Freight rail financing and planning: France vs. US

Posted on April 21, 2008 by Matthieu Desiderio

As it is the case in many sectors, the evolution of the “American giant” are in many cases “transcribed” in Europe: this phenomenon should happen to freight rail transport as well. Transport Expertise will produce, in the coming months, several articles that will first describe the freight rail situation both in the United States and France/Europe, then analyze trends and forecasts, and finally propose solutions for tomorrow’s French freight rail infrastructure planning and financing. These analysis will be based on a comparison of best practices from the United States and France/Europe.

Background: growing commercial exchanges and traffic demand

If nothing is done, planning and financing freight rail infrastructures will be overtaken by growing commercial exchanges and traffic demand. Economic and commercial growth worldwide, and especially in the United States (mainly because of imports from Asia) increases goods movements and their complexity. Road networks (and also some of the rail networks) are already congested in many areas worldwide and demand forecasts show that the situation will probably not improve unless either operation strategies are improved or new infrastructure is build.

Thus, solutions will be needed in the next couple years to insure goods will move efficiently, while caring at the same time about the impact on the environment, the people, the economy, and the financial situation of private transportation businesses. In France, the Administration and private sector already started discussing these issues and now start to figure out solutions and regulations.

An analysis of United States and French practices to better integrate France in European freight rail

In order to take up this challenge, Transport Expertise will analyze practices of both the United States and France in planning and financing freight rail infrastructures, from the past until now. By using the know how of both countries, we will propose planning and financing strategies and models for France: developing intermodality, increasing modal transfer, suggesting innovative solutions, etc.

However, comparing France and the United States will only be relevant if France is considered not only as a single country but as a part of Europe, such as the 50 U.S. states are parts of a Federal country (however not saying Europe is a federal country). Also, these future articles and study will deal with freight rail issues without disregarding the important impact of all other modes.

The coming study will be divided into three parts, the first two describing both French and U.S. freight rail sector from different points of view: geographical, historical, demographical, through commercial exchanges, etc. The vision of freight rail in these two parts will be at first contextual (from the birth of freight rail until the end of the twentieth century), then cyclical (the last decade), and then forecasting (2030-2050 depending on data availability).

The third part will be made of proposals, following the results’ analysis from the research made in the first two parts, providing Government officials and public or private decision makers with models to define their capital investment and planning strategies. The third part will also include generalized theoretical examples to illustrate “which mode(s) fit for which products?”

Why comparing France and the United States?

As previously said, Europe took a lot from the “American giant”: industrialization, automobile, air traffic growth, obesity, pollution, energy consumption, goods consumption, etc. The odds are that this should happen to freight rail transport as well, starting by networks congestion, investments methods, operational strategies, and so on… The answers that will be provided by this series of articles and the study would help decision makers in France, and eventually in Europe, to anticipate a phenomenon that may be probably already started since the European Commission opened national freight rail networks to private operators’ competition.

The proposals that will be contained in the third part of the study will remain theoretical if not applied to practical projects lead by private companies or public institutions. However, the French Government showed a huge interest in freight rail (and also in other modes like waterways transportation or short-sea shipping) in the last couple months, and it is likely to think this sector will move on a lot in the next couple years in France, and also in Europe. These documents will be providing working knowledge for those who will develop tomorrow’s freight rail infrastructures.

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