According to analysts at ResearchAndMarkets.com, the U.S. rail infrastructure market is projected to reach $5.93 billion by 2025.
“We will not hesitate to bring on additional resources — including infrastructure, equipment, and people — to handle the growth our customers bring us,” BNSF Railway CEO Carl Ice stated in a recent letter to federal regulators at the Surface Transportation Board.
Traffic volume at BNSF Railways is currently at historically high levels for this time of year, Ice also noted.
The U.S. rail infrastructure market is expected to witness a lucrative growth on account of increasing population and demographics in this country. United States is becoming an urbanized country and it is anticipated that it will cover larger network of metropolitan areas.
The report notes that the industry also provides 221,000 jobs across United States and also offers various public benefits such as reducing highway fatalities, logistics cost, greenhouse gases and fuel consumption, reduction in road congestion, and public infrastructure maintenance cost. Rising passenger volume, increasing number of rail routes and network, rolling infrastructure and stock, growing awareness regarding passenger rail is anticipated to boost the U.S. rail infrastructure market over the forecast period.
Railroads are continuously developing and researching high tech innovations to enhance rail operations which in turn is expected to add market growth. Growing investment in locomotives, freight cars, computer equipment, highway equipment, and other equipment is anticipated to add U.S. rail infrastructure market growth over the forecast period.
© 2018 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.