railroad

The rail equipment manufacturer sees high utilization rate but says economy faces uncertainty.

Coal production in the region could fall significantly in 2020, affecting rail volumes.

Company eyes cross-border volume growth and efficiency improvements.

Rationalizing additional network assets is still a possibility in 2020.

Government initiatives are encouraging the freight rail sector to address cyber threats. But what else needs to be done?

With U.S. rail volumes slumping in the third quarter, can PSR soften that blow to the rail’s bottom line?

Excerpt: The companies promote and assign new roles to longstanding employees.

Awarded projects could benefit freight rail indirectly.

The proposed actions address major rail shipper complaints voiced to the Board earlier this year.

“We don’t know where the bridge went. We do know it went down, most of the middle sections did go down to the south.”

The rulemakings address cost of capital calculations and rail performance data for chemicals and plastics traffic; shippers also press Board to act on fuel surcharges.

The railway grappled with not only the potential for cold temperatures but also macro uncertainty in crafting plan.

Jim Blaze writes about the decisions that will go into determining 2020 capital expenditures by the freight railroads.

Year-to-date U.S. rail traffic down 3.8 percent from the same period in 2018.

To meet future rail demand, stakeholders must confront communication dysfunction.

The recommendations by the National Transportation Safety Board relate to a fatal October 2018 accident in which a moving train struck a stationary one.

As precision scheduled railroading takes hold, headcount levels drop to their lowest in years.

The rail equipment manufacturer will close its Boise facility and move operations to Erie.

Two lawmakers want more extensive review of the risks and practice of using tank cars to haul liquefied natural gas.

Trade uncertainty and loose truck capacity continue to weigh on rail traffic.

The trade group has been lobbying Congress to make permanent a tax credit for infrastructure investments.

The railroad, which has dedicated operations in Mexico, has invested in capital infrastructure related to energy.

The Surface Transportation Board has proposed two rules that could ease shippers’ burdens when contesting rail rates.

U.S. rail volumes are down nearly 4% year-to-date amid a 6.6% decline for coal and a 4% drop for intermodal.

The railroad was building the train when it derailed and caused a tank car to catch fire.

The Class I railroads are steadily implementing positive train control, but the railroads overall still have a ways to go before the December 2020 deadline.

Three Class I U.S. rail operations earned enough returns on investment in 2018 to support their capital projects.

Final investment decisions for new global LNG export plants are surging, a negative for future thermal coal demand.

Can carload rail become a volume and market share leader in today’s emerging high-tech freight logistics world? Or will it continue to exhibit a declining role?

The railcar manufacturer says the covered hoppers are shorter but enable faster grain discharges.

The two railroads said customers should expect delays and possible rerouting.

The decline in U.S. coal production could cost the railroads billions in lost revenue.

Weakness in the manufacturing sector is dragging U.S. rail volumes lower, AAR says.

Grain shippers wonder if the Canadian railways will keep up with demand in the 2019-20 crop year.

Slumping coal demand, trade wars and a competitive truck market are weighing on rail volumes for the remainder of the year.

The railroads say customers should expect delays and rerouting because of the hurricane

The new appointments could indicate how the companies are preparing to respond to future market trends.

Year-to-date U.S. rail volumes are still slumping this year, due in part to a competitive truck market for intermodal shipments.

Several intermodal containers on trains running between China to Europe run empty due to lack of exporter demand for capacity.

Market Voice Jim Blaze writes about rail intermodal and what is happening to this area of the railroad sector.

The railroad contends the Interstate Commerce Commission Termination Act and the Federal Railroad Safety Act preempt Oklahoma’s law.

The continued slump in U.S. rail volumes is putting pressure on overall North American rail volumes.

Headcount continues to fall at U.S. rail operations as the railroads implement precision scheduled railroading.

A federal appeals court denies a request by rail shippers to form a class lawsuit, and U.S. Senators press the Surface Transportation Board to take action.

Competition from other grain-producing countries weigh on U.S. grain exports – and on U.S. rail volumes for grain.

Year-to-date North American rail volumes fell 2.3 percent last week. But what about for the rest of the year?

