Thursday

10-30-2025 Vol 2129

Washington State Considers State Ownership of Railroads Amid Freight Infrastructure Challenges

Legislators in Washington State are increasingly showing bipartisan interest in upgrading the state’s freight rail system, citing both its aging infrastructure and the potential economic growth benefits that improved rail services could provide.

Proponents argue that enhancements to freight and passenger rail systems can play a crucial role in achieving the state’s climate goals.

However, conversations about progress remain stalled due to the significant control exerted by major rail companies such as Union Pacific (UP) and Burlington Northern-Santa Fe (BNSF).

These Class I railroads, which each surpass $500 million in annual revenues, possess substantial leverage over the state due to their ownership of the majority of rail tracks.

This has led to conflicts not only about operational matters but also concerning who benefits from these critical transportation networks.

Unlike the United States, where private rail ownership is prevalent, many countries recognize that prioritizing shareholders over community needs leads to systemic inefficiencies.

Historically, the U.S. has addressed this issue, as seen during World War I when nationalization of railroads was deemed necessary to support the war effort.

In Washington State, the Palouse River and Coulee City system (PCC) serves as a modern example of successful state intervention in rail ownership.

This railroad was taken over by the Washington State Department of Transportation (WSDOT) after UP’s neglect led to potential abandonment, endangering Eastern Washington’s agricultural economy.

Mike Bagott from Palouse Grain Growers, a local grain co-op, highlighted UP’s lack of focus on rail operations, saying they were more interested in using the tracks for storage rather than transportation.

Bagott emphasized the impracticality of using trucks for grain shipping, stressing the importance of rail for their economic viability.

In response to the situation, the state has committed $3.4 million annually towards rehabilitating the PCC through 2031 and has secured additional federal funding.

This investment, coupled with the initial $27.7 million purchase price, is minuscule compared to the billions earmarked for individual highway upgrades across the state.

While these funds ensure the sustainability of a vital agricultural sector, they also exemplify the case for economic intervention where short-term profit-seeking behavior by private entities threatens infrastructure integrity.

Washington has other examples of government-run railroads, including Tacoma Rail, which is economically self-sufficient and has benefitted the Port of Tacoma.

However, Tacoma Rail’s self-sustaining nature limits its applicability as a model for future endeavors.

Public expectations should not place the burden of building and maintaining critical infrastructure on private companies, especially in light of state goals to decarbonize transport systems.

Historical reliance on private rail operators has previously led to infrastructural neglect that nearly decimated vital agricultural industries.

In Western Washington, the state has poured money into highway expansion, often overlooking the potential for rail solutions, as demonstrated in the Puget Sound Gateway project.

WSDOT has also faced challenges in securing timely investments from the Class I railroads, which experience frequent delays in passenger service and significant funding gaps.

This neglect directly impacts taxpayer investments in infrastructure, raising serious questions about accountability and the proper use of public money.

During a recent hearing, Representative Alex Ramel expressed concerns about the unclear return on investment from rail companies like BNSF, questioning the proportionality of state contributions to the infrastructure they profit from.

WSDOT Director Jason Biggs acknowledged the lack of transparency related to railroad costs, further complicating state planning efforts in the face of fluctuating market conditions.

BNSF and UP’s short-term focus ultimately hinders effective long-range planning necessary to adapt to climate change and evolving population dynamics.

With the rail system lagging behind modern needs, it’s essential that Washington State seizes the opportunity to invest where private interests have fallen short.

By taking a more active role in rail infrastructure stewardship, the state can better serve its agricultural needs and contribute to broader economic stability.

image source from:theurbanist

Charlotte Hayes