Private companies were able to build an entire network of railways in the US. But now, with all the new technology the modern world is able to offer, both companies and government struggle to build even a single railway. how is this even possible?
In: Economics
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It’s possible, and it does happen. But the politics and economics have shifted, because there’s a lot less demand for new rails (in part because so many are already in place, and there’s more competition from other forms of transit), and on the other side, there’s a lot more land being used, especially in the places you most want to lay down new track.
It’s at least as possible as it was back then. Technologically we have only progressed. It is not as big a priority as it has been. It’s about priorities (budgets). If you try to maintain an army that is as big as the next 8 armies combined with 300+ international bases you might run out of money before infrastructure budgets are drafted. Private companies do not maintain public infrastructure (without public money).
I’m sure there is a lot of complexity in a true answer but I would assume it boils down to matter of land ownership and regulations.
Who owns the land verses who needs/wants the railway and who ultimately is tasked with getting it. If land is private and the gov is funding then gov will try to buy but can eventually imminent domain it and forcefully take it for market value. If it’s a private company then they are stuck having to buy the land or areas around the land.
Then we get into railway regulations, what kind of trains, cargo, tracks will be laid? What kind of land are we building on? What animals and eco system are nearby, is anything endangered? Will this be a risk to the ecosystem or citizens nearby? So on and so forth.
I would assume you could look at all the stuff on the oil pipeline that was just cancelled for a similar situation.
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Laws and regulation.
When the transcontinental railway was built, those states and territories had literally no laws at all.
No one batted an eye when they blew up a mountain.
It was all built on cheap Chinese labor (borderline slave labor)
There was no fight over land ownership, no red tape at all.
Well, in those days communities would have gladly welcomed the rail lines (compared to the transportation available). It would have created immense wealth for the communities. Procuring the land wouldn’t have been an issue. The citizens and the local governments would be falling over themselves to get a rail line.
Today, quite the opposite. City residents would oppose this by lawsuits, zoning laws, regulations, restrictions on use etc etc. The legal fight before a single foot of line was laid down would cost many millions and take years.
The technology is not the issue, even the cost isn’t insurmountable. What businesses shun the most is uncertainty. A guaranteed project with 2% profit margin is doable. A project that requires billions up front, uncertain timing and with a high chance of cancellation etc – no one would do it.
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