Writing for North Carolina’s John Locke Institute, John Hood argues that expanding freight rail should be part of any broader transportation solution. Freight trains are more energy efficient per ton-mile than trucks for moving goods long distances, which reduces the cost of goods in the store, and it takes trucks off the highways, which ameliorates traffic congestion.
But government policies favor trucking over rail.
- Taxes. While trucks do pay higher taxes than automobiles, they don’t pay the full cost of the wear and tear they put on the roads. In effect, motorists are subsidizing the trucking industry. By contrast, railroads are responsible for maintaining their own track.
- Passenger trains. Money-losing Amtrak trains enjoy preference over freight trains for access to limited track. The federal government should divest Amtrak and allow it to negotiate for trackage rights, says Hood. “There should be a clear recognition that freight is the paying customer and deserves as least as much consideration as passenger service running at a substantial loss.:
- Municipal bonds. Trucks use government infrastructure paid for with tax-exempt bonds. Railroads don’t have access to tax-free capital investment.
As in Virginia, North Carolina policymakers have been talking a lot lately about rail as an element of a “multi-modal” transportation system. “But their priorities are all out of whack,” says Hood. “Instead of spending scarce time and money pursuing intercity passenger-rail service and other relative trivialities, they ought to take the step necessary to free railroads to serve their paying freight customers more effectively. “
Maybe the rail lines need to create a catchy acronym to drum up support. Hood playfully suggests TOOT — Taxpayer-Optimal Option for Transportation!
(Hat tip to Danny Newton.)