Sandia Study says No Fracking Difference For Crude Oil

“Crude Oil Characterization Research Study,” a Sandia National Laboratories report to Congress commissioned by U.S. DOE (Department of Energy, Office of Fossil Energy, PHMSA (Pipeline and Hazardous Materials Safety Administration) and TC (Transport Canada) Transport of Dangerous Goods Directorate) under the Section 7309 of the FAST (Fixing America’s Surface Transportation) Act, says that Bakken crude and other hydraulic fracturing (fracking)-derived oil are no more volatile than other types of oil.

PSR-Driven Power Punt Defines NS 1Q2020

A $385 million “non-cash locomotive rationalization charge related to the ongoing disposition and marketing of excess locomotives not required for future operations due to the successful introduction of Precision Scheduled Railroading” is the defining number for Norfolk Southern’s 1Q2020 financials. NS Chairman, President and CEO Jim Squires said that shedding the locomotives and taking the huge financial charge in this year’s first quarter will yield an “enhanced financial position,” longer term.

Commentary

Remembering Tillie Caileff

Every year just before Christmas, Kansas City Southern runs its Holiday Express train, which in 2019 distributed more than $170,000 to The Salvation Army at 20 stops along its five-state route, providing warm clothing and other necessities for children in need. The train is prepared and staffed by volunteers. On April 13, KCS lost one them with the passing of volunteer Tillie Caileff of Shreveport, La.

CN: “Solid First Quarter, Despite Network Disruptions”

Reporting on its financial and operating results for the first quarter ended March 31, 2020, CN said it “demonstrated resiliency with solid performance amid month-long illegal blockades and impacts of the COVID-19 pandemic.”

Canadian Pacific Positioning For Growth: Rail Group On Air Podcast Series

Canadian Pacific President and CEO Keith Creel, Executive Vice President Operations Mark Redd and Executive Vice President Marketing John Brooks talk with Railway Age Editor-in-Chief William C. Vantuono about business growth, capital

Railcar Manufacturing Slips in 1Q2020

The Railway Supply Institute American Railway Car Institute (RSI-ARCI) 1Q2020 railcar industry order, delivery, and backlog statistics show that orders in the quarter moderated y/y to 6,172 cars vs. 9,663 in the prior-year quarter and down sequentially from 8,464 cars in 4Q19. The industry delivered 10,824 railcars in the quarter, 26.5% lower than the 14,727 railcars delivered in 4Q19. The backlog now stands at 46,330 railcars, down 9.7% from 4Q19’s 51,295 cars—the lowest backlog figure since 4Q10’s 22,658.

UP 1Q2020: “Well-Equipped to Make It Through Terrible Near-Term Freight Conditions”

Union Pacific reported an all-time best operating ratio of 59% in 2020’s first quarter, based on net income of $1.5 billion, or $2.15 per diluted share. This compares to $1.4 billion, or $1.93 per diluted share, in first-quarter 2019. “Against the backdrop of the emerging COVID-19 pandemic and a challenging volume environment, we leveraged productivity to deliver strong financial results,” said Chairman, President and CEO Lance Fritz. “We also made substantial improvement in employee safety, which is a testament to our dedicated employees. Our rail network has never run better, providing a safer, more reliable and efficient service product to our customers.”

Amtrak Press Conference: Special Podcast Series—The Coronavirus and the Rail Industry

Highlights from Amtrak’s April 23, 2020 press conference with new President and CEO Bill Flynn, Board Chair Tony Coscia and Senior Executive Vice President Stephen Gardner. The three answer questions about Amtrak’s

CSX 1Q2020: Record OR; PSR Changes “Seem to be Paying Off”

CSX’s first-quarter 2020 operating ratio set a Class I railroad first-quarter record of 58.7%, improving 80 basis points from 59.5% in the prior year. The railroad achieved this milestone in the face of a drop in revenues, with a corresponding drop in expenses. CSX withdrew its guidance for the remainder of the year.

CP 1Q2020: Revenue, OR Records; Capex Maintained; No Dividend Increase; No Share Buybacks

Canadian Pacific Railway set records for operating ratio and revenues in the first quarter of 2020, and will continue to invest capital in anticipation of an economic recovery, rather than increase its shareholder dividend and buy back shares—a strategy at least one Wall Street analyst is calling “noteworthy, prudent and logical.” For the remainder of the year, the railroad expects volume to decrease somewhat, with adjusted diluted earnings per share flat.

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