Erik Olson is the executive director of the Rail Security Alliance, which supports policies that promote the safety of the country’s railroad systems.
In a show of strong and thoughtful leadership, Sen. Chris Coons, D-Del., backed legislation as an original co-sponsor to benefit communities throughout Delaware. The focus is on modernizing the freight railcar sector, which contributes $445.8 million to the state’s gross domestic product.
In Delaware, the freight rail industry provides the reliable movement of critical goods throughout the entire supply chain. The Freight RAILCAR Act (Senate Bill 2758) would open the door to more investment in the field, and beyond. In Delaware alone, this sector supports 2,499 family wage jobs.
Freight rail touches every state. Nationwide, it powers the economy to the tune of $75.78 billion in GDP.
Like other critical infrastructure manufacturers that integrate newer and newer technologies, today’s freight railcars operate using the most cutting-edge and connected materials. These advances make the industry a no-brainer when enabling more investment.
The current North American fleet consists of more than 1.6 million railcars. Nearly a quarter of them are 40 years old. What’s more, in another 15 years, almost a quarter-million of the freight railcars in use today will be obsolete and in need of replacement, rather than repairs.
These are the issues that the Freight RAILCAR Act addresses.
Like its companion bill introduced in the House of Representatives, the Senate legislation calls for a time-limited tax credit that incentivizes domestic freight railcar manufacturers to retire less efficient cars, so the fleet can be modernized more quickly.
This will improve fuel efficiency and sustainability, and will boost Delaware’s freight rail manufacturing and supply sector, including families whose livelihoods depend on it. Because a provision excludes foreign entities, like China’s behemoth railcar builder CRRC, from taking advantage of the proposals, we can be sure that domestic manufacturers and suppliers will bring the fruit of these tax credits back to communities throughout Delaware.
Along with Sen. Jim Banks, R-Ind., who introduced the bill, Sen. Coons has paved the way for the Senate to take further action on the Freight RAILCAR Act. In the House, the legislation, which was introduced in early 2025, has the support of more than 67 Republican and Democratic members.
What’s more, it’s also backed by the American Foundry Society, the American Iron and Steel Institute, and the Railway Supply Institute — all groups that work on behalf of Delaware’s and the nation’s tens of thousands of freight railcar manufacturers and suppliers.
There’s no question. It’s time to modernize our fleet of freight railcars to meet the needs of our ever-complex critical transportation systems and supply chains.
This is a good bill that does just that. And it’s bipartisan. So, let’s get the word out: The Freight RAILCAR Act is a strong measure that will bring economic benefits to Delaware and will provide the incentives needed to update our freight railcars, ensuring that our transportation structures and supply chains are up to the task.
Reader reactions, pro or con, are welcomed at civiltalk@iniusa.org.
