similar projects. The recent news of the Kleinheinz Equity investment in the Texas Central project is another indication that a similar model might get federal support.

How might these changes influence the future of passenger and transit funding? 

Husein Cumber: I think one of the biggest changes will be how this particular administration evaluates projects seeking discretionary grant funds. Beyond understanding the public benefit and return on investment, they want to know exactly how it will be built and paid for. In short, projects and entities vying for competitive grants must leave any guesswork out of the equation. Viable projects will be required to show a complete funding plan from start to finish because it is clear that this administration will not be supportive otherwise.

Robert Pearsall: States such as California will try to rely on state funding for its HSR rail projects and perhaps others in the transportation space.

What are some potential long-term implications that rail leaders need to be aware of in this arena? Is there any action that can/should be taken?  

Husein Cumber: All of these changes should be seen as an opportunity; we ought to lend our experience and expertise to these policy discussions. For example, our industry has been asking for a more definitive environmental review process for decades. We should be thinking about ways we can impact these adjustments.

As we look to kickstart high-speed rail, we have focused our efforts on utilizing existing transportation corridors like highways and freight systems. When you think about it, roadways and freight corridors should expedite the environmental review process even more because they are already environmentally studied and impacted. Our industry should come to the table with bold plans to change the environmental process and push for categorical exclusions for any project built within existing transportation corridors.  

Robert Pearsall: Continue to work with policymakers and stakeholders on short- and long-term planning. Plan slow, build fast. It’s important to build community support from the outset, too.

What strategies can the transportation industry adopt to navigate the new funding landscape?

Robert Pearsall: Build local and support your state. Avoid pitfalls of focusing on DEI-related elements of a project. Focus on the economic impacts of transportation projects. I made this case in Dallas at the 21st Southwestern Rail Conference to invest in the Texas Triangle, with some helpful data from the Texas Department of Transportation.

In any new political environment, be creative with your strategies. Look for opportunities to build bipartisan support. At U.S. High Speed Rail, we’re working closely with Republicans on permitting reform for all HSR projects, because Republicans will advance permitting reform in other areas such as energy projects. The current administration is amenable to streamlining and cutting red tape, which we see as an important opportunity that will help speed up HSR projects.

On Wednesday, May 21, Cumber and Pearsall will be joined onstage by Benji Schwartz, director of government affairs and advocacy at APTA, and Greg Regan, president, transportation trades department, AFL-CIO (TTD), during their session titled, “Adapting to Change: Navigating Passenger Rail Funding in the New Political Landscape.” Learn more and register for Railway Interchange today.

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Making Sense of Tariffs and Inflation for Freight Rail https://www.rsiweb.org/making-sense-of-tariffs-and-inflation-for-freight-rail/ https://www.rsiweb.org/making-sense-of-tariffs-and-inflation-for-freight-rail/#respond Mon, 21 Apr 2025 19:21:50 +0000 https://www.rsiweb.org/?p=5934 By RSI Staff Recent changes to economic and trade policies are fueling significant challenges within the freight rail industry. As decision-makers face uncertainty, particularly around rail traffic and equipment demand, many are left to wonder whether they should proceed with caution or move forward as planned. At Railway Interchange, taking place May 20-22 in Indianapolis, […]

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By RSI Staff

Recent changes to economic and trade policies are fueling significant challenges within the freight rail industry. As decision-makers face uncertainty, particularly around rail traffic and equipment demand, many are left to wonder whether they should proceed with caution or move forward as planned.

At Railway Interchange, taking place May 20-22 in Indianapolis, Joseph Towers, senior analyst for rail and intermodal at FTR Transportation Intelligence, will help attendees try to make sense of the current landscape. Ahead of that session, we spoke with him to understand how today’s economic outlook is impacting the freight rail industry and what leaders can keep in mind as they navigate this territory.  

How are you seeing tariffs impact freight rail? What are some considerations leaders need to keep in mind?

Over the past few months and weeks, we’ve seen a pull forward of rail freight for certain commodities in anticipation of tariffs, with intermodal and autos being the most notable. Those strong volumes, however, are expected to come at the expense of traffic later in the year, due in large part to the broad tariffs on non-United States-Mexico-Canada Agreement (USMCA) auto imports, and the 145% tariffs recently levied against Chinese imports.

