As the United States marks its 250th anniversary, WTOP presents 鈥�250 Years of America,鈥澛燼 multipart series examining the innovations, breakthroughs and pivotal moments that have shaped the nation since 1776.
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As the United States prepares to mark its 250th anniversary, another milestone is approaching on steel rails. America鈥檚 railroads will soon turn 200.
And while the golden age of passenger trains may be long past, rail remains one of the most consequential forces in American history 鈥� and one of the most important pieces of the nation鈥檚 transportation system today.
Ian Jefferies, president and CEO of the Association of American Railroads, said railroads helped shape the country almost from the beginning.
鈥淩ail was integral in helping build out the West and helping develop communities and cities, and helping develop economies,鈥� Jefferies said.
The story begins in the early 19th century, when railroads helped transform the United States from a loose collection of regional economies into a connected national marketplace. Trains moved people, raw materials, farm products and manufactured goods faster and farther than horses, wagons or canals ever could.
They helped open the West, built towns along their routes and made it possible for goods produced in one part of the country to reach customers thousands of miles away.
Railroads also changed how Americans measured time.
Before the railroads, many towns kept their own local time, often based on the position of the sun. That system worked when people rarely traveled far. But as train travel expanded, the lack of standard time became chaotic.
Joe Schwieterman, a transportation professor at Chicago’s DePaul University, said the railroads forced the country to think differently.
鈥淐reating those standard time zones really did revolutionize how cities can interact with each other,鈥� Schwieterman said. 鈥淚t鈥檚 hard to imagine today not having those time zones, but we can thank the railroads for making all that happen.鈥�
The railroads were so central to commerce in the late 1800s that their influence reached far beyond transportation.
鈥淭hey were kind of the bedrock of our connection around the country,鈥� Schwieterman said.
That dominance continued well into the 20th century. Railroads carried passengers in luxury and moved massive volumes of freight. But after World War II, the rise of interstate highways, trucking and commercial aviation changed the equation.
By the late 1960s, passenger rail was in deep financial trouble. Private railroads were losing money operating long-distance passenger trains. In 1971, Congress created Amtrak to preserve a national passenger rail network and relieve freight railroads of much of that burden.
Schwieterman said it was a critical decision.
鈥淵ou either had a risk of the railroads themselves could fail if you forced them to operate these trains, or you give them some relief,鈥� Schwieterman said. 鈥淎mtrak really gave them that relief.鈥�
Freight rail faced its own crisis.
By the late 1970s, many railroads were struggling under heavy federal regulation. Prices, routes and service decisions were tightly controlled. Jefferies said the industry was close to collapse.
鈥淎lmost 25% of railroads were bankrupt,鈥� Jefferies said.
That changed in 1980, when President Jimmy Carter signed the Staggers Rail Act. The law largely deregulated the freight rail industry, allowing railroads to set market-based rates, abandon unprofitable lines and compete more freely.
Jefferies said the law saved the industry.
鈥淭he Staggers Act really saved the industry from ruin,鈥� he said.
The result, he said, is a freight rail network that is safer, more efficient and financially healthier than it was four decades ago.
鈥淩ates have come down from where they were in 1980, when adjusted for inflation, down about 40%,鈥� Jefferies said.
Today, freight railroads remain a backbone of the U.S. economy. Jefferies said rail moves about 40% of the nation鈥檚 long-haul freight.
That includes automobiles, coal, grain, chemicals, consumer products, construction materials and intermodal containers that move between ships, trains and trucks.
鈥淲hether it鈥檚 manufacturing commodities, whether it鈥檚 finished vehicles, whether it鈥檚 consumer goods, whether it鈥檚 raw materials, whether it鈥檚 agricultural products, rail is the best way to move goods,鈥� Jefferies said.
He said freight rail is especially important because it can move large volumes over long distances efficiently.
鈥淚t鈥檚 the most efficient way, the most cost-effective way, the safest way to move goods over land throughout the country,鈥� Jefferies said.
Unlike highways, which are built and maintained largely with public money, most of the freight rail network is privately owned and maintained. Jefferies said freight railroads invest billions of dollars each year back into their systems.
鈥淲e invest upwards of $23 billion to $25 billion of our own money back into the networks every year,鈥� he said.
Passenger rail, meanwhile, is showing new signs of life.
Amtrak has seen strong ridership, especially in the Northeast Corridor. Major investments are underway at stations and along key routes, including Washington鈥檚 Union Station and New York鈥檚 Penn Station.
Jefferies said passenger rail is enjoying a resurgence.
鈥淎mtrak is experiencing record ridership,鈥� he said. 鈥淲e鈥檙e seeing pretty dramatic investments up the Northeast Corridor.鈥�
Private passenger rail is also expanding. Brightline has built a successful service in Florida between Miami and Orlando, and similar concepts are being explored in the West, including between Southern California and Las Vegas.
Schwieterman said the renewed interest is notable.
鈥淭here is a lot of optimism right now on passenger rail,鈥� he said.
Still, freight remains the dominant role for American railroads. And as the nation looks toward its 250th anniversary, rail鈥檚 impact is both historic and current.
It helped build the country, standardize time, open the West, connect markets and support industrial growth.
Nearly two centuries after the first American railroads began operating, Jefferies said rail remains central to the country鈥檚 future.
鈥淲e鈥檙e as relevant as we鈥檝e ever been,鈥� he said.
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