Tuesday, January 19, 2010

From the Editor: A new generation of chief executives

Written by 

By William C. Vantuono, Editor

At 50, Matt Rose, Railway Age’s 2010 Railroader of the Year, is among the youngest of our industry’s top echelon.

bnsf_rose_3.jpgRose (left, with me in his Fort Worth, Tex., office) has two advantages. First, he joined our industry at a critical point in its history, around the time the Staggers Rail Act was passed. He had a chance early on to work under the experienced guidance of several highly regarded veterans, and learn from them. Second, he’s young enough to have many years to go—and a chance to help determine our industry’s direction, to nurture its growth, to provide guidance, to influence public opinion. Thanks to the dedication of Matt Rose and others, there’s a growing recognition that this old “smokestack industry” of ours truly represents the future of transportation, and is key to America’s economic stability and growth.

Just ask Warren Buffett. 

Rose has great respect for his predecessors, as he told me for our cover story: Upon his elevation to chief executive, “The first thing I did was spend time going around and seeing some of the former executives of the Burlington Northern and the Santa Fe, because they were a fairly large group. I commissioned Larry Kaufman to go out and do video interviews, which resulted in a book that he wrote about the past leadership of BNSF. (Leaders Count: The Story of the BNSF Railway, by Lawrence H Kaufman. Texas A&M University Press, 2005.) I got a glimpse into people like Dick Bressler and Bob Downey. I met Ben Biaggini, and of course I had worked under Rob Krebs. And so I had a lot of different glimpses into the leadership of railroads past.”

To paraphrase John F. Kennedy, let the word go forth from this time and place, to friend and foe alike, that the torch has been passed to a new generation of railroaders—hired post-Staggers, tempered by mergers and cost cutting, disciplined by a committment to safety, proud of their heritage—and unwilling to witness or permit the undoing of their ability to invest growth capital, to which this industry has always been committed.

An eight-year high: Railway Age’s annual survey of the passenger railcar market (p. 48) shows that 1,141 new cars valued at nearly $2 billion were delivered to passenger train operators in the U.S. and Canada in 2009, the highest number since 2001’s 1,332. On Dec. 31, 2009, builders had a backlog of 2,580 new cars on order and undelivered. The operating agencies told us that they plan to place orders in 2010 for an additional 1,382 cars. New railcar deliveries last year were nearly double the 596 cars delivered in 2008. In addition to new cars, manufacturers and company shops delivered 677 rebuilt cars in 2009.

Examine our tables, and you get a picture of a vibrant, growing passenger rail industry. There’s been a dramatic turnaround, and it’s picking up steam. We began our annual survey many years ago, after the production of passenger railcars reached such a low point that the American Railway Car Institute stopped counting them. Today, the monetary value of the passenger railcar market is approaching that of the freight car market—and may well surpass it next year.

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William Vantuono

With Railway Age since 1992, Bill Vantuono has broadened and deepened the magazine's coverage of the technological revolution that is so swiftly changing the industry. He has also strengthened Railway Age's leadership position in industry affairs with the conferences he conducts on operating passenger trains on freight railroads and communications-based train control.