Our outlook for the other commodities is not much better. With broad tariffs on steel and aluminum imports, much of which comes from Canada and Mexico, along with the tariffs on non-USMCA covered goods, and the possibility of reciprocal tariffs on some of our closest trade partners, we’re expected rail traffic this year to be flat at best.

On the equipment side, the uncertainty surrounding tariffs is arguably the most significant effect, even more so than the inflationary pressures. With tariff policy constantly changing, and the lead times required between the order and delivery of a car, few want to buy a piece of rail equipment that could cost substantially more than anticipated by the time it arrives.

What changes in railcar demand are you anticipating this year, and how is that different from your expectations coming into 2025?

As we entered 2025, we were already anticipating softer railcar demand due to flat freight demand and diminishing industry backlogs. Since then, our expectations have become even less optimistic. Based on recent build and economic data, along with conversations with stakeholders across the industry, we now expect demand for new railcars to be even softer, with this weakness likely to affect a broad range of car types.

Much of this softness appears to stem from the uncertainty surrounding tariff policies and the possibility of railcar owners and lessees facing higher-than-anticipated costs for their equipment. Concerns about the strength of the industrial economy also seem to be contributing to this uncertainty.

The effects of this hesitancy could manifest in various ways. We may see increased shop demand as operators look to extend the useful life of existing railcars, as well as higher lease rates, as demand for lessor-owned cars rises to fill the gap that would typically be filled by new cars. Lastly, if freight and economic conditions remain flat, we may see an uptick in scrappage levels as car owners look to offload idled rail equipment.

What is your advice for leaders trying to navigate this uncertainty?

Whatever you think is going to happen, is not going to happen. This is usually the case, but it’s especially true now. My advice to leaders is to be as nimble as possible and create a strategy framework based on multiple scenarios, rather than a single base case. It’s also important that these scenarios are not static but are constantly updated as new information becomes available.

I would also suggest trying to avoid unnecessarily postponing decisions until a time when there is less uncertainty in the market. Economic conditions will remain volatile for the foreseeable future, and in many cases the ability to course correct will serve you better than waiting for calmer seas.

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Advancing Passenger Rail: Early Insights From the PRAC https://www.rsiweb.org/advancing-passenger-rail-early-insights-from-the-prac/ https://www.rsiweb.org/advancing-passenger-rail-early-insights-from-the-prac/#respond Wed, 19 Mar 2025 16:04:51 +0000 https://www.rsiweb.org/?p=5770 By Patty Long The Passenger Rail Advisory Committee (PRAC), formed in the fall of 2024 under the Surface Transportation Board (STB), is an exciting development for the future of passenger rail in the United States. The committee, comprised of 21 individuals representing the rail industry across the country, is filled with enthusiasm and a shared […]

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By Patty Long

The Passenger Rail Advisory Committee (PRAC), formed in the fall of 2024 under the Surface Transportation Board (STB), is an exciting development for the future of passenger rail in the United States. The committee, comprised of 21 individuals representing the rail industry across the country, is filled with enthusiasm and a shared commitment to make meaningful changes in the industry. We are eager to work together and use our collective expertise to drive progress.

Early this year, the committee identified its top five priorities: liability, on-time performance, collaboration between passenger and freight rail, Amtrak’s role, and technology as it relates to current uses and opportunities.

These priorities are crucial for the advancement of passenger rail and are being tackled by four dedicated subcommittees, with initial considerations outlined below:

  1. Joint Operations: This group is exploring how to expand passenger rail in collaboration with freight operations. This involves identifying mutually beneficial opportunities and the potential to convert unused freight assets into passenger rail assets.
  2. Expansion: This group is focused on breaking down the siloed approach to passenger rail, supporting the industrial base for passenger rail in the U.S., and considering the possibility of small-scale startup opportunities.
  3. Current State: This group will explore ways to homogenize passenger rail, similar to freight rail, to improve system quality and passenger experience. Flexibility and adaptability will be key to enhancing service.  
  4. Liability: This group is addressing the costs of insurance, identifying ways to lower liability caps, and making insurance more affordable to encourage freight rail carriers to host passenger services.

