Ferromex

Cowen and Company Managing Director and Railway Age Wall Street Contributing Editor Jason Seidl

Cowen Surveys Find ‘Encouraging’ Shipper Business Outlook

Two first-quarter 2021 surveys of rail shippers on pricing and business outlook as well as equipment needs conducted by Cowen and Company analysts Jason Seidl (Managing Director and Railway Age Wall Street Contributing Editor), Matt Elkott and Elliot Alper indicate that, compared with the previous quarter, Class I railroad customers are anticipating somewhat higher rate increases, and a slight decline in new railcar demand.

The Cowen and Company analysts reported that Kansas City Southern “again” received the highest “positive” rating, followed by BNSF in their 4Q Rail Shipper Survey.

Cowen 4Q20 Surveys: Rail Pricing, Car Orders Up Slightly, Say Shippers

Rail shippers in fourth-quarter 2020 expected price increases of 3.2% (up 10bps sequentially), and their sub-group of railcar buyers raised order expectations modestly, according to two surveys conducted by Cowen and Company analysts Jason H. Seidl (Managing Director and Railway Age Wall Street Contributing Editor), Matt Elkott and Elliot Alper.

Mexico’s Rail Freight Model Still Relevant

Mexico has a freight railway system owned by the national government. However, the trains and the network are operated and managed by various private entities under concessions (charters) granted by the national government. Today, Mexico has service from eight concessionaire railway companies. Beyond Kansas City Southern de México, and Ferromex, are the smaller, but important Ferrosur, Ferrovalle, Coahuila-Durango, Ferrocarril Chiapas Mayab, Ferrocarril del Istmo and Ferrocarril Tijuana-Tecate.