The extreme cold weather impacted North American rail traffic last week as a Polar Vortex shut down Chicago and most rail traffic, freight and passenger, in the region. How did it affect CBR (crude by rail) movements? What is the short- to medium-term impact? PFL Petroleum, in its Feb. 4, 2019 Railcar Report, offered the following analysis:
Investments from customers served by BNSF totaled nearly $3 billion in 2018, a figure that reflects several large investments by customers including Kubota Tractor Corp., WinChill, Dolese Bros. Co., and Dakota Plains. These investments, which BNSF said are expected to generate approximately 1,400 new jobs in local communities, marks the eighth consecutive year that BNSF customers and local economic development organizations have invested more than $1 billion in a calendar year for new or expanded facilities.
U.S. rail traffic for the week ending Jan. 26, 2019 dipped a bit, the Association of American Railroads (AAR) reported on Jan. 30. But for the month of January, it registered a nice gain over the prior-year period.
Virgin Trains USA announced Jan. 30 that it is launching an Initial Public Offering (IPO) of 28,334,000 shares of common stock. The NASDAQ Global Select Market listing is expected to raise $17 to $19 per share—between $482 million and $538 million—resulting in the company having a market capitalization of up to $3.2 billion.
Fourth-quarter 2018 freight car order, delivery, and backlog figures compiled by the Railway Supply Institute represent a sustainable longer-term market for carbuilders, according to analysis conducted by Steve Barger, Kenneth Newman and Ryan Mills of KeyBanc Capital Markets. Orders were “strong” at 19,955 cars. Carbuilders delivered 13,462 units. The backlog now stands at 80,223—the highest level since 2Q16.
Neil Ferrone, who retired from Conrail in October 2018 as Chief Risk and Regulatory Compliance Officer, died Jan. 29. He was 62.
CN, in reporting financial and operating results for fourth-quarter and full-year 2018, noted that the year ended on a strong note, “driven by solid top-line growth and significantly improved operating efficiency.”
The Los Angeles County Metropolitan Transportation Authority (Metro) and a private-sector partner have launched a yearlong pilot project to offer shared, on-demand rides serving three Metro rail stations. The ride-hailing service “has been designed for those who have been excluded from using existing services,” Metro said. “A goal of the partnership is to extend the benefits of on-demand services to a wider audience and to make it easier for riders to connect with a growing Metro system.”
The U.S. Chamber of Commerce (USCOC) has named Kansas City Southern President and CEO Patrick Ottensmeyer as U.S. Chairman of its U.S.-Mexico Economic Council (USMXECO). Ottensmeyer will preside over the U.S.-Mexico CEO Dialogue, which occurs twice annually, and he will oversee the Council’s extensive agenda of engagement with public- and private-sector leaders in the U.S. and Mexico in an effort to strengthen bilateral commercial ties.
Metrolink, Southern California’s regional/commuter rail service, is preparing to release a request for proposals (RFP) for its first-ever combined O&M (operations and maintenance) contract, and will hold an event on Feb. 15 and 16 in Pomona, Calif., for interested contractors, subcontractors, vendors and suppliers who have expertise and/or offer services or products to the rail industry. “This will be an opportunity for the industry to preview a draft RFP, provide feedback, obtain more information about Metrolink operations and tour Metrolink facilities,” the agency announced Jan. 25.