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North American railroads need to acquire more rail cars to meet surging demand because overall rail capacity remains tight, according to a report by transportation forecasting firm FTR Associates.

Although carloads increased 5.2 percent last year — the largest rise since 1994 — railroads have been unable to boost productivity by increasing train speed. Roads most likely won’t boost speed until next year, FTR states in its “N.A. Railroad Equipment and Deliveries Outlook” report.

Currently, the number of rail cars in service is at its highest level since the merger years of 1997 and 1998, and half the cars are more than 20 years old. By 2015, railroads will need to begin retiring an average of 60,000 cars annually, FTR estimates.

“Demand in the marketplace would suggest the need for [car] deliveries of 65,000 to 70,000 units over the next few years,” said FTR President Eric Starks in a prepared statement. “However, physical constraints by the equipment manufacturers will limit this to 61,700 units in 2005 followed by 63,100 units in 2006.”