Freight

45G permanence inches closer

On Feb. 11, HR 510, which calls for permanence of the 45G short line tax credit, formally received its 100th co-sponsor. The bill, introduced Jan. 11 by Reps. Earl Blumenauer (D-Ore.) and Mike Kelly (R-Pa.), “has rapidly garnered significant bi-partisan support, as it has every Congress since the credit was introduced in 2004,” said the American Short Line and Regional Railroad Association (ASLRRA). “House support for this legislation is growing at a record pace, with 106 co-sponsors in just four weeks.”

Push the envelope with autonomous freight trains?

According to the most recent earnings reports, North American Class I railroads are producing record-low operating ratios and posting record-setting earnings. These results strongly suggest that the current operating format of two-person train crews utilizing innovative safety and fuel conservation technologies is helping achieve these desired, value-added financial results. In short, it is possible for innovative technology and human-operated freight trains to exist in a complimentary fashion. The combination is currently working quite well.

Beware the operating ratio trap

Watching Washington, February 2019: Sizzle sells product. No wonder the sizzle of ever-lower operating ratios is leading to remarkably higher railroad share prices. But as operating ratios—operating expenses as a percentage of operating revenue—flirt with a sub-60%, the meaning for the longer term is unclear.

Precision Crew Scheduling: What would Hunter say?

I knew Hunter Harrison when he was a Burlington Northern trainmaster and I was a BLET Local Chairman, all those many years ago. Today, as Hunter’s Precision Scheduled Railroading (PSR) is rolled out on six of the seven Class I railroads, I’ve come to believe that PSRis not a destination, but a never-ending journey. At least that’s how I see it.