Looking outward, a recent report from Amtrak’s Office of Inspector General highlights the rail line’s responsiveness to car builders’ concerns, though more resources are needed to keep program timelines on track. Initiatives like the Department of Transportation’s Corridor ID program, which promotes planning for new passenger rail corridors, are crucial as well. Funding for future corridor research and development can lay the groundwork for new services, supporting suppliers through the procurement of new railcars.

Federal funding in this space remains a critical need. Reliable, long-term funding sources, such as the Federal-State Partnership for Intercity Passenger Rail (FSP) Grant Program, support the replacement and refurbishment of rolling stock.

In speaking with Husein Cumber, fellow committee member and chief strategy officer of Florida East Coast Industries, on the current state and opportunities, he shared the following:

“President Trump has discussed the lack of first-class infrastructure in the U.S. and the need for private sector investment in the industry. I do not believe that these positions have changed. However, this administration will not want to make incremental investments in projects. If a project cannot clearly show the full funding plan, then it will not be competitive with discretionary grant programs. Incremental funding has been the biggest challenge since it does not force project sponsors to engage all funding stakeholders on day one, and the project cost continues to increase as the funding timeline gets elongated. We need the first true high-speed rail project to be completed and put into operation, and then the industry will have a chance to mature.”

While the path ahead will come with challenges, the PRAC is poised to make significant strides in the passenger rail industry. Our collective enthusiasm and dedication to addressing these key issues promise a bright future for passenger rail. Together, we are committed to creating a more efficient, collaborative, and innovative rail system that benefits all stakeholders.

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Rail Priorities for a New Administration: Q&A With Jack Isselmann, RSI GPAC Chair https://www.rsiweb.org/rail-priorities-for-a-new-administration-qa-with-jack-isselmann-rsi-gpac-chair/ https://www.rsiweb.org/rail-priorities-for-a-new-administration-qa-with-jack-isselmann-rsi-gpac-chair/#respond Wed, 19 Feb 2025 18:32:10 +0000 https://www.rsiweb.org/?p=5603 By RSI Staff As the new presidential administration and Congress begin their terms, RSI is hard at work advocating for key legislative priorities that will shape the future of the rail industry. High on the agenda is the reauthorization of surface transportation funding, crucial for maintaining and improving the nation’s transportation infrastructure, and restoring critical […]

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By RSI Staff

As the new presidential administration and Congress begin their terms, RSI is hard at work advocating for key legislative priorities that will shape the future of the rail industry. High on the agenda is the reauthorization of surface transportation funding, crucial for maintaining and improving the nation’s transportation infrastructure, and restoring critical provisions in the Tax Cuts and Jobs Act of 2017, among other priority items.

RSI’s Government and Public Affairs Committee (GPAC) is optimistic about achieving these goals, despite challenges posed by the political landscape and an ambitious legislative agenda. We spoke with Jack Isselmann, GPAC chair and senior vice president of external affairs and communications at The Greenbrier Companies, to discuss the current landscape and opportunities for the rail industry at large.

As a new presidential administration and Congress come into session, what are some of the top priorities RSI’s GPAC will keep an eye on, and why?

The top priorities for RSI’s GPAC include promoting fair trade, adopting pro-growth tax policies, advancing innovative technology, and investing in infrastructure.

Like many U.S. industries and organizations, RSI members closely monitor the new administration’s plans regarding trade and tariffs. Many companies within the rail industry market their products globally while managing complex supply chains that support hundreds of thousands of American jobs. Advancing innovative technology is essential for fostering growth and improving rail safety systems and overall rail service. Additionally, investing in transportation infrastructure would enhance the efficiency of rail systems and ensure that the rail sector continues to provide employment opportunities throughout the U.S.

What opportunities come with the 119th Congress and new administration? What challenges does the industry anticipate facing?

With a new administration, and a surface transportation reauthorization bill in the new Congress, there’s the opportunity for infrastructure investments and improvements, specifically for modernizing and expanding freight railroads, improving passenger rail, and upgrading track and safety systems.

Further, the Trump administration expressed that it would implement changes to environmental regulations that could favorably impact the growth of the rail industry. This presents an opportunity for increased operational flexibility and cost reductions for organizations across the industry.

