Train lengths, e-commerce and mergers and acquisitions were among the topics discussed by four Class I railroads at the Credit Suisse 8th Annual Industrials Conference last week. Here are some highlights:
Kansas City Southern talks service design adjustments, longer sidings
Kansas City Southern (NYSE: KSU) hopes to implement the third phase of its PSR program in 2021.
Although this phase could be the most challenging, it also could be the most rewarding, according to Sameh Fahmy, executive vice president of precision scheduled railroading (PSR) for Kansas City Southern (KCS).
While KCS expects to provide more details about phase three in its fourth-quarter 2020 earnings call in January, it could include making infrastructure adjustments to accommodate longer trains. This could include lengthening sidings.
But because adding sidings takes time, KCS is also considering modifying its service design so that it builds blocks of cars in yards more inland so as to alleviate the work at the yards near the border and address the bottlenecks at the border, Fahmy said. For instance, classification work could occur deeper in Mexico than close to the border.
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