Breaking News

KBC Wins Stadler MARTA Railcar Subcontract

Knorr Brake Company LLC (KBC), the U.S. passenger rail subsidiary of Knorr-Bremse, has secured a subcontract with Stadler US Inc. to supply braking systems for 254 railcars (127 two-car sets) Stadler is building for MARTA (Metropolitan Atlanta Rapid Transit Authority). Exact contract terms were undisclosed; KBC said the amount is a “lower-double-digit million-euro sum.”

“When looking at the potential for new railcar demand, we expect industry deliveries to be below replacement levels this year, but believe that current inquiries support improving railcar deliveries at or just above replacement levels in 2022,” Trinity Industries President and CEO Jean Savage said.

For Trinity, ‘Challenging Operating Environment’ Impacts 1Q21

While “encouraged by the improving trends for our business and the economy as a whole,” market uncertainty due to the pandemic remains a headwind, Trinity Industries President and CEO Jean Savage reported during a April 22 earnings announcement, noting “[w]e are focused on what is more within our control in optimizing our cost structure and balance sheet.”

CP’s operating ratio, which included a $33 million expense related to the Kansas City Southern (KCS) acquisition, came in at 60.2% for the first three months of 2021. This is a 100 basis-point increase from 59.2% in the prior-year period. Adjusted, the first-quarter 2021 OR improved 70 basis points to 58.5%.

CP: ‘Bullish’ on 2021

“The strong demand environment, particularly across bulk, merchandise and domestic intermodal, coupled with our commitment to the foundations of Precision Scheduled Railroading enabled our success in the first quarter,” Canadian Pacific (CP) President and CEO Keith Creel reported during the merger-bound railroad’s earnings announcement.

For USDOT, a Scientific Approach, and TOD Funds

Resurrecting a position that was abolished more than 40 years ago, the U.S. Department of Transportation is appointing a Chief Science Officer for the entire agency, and has taken additional steps “to act on the Biden-Harris Administration’s commitment to address the climate emergency and restore scientific integrity.” And the Federal Transit Administration has made available $10 million in TOD (transit-oriented development) planning grant funds.

Opinion

CPKC: Tri-National Considerations

After a thorough review of my mergers and acquisitions career work, I have reached the conclusion that the Canadian Pacific-Kansas City Southern (“CPKC”) combination has several less-than-optimal locations where overall system performance affecting three nations—the U.S., Mexico and Canada—could be addressed and improved during Surface Transportation Board review.