What are some of the challenges rail supply companies face in maintaining and upgrading rail infrastructure? How can these issues be addressed in the coming years?

The primary challenge rail supply companies encounter in maintaining and upgrading rail infrastructure is the need for consistent funding and government support aimed at enhancing the safety, reliability, and productivity of the nation’s transportation system as a whole. Dedicated federal investments would create opportunities to replace, rehabilitate, or repair passenger rail rolling stock and maintenance equipment. These new investments could improve the efficiency of our nation’s rail systems and ensure that the rail sector continues to provide good employment opportunities for American workers.

In what ways do you hope to see technology help improve rail safety and efficiency?

Innovation is key to improving rail services, systems, and safety. Many organizations and industries across the U.S., including RSI, support regulatory reforms that encourage growth and innovation that would promote safety and competitiveness. Various entities active in RSI invest capital in the development and deployment of new technologies.

With support from the Trump administration, we hope to see movement in technological innovation, specifically within the transportation and rail sectors. Railroads could explore more advanced technologies for automation, predictive maintenance, and digital tracking systems, improving efficiency and safety while reducing costs.

What is your advice for RSI members who want to become more engaged in advocacy efforts in the industry?

Stay current on the latest policy updates and related industry news, including through items like RSI’s monthly newsletter. In addition, by joining organizations like RSI and participating in broader conversations related to current policy and regulation updates, individuals and organizations can get ahead of potential challenges, ensuring they remain proactive in monitoring and navigating the nation’s evolving policy landscape.

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Quality, Technology, and Safety: Rail Priorities in 2025 https://www.rsiweb.org/quality-technology-and-safety-rail-priorities-in-2025/ https://www.rsiweb.org/quality-technology-and-safety-rail-priorities-in-2025/#respond Wed, 22 Jan 2025 16:22:34 +0000 https://www.rsiweb.org/?p=5533 By RSI Staff As the calendar turns to a new year, the rail industry remains laser focused on improving safety and reliability, with innovation and quality at the center. Jason Riggs, vice president of quality and technical services at Marmon Rail, believes the opportunities to enhance rail safety through new technologies are vast, paired with […]

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By RSI Staff

As the calendar turns to a new year, the rail industry remains laser focused on improving safety and reliability, with innovation and quality at the center.

Jason Riggs, vice president of quality and technical services at Marmon Rail, believes the opportunities to enhance rail safety through new technologies are vast, paired with challenges that will undoubtedly arise. “Any time you deal with component or product failure, you’re getting into reliability,” Riggs explains. “To have a higher level of reliability, you have to be able to engineer in fail safes to keep things from failing during a known timeframe of when they should be in service.”

This focus on reliability is driving advancements in non-destructive testing (NDT) across the rail industry. “Methods are constantly being enhanced,” he says. “There are new techniques under each method, with new technology. I’ve been in this industry for more than 30 years, and in the last five or six years I’ve seen more advancement in technology than ever in my whole career. A lot of that is thanks to new artificial intelligence technology emerging,” Riggs says.  

Where Technology and Safety Meet

Building on technological advancements, safety remains a critical focus, particularly in rail yard operations. Switching, a process that requires heightened situational awareness, is supported by technological safeguards designed to reduce risk and improve efficiency.

“You don’t always hear trains,” Riggs says, noting how easily rail yard workers can be unaware of an approaching train. While the rail industry adheres to strict safety policies and procedures, human error can never be fully eliminated. As a result, technology is playing an increasingly important role in accident prevention.  

One example is the implementation of automatic kill switches on switch engines. “All of the people on the ground switching have a button pinned to them that uses wireless technology. If they see somebody in harm’s way, they can kill the locomotive from moving,” Riggs says, sharing how straightforward yet effective technology can play a big role in rail safety.

In addition to safety improvements, technology is also driving operational efficiency in rail yards. AI is being deployed to optimize train building, reducing unnecessary railcar movements. In some cases, this technology has halved the number of rail car moves, which not only enhances safety by reducing movement but also decreases energy consumption and environmental impact. “It reduces wear of your switch engines and helps keep people safe,” Riggs says.

