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The reduction in CO2 and oil demand does make sense because freight trains, even when they run off of diesel, are far more efficient than diesel-burning trucks on a per mile basis.
The idea behind this is companies would use freight rail instead of shipping cargo by trucks.
C02 - Freight trains produce less C02 then trucks.
Oil Demand - Freight trains are also more fuel efficent then trucks.
Traffic congestion - Less trucks on the road, less congestion
GDP - It's cheaper to ship by rail then trucks. This would lower prices on goods, thus the increase in GDP.