The United States is a very large, land-mass country. Yet, it
offers few options in terms of coast-to-coast mass public transit, particularly
compared to other developed countries. Europe’s countries tend to be smaller
and their cities more dense, making them more transit-friendly. Asian countries
made enormous government investments in urban rail networks just as their urban
populations began to rapidly expand.1
In the U.S., however, many metropolitan transit
systems are dated and overcrowded. The New York Metropolitan Transportation
Council reports more than 6 million rapid rail trips and nearly 1 million
suburban rail trips on any given weekday. One way to free up crowded subway
platforms is to run more trains so there are fewer passengers on each train.2 This would require substantial investments to
update the nation’s passenger railway system.
To add to the problem, auto traffic congestion, air
pollution and fossil fuels are widely believed to contribute to our growing
climate crisis. If there is a silver lining, it’s that the challenge of
developing affordable and environmentally responsible transportation options
has led to innovations that may help the U.S. develop high-speed rail options
comparable to other developed countries.3
Recent market volatility presents a long-overdue reminder that
investing is unpredictable and performance can be upended for any number of
unexpected reasons. That’s why it’s important to diversify investments and
consider companies with solid, long-term growth plans in viable industries.
Growth is frequently tied to demand, and transportation offers the potential
for long-term investments that respond to mass population needs in a
sustainable and environmentally responsible manner. If this is a sector you’d
like learn more about, we can help.
To date, the U.S. government has had little success in updating
the country’s railway systems due to fiscal debt concerns. Now, the push for
improved rail systems is coming from the private sector, including projects
with the potential to connect Washington and New York City in one hour, a
high-speed train network running from Orlando to Miami, and a high-speed line
between Las Vegas and the greater Los Angeles area.4
The city of Lincoln, Nebraska, purchased 10 battery-electric,
zero-emission public transit buses. This is part of its commitment to reduce
greenhouse gas emissions by 100 to 160 tons per bus per year, as compared to
traditional clean-diesel buses.5
Another mass transit project anticipating a mammoth facelift is
the traditional American airport. In terms of updating infrastructure and
accommodating future demand, the investment can’t come soon enough. According
to the International Air Transport Association, the number of travelers passing
through airports worldwide is expected to double, rising to 8.2 billion by 2037.6
Because people spend so much of their travel time arriving early
for security purposes and waiting during layovers, the future airport is being
reimagined as an “aerotropolis.” In other words, they will combine small,
technology-enabled hubs with public spaces featuring waterfalls, gardens and
walking paths, as well as a plethora of retail and restaurant options.7
Investment
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Investment Adviser. Insurance services are offered through Imber Wealth
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affiliated companies
1 Jonathan English. City Lab. Oct. 10, 2018.
“Why Public Transportation Works Better Outside the U.S.” https://www.citylab.com/transportation/2018/10/while-america-suffocated-transit-other-countries-embraced-it/572167/.
Accessed Feb. 28, 2020.
2 Hitachi. 2020. “Key Strategies for Reducing
Traffic Jams.” https://social-innovation.hitachi/en-us/think-ahead/transportation/key-strategies-for-reducing-traffic/.
Accessed Feb. 28, 2020.
3 Trevor Bach. US News & World Report. Sep.
10, 2019. “U.S. Cities Play Catch-Up on High-Speed Rail.” https://www.usnews.com/news/cities/articles/2019-09-10/us-cities-play-catch-up-on-high-speed-rail.
Accessed Feb. 28, 2020.
4 Ibid.
5 Oil & Gas 360. Feb. 27, 2020. “Nebraska’s
StarTran drives sustainability forward with 10 electric buses from New Flyer;
celebrates arrival of first zero-emission bus to Lincoln.” https://www.oilandgas360.com/nebraskas-startran-drives-sustainability-forward-with-10-electric-buses-from-new-flyer-celebrates-arrival-of-first-zero-emission-bus-to-lincoln/.
Accessed Feb. 28, 2020.
6 Honeywell. Bloomberg. 2020. “What’s the Next
Hot Destination? The Airport.” https://sponsored.bloomberg.com/news/sponsors/features/honeywell/tbt/?adv=24625&prx_t=r3QFAtMA-AWCkPA.
Accessed Feb. 28, 2020.
7 Ibid.
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