Regulatory Challenges

The path to innovation is not without obstacles. Riggs notes the challenges of adopting new technology, in part due to prescriptive regulations and standards. With a new administration coming in, it’s possible this landscape will change and certain regulations will ease, but funding remains a key challenge. “Smaller companies don’t have the financial backing to look this far in the future, to even start that path,” Riggs says.

In this regard, partnerships and advocacy are key for the rail industry. Nexxiot, a technology provider for the rail industry, is collaborating with the RailPulse Coalition to drive positive change. “With close engagement from the private sector, organizations like the American Association of Railroads (AAR) and the RSI Quality Assurance Committee (QAC) are being urged to review and ratify proven technologies that can help the industry to reclaim market share from other transport modalities and facilitate a more flexible and robust supply chain,” says Ken Mannka, vice president North America at Nexxiot. “Success lies in delivering innovative solutions to an industry that has traditionally lagged behind other supply chain sectors. Rail leaders are now actively adopting technology to improve visibility, efficiency, and safety, while delivering a superior customer experience.”

Strength in Numbers

Riggs believes the RSI community is uniquely positioned to drive innovations forward. “You look at the diversity of the RSI membership—we have all the component suppliers for rail car, rolling stock, locomotives, track, signaling and electronics, and everything else that makes the rail industry work.” By bringing this group of experts together, RSI can facilitate collaboration needed to overcome regulatory hurdles and implement new safety-enhancing technologies.

While the industry navigates an uncertain landscape, the need for innovation and quality has never been more pressing. By embracing emerging technologies, prioritizing worker safety, and leveraging the collective expertise of the RSI community, the rail industry can chart a course toward a more reliable, sustainable, and secure future.

As a member-led organization, RSI is rebranding its Quality Assurance Committee, focusing on innovation and the ways technology is already helping increase the quality of railcars and their components. Those interested in joining can contact RSI Staff Member Jeffrey Ostrander at jostrander@rsiweb.org.     

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The Evolution of U.S. Passenger Rail: Why Progress Matters https://www.rsiweb.org/the-evolution-of-u-s-passenger-rail-why-progress-matters/ https://www.rsiweb.org/the-evolution-of-u-s-passenger-rail-why-progress-matters/#respond Tue, 10 Dec 2024 17:54:28 +0000 https://www.rsiweb.org/?p=5460 Passenger rail in the United States has entered an important phase of development. Over the past few years, significant groundwork has been laid, driven by new federal initiatives and promising ridership numbers. But this momentum can’t be taken for granted. Continued investment and development are key to realizing the full potential of passenger rail in […]

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Passenger rail in the United States has entered an important phase of development. Over the past few years, significant groundwork has been laid, driven by new federal initiatives and promising ridership numbers.

But this momentum can’t be taken for granted. Continued investment and development are key to realizing the full potential of passenger rail in the U.S.

Progress So Far: Laying the Foundation

One notable development is the Federal Railroad Administration’s (FRA) Corridor Identification Program (Corridor ID). Introduced as part of the Bipartisan Infrastructure Law in 2021, this program has provided localities with grants to research and plan future intercity passenger rail routes. With $8.2 billion awarded for passenger rail projects and 69 corridors selected for future service planning, the groundwork for expanding rail service is already underway. The Corridor ID program represents a critical step forward, enabling regions to plan for a more connected future.

Amtrak also saw a banner year, reporting record ridership of 32.8 million passenger trips and an increase in total operating revenue, up 7% from 2023. “These numbers highlight the growing demand for efficient rail travel. The fact that ridership is at an all-time high sends a clear message: the appetite for passenger rail is stronger than ever,” says Matthew Delaney, government and public affairs manager for RSI. “Now is the time to lean in to progress and continue forward momentum as passenger rail realizes its full potential in the U.S.”

The Economic and Social Value of Rail Investment

Investing in passenger rail offers far-reaching benefits. According to the American Public Transportation Association (APTA), for every $1 billion invested in high-speed rail, 24,000 jobs are created across various sectors. Beyond urban centers, the impact of these investments extends into rural areas, creating jobs and revitalizing local economies. Additionally, APTA has found that for every $1 invested in public transportation, $5 is generated in economic returns, amplifying the broader value of these projects for cities and states.