The states of Illinois, Nevada and Washington are seeking to push ahead with state laws requiring a train crew size of at least two individuals, despite a federal declaration saying that such laws have been voided.

The announcements confirming Canada’s planned investments in rail infrastructure come as the country prepares for a federal election in October.

U.S. rail carloads no longer appear to be following the lead of broader economic indicators. Why? Look to concerns about rail service reliability and trade uncertainty as answers.

A short cost-benefit analysis of the mining, recycling and use of iron and steel.

CSX and Canadian National’s partnership to create new intermodal service between Montreal and Toronto and the greater New York City area is a strategy to expand each other’s geographical reach and compete with the long-haul trucking market.

Genesee and Wyoming sees second-quarter operating income decline amid lower freight revenues from its Australian and European operations and flat year-over-year revenue from its North American operations.

U.S. Senator Ron Wyden’s (D-Oregon) new bill would require the railroads to supply information on crude volumes to emergency responders, and it would mandate that the railroads share crude-by-rail data annually.

Second quarter revenue for BNSF rose 0.3 percent despite lower volumes for agricultural products, consumer products and industrial products.

“If a shipper can share some of its production forecast information to railroads, railroads can plan better to meet that capacity. Conversely, if railroads can open up and show where their empty railcars are to the shipper so that the shipper has a bit more confidence that the right number of railcars are going to show up, then the shipper can more confidently choose rail.”

A renewed focus on building western gran network capacity helped Canadian Pacific reach all-time records for grain hauls in the 2018-2019 crop year.

“I think we’re at a critical juncture. Six months from now I think we’ll be able to take a closer pulse to where things are.”

Blackjewel’s bankruptcy reminds the broader industrial sector of the vulnerability of U.S. coal production overall, particularly so for western U.S. coal production.

North American rail volumes are still lower year-over-year, but U.S. carloads recovered somewhat last week.

Train products manufacturer and supplier Wabtec lowered its sales guidance for 2019 but kept its projections for how much profit it expects to make from its operations.

The record occurred despite extreme weather conditions that stymied rail shipments in February and March, as well as restrictions on Canadian canola exports to China, the railway said.

Greenbrier said the acquisition will enable the company to provide customers not only with direct sales or leasing options but also with after-market services. Customers seeking tank cars and covered hoppers will also benefit from Greenbrier’s expanded geographic footprint as a result of the acquisition.

Despite uncertain economic conditions, Trinity Industries (NYSE: TRN) expects rail volumes to improve in the second half of the year, based on “healthy” inquiry levels for its railcars, company leaders said during TRN’s second quarter earnings call on July 25.

U.S. rail volumes fell yet again for the week ending July 20, according to data from the Association of American Railroads.

Total company revenue for Trinity Industries (NYSE: TRN) grew 16 percent to $736 million in the second quarter amid revenue gains for its rail product group.

Norfolk Southern (NYSE: NSC) expects continued operational changes will help boost profits and lower operating ratios in the second half of the year.

There is some uncertainty for commodities such as grain, lumber, coal and crude, but Canadian National (NYSE: CNI) leaders are “cautiously optimistic” about volumes and how the company might perform in the second half of the year.

Norfolk Southern’s (NYSE: NSC) second quarter net profit rose slightly as the company prepared to launch the next phase in its new precision scheduled railroading (PSR) operating model. Net profit […]

The U.S. Surface Transportation Board (STB) is seeking public comments on Brookfield Asset Management’s proposed acquisition of shortline operator Genesee & Wyoming. Broofield announced plans to acquire GWR earlier this month in a deal valued at $8.4 billion.

Canadian National (NYSE: CNI) reported increases in net profit and revenue in the second quarter of 2019, with its acquisition of trucking and transportation provider TransX providing both higher revenue and costs.

U.S. railroads had fewer employees on their payroll in June amid lower rail volumes overall and company decisions to trim workforce levels as part of changes to their operating models.

Maryland Governor Larry Hogan (R) said Maryland has received a $125 million federal grant that the state hopes will lead to an expanded rail tunnel in Baltimore to allow for taller trains to travel to the Port of Baltimore.

