APL, Ltd. chief executive Ron Widdows was recently cited in the Journal of Commerce saying "more than half of the eastbound trains on the U.S. West Coast are more than 24 hours late." APL ships goods between Asia and the West Coast. He says he is deeply concerned about the rail system’s ability to handle trade volumes project for five and ten years from now.

Railroads are investing in themselves, but a study last year by the American Association of State Highway and Transportation Officials (AASHTO), the "trade group" for state DOT’s, found that the levels are insufficient for rail to maintain its current share of the freight market (MTR #449). AASHTO called for at least $4 billion in annual public investment in rail freight to shore up rail infrastructure in the face of booming trade volumes.

The Asia-East Coast trade market seems especially vulnerable — some shipping lines serve the market via all-water routes, but they say they are fully engaged and that Panama Canal capacity will constrain additions. Much of that market is served by water to the West Coast and then rail across the U.S. The Journal of Commerce recently cited rail customers who said they built in extra time for shipments because the stretched railroads are unable to keep to their own schedules. v