“While rail bridge closures at Eagle Pass and El Paso affect approximately 45% of UP’s cross-border business, we expect the impact on overall volumes to be minimal due to quick resolution of activity,” TD Cowen analysts report. (Union Pacific Photograph)
Commentary

TD Cowen’s 2024 Rail Preview

We modestly lower our fourth-quarter 2023 estimates on mix pressures that are likely to be somewhat mitigated by fuel tailwinds. Intermodal recovery comes at the price of yield given the protracted over-the-road (OTR) rate trough. A revenue per carload rebound is likely a late-2024 story, at best. First-quarter 2024 should see typical seasonal softening, which is well understood as the focus shifts to recovery. We favor Union Pacific (UP) and Norfolk Southern (NS) in 2024 on margin recovery prospects.

Aerial view of Pier B. (Port of Long Beach Photograph)

Intermodal Briefs: POLB, ITS Logistics

The U.S. Department of Transportation (USDOT) awards the Port of Long Beach (POLB) $283 million for its Pier B On-Dock Rail Support Facility project. Also, ITS Logistics releases its December forecast.

Heidi Peterson, COO, American Seating

People News: American Seating, IANA

American Seating appoints Heidi Peterson as Chief Operating Officer. Also, the Intermodal Association of North America (IANA) elects its 2024 Board of Directors and Officers.

Ports of Indiana photo

Intermodal Briefs: Ports of Indiana/MG Rail, Port of Los Angeles, POLB, Saguenay Port Authority

Ports of Indiana and MG Rail complete $1.1 million in road and rail improvements at Jeffersonville Port. Also, November cargo volume increases at Port of Los Angeles and the Port of Long Beach (POLB); and the Saguenay Port Authority receives $111.1 million to support conveyor planning.

From Left to Right: Robert Orlin, Vice President and Assistant General Counsel, STV; Clint Herrera, Director of Engineering Design, POLB; and Khristina Jason, Director of Human Resources, POLB.

People News: STV, SANDAG, POLB, Sound Transit

STV hires Robert Orlin as Vice President and Assistant General Counsel. Also, the San Diego Association of Governments (SANDAG) Board of Directors appoints Deputy CEO Coleen Clementson to Interim CEO; the Long Beach Board of Harbor Commissioners approves the appointments of new directors for the Port of Long Beach’s (POLB) Human Resources and Engineering Design divisions; and Sound Transit’s CEO Julie Timm announces resignation.

Aerial view of Pier B, courtesy of Port of Long Beach.

2024: A ‘Pivotal Year’ for POLB’s Pier B Rail Facility

The Port of Long Beach (POLB) on Nov. 29 announced that after more than 15 years of planning, it is going out to bid in early 2024 for its first construction contract to begin building the $1.567 billion Pier B On-Dock Rail Support Facility, which will be built in phases with the final segment due to be completed in 2032.

Port of Long Beach photo

Cargo Volume Rises at Port of Los Angeles, Port of Long Beach

The Port of Los Angeles and the Port of Long Beach recently reported that cargo volume in October has increased compared to the previous year.

Future site of Ridley Island Export Logistics Project (RIELP) (CNW Group/Prince Rupert Port Authority)

Intermodal Briefs: PRPA, ITS Logistics, POLB

The Prince Rupert Port Authority (PRPA) begins construction on C$750 million Ridley Island Export Logistics Project (RIELP). Also, ITS Logistics releases its October forecast; and the Port of Long Beach (POLB) achieves its strongest September on record.

Long Beach Mayor Rex Richardson is flanked by City Councilmember Mary Zendejas, Vice Mayor Cindy Allen, Port of Long Beach CEO Mario Cordero, Long Beach Board of Harbor Commissioners Vice President Bonnie Lowenthal, and port, city and labor officials at an event to discuss the ARCHES hydrogen grant on Oct. 13. (Caption and Photograph Courtesy of Port of Long Beach)

California Selected as a National Hydrogen Hub

The U.S. Department of Energy (DOE) has awarded a grant of up to $1.2 billion to ARCHES LLC (Alliance for Renewable Clean Hydrogen Energy Systems), a public-private partnership formed to lead California’s

“We anticipated a modest peak season as our cargo numbers continue to stabilize at pre-pandemic levels,” Port of Long Beach CEO Mario Cordero said during a Sept. 13 announcement of August 2023 volumes (POLB Photograph)

Intermodal Briefs: POLB, Port of LA, UIPA (Updated Sept. 15)

Overstocked warehouses and a consumer spending shift contributed to an August “cargo lull” at the Port of Long Beach (POLB), Calif. Also, August was a “solid month” for the Port of Los Angeles, with imports and exports increasing; and the Utah Inland Port Authority (UIPA) is establishing the Central Utah Agri-Park Project Area.

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