Since the passage of the transportation bond last month, several readers have written to the Bangor Daily News to express their opinion on rail as a future transportation option for Maine. One letter argues that railroads are a thing of the past and that interstate highways are the key to Maine’s future. While a good system of roads and adequate interstate and highway networks is certainly important to Maine’s economy, the railroad network is equally critical to future economic prosperity – or lack thereof.

Outside of Maine, railroads have experienced a resurgence since deregulation in 1980. Traffic volume has grown, market share has increased, new tracks have been built, new yard facilities constructed. For example, U.S. railroads are carrying 65 percent more freight today than in 1980. The loading of truck trailers and containers on flat cars (intermodal) has increased from 3 million in 1980 to more than 9 million in 2000, with double-digit growth since then. As of October 2003, 9 million intermodal loads had been carried by U.S. railroads, with the Christmas season yet to come.

Interestingly, only in northern New England have rails failed to realize significant growth in the past two decades. Everything we need comes in a truck, the thinking here goes. It may seem that way, but it will probably surprise most readers to know that the single largest customer that the railroads have is United Parcel Service. That’s right, Brown uses rail. UPS uses intermodal service between its terminals to reduce costs and to provide consistent delivery. UPS is such a large shipper that trains dedicated only to UPS shipments run all over the country every day.

Further, FedEx Supply Chain Services has recognized the Burlington Northern and Santa Fe Railroad as one of its top service providers this year. Yes, even FedEx uses trains. In fact, rails accounted for 42 percent of all ton-miles of freight carried in the United States last year, compared to 28 percent for trucks, 17 percent for pipelines, 13 percent for water, and less than one-half of 1 percent for air freight. Only in Maine and northern New England were the numbers skewed heavily toward trucks.

Good rail service and access is critical to economic development. When firms are considering building new facilities, rail service is near the top of their list of considerations. Rail can provide a low-cost method of receiving and shipping product, especially when the distance involved exceeds 500 miles. When firms evaluate the total cost of locating in an area, or continuing to operate in an area, transportation costs and options are an important consideration. This is especially true for heavy or bulky product shipments, like lumber, paper and pulp.

Maine is at a competitive disadvantage compared to nearly every other state in the nation when it comes to rail access. Even Vermont and New Hampshire have better rail access than Maine. Maine is served by two regional railroads (and a few short lines): the new Montreal, Maine and Atlantic, and Guilford. Guilford operates generally south of Bangor with the MM&A north of Bangor.

However, even with two railroads in the state, access to these railroads is somewhat limited. The closest intermodal terminal to Bangor is in Waterville. The MM&A is a property recovering from years of neglect under several unsuccessful owners. Guilford operates the old Maine Central and the Boston and Maine. Both companies were in great financial difficulty when Timothy Mellon pulled Guilford together, and rebuilding the tracks and facilities left behind by the MEC and B&M has not been easy, especially as paper mills and other industries downsize in Maine.

If Maine is to have a rosy economic future, we must ensure that rail not only remains an option in the state, but a better option than it is today. Without a strong rail system, Maine will be unable to attract or retain the types of industry for which the state is otherwise well suited.

A good example can be found at the Georgia-Pacific mill in Old Town. G-P recently considered closing the facility by consolidating production at a plant in New York state. There is little doubt that transportation was an issue for G-P. The cost of shipping by truck from Old Town puts the plant at a competitive disadvantage with other plants around the country. While some product does move by rail, an intermodal option would improve the mill’s transportation cost structure and therefore the efficiency and the future of the facility.

Like all businesses, railroads invest in areas where they see growth potential. Why have railroads avoided investing in Maine? The answer is obvious. Business is leaving our state, and we must create the right environment to encourage business to stay – and to locate – in Maine. That will require a strong transportation network that provides viable rail and road options for shippers and receivers.

The time to invest in our transportation infrastructure is now. The passage of the transportation bond indicates that Mainers understand, and support, transportation investments. Let’s get to work building a multi-modal transportation network that works for Maine and its businesses.

Daniel E. Innis is the dean of the College of Business, Public Policy and Health at the University of Maine.