Why Passenger Train Manufacturing Is Booming In The U.S

CNBC

CNBC

18 min, 23 sec

The video details the current state and future plans for passenger rail travel in the U.S., highlighting investments, challenges, and manufacturer perspectives.

Summary

  • U.S. lags in train travel ridership compared to other industrialized nations, partly due to lower infrastructure investment.
  • Significant investments are underway, including a $66 billion allocation from the Infrastructure Investment and Jobs Act for rail improvements.
  • Manufacturers like Siemens and Alstom are expanding U.S. operations to comply with Buy America provisions and meet growing demand.
  • Despite optimism from manufacturers and ongoing projects, challenges such as funding, political support, and infrastructure readiness persist.

Chapter 1

Overview of U.S. Train Travel and Infrastructure Investment

0:00 - 23 sec

The video begins by acknowledging the low preference for train travel in the U.S. and compares infrastructure investment with other countries.

The video begins by acknowledging the low preference for train travel in the U.S. and compares infrastructure investment with other countries.

  • Train travel in the U.S. has lower ridership compared to other industrialized countries.
  • Countries like China invest more in rail infrastructure; however, U.S. investment is increasing.

Chapter 2

Railcar Manufacturing Revenue Projections and Investment

0:24 - 21 sec

The segment discusses the expected growth in railcar manufacturing revenue and the types of investments being made.

The segment discusses the expected growth in railcar manufacturing revenue and the types of investments being made.

  • Railcar manufacturing revenue in the U.S. is projected to reach $2.9 billion by 2028.
  • Investment in passenger rolling stock, including high-speed rail, is expected to grow annually by 4.7% from 2021 to 2026.

Chapter 3

Federal Funding for Rail Improvements

0:48 - 20 sec

This chapter highlights the impact of the Infrastructure Investment and Jobs Act on the rail industry.

This chapter highlights the impact of the Infrastructure Investment and Jobs Act on the rail industry.

  • The Infrastructure Investment and Jobs Act designates $66 billion to improve the nation's rail system.
  • This law represents the most significant investment in rail, roads, and public transit in decades.

Chapter 4

Allocation of Funds and Private Sector Initiatives

1:11 - 42 sec

Details on how the allocated federal funds will be used and private companies' involvement in rail projects are discussed.

Details on how the allocated federal funds will be used and private companies' involvement in rail projects are discussed.

  • Amtrak and state-run intercity passenger rail services to receive significant portions of the $66 billion funding.
  • Private company Brightline is expanding its service in Florida and seeking federal funds for a new project.

Chapter 5

Buy America Provisions and International Manufacturers

2:09 - 36 sec

The segment explains the Buy America laws and their impact on international train manufacturers' investments in the U.S.

The segment explains the Buy America laws and their impact on international train manufacturers' investments in the U.S.

  • Manufacturers must comply with Buy America laws, leading to increased investment by international companies in U.S. operations.
  • Companies like CRRC and Hitachi are investing significantly in U.S. manufacturing facilities.

Chapter 6

The Importance of Federal Funding for Passenger Rail Growth

2:46 - 19 sec

This segment emphasizes the role of federal funding in the growth of the U.S. passenger rail industry.

This segment emphasizes the role of federal funding in the growth of the U.S. passenger rail industry.

  • Experts believe federal funding is crucial for the development of the U.S. passenger rail industry.
  • The video suggests that the new investments could drive significant industry growth.

Chapter 7

Siemens Mobility's Role in U.S. Passenger Rail Manufacturing

3:36 - 3 min, 44 sec

Siemens Mobility's contributions to U.S. passenger rail manufacturing and its plans for expansion are showcased.

Siemens Mobility's contributions to U.S. passenger rail manufacturing and its plans for expansion are showcased.

  • Siemens Mobility has a significant presence in U.S. rail manufacturing and is expanding with a new facility in North Carolina.
  • The company's largest U.S. customer is Amtrak, for which it is manufacturing and maintaining new train sets.

Chapter 8

Alstom's Train Manufacturing Capabilities and Contracts

7:45 - 4 min, 12 sec

The chapter focuses on Alstom's manufacturing facilities and the notable contracts it has secured.

The chapter focuses on Alstom's manufacturing facilities and the notable contracts it has secured.

  • Alstom's facility in Hornell, NY, has expanded and secured contracts for subway cars and high-speed train sets.
  • The company has made significant investments and developed a U.S.-based supply chain.

Chapter 9

Challenges and Future of U.S. Passenger Rail

12:05 - 2 min, 33 sec

The final segment discusses the challenges U.S. passenger rail faces and the prospects of high-speed rail development.

The final segment discusses the challenges U.S. passenger rail faces and the prospects of high-speed rail development.

  • Despite the federal investment, experts argue more funding is needed to match global standards.
  • Political challenges, infrastructure limitations, and prioritization of freight over passenger trains are significant hurdles.

Chapter 10

High Speed Rail Prospects and Industry Optimism

14:45 - 3 min, 23 sec

The video concludes by exploring high-speed rail projects in development and the industry's optimism for passenger rail growth.

The video concludes by exploring high-speed rail projects in development and the industry's optimism for passenger rail growth.

  • High-speed rail projects like California High Speed Rail and Brightline West are underway, with Siemens and Alstom as potential builders.
  • Experts believe a successful high-speed rail project could catalyze the industry and shift transportation preferences.

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