At Railway Age’s 2017 Rail Insights conference, attendees were treated to updates on a variety of current industry topics, such as the current status of Amtrak’s replacement of the Acela Express train, and a “what’s next” panel on the state of growth in North American rail freight (intermodal or bust?).
Recently, a rumor circulated in the railcar lease market that a Class I railroad had made an overture to a group of its operating lessors requesting that these lessors submit offers on cars currently on lease to the railroad.
Following in the spirit of its predecessors, the 31st annual Rail Equipment Finance Conference was a huge success and an incredible opportunity to get a complete understanding of today’s rail equipment market and where the market may be headed into 2017. Here is a summary of what happened at REF 2017 and what the experts had to say about equipment and the U.S. and global rail economy.
When the Financial Edge last addressed the topic of Hunter Harrison, it was during the failed takeover of Norfolk Southern (NS) by Canadian Pacific (CP). Pursuit of NS was not Harrison’s first transcontinental endeavor.
Among the daredevil set, the cadre of YouTube videos of drivers that attempt to stress the limitations of Tesla’s driver assist (or self-driving) mode (searching “Tesla Autopilot” yields a search result of almost 250,000 videos) is poor man’s fodder.
At the Railway Age “Energy by Rail” (EBR) conference, attendees were given a “What’s next?” point of view on the future of the transportation of coal, crude, LNG and other midstream products by rail, spearheaded by Matt Rose.
Railcar buyers are frequently of habit. It stands to reason. The costs of operating a railcar for moving a commodity are generally transportation, rent or debt expense (unless the asset is owned outright by the end user) and maintenance expenses.
A leasing company peer was lamenting the state of the railcar marketplace, the downward and steady pressure on railcar lease rates and the dim prospects for a 2017 rebound. The discussion turned to the topic of the seeming disconnect between the rail economy, which has been declining, and the overall economy, which continues to move forward albeit at a slower than optimal pace. Why might a seasoned leasing veteran be concerned at this anomaly?
Financial Edge, Railway Age, August 2016: Ah those midsummer doldrums. Hopefully, loyal readers are able to take a needed respite and page through your favorite magazine by a pool or a beach, slathered in sunblock or buried in shade.
At the recent Railway Age “Rail Insights 2016” conference, I moderated a panel on the lease market for railcars. My panel participants were Robert Hart from Fifth Third Bank and Greg Schmid from Residco, a railcar lessor. The current weakness in segments of the lease market for railcars and locomotives continues similarly to what was discussed in the Guide to Equipment Leasing in the June 2016 issue of Railway Age.