These economic gains go hand-in-hand with passenger rail’s ability to interconnect regions, fostering economic opportunities that would otherwise be out of reach. As new rail corridors emerge, cities and smaller towns alike gain access to broader markets, increased tourism, and improved mobility for workers and businesses. The ripple effects of rail investments cannot be overstated, touching nearly every part of the economy.

Risks of Stalling Progress

Despite positive developments, there is still a risk of stalling if investments and support wane. Halting progress now would not only squander economic and environmental benefits, but also leave the U.S. lagging behind countries like Japan and much of Europe, where frequent intercity rail service is the norm. The U.S. would miss out on opportunities to create more resilient transportation systems.

Failing to build on the successes of the past few years could leave newer corridors struggling to reach their full potential. For instance, Amtrak’s Chicago to Minneapolis route, which exceeded ridership expectations, shows that with the right investment, rail can be viable and profitable across the country. The route is one of the few outside the Northeast corridor to operate at a profit, making it a critical success story for future rail development.

Addressing Spending Efficiency and Long-Term Strategies

One of the ongoing challenges in passenger rail is ensuring spending efficiency. Budget overruns and project delays are issues that need to be addressed at a systemic level. Improving procurement processes, streamlining regulatory frameworks, and fostering greater collaboration between federal, state, and private entities are essential steps to ensure dollars are used effectively.

Looking ahead, the concept of the “Goldilocks Zone” offers a strategic focus for future rail investments. This refers to distances between 150 and 500 miles—too short to fly but too long to drive comfortably. Rail is ideally suited for these distances; if the U.S. can successfully develop routes within this zone, it could prove the viability of expanded rail networks in other regions. Corridors like Chicago to Minneapolis already demonstrate how effective rail can be in this range, offering convenient, more sustainable alternatives to driving or flying.

RSI’s Commitment to Passenger Rail

RSI recognizes the potential in passenger rail, for reasons mentioned above and more. Recently, the association developed a Passenger Rail Working Group, led by Marc Buncher (chair), president and CEO of Siemens Mobility North America, and Chris Zappi (vice chair), senior director of global strategy and marketing at Wabtec. This group formally kicked off in 2024 and will build on the progress RSI has made in this space throughout 2025.

“We see great potential in the passenger rail space, not only because of the economic benefits it will bring to the U.S., but because of the impressive knowledge and experience our network of freight experts can bring to the table,” says Patty Long, president of RSI.

Throughout 2024, RSI has been engaging in the passenger rail space, making connections at industry events, including InnoTrans 2024 in Berlin, and creating strategic partnerships with Amtrak, APTA, Metra, Chicago Transit Authority, U.S. Coalition for High Speed Rail, Coalition for the Northeast Corridor, and many others. At its annual event, RSI debuted its first-ever passenger rail education track, attracting new participants and featuring speakers from RSI members and key stakeholders.

“This step forward with passenger rail marks a new, exciting era for RSI,” Buncher says. “It truly makes the association a leader for the rail ecosystem at large. There is such a wealth of expertise within our current membership of freight supply companies; I am confident that together there is much progress we can make.”

The Road Ahead

U.S. passenger rail is on the right track, but still in its early stages. Record ridership, successful new routes, and investments through programs like Corridor ID highlight the untapped potential of rail. But sustaining this momentum will require continued focus, collaboration, and investment. “More passenger rail means more jobs, economic growth for communities, and mobility that improves quality of life—and less traffic! The rail industry can’t afford to miss the opportunity to demonstrate the value that passenger rail delivers to the nation,” Zappi says.

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The Future of High-Speed Rail in America—and How Freight Can Benefit https://www.rsiweb.org/the-future-of-high-speed-rail-in-america-and-how-freight-can-bene%ef%ac%81t/ https://www.rsiweb.org/the-future-of-high-speed-rail-in-america-and-how-freight-can-bene%ef%ac%81t/#respond Tue, 19 Nov 2024 19:25:15 +0000 https://www.rsiweb.org/?p=5408 By RSI Staff As demand for high-speed rail (HSR) continues to grow, the U.S. rail industry stands at the precipice of a transformative era. While many are familiar with HSR’s potential to revolutionize travel, fewer may appreciate the far-reaching benefits it can bring to the freight rail industry and broader rail ecosystem. According to Andy […]

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By RSI Staff

As demand for high-speed rail (HSR) continues to grow, the U.S. rail industry stands at the precipice of a transformative era. While many are familiar with HSR’s potential to revolutionize travel, fewer may appreciate the far-reaching benefits it can bring to the freight rail industry and broader rail ecosystem. According to Andy Byford, Amtrak’s senior vice president of high-speed rail, this mode of transit presents a unique opportunity for the U.S. to reinvest in domestic manufacturing while creating economic ripples across sectors.

