中美铁路货运对比研究

icctTHEicctTHEINTERNATIONALCOUNCILNCEANTRANSPRTATNJUNE2024TowardgreenerandmoresustainablefreightrailComparingfreightrailsystemsandservicesintheUnitedStatesandChinaZHENYINGSHAO,TIANLINNIU,JUNHENGYANiACKNOWLEDGMENTSTheauthorswouldliketothankallinternalandexternalreviewersofthispaper.Fortheirguidanceandconstructivecomments,wethankYanDing(ChineseResearchAcademyofEnvironmentalSciences),JunfangWang(VehicleEmissionControlCenter,MinistryofEcologyandEnvironment,China),HonglianWei(MinistryofEcologyandEnvironment,China),JianjunLiu(GuangdongProvincialAcademyofEnvironmentalScience),QiaofengYu(ChinaRailwayEconomicandPlanningResearchInstitute),XiangXu(ChinaRailwayEconomicandPlanningResearchInstitute),XinjunZhou(ChinaAcademyofRailwayScienceCorporationLimited),BaohuaMao(BeijingJiaotongUniversity),andBiqiZheng(EnergyFoundationChina).TheauthorsarealsogratefulforgeneroussupportfromEnergyFoundationChina;thissupportdoesnotimplyendorsement.Anyerrorsaretheauthors’own.InternationalCouncilonCleanTransportation1500KStreetNW,Suite650Washington,DC20005communications@||@TheICCT©2024InternationalCouncilonCleanTransportation(ID133)EXECUTIVESUMMARYChinahasinvestedinmodalshiftstrategies—includingroad-to-railwayandroad-to-waterway—toaddressthecountry’sheavyrelianceonroadshippingalongwithgrowingfreightactivity.AsshownbypreviousICCTanalysis,thereissignificantpotentialforChina’srailsystemtobethebackboneoffreightactivity.ThisreportrevealstheopportunitiesandchallengesfacingChina’sfreightrailwayinbetteraccommodatingtheshippingneedsofvariousproducts,basedonacomparisonwiththefreightrailwayintheUnitedStates.TheU.S.railsystem,comprisedprimarilyofsixprivatelyownedClassIrailroadcompanies,hasadaptedtobecomeamoreefficientandeffectivefreightsystem.Railwayactivity—intermsofton-milesoffreighthauled—hasincreasedover2.5timesinthepast60years,eventhoughthetracklengthhasbeenreducedbyabouthalf.Thisisreflectiveofamoreefficientnetwork.Atthesametime,theaveragehaulinglengthhasincreased,indicatingthecriticalroleofU.S.railwayinlong-distanceshipping.Thenumberoflocomotivesandfreightcarsinoperationhasalsodecreasedwhileaccommodatingincreasedfreightactivity,indicatinghigherweightloadsoneachtrain.Thesystemhasadaptedservicetomeetthedecreasingneedforshippingbulkproductsandtheincreasingdemandforintermodalshipping.Inaddition,theU.S.railsystemisrequiredtoreportitsoperationalandeconomicinformationregularlytoenableclosetrackingofperformance.ChinaRailway,agovernment-ownedenterprise,hasexperiencedrapidgrowthinrecentdecades,withfreightactivityincreasingalmostthreefoldinthepast30years.Chinahasmadesubstantialinvestmentsinrailinfrastructureandrollingstock,resultinginastrongincreaseinlocomotivesandrailcars,inadditiontotracklength.However,theaveragehaulinglengthhasdecreasedslightly,possiblyduetoanimprovednetworkresultingfromthebuildingofmorerailyardsandstations.AstherailsysteminChinaseeksapproachestoimproveitsoverallserviceandoperation,andtorepositionitselfasthebackboneofthefreightsystem,theexperiencesoftheUnitedStatescouldprovidevaluableinsights.Theupgradeofinfrastructure,facilities,andequipmentcouldbeanapproachtoboostcapacityintherailsystem,includinglongerreceivinganddeparturetracklengthandheaviertrackaxleloads.Inaddition,weidentifiedthatChinacouldtakeproactivemeasurestoupgradeshippingcapacityandservice,alongwithassessmentsofthepotentialuseofintermodaltransportationforselecthigh-valuecommodities.Inaddition,datacollectionisessentialforestablishingarobustfoundationforresearchandpolicyformulation.TABLEOFCONTENTSExecutivesummary