Wednesday, October 28, 2009

Stored equipment fleet continues to shrink

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As business starts to return to the railroads, more freight cars and locomotives are being put back to work, though the size of the stored fleet remains too large for comfort.

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Norfolk Southern's executive vice president and chief operating officer, Mark Manion, told analysts in a conference call Tuesday that while "a significant potion of our fleet remains in storage due to continued weak volume levels ... we have reduced the number of cars stored from the peak of over 35,000 cars in July to over 22,000 cars at the end of September."

Manion said the railroad has reduced the number of locomotives stored from 700 in May to about 350.