The Economic Case for Passenger Rail in Ohio: Lessons from North Carolina
See how North Carolina's rail system goes beyond transportation, serving as an economic engine for the state. From boosting tourism and attracting manufacturing jobs to improving freight efficiency, learn key lessons for Ohio's passenger rail future.

July 31, 2025
Ben Paulus
As Ohio anticipates the future of intercity passenger rail, it needs to look no further than North Carolina to see the transformative economic potential of well-planned and well-funded rail infrastructure. At All Aboard Ohio’s Annual Meeting, Jason Orthner of the North Carolina Department of Transportation (NCDOT) laid out a compelling model, one that Ohio could adapt to unlock jobs, investment, and growth.

Rail as an Economic Engine
North Carolina treats rail not just as transportation, but as economic development infrastructure.
A recent analysis by NC State University’s Institute for Transportation Research and Education (ITRE) estimated that the the first 18-mile segment of the S-Line project (between Raleigh and Wake Forest), a $1 billion project, will generate:
$1.4 billion in economic output during the construction phase
8,022 job-years (equivalent to employing one person for one year)
$42.5 million in state and local tax revenue
And that’s just one segment of one corridor. By investing in a network of corridors, North Carolina will multiply this impact across the state.
In fact, NC by Train sees itself as an economic driver for the state. It runs services for special events like the NC State Fair, the U.S. Open in Pinehurst, and the Lexington BBQ Festival to make accessing events easier and to create awareness of train travel. As a side note, at All Aboard Ohio, we have taken note of trips like these and will be hosting our second annual trip to Chicago. Dubbed “Race to Chicago” this year, riders from Cincinnati and Cleveland will be getting up bright and early on August 9th to see if the Cardinal or the Lakeshore Limited will get there first! Watch on our social channels to see who gets there first.
Special event trains, station revitalizations, and new service expansions in North Carolina have supported local businesses, boosted tourism, and attracted major employers to communities previously disconnected from the rail network.
Manufacturing Jobs on the Move
Perhaps the most visible economic payoff is the Siemens Mobility plant now under construction in Lexington, NC. This facility was recruited through strong coordination between the NC Department of Commerce, US, North Carolina Railroad Company, and county and state officials. The $220 million facility, spurred by the state’s commitment to modern high-quality rail service, and an upgrade of it's current trains, will manufacture new Siemens Venture passenger cars and bring over 500 high-skilled jobs to central North Carolina, with the potential to grow to 1,500 jobs.
This factory isn’t just building trains; it’s building a local industrial economy.
Ohio, with its rich manufacturing base and slate of proposed rail routes across the state is ideally positioned to attract similar investments from rail manufacturers and rail operators like Amtrak or Brightline. But the state would need to signal a long-term commitment to passenger rail first.

Rural-Urban Economic Integration
North Carolina’s rail strategy connects rural towns to major metros, enabling economic opportunity to spread across the map. Future corridors, such as Salisbury to Asheville and Raleigh to Wilmington, aim to provide access to job markets, education, and healthcare for residents far from highways and airports.
For example, the Salisbury to Asheville corridor, covering 139 miles, is projected to serve over 400,000 passengers annually with three round trips, demonstrating significant demand. The Raleigh to Wilmington corridor, at 100 miles, with two proposed round trips, also shows strong potential.
This has clear parallels for Ohio. Imagine connecting Crestline or Lima to Columbus, or Youngstown to Cleveland—with trains that support both daily commuters and weekend travelers. Such investments don’t just move people; they move dollars, demand, and development.

Freight Benefits = Passenger Rail Benefits
North Carolina also looked for win-win opportunities alongside freight railroads rather than working from a yours or mine viewpoint. Specifically, improving safety, capacity, and modernizing systems were at the top of the list.
NC has invested heavily in freight capacity and crossing safety, using state funds through its Freight Rail and Rail Crossing Safety Improvement (FRRCSI) program. his program has garnered $1.25 billion in private capital investment since 2014, supported 36 new industry expansion projects, created over 2,500 jobs, upgraded 342 miles of railroads to Class 2 with increased speeds, modernized 24 railroad bridges, and upgraded 1,100 railroad crossings, removing 13 of them. These improvements have increased throughput for freight shippers, lowering costs for industries that depend on rail, especially agriculture, energy, and manufacturing, while also supporting passenger rail service.
Ohio, home to key national logistics hubs and some of Norfolk Southern's major interchanges, could expand this model to grow its freight economy while laying the groundwork for passenger service.
Big Payoffs
North Carolina's investment in increasing freight rail traffic is providing better passenger rail service on the very same routes. North Carolina didn’t get here through one-time spending. It used an incremental, long-term approach, starting with the Carolinian service in 1990 and the Piedmont service in 1995. It secured federal grants, invested in corridors over time, and measured success by ridership, job creation, and economic impact—not just miles of track. Ridership is currently 55% higher than in 2019, despite adding only two additional round trips since then. The $545 million Piedmont Improvement Program (PIP), funded by the American Recovery and Reinvestment Act (ARRA), transformed the Raleigh-to-Charlotte corridor, adding 35 miles of double track, upgrading signal systems, and closing 40 at-grade crossings.
For Ohio, the lesson is clear: even modest investments can yield substantial returns if they are strategic, collaborative, and think long-term.
Ohio’s Moment of Opportunity
With the Federal Railroad Administration’s Corridor ID program and billions in federal infrastructure funding now available, Ohio has a once-in-a-generation opportunity to invest in passenger rail—not just as a transportation project, but as a catalyst for economic growth. North Carolina has shown the blueprint. It’s time for Ohio to lay the track toward its own rail-powered future.
A big thank you to Jason Orthner of the North Carolina Department of Transportation (NCDOT) for sharing his perspective. You can view his keynote on our YouTube channel.
over photo courtesy of Malcom K
Ben Paulus
Ben Paulus is a communications strategist at All Aboard Ohio with professional experience in city development
ABOUT ALL ABOARD OHIO
All Aboard Ohio is a non-profit, member-based organization dedicated to promoting improved public transportation and passenger rail service throughout the state.
Founded in 1973 and incorporated as a registered 501c-3 in 1987, All Aboard Ohio has spent more than 50 years advocating, educating, and working towards our goal of a connected Midwest
All Aboard Ohio is a 501c-3 nonprofit with over 50 years of advocacy work, advocating for improved public transportation and passenger rail service in the Midwest
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