Reimagining Rail: From Reports to Results for Sustainable Supply Chains
A New Model for Transportation Planning and Investment
For nearly three decades, Strategic Rail Finance (SRF) and OnTrackNorthAmerica (OTNA) have pioneered an innovative approach to public–private rail development. This breakthrough methodology, exemplified in the 2021 Nevada State Rail Plan (NVSRP), transforms how we approach transportation infrastructure by prioritizing collaboration and action over conventional studies and reports.
The Rail Imbalance: Challenge and Opportunity
America’s rail network has scaled down dramatically from its 1916 peak of 254,000 miles to just 137,000 miles today. This decline has created a transportation imbalance that has resulted in significant environmental and economic consequences:
- Trucks are now the only land freight option for nearly 80% of America’s communities
- In Nevada, only 4% of freight moving in, out, or through the state is carried by rail to/from Nevada businesses
- The $900 billion annual trucking industry revenue dwarfs the $90 billion annual rail revenue
- Transportation is America’s largest source of greenhouse gas emissions
This imbalance stems from fundamental flaws in our approach to supply chain planning and infrastructure investment. While roads are treated as a public service and are automatically available for any new development, rail service requires education, coordination, and private investment for each connection.
The 10 Principles Applied in the 2021 Nevada State Rail Plan
Our new approach is built on 10 transformative principles:
- Design for Action: Create dynamic, evolving plans that adapt to changing conditions rather than producing static reports that quickly become outdated
- Radical Inclusion: Engage all stakeholders—375+ stakeholders and 141 shippers in Nevada alone—to identify opportunities invisible to conventional planning
- Actionable Data Tools: Develop sophisticated mapping systems that integrate multiple data layers to reveal new possibilities for rail development
- Integrated Transportation: View rail and roads as one system, optimizing each mode’s strengths rather than forcing unnecessary competition
- Focus on the Whole Supply Chain: Collaborate across businesses, agencies, and industries to restore the comprehensive approach that built America’s original rail network
- Cross-Border Planning: Recognize that supply chains extend beyond state lines—70% of Nevada truck traffic involves California
- Economic Development Integration: Bridge the gap between transportation departments and economic development agencies to unlock growth opportunities
- Land Use Coordination: Incorporate freight transportation needs into land use planning, preserving rail-adjacent land for appropriate development
- Compelling Growth Plans: Present Class I railroads with business-friendly strategies that make development of local services financially attractive
- Private Capital Attraction: Tap into hundreds of billions in available private investment by aggregating projects into comprehensive regional strategies
The Path Forward
This approach identified more than 50 private-sector projects requiring enhanced rail service in Nevada alone. By moving from static reports to dynamic action plans, we can address the seemingly conflicting goals of reduced environmental impact and expanded economic opportunity.
With no technology on the horizon capable of replacing rail’s efficiency for moving heavy freight, this model represents our best path toward sustainable supply chains that serve our economy, communities, and environment.