VitalRail Value Proposition

From OnTrackNorthAmerica

Challenges

  • The rail industry, government, and the financial community, and other key stakeholder groups are not able to work together to achieve breakthroughs that produce real economic and environmental improvements.
  • Community relations are piecemeal, missing the opportunity to inspire a groundswell of support for railroads.
  • Railroads have a weak relationship with capital providers compared to industries with less resilience, importance, and opportunity.
  • Progress in adopting new technologies across diverse actors is too slow.
  • The current avenues of collaboration are inflexible, cumbersome, and loaded with secondary agendas.
  • Rail development has suffered from labor-management relations that are hurtful to all sides.
  • Customers, i.e., communities, landowners, developers, and shippers, are often left out of the process of positive change for rail logistics and infrastructure.
  • Capital providers are poorly informed and lack a clear understanding of rail-related infrastructure, financial statements, asset values, and industry stability, resulting in undercapitalization and spotty capitalization.
  • Economic development professionals are inadequately trained in rail-enabled economic development.
  • There is a significant and costly disconnect between public-sector economic development and infrastructure planning, and private-sector business development and logistics.
  • Public-sector transportation plans, private-sector logistics strategies, and infrastructure capitalization are project-based, not corridor, regional, and systems-based.
  • Railroads operate in a legislative and regulatory environment diminished by outdated, illogical requirements.

Opportunities

  • There is tremendous pent-up support for freight railroads.  When real concerns are included and addressed, the public will approve of rail service growth as a public good.
  • Rail is critical to the nation’s need to drive “economic beneficiation” at the local and regional level.
  • Convening leaders and change agents across all eight sectors will lead to new performance metrics for rail investment, technology adoption, and service expansion.  
  • Advancing Collaborative Industrial Optimization will lead to action plans that are alive in the minds and work of the community.

Results

  • The cost of change for institutions and the taxpayers will go down.
  • The dialogue of change will be more transparent to all parties.
  • The strategic plan for future unknowns will be based on collective intelligence rather than ad hoc speculation.
  • Needed improvements will occur faster and with greater safety.
  • Ongoing rail improvements will serve the needs of society while coinciding with capital practicality.
  • Adopting new technologies, or those proven effective overseas, will bring innovation, safety improvements, and productivity gains to North American railroads.
  • Building positive relationships with shippers and other stakeholders will deliver enormous benefits and open new growth paths.
  • More collaborative and positive approaches to labor management will attract thousands of new workers, offsetting retirements in a problematic hiring market.
  • Railroads improved flexibility, reliability, and willingness to serve the needs of small and early-stage shippers will grow into more high-volume shippers.
  • This alignment will unleash a groundswell of support from policymakers, the financial community, and the public for freight railroads as the center of North America’s economic and environmental revitalization.