Introduction 1Background 2ComparisonofrailsystemsintheUnitedStatesandChina 4OverviewoftheU.S.railsystem 4Keyregulatoryauthorities 5Freightservice 6Intermodalshipping 8OverviewofChina’srailsystem Keyregulatoryauthorities Freightservice KeyindicatorsdrivingthedifferencesbetweenrailsystemsintheU.S.andChina 20Conclusionsandrecommendations 23References 25Appendix 28iiiICCTREPORT|TOWARDGREENERANDMORESUSTAINABLEFREIGHTRAIL1INTRODUCTIONFreightactivityinChinahasincreasedsignificantlyoverthepastdecades.Thefreightsystemhauledover50billiontonsofcommoditiesandachieved23trillionton-kilometersofactivityin2022(MinistryofTransport,2023).Freightdemandisexpectedtoincrease2.3%annuallyoverthenext5years(MinistryofTransport,2021a).Truckshavedominatedfreighttransportsince2008,haulingabout70%oftotalfreight(byweight)in2022(MinistryofTransport,2023).Theheavyrelianceontruckingnotonlyaddsburdensontheroadsystem,resultinginincreasedcongestionandsafetyissues,butalsoincreasescarbonandcriteriapollutantemissionsfromdiesel-poweredheavy-dutyvehicles,leadingtosevereclimate,airquality,andpublichealthconcerns.Toachieveagreen,sustainablefreightsystem,Chinahasinvestedinmodalshiftstrategies,includingroad-to-railandroad-to-waterway,aimedatreducingrelianceonroadshipping(Shaoetal.,2022).However,evenwiththeenactmentofmultiplecentralandsectoralpoliciesintendedtoshiftfreighttorailandwaterway,growthinhaulingbyrailremainsslow;mostgrowthhasresultedfromthetransportofheavy,bulkproducts.TheoptimizationofChina’sfreightrailway—toefficientlytransporttheincreasingdemandforhigher-valueproducts—remainsacomplexpuzzleyettobesolved.Currently,50%oftheproductshauledbyrailarecoal,whiletherestaremostlymineralsandpetroleumproducts(NationalBureauofStatisticsofChina,2022).AsChinaacceleratestowardthecountry’scarbonneutralitytargets,thedemandforcoalandothermineralsprimarilyusedinheavymanufacturingispoisedtodecline,paralleledbyarisingdemandforhigher-valuecommodities.TohelpunlockthefullpotentialofChina’srailsysteminhaulinghigher-valueproducts,thisstudyprovidesanoverviewofthedevelopmentofthefreightrailsystemsintheUnitedStatesandChina.Bycomparingkeyelementsofthetwosystems,weaimtoidentifytheopportunitiesandchallengesfacingChina’sfreightrailwayinthistransitionphase.ThisworkhighlightstheexperiencesandlessonslearnedtoprovidesupportforChina’srailwayplanningeffortsandguidestrategicupgradestothefreightsystem.Thisstudyispartofanongoingseriesonadvancingthetransitiontowardagreenerandmoresustainablefreightsystem.OurpreviousanalysisfoundsignificantpotentialforChina’srailshippingbasedonacomparisonwiththeUnitedStatesonfreightmarketandstrategies(Shaoetal.,2022).Thisstudyprovidesadeepercomparativeanalysisfocusedspecificallyonfreightrailways.TheexperienceoftheU.S.systeminoptimizingitsinfrastructure,equipment,andservicecouldproviderelevantinformationforChina’seffortstobetterpositionrailinthechangingfreightmarket.Thestudyisbasedonthemostreliableandrepresentativedataavailable,includingfromtheU.S.BureauofTransportationStatistics(BTS),theU.S.FreightAnalysisFramework(FAF),theAssociationofAmericanRailroads(AAR),China’sNationalBureauofStatisticsYearbook,anddirectcommunicationwithkeyexperts.However,datagapsstillexist,particularlyforChina,highlightinganeedtoprioritizesurveysandanalysistohelpunderstandfreightcharacteristicsandcommodityflows.2BACKGROUNDChinabeganpromotingtheuseofrailwaysin2017withtheinitiationofthecountry’sshippingstructurestrategy(Shao,2020;Shaoetal.,2022).Thestrategy’sinitialfocuswasshiftingthetransportofheavy,bulkproducts,specificallycoalandironore,fromtruckstorail.Asafirststep,coalproductswerenotallowedtobeshippedintoandoutoftheportsofTianjin,Tangshan,andHuangyebytruck.In2018,theStateCouncil,nationalministries,localgovernments,andkeyenterprisesformulatedaseriesofpolicydocumentsontransportstructureadjustment.Theadjustmenttargetedmovingmorematerialbyrailandwaterway,andmoreuseofintermodaltransportation,withthegoalofa10%increaseintonnageshippedbyrailby2025fromthe2020level(MinistryofTransport,2021b).ChinaRailway’sKeyShipperStrategyprioritizestheshippingdemandsofheavy,bulkproducts.Thesekeyshippershandleover1milliontonsofgoodsorhavecontractswithover¥50millioninshippingfaresannually.Therearecurrentlyabout1,000prioritizedshippers,representingabout80%offreighthauledinChina’srailsystem.ChinaRailwayofferscustomizedcontractswithprioritizedservices,flexibleschedules,andcompetitivepricesinreturnforacommitmenttousingtherailway.ChinaRailwayhasupgradeditsnetworkandcapacitytoaccommodatetheshippingofheavy,bulkproducts.Forexample,theDatong-QinhuangdaoRailwaywasdesignedtoofferrailcarswithcapacitiesofupto80tons,themaximumcapacitytheChinaRailwaycancarrywithatrackaxleloadof27tons.Thetrainsalsodepartatafrequencyofevery10–15minutestomeettheneedsofcoalshipping(People’sDaily,2010).Thegovernmentfurtheraimedtobuildindustrialrailspursconnectingmajorindustrialandminingenterpriseswithannualshippingneedsofover1.5milliontons(NationalDevelopmentandReformCommission,2019).Arecentanalysisofthefreightmarketidentifiedtrucksasthedominantshippingmodeforsixofthetopnineessentialbulkproducts(ChineseAcademyofEnvironmentalPlanning,2022).Figure1summarizesthemodesharesoftheseproducts(dots)andaveragehaulingranges(bars).Transportofcoalwastheexception,withrailusedformorethan70%ofshippingneeds.Formostoftheproducts,truckswerepreferredoverrailevenforlongerdistances.Forironoreandaluminum,theaverageshippingdistancebyrailwasevenshorterthanthatoftrucks.However,waterwayclaimedthelongestaverageshippingdistancesforallproducts.3Figure1ShippingmodesforthetopninebulkproductsinChinaTruckRaTruckRailwayWaterwayTruckRailwayWaterwayTruckRailwayWaterwayTruckRailwayWaterwayTruckRailwayWaterwayTruckRailwayWaterwayTruckRailwayWaterwayTruckRailwayWaterwayTruckRailwayWaterwayCEMENTCOKECOALLIMESTONESAND&GRAVELIRONOREBAUXITEALUMINUM2,000ShippingShippingditnsa(km)1,5001,0005000nAverageshippingdistanceoSharebymodesModeshareModeshare100%90%100%90%80%70%60%50%40%30%20%Datasource:ChineseAcademyofEnvironmentalPlanning(2022)THEINTERNATIONALCOUNCILONCLEANTRANSPORTATIONTHEICCT.ORGWhileFigure1confirmedtheeffectivenessoftheadjustmentinshippingstructurestrategy,withrailbecomingthepreferredshippingmodeforcoal,ithighlightsthatpolicymeasuresandstrategiesareneededtopromoterailfortheshipmentofothergoods.Theaverageshippingdistancefortrucksandrailwaysissomewhatconsistentacrossallcommodities,indicatingasignificantgapintheuseoftherailsystemforlong-distancehauling.Truckscarriedalmosthalfofallaluminum,forexample,atanaverageshippingdistanceofover1,200km.Theaverageshippingdistanceofaluminumbyrailwasbetween792and1,124km.Railhadthelowestshareamongallthreeshippingmodeswith26%ofaluminumtransported.Whilethepredominantfocusoftherailsystemiscurrentlythetransportofheavy,bulkproducts,thecentralgovernmenthaspromotedintermodalshippingforoveradecade.Thepromotionofrail-to-watertransportbeganin2011,withthelaunchofsixintermodalcorridorpilotprojects(ChinaWaterborneTransportResearchInstitute,2021).Subsequenteffortsatthenationallevelhaveincludedadditionalintermodalpilotprojects.Recently,theMinistryofTransportannouncedagoalofreachinganannualgrowthrateofover15%forcontainerrail-to-waterintermodalshippingbetween2021and2025(MinistryofTransport,2021b).Chinahasfurtherinvestedininfrastructuretoenhancetheefficiencyofrailwayintermodalshipping,includingbuilding18containerhubs,hundredsoflogisticcenters,andalmost8,500railwayspursconnectingindustries,logisticsparks,andports(NationalDevelopmentandReformCommission,2016).Thegovernmentalsoaimstobuildindustrialrailspursconnectingmajorportsandnewlogisticsparks(NationalDevelopmentandReformCommission,2019).About127newrailspurswerebuiltin2020tomeetthisgoal,andanadditional166areplannedby2025(National4DevelopmentandReformCommission,2021).However,utilizationremainsverylowforatleastone-thirdoftheover8,800railspurs,whichspanatracklengthofmorethan30,000km.1Thisposesnotablechallengesandconcernsregardingeffectivemaintenanceandoperation.Itremainsunclearonhowrailcouldbetteraccommodatetheshippingneedsofvariousproductsinthefreightsystem.Informationisscarceontheimpactsofpoliciespromotingrailforheavy,bulkproductsandintermodalshipping.Itisalsouncertainwhetherrailhasfullyutilizedthecapacitytoaccommodateadditionalshippingdemandfromothertypesofproducts.However,withthedemandforheavy,bulkproductsexpectedtobereducedinthefuture,therailsystemalsoneedstoplanforaccommodatingothergoods.Thus,China’srailsystemisfacingthechallengesoftakingonalargershareofshippingofheavy,bulkproductswhilealsosettingupalong-termstrategyfortheevolvingshippingmarket.COMPARISONOFRAILSYSTEMSINTHEUNITEDSTATESANDCHINAThissectionprovidesanoverviewoftheU.S.andChinarailsystemsandcomparesselectedparameterstorepresentcapacity,efficiency,andservicequality.ThemainpurposeofthecomparisonistounderstandhowU.S.railroadshaveadaptedtobecomethebackboneofthefreightsystem.Thissectionalsobrieflydescribestheregulatorybodiesinbothcountriesandtheirrespectiveresponsibilitiesintherailsystem,mainlyfocusingondatareportingandlong-termstrategydevelopment.OVERVIEWOFTHEU.S.RAILSYSTEMOver620freightrailroadcompaniesoperateintheU.S.freightrailsystem.TheserailroadsarecategorizedbytheSurfaceTransportationBoardintothreeclassesbasedonrevenue;therevenuethresholdschangeannuallytoaccommodateinflation(RailroadCompanies,2024).2ClassIincludesfreightrailroadswithannualoperatingrevenuesabovethe2022thresholdof$1.03billion(FederalRailroadAdministration,2024a).Theselong-haulrailroadcompaniestypicallyoperatewithasfewstopsaspossible.ClassII,orregionalrailroads,have2022revenuesof$46.3millionand$1.03billion.ClassIIIfreightrailroadshaverevenuesoflessthan$46.3million(SurfaceTransportationBoard,n.d.