WASHINGTON, Nov. 19, 2025 — The growing demand for reliable connectivity has made high-speed rail projects and sustainable green-hydrogen passenger trains the most sought-after modes of commute.

 

With huge budget allocation, these projects not only see public-private partnerships but also the formation of Special Purpose Vehicles, or SPVs, and consortiums that raise large-scale funds to deliver these projects. From the inception to the delivery stage, the construction of high-speed train infrastructure has become dependent on equipment for which newer Original Equipment Manufacturers, or OEMs, have emerged.

 

While there has been a spurt in the number of companies supplying equipment for rail coaches as well as railway lines, a matter of concern has been that the railroad material producing business is not attracting new players. Steelmaker Cleveland-Cliffs recently announced that it will permanently close its Steelton, Pa., plant, bringing curtains down on one of the three key domestic producers of track rail in the U.S.

 

In a letter to its employees, the company said that its south-central Pennsylvania operations, served by Norfolk Southern, have been halted since June this year owing to weak demand and depressed pricing. Steel Dynamics, Inc., based in Fort Wayne, Ind., and Pueblo, Colorado’s Orion Steel are the remaining producers of heavyweight rail in the U.S.

 

Major Railway Equipment Suppliers Boost Projects

 

Caterpillar’s Progress Rail: Construction equipment manufacturer Caterpillar has a global presence, supplying worldwide. Progress Rail, a Caterpillar company, provides rolling stock and infrastructure solutions for the global rail industry, with nearly 200 facilities in 16 countries. It is also committed to the American market, with a large network of facilities across the United States providing everything from trackwork to railcar repair to recycling. With a presence in more than 30 states, Progress Rail is conveniently located and strategically equipped to meet its customers' needs.

 

Hydrogen Passenger Train: Accelera by Cummins, the zero-emission business segment of Cummins Inc., is powering North America’s first hydrogen passenger train, creating a major milestone and a way forward in the transition to clean urban transportation in the Americas. Manufactured by Alstom, the global green and smart mobility leader, the Coradia iLint train entered service in Canada on June 17 as part of Alstom’s demonstration project, propelling the development and marketability of hydrogen propulsion technology in North America.

 

Herzog’s Evolving Presence: With a strong market share in the rail and heavy highway contractor segment across North America, Herzog has used locomotive technology to solve complex transportation problems in hostile operating environments. With almost fifty years of experience and a highly qualified team of professionals, Herzog Railroad Services, Inc., or HRSI, and Herzog Railroad Services of Canada, Ltd., deploy a vast fleet of specialty railroad maintenance equipment designed and built in-house. Herzog provides the safest and most effective innovations in the industry.

 

Amtrak’s Equipment Worries: In 2025, the National Railroad Passenger Corporation Amtrak increased equipment procurement from OEMs. In an effort to boost small businesses, Amtrak has been launching tenders for procurement of goods and services in accordance with its policies. However, despite the upbeat tendering sentiment, Amtrak is confronted by serious challenges. The corporation is facing an equipment crisis after it recently retired 80 Horizon cars due to corrosion. The operator has also yet to deploy its new Acela trains after years of delays. Lack of adequate rolling stock has dampened expansion of services nationally.

 

Why is High-Speed Rail Alliance Proposing NEP?

 

Experts in the rail service domain, who are often seen heading these projects, have been advocating for novel ideas such as the setting up of a National Equipment Leasing Pool, or NEP, to help tackle the problem of limited railway equipment stocks being rolled out. While an NEP is expected to overcome the shortage being witnessed from the Original Equipment Manufacturers, or OEMs, side, it is important to encourage emerging manufacturers and provide them a level playing field.

 

The NEP proposal aims to create a federally procured pool of standardized intercity passenger equipment, which can undergo a leasing process or be directly sold to public agencies and private-sector operators.

 

US campaign group High-Speed Rail Alliance has been vocal about the need to boost the train equipment market vis-à-vis the overall railway ecosystem in the United States.

 

During a recent Railway Interchange event, John Robert Smith, Chairman of Transportation for America, highlighted the growing public demand for passenger rail and its clear economic potential. Smith proposed the creation of a National Equipment Leasing Pool.

 

Rick Harnish of High-Speed Rail Alliance told the BBC that it was good to see two high-speed rail, or HSR, projects being developed in the US. ‘The first is the San Francisco to Los Angeles route,’ he explains. ‘That’s an incredibly challenging route to build because of the mountains in California. Then there’s Las Vegas to Los Angeles, a relatively easy project to build, as it is flat land.’

 

In addition, there are plans for an HSR line from Portland in Oregon to Seattle in Washington State, and onto Vancouver in Canada, and another between Dallas and Houston.