Let the Posturing Begin: Trade Groups Jockey for Support in Washington in Wake of New Administration

With a new administration in Washington promising a renewed focus on transportation infrastructure the posturing from trade groups representing various segments of the railroad industry is in full swing.

The American Public Transportation Association is seeking to lobby Congress to fully fund the FAST Act for fiscal years 2017 and 2018 as well as include public transit in any infrastructure development plan.

The Association of American Railroads is seeking to caution the administration against taking too hostile of a stance on foreign trade by pointing out that at least 42 percent of rail traffic and more than 35 percent of annual rail revenue are directly tied to international trade.

APTA is reacting to the “skinny budget” proposed by President Donald Trump earlier this year that slashed funding for capital grants used by public transit.

In particular the Trump budget would greatly reduce the Federal Transit Administration’s Capital Investment Grants, TIGER grants and Amtrak funding.

APTA said it has conducted more than 60 meetings with congressional staff, focusing on those that serve on budget, appropriations, tax and authorization committees, and taken other proactive steps to engage with members of Congress.

It also has called on its members to meet with their members of Congress when they are on spring break in their home districts April 8-23.

As for the AAR, it released a report saying that 50,000 domestic rail jobs accounting for more than $5.5 billion in annual wages and benefits depend directly on international trade. Those numbers would be higher if rail traffic indirectly associated with trade is included.

AAR fears that the Trump administration might make policy changes that would adversely affect the global economy.

“Efforts that curtail overall trade would threaten thousands of U.S. freight-rail jobs that depend on it and limit essential railroad revenues used to modernize railroad infrastructure throughout North America,” said AAR President and CEO Edward Hamberger.

The AAR report examined rail movements using data from the 2014 Surface Transportation Board Waybill Sample, other government data and information from U.S. ports and Google Earth.

This included movements of coal for export from ports in Maryland, Virginia, the Gulf Coast and the Great Lakes; paper and forest products imported from Canada into the Midwest, as well as paper products exported from the southern United States; imports and exports of Canadian and Mexican automotive products to and from auto factories in dozens of U.S. states; containers of consumer goods from Asia coming ashore in California, Washington, Georgia, Virginia and New Jersey; plastics shipped by rail from Texas and Louisiana to the East and West coasts for export to Europe and Asia; iron ore mined in Minnesota and shipped by rail to Great Lakes ports; and Midwest-grown grain carried by rail to the Pacific Northwest and the Gulf Coast for export.

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