-b).Theytypicallyoperateshort-haulroutes.ClassIIandClassIIIrailroadsprovideconnectionsbetweenClassIrailroadsandcustomers,performingfirst-andlast-miledeliverybygroupingsmallershipmentsononetrain(Genesee&WyomingInc.,n.d.).Inadditiontotheclassesabove,switchingandterminalrailroadsoperateinportsandindustrialareastotransferfreightbetweenlargerrailroads.OuranalysisfocusesonthesixClassIrailroadsintheUnitedStates,presentedinTable1.ClassIrailroadsaccountforroughly70%ofU.S.freightrailmileage,over90%ofrevenue,andabout40%oflong-distancefreightactivity(AssociationofAmericanRailroads,n.d.-b).ClassIrailroadsownandmaintainmorethan140,000miles(225,000kilometers)oftrackacrossmultiplestates.BNSFandUnionPacific1EstimatedbasedonasurveywithChina’srailwayexperts.2Therevenuethresholdoftherailroadclasseswasfirstsetin1992.ClassIrailroadcompanieswerethosewithrevenuegreaterthan$250millionperyear,ClassIIwerethosewithrevenuebetween$20millionand$250millionperyear,andClassIIIwerethosewithrevenuelessthan$20millionperyear.Thethresholdofrevenuechangeseveryyearbasedoninflation.5operatehavethemosttrack,mostlywestoftheMississippiRiver.NorfolkSouthernandCSXoperateontheEastCoast.CanadianNationalconnectstheMidwesternUnitedStatesandCanada.CanadianPacificKansasCity,formedbythemergerofKansasCitySouthernandCanadianPacificin2023,runsfromsouthernMexicotonorthwesternCanada.3Therailcompanies,whichbuildandmaintaintheirrespectivetracks,collaboratethroughbilateralagreementstoperforminterchangeservicestoensurethesmoothflowoffreightovertheentirerailnetwork.Table1RevenueandtrackmilesforthesixClassIrailroadcompaniesintheUnitedStatesRegionCompanyRevenuein2022(billions)Tracknetwork(thousandmiles)WestBNSF$25.8UnionPacific$24.9EastCSX$14.9NorfolkSouthern$12.7NorthandSouthNational$17.1CanadianPacific-KansasCity$6.8Datasources:BNSFRailwayCompany(2024);UnionPacific(n.d.);CSXCorporation(n.d.);NorfolkSouthernCorp.(n.d.);CanadianNationalRailwayCompany(n.d.);CanadianPacificKansasCity(n.d.)KEYREGULATORYAUTHORITIESTheU.S.freightrailsystemisregulatedatthefederalleveltoensureefficient,safe,andcleanfreightmovement.Thesectionbelowliststhemajoragenciesatthefederallevelresponsibleforregulatoryoversightoftherailsystem.State-levelagenciesalsooftenworkwithrailroadcompaniesandfederalagenciestoensuretheimplementationofthesepoliciesandmeasures.TheSurfaceTransportationBoard(STB)overseestheeconomicregulationofthefreightrailindustry,althoughmanyregulatoryrestraintswereremovedaftertheStaggersRailActof1980(Palley,2011).Thisindependentfederalagencyregulatesandsettlesdisputesinvolvingrates,construction,mergers,andlinesalesandabandonment.Adoptedin2016andimplementedin2017,theUnitedStatesRailServiceIssues–PerformanceDataReportingrulerequiresClassIrailroadcompaniestofileweeklyperformancereportstotheSTB(UnitedStatesRailServiceIssues,2016).Sincethen,theSTBhascollectedeconomicandservicedatafromrailroadcompaniesandgeneratedreports,studies,anddatabasesforpublicaccess(seeAppendixA).Theagencyalsoreleasescost-relatedinformationandcontractsummariesforagriculturalcommodities.TheSTBcollectsandreleasesCarloadWaybillSampledata,presentingrailtrafficvolumesandflowsfromrailwaycompanieswith4,500ormorerevenuecarloadsannually(SurfaceTransportationBoard,n.d.