VitalRail Value Proposition
From OnTrackNorthAmerica
Challenges
- The rail industry, government, and the financial community, and other key stakeholder groups are not able to work together to achieve breakthroughs that produce real economic and environmental improvements.
- Community relations are piecemeal, missing the opportunity to inspire a groundswell of support for railroads.
- Railroads have a weak relationship with capital providers compared to industries with less resilience, importance, and opportunity.
- Progress in adopting new technologies across diverse actors is too slow.
- The current avenues of collaboration are inflexible, cumbersome, and loaded with secondary agendas.
- Rail development has suffered from labor-management relations that are hurtful to all sides.
- Customers, i.e., communities, landowners, developers, and shippers, are often left out of the process of positive change for rail logistics and infrastructure.
- Capital providers are poorly informed and lack a clear understanding of rail-related infrastructure, financial statements, asset values, and industry stability, resulting in undercapitalization and spotty capitalization.
- Economic development professionals are inadequately trained in rail-enabled economic development.
- There is a significant and costly disconnect between public-sector economic development and infrastructure planning, and private-sector business development and logistics.
- Public-sector transportation plans, private-sector logistics strategies, and infrastructure capitalization are project-based, not corridor, regional, and systems-based.
- Railroads operate in a legislative and regulatory environment diminished by outdated, illogical requirements.
Opportunities
- There is tremendous pent-up support for freight railroads. When real concerns are included and addressed, the public will approve of rail service growth as a public good.
- Rail is critical to the nation’s need to drive “economic beneficiation” at the local and regional level.
- Convening leaders and change agents across all eight sectors will lead to new performance metrics for rail investment, technology adoption, and service expansion.
- Advancing Collaborative Industrial Optimization will lead to action plans that are alive in the minds and work of the community.
Results
- The cost of change for institutions and the taxpayers will go down.
- The dialogue of change will be more transparent to all parties.
- The strategic plan for future unknowns will be based on collective intelligence rather than ad hoc speculation.
- Needed improvements will occur faster and with greater safety.
- Ongoing rail improvements will serve the needs of society while coinciding with capital practicality.
- Adopting new technologies, or those proven effective overseas, will bring innovation, safety improvements, and productivity gains to North American railroads.
- Building positive relationships with shippers and other stakeholders will deliver enormous benefits and open new growth paths.
- More collaborative and positive approaches to labor management will attract thousands of new workers, offsetting retirements in a problematic hiring market.
- Railroads improved flexibility, reliability, and willingness to serve the needs of small and early-stage shippers will grow into more high-volume shippers.
- This alignment will unleash a groundswell of support from policymakers, the financial community, and the public for freight railroads as the center of North America’s economic and environmental revitalization.