Why are railroads still important today?

Freight railroads make modern-day America possible. They power economic activity, connect the supply chain, drive the economy, support high-paying jobs, help combat climate change and provide the literal foundation for passenger rail services like Amtrak.



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Just as it opened the markets of the west coast and Asia to the east, it brought products of eastern industry to the growing populace beyond the Mississippi. The railroad ensured a production boom, as industry mined the vast resources of the middle and western continent for use in production.

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It made commerce possible on a vast scale. In addition to transporting western food crops and raw materials to East Coast markets and manufactured goods from East Coast cities to the West Coast, the railroad also facilitated international trade.

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Not only did the railroads transport raw materials used in industrial production, such as coal and iron ore, the railroads were also one of the largest consumers of raw materials in their own right. The growth of railroads thus led to growth in other industries, such as timber and coal.

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This fuel efficiency ties directly in with the environmental impact you have when transporting goods. Railroads emit less greenhouse gas than vehicles by up to 75 percent for the same load. Plus, with careful planning, railroads can carry more per trip, saving emissions that might otherwise go into the air.

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Passenger rail is around three times more efficient than a car on a passenger-mile basis at current occupancy levels. The lower energy consumption leads to lower greenhouse emissions.

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There are risks and disadvantages of transporting your goods by rail including:
  • routes and timetables available can be inflexible, especially in remote regions.
  • rail transport can be more expensive than road transport.
  • mechanical failure or industrial action can disrupt services.


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Japan: Japan is often praised for having one of the world's most efficient and punctual railway systems. The country is known for its high-speed Shinkansen (bullet trains) and extensive network of commuter and regional trains. Japan's commitment to safety, cleanliness, and customer service is also noteworthy.

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In a world becoming ever more urbanised, rail travel is well matched to urban needs. High-speed rail can serve as an alternative to short-distance air travel, and conventional and freight rail can complement other transport modes to provide efficient mobility.

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Cost: Advantage for Rail Shipping Rail is a much more fuel-efficient mode of transportation. Railcars can also carry much more volume than trucks; one rail car is equivalent to about four full truck loads. The cost of maintaining rail cars is also significantly lower.

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Due to its ability to move major quantities of freight at one time, rail shipping has a lower cost-per-ton-mile (the cost of moving one ton of freight one mile) than truck shipping. In fact, a train requires less energy to move from Point A to Point B and can carry the freight equivalent of 300 trucks.

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