Railroads continue to play a significant role in North America’s economic infrastructure. According to the U.S. Department of Transportation Federal Railroad Administration, the U.S. rail freight network covers almost 140,000 route miles and is generally considered the largest, safest, and most cost-efficient freight system in the world. In addition, says the FRA, the almost $80 billion rail freight industry creates more than 167,000 jobs across the country.
In essence, rail freight companies charge businesses to carry cargo across their network of rails. Their rates are overseen by the Surface Transportation Board, a federal agency that regulates financial aspects of surface transportation. Major railroads in North America include Union Pacific Railroad, BNSF Railway, CSX, Norfolk Southern, Canadian Pacific Kansas City and Canadian National Railway.
Keep up with the latest news, trends and reports concerning rail freight transport here!
First-quarter operating ratio was 61.5%, compared with an adjusted operating ratio of 63.7% in the first quarter of 2020.
The costs to electrify freight rail in the U.S., albeit expensive, extend beyond strictly capital costs to questions about electric grid reliability and how best to address decarbonization.
CN outlined some scenarios in which a merged railway can compete with long-haul trucking.
A portal to provide agricultural shippers with visibility for their covered hopper cars will help them conform to food safety transportation standards and prevent cross-contact with food allergens.
Canadian railway CN reported net profit of CA$974 million in the first quarter of 2021, a 3.7% decline from the first quarter of 2020.
The Canadian railway CN and Kansas City Southern have agreed to talk about CN’s acquisition bid. Canadian Pacific, which has a competing offer, acknowledges the meeting. CN also submits letters of support from stakeholders to regulators.
OmniTRAX is working with the River Ridge Development Authority of southern Indiana to develop real estate, while a Genesee & Wyoming subsidiary broadens its rail service agreement to include service to the Mason Mega Rail Terminal at the Port of Savannah.
The Surface Transportation Board has determined that a waiver that exempted Kansas City Southern from post-2001 merger rules governing rail mergers applies in the proposed merger between KCS and Canadian Pacific.
Rep. Peter DeFazio, D-Oregon, chair of the U.S. House Transportation and Infrastructure Committee, is concerned that efforts by rival Canadian railways to acquire Kansas City Southern could usher in more consolidations in the freight rail sector.
With a Canadian Pacific and Kansas City Southern merger, grain shippers in the Dakotas will have a real single-line option to reach their end markets rather than having to rely solely on UP or BNSF, says former U.S. Sen. Byron Dorgan.
The Surface Transportation Board will need to scrutinize a proposed merger between Kansas City Southern and either Canadian Pacific or CN to ensure it doesn’t hurt the operations of competing railroads, Union Pacific’s head said on the company’s first-quarter earnings call.
Wabtec is working with railroad customers to transition from diesel power to cut emissions.
FreightWaves introduces FreightWaves Carbon Intelligence. Learn more here!
A 4% drop in operating revenue contributed to a 9% decline in net income for Union Pacific’s first quarter.
For now, Canadian Pacific is not planning to take part in a bidding war with rival CN to acquire Kansas City Southern, saying that its offer is more likely to meet regulators’ litmus test for mergers.
Canadian Pacific’s revenue for the first quarter of 2021 dipped 4% to CA$1.96 billion.
Canadian Pacific and CN both filed letters to the Surface Transportation Board asking the panel to consider the merits of their competing requests to acquire Kansas City Southern.
CSX has capacity on its network, space on its trains and the workforce and locomotives it needs to handle an anticipated growth in service needs in 2021, according to company executives.
CP, which is also seeking to acquire KCS, describes rival CN’s bid to acquire KCS as “massively complex and likely to fail” because it decreases competition.
CSX’s first-quarter net income fell 8% to $706 million from $770 million a year ago.