“HSR promotes American competitiveness in the global economy for key manufacturing sectors, like steel for track, electrical components for signaling systems, and car equipment,” Byford says. “With our large, skilled, and widely dispersed workforce, the U.S. is well-positioned to build from within and benefit from the multiplier effects of investment in the supply chain.” This reinvigoration of the manufacturing sector could generate wealth, even in regions not directly served by HSR, expanding job opportunities and fostering economic growth nationwide.

A critical aspect of HSR’s impact is its contribution to workforce development. Byford pointed out that HSR investments will “strengthen the pipeline of skilled craftspeople and knowledge sector workers — for example, by supporting new investment in centers of excellence at higher-education institutions across the country.”

And there’s data to back this up. According to the American Public Transportation Association (APTA), 24,000 jobs are supported across economic sectors by every $1 billion invested in HSR. “Substantial initial investment in passenger rail and HSR provides returns on investment for a generation,” Byford says.

Testing the Waters in Dallas-Houston

One key project driving Amtrak’s HSR development is the Dallas-Houston corridor, a prime example of a route with optimal conditions for success. Byford explains that HSR works best when it connects cities with high travel demand and limited travel alternatives.

“With over 12 million total trips between Dallas and Houston in 2022, there is significant travel demand between these destinations,” Byford says. Amtrak’s proposed 240-mile HSR route, which had previously been developed by a private entity for over a decade, hits the sweet spot in terms of distance, and both cities are major metropolitan areas with growing economies.

The choice of this corridor reflects global best practices, where HSR is most effective in connecting regions with significant population density and suboptimal alternatives like car and air travel. If successful, this project could pave the way for more HSR initiatives across the country.

Collaboration Between Passenger and Freight Rail

HSR doesn’t just benefit the passenger side of the rail industry. “Any investment in rail, passenger or freight, expands our industry and creates mutual benefits,” Byford says. HSR can stimulate the entire rail manufacturing supply chain, supporting conventional rail and freight services as well.

While true HSR requires dedicated infrastructure to avoid conflicts between freight and passenger service, it’s possible for higher-speed passenger rail to coexist within the current ecosystem. “For some corridors, higher-speed passenger rail could be the right travel product. Where existing rights-of-way can be upgraded for faster, more frequent passenger service, the entire rail industry benefits,” Byford says.

There are also lessons freight can learn from HSR, particularly when it comes to safety. “Japan’s Shinkansen network has transported over 10 billion passengers since 1964 without a single train-caused fatality,” Byford says. “Sharing insights into best practices for passenger safety can help brainstorm solutions for freight.”

Why HSR Is a Critical Piece of the Transit Puzzle

HSR will play an important role in the future of American transportation, offering economic, social, and environmental benefits. “HSR offers better connectivity with more travel choices and gets travelers to their destinations more reliably, and often more quickly,” Byford says. In terms of sustainability, HSR leads the way, being eight times more energy-efficient than flying and four times more efficient than driving.

This makes HSR a key player in addressing current and future transportation needs, while also minimizing environmental impacts. “With a smaller physical footprint, less noise pollution, and zero emissions, HSR can add significant capacity to our existing transportation network with a lower impact to surrounding land uses than a new highway or airport,” Byford says.

A New Era of Rail in America

The U.S. is embarking on a new era of rail investment, one that holds promise for modernizing trains, upgrading stations, and building new infrastructure. “We’re enhancing the customer experience, improving safety and reliability, driving economic development, reducing trip times, and advancing sustainability,” Byford says.

Momentum is growing, with historic levels of funding and new federal financing mechanisms making it easier for rail projects to secure necessary support. “It’s time to keep building on this momentum and deliver additional state-of-the-art transportation benefits for the American people,” Byford says.

