Opportunity Arises From New U.S. Rail Safety Order

October 8, 2015

The United States isn’t known for its rail system. Regardless, train usage is certainly on the rise. Unfortunately, so are derailments.

Back in 2008, a major train accident in California led Congress to federally mandate positive train control (PTC), a technology intended to prevent collisions or derailments caused by excessive speed.Website Insert Passenger Trains Very Well copy

The safety issue came into play again this year when an Amtrak train derailment killed eight people and injured hundreds more outside of Philadelphia. Investigators from the National Transportation Safety Board said the new technology likely would’ve prevented this accident, which was caused by human error.

Congress initially gave railroad companies seven years to complete the installation of the PTC safety system. But the industry is behind schedule, and may not have the technology available on approximately 60,000 miles of rail tracks by the December 31 deadline.

The U.S. rail industry has already sunk a whopping $6 billion into the PTC system. And stakeholders will probably inject even more capital into the sector, as a deadline extension is likely.

Knowing which companies are involved could benefit your portfolio, even if you’re not much of a train rider.

Read the full story from Shelley Goldberg at Wall Street Daily by clicking here.


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