Obama spends $600 million on rail projects that benefit private companies

— The railroad industry brags in its national publicity campaign that it spends billions of dollars improving its infrastructure “so taxpayers don’t have to.”

But the ads don’t tell everything. The nation’s freight rail network has been the quiet recipient of more than $600 million in federal investment during the Obama administration.

According to Federal Railroad Administration numbers, at least half that amount has gone to projects that benefit the nation’s four largest railroads, the same companies at the heart of the industry’s ubiquitous “Freight Rail Works” campaign.

That doesn’t even include tens of millions more that states have contributed for additional investment in ports and high-speed passenger trains that’s boosted the nation’s freight railroads.

The public dollars have built new overpasses to separate trains from one another, as well as cars and trucks. They’ve replaced aging bridges, laid new track and upgraded signal systems. They’ve paid to enlarge tunnels and raise bridges so that shipping containers may be double-stacked. They’ve built new facilities where cargo containers can be transferred from trucks to trains, or vice versa.

Supporters say these public investments, combined with private capital, are model infrastructure partnerships that will help take trucks off crowded highways, reduce pollution and improve the flow of goods to and from the nation’s seaports.

“The majority of dollars that benefit freight rail are well spent,” said Chuck Clowdis, the managing director of North American markets at economic forecaster IHS Global Insight.

But others wonder whether an industry that boasts about how little it depends on taxpayers really needs the extra help.

http://www.mcclatchydc.com/2013/12/02/210101/obama-spends-600-million-on-rail.html

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