Railroad Week in Review:
Third Quarter 2005
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Using ETFs to spot rail traffic trends. California shortlines face onerous
legislation triggered by Biden bill and other foolishness. Three contradictory
legislative threads. What it costs to build a Class I spur. North Shore
Rail Group, CP and NS win one for SEDACOG. CSX shortlines four Michigan
branches. Rail stock tech
Gulf Coast service alert. AAR freight volumes through June. Ohio tax
law change -- impact on shortlines? More truck drivers mean more capacity
and less aggressive truck freight rate hikes. KCS and RRA stock price
tech signs improve. Shortline marketing success stories in NY and Penna.
Pinsley adds 70 miles in Florida. Earnings dates. NS offers surplus
materials to shortlines.
Rail traffic for Week 27 (July 9) was up a point.
Norfolk Southern stock price performance technicals flash Strong Buy.
New railroad coverage from JPM. June volumes for GWR show strength
from acquisitions. FEC Chair tapped for local bank board membership.
light on KCS valuation from Bear Stearns. How shortline track subsidies
help Rule of 100. Railway Age editor determines Kelo no threat to
rails. LUVly story on the benefits of aggressive fuel hedging.
Earnings week. CN net up 45%, UP net rises 47%. Both see yields
rise faster than traffic volumes, indicating some welcome upside inelasticity
in rail freight rates. Table of earnings estimates. Common thread
is strength in the carload sector.Tex
Mex does $50 mm RRIF loan at 4.3%. KCS and Watco ink deal to lease
five branches in three South Central states. Why shortlines need a
"supplier mentality." Manufacturing segment shifts can benefit
Two of Earnings Season produces more record-breaking results. BNSF
sees 13 consecutive quarters of yoy volume increases and the six consecutive
quarters of double-digit freight revenue growth. CP Total revenue
up 10% to C$1.1 bn with increases in five of seven business lines.
NS sets new records for quarterly revenues, ops income, eps and OR.
the cover off the ball with Q2 operating income up 43%. RailAmerica
punches up a 41% yoy increase in operating income.
Genesee & Wyomings North American operating income for 2Q05
grew by 19%. Florida East Coast Railway (FECR) did its own hat-trick
posting 18% more revenue on 11% more volume. Kansas City Southern
Railroad (KCSR) revenues for 2Q05 rose 16.8%. Edward H Harriman's
views on capex live today on the UP.
lengthy lead piece on this week's CSX analyst conference at the NYSE
is "must" reading for shippers and shortlines wanting to know
more about what CSX is doing and why. We now have density maps by commodity
and a detailed capacity management plan. Be sure to have the presentation
slides in hand as you read it. Then get a CSX system map and see where
you fall in relation to the core structure. It'll be an eye-opener.
word on FECI's non-railroad business and below-the-line results. Virginia
shortline for lease. Rail Trends conference in NYC coming in Sep.
GWR tidbits. PAL to lease Evansville line. UP and CSX to launch unit
train service for Washington produce. July traffic for Class Is plus
stocks continue sell-off; RRA hits shorts. What CEOs of Listed companies
think will be the drivers for the next five years; RR implications.
Truckers' hours-of-service violations on the increase. News from Arkansas
Best and JB Hunt. Some thoughts on shortline compensation. California
Shortline Association meeting notes. Table comparing 2Q05 results for
FEC, KCS, GWR, RRA.
"The trend is your friend," continued; why prudent capex adds
value. One more catalyst for Union Pacific stock. BNSF Logistics wins
on "Top Ten" list of 3PL providers.CN
increases intermodal train capacity simply by running the RR better.
Investors take a look at car builders and suppliers. Shortlines get
a better tool for sanity-checking Class I rate making. Class I revenue/cost
Katrina impacts rail operations and financial outlook. Comments on wood
chips from Chop Hardenbergh. Greenbrier division takes on car hire
management for FEC. Rail stocks in a lull. Shortline carload growth
predictions through 2007. Timmons' wrap at UP shortline meeting.
RailAmerica to acquire Alcoa lines plus one more from CSX. Rail traffic
not horribly hit by Katrina. Shortline outlook. Week 35 AAR freight
volumes. A mark of insanity.
How NS fixed the Lake Pontchartrain bridge in a matter of days. A reader
asks, "How will successful will railroads be in profiting from
the present growth opportunity?" Rate increases have to be earned
yet the performance metrics don't show much improvement. Outlook for
RRA'a Alcoa acquisition.
RR Preparations for Rita along the Gulf Coast; more on Katrina cleanup.
Jim Valentine reports on "Dinner with the Dean of Railroading."
Further thoughts on leadership in the RR industry. NS' Jim McCracken
gets WSJ ink on Lake Bridge fix. Rail Stocks in the news with a special
note to the metals group.
obit for Jim Bistline penned by Don Phillips, who also contributed the
nub of my passenger train rant. How Watco prepared for Rita. NS' increased
coal business bodes well for shortlines' merchandise carload business.
Observations on how (and examples of how not) to sell a shortline.