Do railway companies get government funds for developing new trains similar to the air-industry?

Question

Both railways and air-transport are only profitable because they're subsidized. I want to know to what extent.

Answer 1

In Britain generally not, though a new high speed Inter City train to replace that which has been in service here since 1976, is being developed and designed in conjunction with the government's Department of Transport. We have an extensive and high frequency rail network here; subsidy of fares is being phased out, but some rural lines will continue to have their fare box revenue subsidised; the government

continues to pay for new lines and extention projects wholly or in part, such as the new 'Cross Rail' which will create a new rail tunnel under the centre of London ,enabling a high frequency service to run from towns to the east of London right through the centre to towns to the west of London. Although the trains  in Britain  are operated  by private copmpanies under franchise agreements, the actual tracks are owned by Network Rail which is called a 'not for profit company' but is essentially owned by the government.

Answer 2

actually no they dont.

Railroads are NOT subsidized as trucks and airlines and barge companies are.

They are in fact penalized, they pay taxes on all their property in each county they operate in.

They are taxed on all their equipment and the development of that equipment, no one does it for them

When a peice of railroad track needs rebuilding the railroad itself has to do that, no one does of for them like we do with highways.

That is one reason railroads have had a very hard time competing in many markets, they are not subsidized and are in fact penalized.

It is true that Amtrak pays railroads a fee for using their tracks but it is not a subsidy, in fact it is usually a break even deal for the railroads at best. Most railroads would be much happier if they did not have to deal with Amtrak.

Answer 3

As Rango said, railroads are not profitable because they are publicly subsidized, this is only the case for Amtrak, the nation's passenger rail carrier, which receives annual subsidies (but it is in no profitable).  Private freight railroads pay for all of their own maintenance and capital improvement projects although they do sometimes receive federal help for the latter (for instance, at present, Norfolk Southern is working on a massive upgrading of its main line through Virginia, West Virginia, and Ohio known as the Heartland Corridor project, which is partially federally funded).  

In any event, in regards to the passenger industry, Amtrak receives almost nothing compared to the airlines and highways (about $2 billion annually).  So, while the carrier does receive government subsidies, if they were more along the lines of what highways and airlines receive we would have a much more efficient and prosperous passenger rail system in this country (it should also be noted that by its very nature, passenger rail is rarely profitable, which is why the private freight railroads jumped ship and shed the service back in the early 1970s, so to be efficient, it needs to be subsidized).