Railroad rights-of-way have had economic value for a variety of non-rail purposes, at least since World War II—fiberoptic cables recently and, before that, power transmission and pipelines, usually on abandoned rights-of-way. A new and compelling use is rapidly developing, tapping into, perhaps, a trillion-dollar market connecting renewable as well as conventional electricity with markets (load centers) for longer distances that require HVDC (High-Voltage Direct Current) instead of the more common high-voltage AC.
For distances greater than 200 miles, HVDC is preferred over AC. HVDC differs in needing only two conductors rather than the three of AC. This allows simpler towers, which fit better on railroad rights-of-way. DC, being constant voltage, does not have the induction issues of AC.
Background
After World War II and into the 1960s, Jim Blaze had his career introduction to these transactions, as large lengths of railroad track were up for abandonment. Urban area trackage was particularly of economic interest around Chicago, where Blaze started his career. Electric and petroleum/natural gas pipeline utilities sought to repurpose the easily convertible, regionally radiating abandoned or downsized railroad rights-of-way. It was a land use exchange transaction, not an opportunity for railroad electrification. We are now seeing significant joint-linear-use real estate opportunities for railroads.
