KCS Reports Record Revenue for 3Q19
Kansas City Southern (KCS) reported record revenues of $747.7 million, an increase of 7% from third quarter 2018. Overall, carload volumes were flat compared to prior year.
Breaking News
HNTB Adds Two to Its Transit Team
HNTB Corp. announced it has added two new faces to its transit team, as Charles Beauvoir, P.E., S.E., joined as senior program manager and vice president, based in the firm’s Houston office, and industry veteran Jack Buckingham joined the transit and rail practice as vice president, program delivery, based in the firm’s District office.
UP Sets Quarterly OR Record
Union Pacific (UP) reported 3Q19 net income of $1.6 billion, or $2.22 per diluted share. This compares to $1.6 billion, or $2.15 per diluted share, in the same period last year.
Sponsored Content
California Northern Railroad Company Takes Advantage of New Tier 4 Near Zero Emissions Locomotives From KLW
After talking about tomato paste for a good portion of the morning, Jake Harrison, the general manager of California Northern Railroad Company, recommended a Hawaii teriyaki restaurant for lunch.
CSX Sets Operating Ratio Record in 3Q19
CSX announced 3Q19 net earnings of $856 million, or $1.08 per share, versus $894 million, or $1.05 per share in the same period last year—an EPS increase of 3%. CSX’s operating ratio set a new company record of 56.8%, improved from 58.7% in the prior year.
AAR Honors Hazardous Material Handlers
The Association of American Railroads (AAR) announced the 2019 recipients of the Holden-Proefrock Award, Danny Simpson, and the 2018 Non-Accident Release (NAR) Grand Slam Awards, presented to 41 companies. The awards are given annually to individuals, shippers and railroads operating in hazardous material fields.
VisioStack Partners With Chilean Railway
VisioStack Inc. has entered into an agreement with Grupo EFE to provide data management and analytics services. Grupo EFE, which is based in Santiago, Chile, provides both passenger and freight services throughout Chile, with its commuter rail service responsible for transporting more than 30 million passengers per year.
AAR: Make it 41 Straight Weeks of U.S. Traffic Downturn
The Association of American Railroads (AAR) reported U.S. rail traffic for the week ended October 12, 2019, and it’s more of the same.
NS Releases Corporate Social Responsibility Report
Norfolk Southern (NS) released its 2019 Corporate Social Responsibility (CSR) report, which highlights initiatives that aim to support a cleaner environment, promote economic growth and jobs, foster a diverse and inclusive workplace, and build stronger communities.
A&R Logistics Anchor Tenant at OmniTRAX’s SGIH
Affiliates of OmniTRAX, Inc. and The Broe Group have signed A&R Logistics, Inc. as anchor tenant at the Savannah Gateway Industrial Hub (SGIH), a master-planned, 2,750-acre industrial park owned by Effingham County Industrial Development Authority (ECIDA) with the capacity to accommodate up to 18 million square feet of industrial space.
Happy 150th! Wabtec Celebrates Anniversary, New HQ
Wabtec Corp. recently celebrated its 150th anniversary, as well as the grand opening of its new headquarters in Pittsburgh.
Opinion
Amtrak’s Traditional Dining Service Disappearing
Amtrak is no longer offering traditional dining car service on its trains east of Chicago and New Orleans. This is a sad development in the downward slide of Amtrak’s long-distance trains, especially under CEO Richard Anderson’s leadership. There have been a number of “obituaries” for Amtrak dining service, but they are misplaced in time. They have either come too soon, or they should have been written about 15 years ago.
Shareholder Value, or Public Safety?
Date: Sept. 27, 2019. News media outlets report potential life threatening situations with three different Class I railroad freight trains blocking railroad grade crossings, sometimes for hours at a time. These events seem to be increasing, both in number and length of time. Americans are not just inconvenienced. Lives are being place at great risk when a blocked crossing impedes emergency service providers from assisting people in need of help.
Short Lines: Custom, High-Growth Freight Service
Are short lines offering a better customer experience than Precision Scheduled Railroading (PSR)? The Class I railroad business seems to be all about the benefits of PSR. That’s the name of a cost minimization business strategy introduced more than a decade ago at CN, now expanding as the service model at five of the other six large North American railroad companies (Norfolk Southern, CSX, Union Pacific, Kansas City Southern and Canadian Pacific). Class I’s annually earn more than a Federal Railroad Administration-set threshold of $500 million in revenues.
STB’s Cost of Capital Dilemma
NEWS ITEM: The Surface Transportation Board (STB) proposes to change the formula for computing the cost of the equity component of the railroad industry’s cost of capital. This is of consequence to railroads, shippers and investors because cost of capital is a determinant of railroad revenue adequacy and a threshold for a host of other regulatory limitations on rail ratemaking.
Man, Those PRR Pinstripes Look Awesome!
Railroads in many ways are unique because, regardless of how many years they’ve been in business, there is usually a storied history that can be recalled. The best way to do that is by applying classic paint schemes from predecessor companies, or “fallen flags,” to the railroad’s most visible public faces—its locomotives, among the largest land vehicles anywhere. Union Pacific and Norfolk Southern, among others, have done this to much acclaim. Now, New Jersey Transit, which I like to call my “home” railroad, has joined the fold, and the results, in my opinion, are simply beautiful, inspiring.