Railway Interchange

USDOT Proposes Rule for Safe LNG Transportation

The U.S. Department of Transportation’s (USDOT) Pipeline and Hazardous Materials Safety Administration (PHMSA), in coordination with the Federal Railroad Administration (FRA), announced that it is publishing a notice of proposed rulemaking (NPRM) regarding the transportation of liquefied natural gas (LNG). The proposed rule will seek comment on changes to the Hazardous Materials Regulations (HMR) to authorize the transportation of liquefied natural gas (LNG) by rail in the DOT-113 specification tank cars.

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.

J.B. Hunt 3Q19: PSR Helped—A Little

J.B. Hunt Transport’s (JBHT) third-quarter 2019 financials fell below expectations as, among other factors, “intermodal rail service appears to have improved, but not to the railroads’ goals associated with Precision Scheduled Railroading (PSR),” according to Cowen and Company analysts Jason H. Seidl (Managing Director and Railway Age Wall Street Contributing Editor), Matt Elkott and Adam Kramer.

R.J. Corman Awarded Contract for Texas Logistics Park

R. J. Corman Switching Company, LLC was awarded a contract to be the switching and transloading provider for the 137-acre multi-modal Hempstead Logistics Park owned by McAlister Assets and operated by RCR Rail Co. The Union Pacific-served logistics park is in Hempstead, Texas, approximately 50 miles northwest of Houston, Texas.

Takeaways, Locomotive and Railcar Conference Call: Cowen

According to Cowen and Company freight transportation analysts Jason Seidl (Managing Director and Railway Age Wall Street Contributing Editor), Matt Elkott and Adam Kramer, inquiries about new railcars appear to have risen slightly in the past month, while locomotive modernizations should remain solid, in the midst of a continuing weak new-build market. Industry-wide Precision Scheduled Railroading implementation has not been tested in a volume growth environment.