Jim Blaze writes about the pros and cons of shippers owning or leasing their own freight railcars to move their products.

While investing in the North American railcar market is risky right now because the market is so uncertain, Europe and India are among the places where there are “attractive’ opportunities to invest in railcars, officials with railcar lessor GATX said on the company’s second quarter earnings call on July 17.

The railroad said second quarter revenue totaled $714 million, a 5 percent increase from $682 million for the same period in 2018.

“You’ve heard me say this many, many times – we’re not going to use the lack of volume as an excuse not to make aggressive achievements on our productivity,” Union Pacific chief financial officer Rob Knight said.

Heat wave spreading across dozens of states

Union Pacific set an all-time record for its operating ratio in the second quarter despite lower freight volumes and a decline in freight revenue.

The continued decline of U.S. rail volumes was one of the themes mentioned in the second quarter earnings calls for CSX and Canadian Pacific.

Norfolk Southern and Union Pacific are modifying some of the ways they collect demurrage and accessorial charges for some commodities, but some shippers are questioning the modifications.

“The present economic backdrop is one of the most puzzling I have experienced in my career..”

Despite a drop in profit in the second quarter, CSX’s (NYSE: CSX) operating ratio set a company record.

Canadian Pacific’s (NYSE: CP) is willing to cut costs in the second half of 2019 should macroeconomic factors put pressure on demand for rail service.

Canadian Pacific’s (NYSE: CP) second quarter net income rose 66 percent amid a 13 percent increase in company revenue, the railroad reported on July 15. CP’s financials are reported in Canadian dollars, except for earnings per share.

While operational efficiencies get the credit for a freight railroad’s improved operating ratio, other factors, such as changes in fuel prices and increases in freight rates, play significant roles according to a research paper by a law firm representing shippers in Canada.

As the Class I railroads begin reporting their second quarter earnings results next week, some members of the Wall Street community expect the lower rail volumes from the second quarter to affect the railroads’ financial results.

Year-to-date U.S. rail volumes fell yet again this week, although improving economic indicators signal that rail volumes could moderate in the weeks and months ahead.

Although the U.S. Senate Commerce Committee has voted in favor of the nomination of an additional board member to the Surface Transportation Board (STB), whether and when she will be installed remains to be seen.

“Without documented strategies for how it plans to communicate the results of its research, FRA may lose an opportunity to effectively work with internal and external stakeholders – such as railroads, rail workers and local communities – to address any risks of operating longer trains in support of the agency’s mission of enabling the safe, efficient and reliable transportation of people and goods.”

Jim Blaze writes about railroad movement of scrap – the market today and the future of the market.

The service problems associated with precision scheduled railroading (PSR) have motivated forest products and scrap recycling shippers to press the Surface Transportation Board to renew a longstanding request for regulatory oversight.

Blocking railroad crossings in Oklahoma now could come at a financial cost for freight railroads.

In the longer-term, rail industry observers are waiting to see how and whether Genesee & Wyoming will be able to make the capital investments needed to maintain its infrastructure.

Some members of Congress remain determined to address the question of whether having more crew members on a train makes that train safer.

Year-to-date U.S. rail volumes fell again amid a loosening truck market, receding floodwaters in the Midwest and overall economic uncertainty.

An additional $300 billion in proposed U.S. tariffs against China could result in lower railroad freight volume , but economic uncertainty and competition from trucks appear so far to be bigger threats for rail volumes.

Market expert Jim Blaze writes about the railroads’ transportation of fracking sand, as well as stone and gravel, aggregates and phosphates.

Should the Class I railroads see U.S. rail volumes sustainably increase, furloughed workers could be called back to meet network capacity needs, resulting in a bump up of headcount levels. But another factor that could affect headcount levels in the long-term is the deployment of automation technologies.

The implementation of precision scheduled railroading has contributed to dwindling morale and could result in creating unsafe working conditions should the federal government withhold intervention, according to union witnesses at a June 20th Congressional hearing on rail safety.

Autonomous trains might be fully running in remote Australia, but it will take awhile before those kinds of trains will be rolling down the North American countryside.