New Report Argues Private Rail Is a Train Wreck, Public Ownership Needed

Railword Workers United and a Brown University fellow on Monday published a white paper calling for the institution of a public rail system to replace America's corporate railroad giants.

The 110-page white paper, written by Brown University undergraduate Maddock Thomas and published as part of RWU's Public Rail Now campaign, argues that U.S. railroad corporations such as BNSF, Union Pacific, Norfolk Southern, and CSX have failed on safety, workers' rights, service, electrification, and expanding capacity to meet rising freight demand.

Instead of using profits to invest in critical infrastructure, the railroads have lined shareholder pockets with dividends and buybacks, Thomas wrote, advocating for a public system where that money could be spent to improve safety and decarbonize freight transport, among other goals.

Thomas M. Hanna, research director at the Democracy Collaborative, called for democratic, public ownership of railroads in a Public Rail Now statement.

"At a time when we need it most, our nation's rail system is in disarray," Hanna said. "Dominated by a small group of giant for-profit companies, it is imperiling the health and safety of workers and communities, providing poor service for customers, abandoning growth and development, and stalling the expansion of passenger rail services."

"These lands were given under a promise of providing a 'public highway' operated in the public interest, a deal that today's Class 1s have inherited along with their predecessors' easements... Perhaps it is time for Congress to retake control of our public rights-of-way."

The frequency of rail accidents rose by 28% between 2013 and 2022, which many critics attribute to the Precision Scheduled Railroading system that's become the industry standard. Thomas wrote that the system prioritizes "speed over safety."

Despite the alarming trend, the industry has lobbied against safety-minded legislation such as the Railway Accountability Act proposed by senators last year following a disastrous derailment in East Palestine, Ohio. The industry pushed against reforms strongly in the year after the disaster and that lobbying has continued in recent months, according to Jacobin.

The current system has led to precarity and difficulty for railway workers. The number of jobs in the industry has gone down over the last 10 years, with nearly 30% of workers having been laid off since 2015, Thomas found. Railway workers also face tough conditions, with unpredictable schedules and forced overtime—some of the subjects of a 2022 labor dispute that ended with the controversial intervention of President Joe Biden.

The white paper emphasizes the underinvestment that private rail ownership has allowed. The U.S. Department of Transportation estimates that rail freight will nearly double by 2035. This growing demand has long been understood, but not acted on. A 2008 report commissioned by the Surface Transportation Board, a federal agency, found that the aforementioned major rail companies—called "Class 1" railroads—needed to spend $135 billion by 2035 to build up infrastructure to meet incoming demand.

They did not, the white paper says.

"Instead, the Class 1s spent $196 billion on buybacks and dividends for shareholders between 2010 and 2020," Thomas wrote.

Thomas presented a historical case for public rail. In the late 1800s, hundreds of millions of acres of public land, as well as other subsidies, were granted to railroad companies on the condition that their services benefited the public. Thomas wrote that the land grants were provided with the understanding that the railways would be like public highways, and that the federal government to this day "retains a reversionary interest of ownership and control" over the rights-of-way.

"There is a compelling case that every railroad that sits on a right-of-way granted from Congress merely possesses an easement over public land," he wrote. "Furthermore, Congress reserved the right to 'add to, alter, amend' the terms of its land grants. Ultimately, these lands were given under a promise of providing a 'public highway' operated in the public interest, a deal that today's Class 1s have inherited along with their predecessors' easements. One might argue that the Class 1s failed to live up to this deal and that perhaps it is time for Congress to retake control of our public rights-of-way."