Commentary

UPDATED: In trying times, wise railroaders shouldn’t clam up

“HOW SAFE ARE AMERICA’S RAILROADS? Lesley Stahl reports on a recent string of crashes on U.S. railroads and the delay in implementing life-saving technology that could have prevented them.” Oh brother. I think you know what CBS 60 Minutes reported on March 3. It’s not pretty. But in my humble opinion, the rail industry can take most of the responsibility for what turned out to be a damaging report, because no one in the rail industry wanted to go on camera. More on that later. Here, after the fact unfortunately, is my attempt to shed light on some of the misconceptions and negative picture of our industry the 60 Minutes program perpetuated.

Wabtec completes GE merger, posts strong financials

Wabtec Corporation has completed its merger with GE Transportation. The combined company, which is expected to boast revenues greater than $8 billion in 2019, has a compelling growth profile—especially as market conditions improve in its industries. Wabtec announced the transaction completion at the same time as its 4Q18 and full-year 2018 financials.

Simmons-Boardman Rail Group named Railway Interchange media partner

Railway Interchange, the largest exhibition and technical conference in North America, on Feb. 20 announced that Simmons-Boardman Rail Group, publisher of Railway Age, Railway Track & Structures (RT&S) and International Railway Journal (IRJ), is the official media partner for 2019. Railway Interchange is scheduled on Sunday, Sept. 22 through Wednesday, Sept. 25 at the Minneapolis Convention Center, Minneapolis, Minn.

Commentary

Push the envelope with autonomous freight trains?

According to the most recent earnings reports, North American Class I railroads are producing record-low operating ratios and posting record-setting earnings. These results strongly suggest that the current operating format of two-person train crews utilizing innovative safety and fuel conservation technologies is helping achieve these desired, value-added financial results. In short, it is possible for innovative technology and human-operated freight trains to exist in a complimentary fashion. The combination is currently working quite well.

NS targets 60% OR by 2021

Norfolk Southern, at its Feb. 11 Investor and Financial Analyst Conference in Atlanta, said it plans to hold capital expenditures to between 16% and 18% of revenues through 2021, as the railroad targets a 60% operating ratio by that year.

Metro-North awarded federal PTC grant

The Federal Railroad Administration has awarded MTA Metro-North Railroad a grant of up to $2.3 million to support Positive Train Control (PTC) communications testing. The grant, part of the FRA’s Consolidated Rail Infrastructure and Safety Improvements (CRISI) program, will help Metro-North improve the performance of PTC radio spectrum utilization required to make PTC operational on the Northeast Corridor.

G&W looks to increased capex following strong 4Q18

Strong financials in Genesee & Wyoming’s North American Operations unit a more than offset weaker performance in the company’s Australian and U.K./European Operations. As well, the company expects to increase its capital program this year.

NS sets income, OR records

Norfolk Southern’s fourth-quarter and full-year 2018 financial results include record operating income for both periods, and a full-year record-low operating ratio of 65.4%. Net income was $702 million, and diluted earnings per share were $2.57 for 4Q18, and $2.67 billion and $9.51, respectively, for the full year.

Railway Interchange keynote: Vernice “FlyGirl” Armour

Vernice Armour, a motivational speaker who served as America’s first African-American female combat pilot, will give the keynote address at the Railway Interchange 2019 exhibition and technical conference at the Minneapolis Convention Center. Armour will address the general session on Monday, Sept. 23.

Solid quarter, year for UP

Union Pacific posted solid financials for fourth-quarter and full-year 2018, and committed to a 2019 capital program that will equal 2018’s $3.2 billion.

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