With these developments on the horizon, the future of HSR in the U.S. looks bright—not only for passengers, but for the freight industry that will benefit from a strengthened, interconnected rail ecosystem too.

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Greetings From Berlin: An Optimistic Outlook on Rail at InnoTrans 2024 https://www.rsiweb.org/greetings-from-berlin-an-optimistic-outlook-on-rail-at-innotrans-2024/ https://www.rsiweb.org/greetings-from-berlin-an-optimistic-outlook-on-rail-at-innotrans-2024/#respond Thu, 17 Oct 2024 14:34:22 +0000 https://www.rsiweb.org/?p=5215 By RSI President Patty Long I recently had the privilege of attending InnoTrans in Berlin, the world’s largest trade fair for transport technology, for a second time. As a leading voice of the North American rail supply industry with a growing presence in the passenger space, RSI’s participation at this global event was more important […]

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By RSI President Patty Long

I recently had the privilege of attending InnoTrans in Berlin, the world’s largest trade fair for transport technology, for a second time. As a leading voice of the North American rail supply industry with a growing presence in the passenger space, RSI’s participation at this global event was more important than ever.

RSI President Patty Long was invited by Unife to speak about the outlook on the North American rail market at InnoTrans 2024.
RSI President Patty Long was invited by Unife to speak about the outlook on the North American rail market at InnoTrans 2024.

From the moment you step into the massive exhibition halls, it’s clear that InnoTrans is not your average trade show. There are 27 mega interconnected halls, organized by type of product or technology. Using the phrase “booth” doesn’t do this show justice, either. Exhibitors have massive, two-story spaces that are thoughtfully designed and planned out for meetings, hands-on technology demonstrations and entertainment. Plus, there’s outdoor space for hundreds of power units, trams and railcars. Over 170,000 attendees from 133 countries were present this year — the scale, scope, and sheer energy of InnoTrans is truly remarkable.

Beyond the stage, I was able to have productive meetings with several of our member companies, including Siemens, Alstom, and our newest member, Hitachi. These conversations helped deepen our understanding of the international rail market and identify ways we can better support our members’ global growth ambitions.

One of the most striking things about InnoTrans is the sheer volume of new technologies and innovations on display. From green energy solutions to cutting-edge signaling systems, the pace of change in the rail industry is astounding. One example that stood out to me was green technology on display from Wabtec. They’re developing what’s essentially “bridge technology” — helping connect our current infrastructure and practices to where we want to take the future of rail when it comes to environmentally conscious practices. These solutions will allow our industry to gradually transition to more sustainable, efficient systems without having to scrap existing investments. This type of forward-thinking, collaborative approach is exactly what the industry needs to drive meaningful progress.

RSI President Patty Long catches up with Greenbrier CEO Lorie Tekorius at InnoTrans 2024
RSI President Patty Long catches up with Greenbrier CEO Lorie Tekorius at InnoTrans 2024

The fact that everyone is at InnoTrans, whether exhibiting or attending, creates an incredibly energizing atmosphere. As you walk the halls, it’s not uncommon to run into people you’ve been hoping to connect with — whether it’s from partner organizations, industry coalitions, or CEOs of our member companies. It’s a whirlwind of activity, with meetings and receptions happening from early morning to late at night. The opportunity for interaction is unparalleled, allowing you to make new connections and reconnect with those you’ve worked with in the past.

As we look ahead, RSI is committed to building on this momentum here in the states. We recently signed a memorandum of understanding with the Railway Engineering Maintenance Suppliers Association (REMSA) and Railway Systems Suppliers, Inc. (RSSI) to host Railway Interchange every year, rather than a combined show followed by a standalone show. This will allow us to bring the same spirit of global collaboration and innovation to our home market, providing even more value to this community and our industry at large.

There’s no doubt that events like InnoTrans are invaluable for keeping a pulse on the industry and making connections that drive our business forward. I’m grateful to have had the opportunity to represent RSI on the global stage, and I look forward to sharing more insights and opportunities with our members in the months ahead. The rail supply industry is truly a global enterprise, and RSI is committed to ensuring our members are positioned for success, no matter where their business takes them.

 

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