And why should the taxpayers pay for an improvement that will only enrich the assets of a private company? Also, an electrified system is essentially an improvement on the railroad's property, thus increasing the value of the property, and thus the property taxes paid by the railroad. Why should a private railroad company want to do that?
We do need to change how we tax railraods as the existing value of property makes them resist any amount investments
at this point freight RR are going down an unsustainable path, they've cut almost all small customers and their traditional large customers are drying up, coal and oil aren't going to be moved around much in another 15-20 years.
Ok if you include Fed help, that likely changes the equation dramatically
I'm figuring at some point they are going to want a test case and so they'll help 1 railroad out a bit.
The United States is predominantly non-electrified; Europe is almost all electrified. In a perfect world electrification would be the better solution but now the cost is too high (unless fossil fuels get outlawed or priced out-of-sight). And because of the current Federal deficit and rising interest costs don't look for help from that source unless it is required for the military. In short, we missed the train here in the 1930s.
The cost isn't to high, even with our insane prices which is based on non materials costs; design, permits, ect. The class 1 could have paid for it over the last decaded. they made 150B in profit they gave to share holders.
Even at 5m a mile (which is insanely high, 1m is total possible) thats 30,000 miles under wire enough for them all to get their most important lines under wires
I had a long winded response queued up here about how the ROI simply is not high enough to justify the investment and how it would make more sense for the RRs to use that capital instead to buy each other, invest in different projects with higher returns and cost savings, or to simply pay it out in dividends rather than electrify. But instead I noticed something in that report you posted, and if you want to see why its not a helpful analysis and is based on flawed variables, please refer to PDF page 34, Figure 2.
Class 1 won't be buying each other out and short of a project that lowers ops costs they refuse to invest in anything at this point.
We see them regularly put trains that are too long to fit down any sidings and destroy capacity, take more crews time but they refuse to invest.
This key fuel cost assumption that drove the analysis proved to be off by a factor of about
20x, as this assumes a real growth rate of diesel fuel cost at 9%, when in fact the actual real growth rate from 1980 to 2018 was essentially 0.08% (inflation adjusted on all these numbers, I got to the 2018 estimate by continuing to grow the 2010 number from the report at 9% until 2018). (
FOTW #1103, October 14, 2019: Diesel Averaged 44 Cents More per Gallon than Regular Gasoline in 2018). Obviously the oil crisis drove this assumption, but this was a cataclysmic miss in terms of assumption accuracy.
I'm aware the report isn't perfect but over 1/2 the cost savings come from much lower operations cost of electric locos
Even with an ROI of 20-25 years thats still decent in the slow moving world of rail
How long do you think it takes a loco that burns 25% less fuel to pay of? its not quick
Since the majority of our electrical power is still generated by fossil fuel and will probably continue to be for the foreseeable future, since there are limitations on how much we can get from wind/solar and our aversion to building nuclear plants (unlike Europe), electrifying freight lines even if economically feasible still leaves us dependent on fossil fuels, albeit the higher efficiency of generating power at a power station instead of onboard a locomotive using internal combustion will help reduce fuel demand somewhat.
The only real way to make railroading 0 emissions is connect it to the grid, the grids makeup will change over time and it then means its an external thing for the railroads.
Your just never going to be able to drag around enough energy to match a 5000 gal of diesel per loco
many of the lines around the NEC are state owned already and so they should just have wires put up, we don't even need to get freight RR onboard.