Freight Cars

Defining Private Railcar Storage Best Practices

There are things the regulators don’t tell you about marshaling and storing freight cars, such as how to detect rail head wear. Most railroad executives would not know how to do this. This commentary will include a few pointers that your favorite Class I railroad salesperson won’t typically pass on as business intelligence. Bad things can and do occasionally happen in rail yards. Therefore, it is prudent risk management to consider these matters ahead of time.

O’Malley Departing RSI

After just over two years at the helm, Railway Supply Institute (RSI) President Mike O’Malley is leaving the organization at the end of July. O’Malley, who has served as RSI’s leader since early 2018, is “pursuing an opportunity with a corporation outside the Washington, D.C. area,” RSI said in an announcement. O’Malley joined the organization after serving in a government relations capacity with CSX.

Takeaways From Cowen’s Rail Equipment Conference Call

“Railcar inquiries are largely in line with—if not slightly better than—the anemic levels seen two months ago. Translation into orders remains slow. Lease rates are still depressed, with no signs of improvement. Secondary market valuations appear to have eased. Locomotive upgrades could prove resilient. We’re constructive on Wabtec, Trinity and Greenbrier, but the latter two could see near-term pressure.”

USDOT Issues Rule Authorizing Bulk Transport of LNG by Rail

The U.S. Department of Transportation (USDOT) and the Pipeline and Hazardous Materials Safety Administration (PHMSA), in consultation with the Federal Railroad Administration (FRA), issued on June 19 a final rule authorizing the bulk transportation of liquefied natural gas (LNG) by rail.