From the Editor — To spend or not: It feels like the 'nots' have it

To say that uncertainty rules in discussions about the North American economy is to state the obvious, but not acknowledging it borders on negligent: Three months into 2025, uncertainty — about tariffs and trade, about planning and purchasing, about the year ahead — has permeated just about every conversation I’ve had with railroaders and other transportation industry execs.

That uncertainty is reflected at least to some degree in the maintenance-of-way realm. While 2024 was a good year for many freight and passenger railroads in terms of investing in and completing MOW projects, it’s unclear what 2025 will look like on the rail infrastructure project front, as Managing Editor Jeff Stagl notes in the preface to our 24th annual MOW Spending Report.

Although many budgets were largely set before the winds of political change swept through Washington, D.C., it’s been a “much murkier business environment” since President Donald Trump took office on Jan. 20, as Stagl notes. Inflation, the aforementioned tariffs (the ones implemented and the ones that continue to be threatened) and other factors have made it more difficult for some to determine an appropriate budget and project slate. And this year’s spending report reflects that challenge, Stagl writes.

Among the Class Is, only Canadian Pacific Kansas City and CN planned to spend more on MOW this year, according to the report. Most of the short lines that budgeted more did so in part due to inflation and higher labor costs. And while passenger-rail providers’ spending plans can be set based on a range of factors beyond their control, many of those planning to spend more in 2025 tend to be doing so on projects for which funding had been obtained previously, or on projects that simply couldn’t be delayed any longer.

At some point, purse-string holders who’ve been on the sidelines waiting for clarity — from consumers to retailers to freight transportation folks — won’t be able to wait any longer. They’ll have to decide how much they’ll spend, or not spend, regardless of how much, or how little, clarity they have. For now, it feels like the “nots” have it, with all the corresponding implications not spending (or spending less) can have.

Regardless, and in the aggregate, the details for the infrastructure projects North American railroads told us they will undertake in 2025 tell a story — of what they’ll be working on, where they’ll work on it and how much they’ll spend along the way. Based on our survey and other obtained information, this year’s MOW Spending Report breaks down the spending plans of 67 freight- and passenger-rail entities. The passenger-rail spending information is available here. The freight-rail spending report information will be available in May in an ebook. 

From NS, a new solution to reduce supply chain emissions

At a time when sustainability initiatives aren’t exactly being shouted from the mountaintops, one Class I is touting a new supply chain emission reduction solution for customers.

On March 31, Norfolk Southern Railway launched RailGreen. Under RailGreen NS’ biofuel use is third-party certified, generating RailGreen certificates. Customers can purchase the certificates to apply toward their supply chain emissions. As customers purchase certificates, NS acquires more low-carbon biofuel for use across its operations.

The RailGreen process uses 123Carbon’s blockchain-backed environmental attribute certificates to certify that each ton of reduced carbon dioxide equivalent is uniquely tracked to prevent double counting.

RailGreen makes the Class I the world’s only freight railroad to offer verified certificates for supply chain emissions reduction, NS officials said.