Is CSX emerging from what many observers, including customers, say is an operational and service meltdown created by a “too much, too soon” rush to implement Precision Scheduled Railroading on an arguably complex network? CSX President and CEO E. Hunter Harrison says “yes.”
The U.S. Surface Transportation Board on Sept. 5 determined that four U.S. Class I railroads are revenue-adequate for the year 2016, meaning that those railroads achieved a rate of return on investment (ROI) equal to or greater than the Board’s calculation of the average cost of capital to the freight rail industry.
Citing improving conditions and strong efforts by m/w crews, rail service impacted by Hurricane Harvey on most BNSF subdivisions in the Houston area and throughout southeastern Texas has been restored. All BNSF rail yards and facilities in the region are open.
Cowen and Company is “not as concerned as many investors are about slowing volume growth,” says Managing Director and Railway Age Wall Street Contributing Editor Jason Seidl. Though North American Class I carloads have been down for each of the past two years, volumes “have snapped back through August,” up 5% year-to-date.
The outlook for railcars “has brightened considerably,” according to the most recent market analysis from Peter Toja of Economic Planning Associates. Second-quarter 2017 deliveries of 10,625 cars and orders for 17,665 raised industry backlogs from 60,471 at the end of March 2017 to 66,561 units at midyear, or 6.3 quarters of production at current assembly rates.
Canadian Pacific is donating US$50,000 to the American Red Cross to help with Hurricane Harvey relief efforts and will match all employee contributions.
UPDATED Sept. 1, 2017: As conditions gradually improve along the U.S. Gulf Coast, BNSF said its engineering crews “are making significant progress in restoring rail service and facility operations in the Houston area and other areas of southeastern Texas.”
Amtrak engineering forces have completed an intense eight-week summer infrastructure renewal work at New York Penn Station, allowing for regularly scheduled Amtrak, NJ Transit and Long Island Rail Road operations to resume Tuesday, Sept. 5.
Working with Rockwell Collins, Amtrak plans to equip approximately 310 diesel-electric locomotives with Positive Train Control (PTC) technology to comply with the Dec. 31, 2018 federal deadline mandated by the amended Rail Safety Improvement Act of 2008.
The Surface Transportation Board on Aug. 30 rejected an application filed by Great Lakes Basin Transportation, Inc. (GLBT) for authority to construct and operate a rail line in the states of Wisconsin, Illinois, and Indiana. STB cited that it found GLBT’s application “incomplete” and has discontinued environmental review.