U.S. Rails Monitoring Canadian Crude

The derailment of two separate oil trains roughly two months apart near Guernsey, Sask., each spilling more than 300,000 gallons of crude onto the ground and one igniting into a smoldering inferno, plus the resulting 30-day mandatory speed limit on such trains imposed by Transport Canada (20 mph in urban areas, 25 mph elsewhere), have raised questions about not only the cause of those derailments, but also about the durability of the tank cars, and the volatility of the crude they were carrying. It should also raise questions, and awareness, about the transport of Canadian crude on the U.S. rail system.

Trinity: “Meaningful Progress in 2019”

Trinity Industries, Inc. released its 4Q19 and full-year 2019 earnings, which show it saw quarterly total company revenues of $850.7 million, reflecting growth of 15.7% year-over-year, but also quarterly earnings from continuing operations per common diluted share (EPS) of $.18, a yearly decrease of 5%.

NS Shuttering Roanoke Locomotive Facilities

Norfolk Southern is closing its historic, 137-year-old Locomotive Shop in Roanoke, Va., transferring all locomotive work to its Juniata Shops in Altoona, Pa. NS predecessor railroad Norfolk & Western began operating the locomotive shop, then Roanoke Machine Works, in 1883. The railroad is also closing its associated Roanoke Distribution Center, which supports the shop as well as other mechanical department facilities across its system.

Cowen Touts Class I “Resiliency”

Cowen and Company revealed its rail-earnings takeaways, which saw the rails tout pricing despite weak volumes in 4Q. However, Cowen said it believes “that the effects of the Coronavirus on supply chains are not fully appreciated, with contacts telling us that Asian ports are at 40-50% operational capacity—railroad most at risk is Union Pacific. CN’s network is nearly shut down because of pipeline protesters and could lag the group near-term. We continue to favor Kansas City Southern among the rails.”