KCS Announces $550MM ASR Program
Kansas City Southern (KCS) has entered into accelerated share repurchase transactions (ASR Transactions) with Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC for an aggregate amount of $550 million.
Intermodal
AAR: FORR NPRM “Unlawful”; SMDA Should Be Limited in Scope
The Association of American Railroads (AAR) on Nov. 12 filed comments with the Surface Transportation Board (STB) regarding two NPRMs (Notice of Proposed Rulemakings): Final Offer Rate Review (FORR) and Streamlined Market Dominance Approach (SMDA). The former, AAR said, should be scrapped because it is “unlawful” and lacks standards. The latter requires substantial limitations in scope.
KCS Announces New Capital Allocation Policy
Kansas City Southern’s (KCS) Board of Directors recently approved a new capital allocation policy, under which it intends to deploy available cash in the following manner: approximately 40-50% to capital projects and strategic investments, and approximately 50-60% to share repurchases and dividends.
AAR: 45 Straight Weeks of U.S. Traffic Downturn
The Association of American Railroads (AAR) reported U.S. rail traffic for the week ended Nov. 9, 2019, and, for this week, total U.S. weekly rail traffic was 515,269 carloads and intermodal units, down 5.9% compared with the same week last year.
Three NS Trains Collide in Western Pennsylvania
Three Norfolk Southern freight trains were involved in a Nov. 8 derailment in Hempfield, Pa., about three miles east of Greensburg, Pa. (near Pittsburgh), on the high-density Pittsburgh-Philadelphia double-track main line. There were no injuries and no hazmat spills. NS restored service on both main tracks early Nov. 10. The cause of the derailment remains under investigation.
Women in Rail 2019
RAILWAY AGE, NOVEMBER 2019 ISSUE: Good things come in threes—and Railway Age’s Women in Rail awards are no exception. In its third year of existence, the 2019 Women in Rail awards are poised to be the most exciting yet. Recognizing vision, ability and leadership, our 12 honorees from freight, transit and supplier companies as well as trade organizations were selected by a panel of judges. They received the nod because they have been—and still are—moving their companies forward while making contributions to the community. In an industry typically dominated by men, these women are getting things done—and their hard work is an example for all.
CN Sets Grain Record, Preps for Winter
CN’s Western Canadian grain movements broke another record in October 2019, with shipments of 2.8 million metric tons (MMT) of grain and processed grain products, the railroad announced on Nov. 4. The previous record, set in April 2019, was 2.7 MMT.
Rail Freight Nosedive: “Sensible Actions Aimed at Accelerating Growth” Needed, Says AAR
In the Association of American Railroads Nov. 6, 2019 traffic report, Senior Vice President Policy and Economics John T. Gray succinctly notes what is dragging rail freight down: “Sluggish growth abroad and trade developments are weighing on business investment, exports, and manufacturing. Unfortunately, those are precisely what drive much of the freight carried by U.S. railroads, and their weakness goes a long way in explaining why rail traffic is down right now. Railroads are hopeful that policymakers here and abroad will take sensible actions aimed at accelerating growth and removing the uncertainty that’s constraining many economic sectors.”
Railway Age 10 Under 40 Awards Open for Entries
Railway Age is now accepting entries for its fourth annual “Fast Trackers” 10 Under 40 awards, in which we will profile ten individuals under the age of 40 who have made an impact in their respective fields or within their company. Nick Little, Director of Railway Education at Michigan State University’s Center for Railway Research and Education, will judge the entries. Those that represent the “best of the best” will be featured in Railway Age’s February 2020 issue and recognized at our Railroader of the Year Dinner, March 10, 2020, at the Union League Club of Chicago.
ARH Honored by National Defense Transportation Association
Anacostia Rail Holdings (ARH) has been honored with the Corporate Distinguished Service Award of the National Defense Transportation Association (NDTA), presented at the association’s Fall 2019 meeting in St. Louis.