STB chairman chides Wall Street on rail picks

STB chairman chides Wall Street on rail picks    U.S. Surface Transportation Board Chairman Douglas Buttrey, took Wall Street analysts to task Friday for suggesting in reports to clients that railroads should return more of their profits to shareholders rather than investing in expensive infrastructure expansion projects.
   Railroads are enjoying record profits and plowing billions of dollars into new track, truck transfer yards and equipment to make up for years of losses and deferred maintenance when demand was not as strong as today.
   Speaking at a Transportation Table luncheon in Washington sponsored by Traffic World magazine, Buttrey said he was “troubled by what I believe to be the shortsightedness of some analysts” and “amused” that “they are not satisfied with counting the money in the till every 15 minutes, but want to tell the railroads how and when to spend their money as well.”
   In general, analysts “are attempting to substitute their judgment for the judgment of seasoned railroad management,” he said.
   Railroads “need to be given the chance to return a reasonable amount of their earnings back into infrastructure in order to meet future traffic demands,” he added.
   Keeping a close watch on capital spending and how it impacts earning potential is important for railroads, but at the same time executives need to plan for the future and take calculated risks to grow their companies, Buttrey said.