Enhancing Intermodal Service through Public-Private Partnerships in Texas: Summary Report

The increasing levels of truck traffic on the state's highway system create an array of issues for the Texas Department of Transportation (TxDOT) ranging from highway safety, congestion, and air quality to the need for accelerated maintenance and capacity expansion. At the same time, railroads face challenges of their own. As a capital- and labor-intensive industry, railroads struggle to earn the cost of capital to maintain and operate their extensive networks. The opportunity for establishing a win-win scenario is apparent: by improving the efficiency of intermodal rail service through targeted public-private partnerships, rail transportation may capture a larger market share of intercity freight in Texas and allow important public benefits to accrue-thereby justifying the investment.