BNSF Railway’s Matt Rose says the rail business and the U.S. economy run on parallel tracks. In 2006, the rail business reached a record high. In 2009 – the height of the Great Recession – rail hit an all-time low, losing 26 percent of all units carried. 2010 saw an increase of about 10 percent, and 2011 is tracking about a 5 percent increase, though the second half of the year has been much slower.
Rose, the chairman and CEO of BNSF Railway Co., spoke to a group of economic development professionals at the Texas Economic Development Council annual meeting in Fort Worth, where BNSF is based. He discussed the future of the U.S. rail industry, its effect on the economy and the regulatory environment.
Rose said industry sectors are doing well – especially anything connected with oil and gas.
On regulations: Rose, a member of the President’s Council on Jobs and Competitiveness, cited positive train control legislation – a system of monitoring and controlling train movements – as a prime example of regulatory burden that does not pass a cost benefit analysis and makes the U.S. less competitive in the global marketplace. He called for reductions in permitting requirements and the time it takes to start projects. “The permitting process is stalling growth,” he said.
On the national infrastructure: Rose supports funding rebuilding projects for the nation’s highway infrastructure, which he said would also create millions of jobs. He also called for streamlining policies to bring more focus to fewer initiatives – the current federal Jobs Bill alone has 107 programs. He noted that the current federal highway tax has not changed since 1993 and needs to be revisited. He also suggested that national transportation policy needs to create incentives for private money to meet funding needs.
On rail’s future: Rose sees BNSF’s prospects as bright. Rail, he says, offers the distinct advantages of reducing U.S. dependence on foreign oil, easing congestion on highways and improving air quality through reduced emissions. He sees expanded rail as an opportunity for the United States to become more competitive in the global marketplace.