-a).Startingin2021,railroadsarerequiredtoreportasamplerateof20%,aconsiderableincreasefromtheprevioussamplerateof2.5%(WaybillSampleReporting,2020).TheCarloadWaybillSampledatabaseprovidesClassIrailroaddataoncars,revenues,milesshipped,equipmenttypeand3OnMarch15,2023,theSurfaceTransportationBoardapprovedamergerbetweenCanadianPacificRailwayandKansasCitySouthernRailway,resultingsixClassIrailroads.6owner,andshipmentsize.BecausetheinformationintheCarloadWaybillSamplecontainssensitiveshippingandrevenueinformation,STBsharesdifferentlevelsofinformationanddetailwithdifferenttypesofusers.4Inaddition,theSTBreleasesapubliclyaccessibledatabaseonanannualbasiswithanonymizedinformation,whichisvaluableforvariousanalyses.FormoreinformationontheCarloadWaybillSampledata,seeAppendixC.TheFederalRailroadAdministration(FRA)withintheU.S.DepartmentofTransportationisthemainauthorityworkingonsafetyandnetworkdevelopmentforbothfreightandpassengerrail.ThestaffatFRAareresponsibleforregulationsandinspectionsconcerningrailroadsafety.Theagencyalsoworkswithrailroadcompaniesandotherstakeholdersonnetworkplanningandimprovement,offeringvariousgrantsandloans.Forexample,therecentBipartisanInfrastructureLawprovidesFRAwithabout$102billioninfundingoverthenextfiveyearstoimprovetheU.S.railsystem(FederalRailroadAdministration,2024b).However,mostofthefundingwillsupportthedevelopmentofpassengerrailinsteadoffreight.TheU.S.EnvironmentalProtectionAgency(EPA)hastheauthoritytoregulatecriteriapollutantsandGHGstandardsfornewandremanufacturedlocomotives.Tailpipeemissionstandardswerefirstissuedin1998.Thelateststandard,Tier4,wasadoptedin2008andimplementedin2015(U.S.EnvironmentalProtectionAgency,2024).Althoughtheagencydoesnotrequirethecontrolofin-useGHGemissions,itdoesrequirethereportingoftheseemissionsfromlocomotivesintheUnitedStates.Inadditiontofederaleffortstoreduceemissionsfromnewandremanufacturedlocomotives,somestateagenciescanregulatethein-usefleet—targetinghowthefleetoperatesinthestate—throughauthoritygrantedbytheCleanAirAct,ifthestateruleisapprovedbytheEPA.Forexample,theCaliforniaAirResourcesBoard(CARB)recentlyadoptedanIn-UseLocomotiveRegulation,whichrequiresswitch,industrial,andpassengerlocomotivesbuiltafter2030andline-haul(ClassI)locomotivesbuiltafter2035tooperatewithzero-emissionsinthestate(CaliforniaAirResourcesBoard,2023).CARBfurthersetanagelimitof23yearsforlocomotivesoperatinginCaliforniatoacceleratetheturnoverofolddieselenginesusedinthesector(CaliforniaAirResourcesBoard,2023).OtherstatescouldfollowCalifornia’sapproachtomanagetheemissionsfromlocomotivesoperatingwithintheirborders.FREIGHTSERVICETherailroadcompanies,includingClassIrailroadsandshortlines,andotherrailstakeholdershavecoordinatedtocreateacompetitivefreightshippingsystemovertime.About2.5trillionton-km(1.5trillionton-miles)wasshippedbyrailin2020,accountingforaboutone-thirdofU.S.freightactivity.Thecommoditieshauledbyrailcoverawidevarietyoftypes,asshowninFigure2,includingover3millioncarloadsofcoal,1.9millioncarloadsofchemicals(plastics,fibers,drugs,andsoaps),2millioncarloadsofconstructionmaterials(steel,stone,sand,andgravel),0.8millioncarloadsofmotorvehiclesandparts,2.1millioncarloadsoffarmproducts,andabout14millionunitsofcontainerandtrailershipments(electronics,homegoods,andclothing)(UnionPacific,2021).Thecontainerandtrailershipmentsweremostlyforintermodaltransport,basedontheservicedatafromtheSTB.4Thefiveclassesofusersaredefinedas:1)railroads,2)federalagencies,3)states,4)transportationpractitioners,consultingfirms,andlawfirmsinspecificproceedings,and5)otherusers.7Figure2FreighttrafficonU.S.ClassIrailroads,2021ContainersandtrailersAllother4% Petroleumproducts2%MotorvehiclesandContainersandtrailersMinerals4%Chemicals7%Constructionmaterials8%Farmandforestproducts8%Coalandcoalproducts13%Note:Carloads(shownherebytypeofcommodityhauled)accountedfor49%ofallfreighttraffic.Intermodalunits(containersandtrailers)accountedfor51%oftraffic.Datasource:AssociationofAmericanRailroads(2023)THEINTERNATIONALCOUNCILONCLEANTRANSPORTATIONTHEICCT.ORGConsistentwiththecommoditieshauled,theapproximately1.6millionrailcarsinthefleetaremostlycoveredoruncoveredhoppers,tankcars,flatcars,andgondolas,asshowninFigure3.Hoppersareusedmostlyfordrybulkcommodities,includingstone,sand,agriculturalproducts,andcoal.Tankcarsaretypicallyusedforcompressedorliquidcommodities.Boxcarsareforcratedorpalletizedfreight,suchaspaper,packagedgoods,andbeverages.Flatcarsandgondolascarrylargecommodities,includingmachinery,tractors,pipe,lumber,andlogs.Inaddition,wellcars(notincludedinFigure3,about130,000intotal)haulintermodalcontainerswithawidevarietyofgoods,suchaselectronicsandrefrigeratedproducts.8Figure3U.S.ClassIrailcarfleet,2019BoxcarsBoxcars6%Gondolas12%Tankcars27%Hoppers7%Flatcars13%Coveredhoppers35%Datasource:StatistaResearchDepartment(2023)THEINTERNATIONALCOUNCILONCLEANTRANSPORTATIONTHEICCT.ORGINTERMODALSHIPPINGOnereasonforthesuccessofU.S.freightraildevelopmentisthatthesystemhasadjustedservicetoaccommodatechangingshippingneeds.Thisincludesembracingintermodaltransporttocompensateforthereduceddemandforheavy,bulkcommodities.U.S.railintermodalvolumesurgedfrom5.6millioncontainersandtrailersin1990,to9millionin2000,11.1millionin2010,andarecord14.5millionin2018beforefallingslightlyto14.1in2021(AssociationofAmericanRailroads,2020).Intermodalvolumewas13.5millionunitsin2022,accountingforalmost30%ofrailroadrevenueandrankingfirstinrevenuebytrafficsegment(AssociationofAmericanRailroads,2023).In2021,abouthalfofthefreightrailtrafficintheU.S.consistedofintermodalunits,asshowninFigure4.Theseshippingcontainersholdconsumergoodsandothermiscellaneousproducts(FederalRailroadAdministration,2020).Abouthalfoftheintermodalshippingvolumewasimportsorproductsboundforexport.Thecost-effectivenessandenvironmentalandsocialbenefitsofintermodalshippinghavemadeitthefastest-growingsegmentinU.S.freightrailtransport(Brown&Hatch,2002).9Figure4U.S.ClassIrailroadtrafficbytype,1989–202135CarloadsIntermodalunits30252050Datasource:BureauofTransportationStatistics(2024)THEINTERNATIONALCOUNCILONCLEANTRANSPORTATIONTHEICCT.ORGImprovementsinfacilitiesandinfrastructurehavecontinuouslyenhancedfreightrailcapacityandintermodalservice(Brown&Hatch,2002).Forexample,thehigherspeedofintermodaltransportpresentsameasureofimprovedservicefromrailroadcompaniesfacingdeclinedshippingneedsfromcoalandotherbulkproducts.Theaveragespeedofintermodaltrainsisover30milesperhourtobetteraccommodatetime-sensitive,high-valueshipping(Figure5).Incontrast,thehaulingspeedsofotherproducts,includingcoal,farmproducts,andmotorvehicles,arearound20to25milesp