Tennessee's Rail System Highlights Class 1 Investment and Memphis's Intermodal Importance

Tennessee's freight rail system is set to play a pivotal role in enhancing the state's transportation infrastructure, as highlighted during a recent House Transportation Committee meeting on March 4, 2025. The meeting underscored the significant contributions of Class 1 railroads, which operate over 2,000 miles of track in Tennessee, accounting for 70% of the freight rail mileage in the state.

Class 1 railroads, including major players like BNSF, CSX, and Norfolk Southern, invest heavily in infrastructure, spending approximately $23 billion annually on maintenance and rehabilitation. This investment is crucial, as it ensures the safety and efficiency of rail operations, with 39 cents of every revenue dollar being reinvested into maintaining the rail network. Over the past 43 years, these railroads have collectively invested around $810 billion in various infrastructure improvements, including locomotives and freight cars.

Memphis stands out as a key intermodal hub, recognized as one of five gateway cities in the U.S., alongside New Orleans, Chicago, St. Louis, and Kansas City. The city hosts two major intermodal facilities, facilitating the movement of diverse commodities such as chemicals, food products, and construction materials. The meeting revealed that in 2022, railroads in Tennessee moved freight that would have otherwise required 10.6 million trucks, highlighting the efficiency and environmental benefits of rail transport.

The state is home to 27 freight railroads, comprising six Class 1 railroads and 21 short lines, employing approximately 2,900 individuals. The discussions also touched on the interconnectedness of Class 1 railroads with short lines and trucks, emphasizing the importance of these networks in providing comprehensive freight solutions.

As Tennessee continues to develop its transportation infrastructure, the insights shared during this meeting will be instrumental in shaping policies that support the growth and efficiency of the freight rail system, ultimately benefiting the state's economy and reducing road congestion.