BNSF Railway Company (BNSF) on Jan. 26, 2016 announced a $4.3 billion 2016 capital expenditure plan that “will focus on helping to ensure the company continues to operate a safe and reliable network this year and beyond. This year’s capital program reflects BNSF’s success in adding capacity to support customer demand while bringing investment more in line with current volumes,” the railroad said.
The Midwest Association of Rail Shippers (MARS) elected its 2016 slate of officers at the annual winter meeting earlier in January.
CN President and CEO Claude Mongeau has returned to work after fully recovering from a surgical procedure and will lead the company’s Jan. 26, 2015 earnings call to discuss fourth-quarter and full-year 2015 financial results.
Amid a North-American-wide slump in traffic volume, falling prices for railroad-transported commodities like coal and oil, and an economy that appears to be increasingly unstable, Canadian Pacific, the second publicly traded Class I to report fourth-quarter and full-year 2015 financials, fell short of analyst expectations, based largely on a nosedive in net income, despite reporting record earnings per share and an improved operating ratio.
News item: Canadian Pacific (CP) is pursuing a hostile takeover of Norfolk Southern (NS). CP is asking the U.S. Justice Department to investigate whether NS and other U.S.-based major railroads—some of which oppose the takeover—are unlawfully conspiring for “the primary purpose of restraining trade.” CP says “fear of competition does not justify the collective action of competitors.” Yet the Supreme Court long ago ruled that “joint efforts to influence public officials, such as railroad regulators, do not violate the antitrust laws even though intended to eliminate competition.”
SISCOG, a Portugal-based software company that specializes in solutions for optimized planning and management of resources in transportation companies has secured a contract with a new international client: VIA Rail Canada, the company announced Jan. 19, 2016.
BNSF’s President and CEO leads a railroad that continuously sets high standards for investment, service quality, profitability and safety. Following is the complete interview, as published in the January issue of Railway Age. Click HERE to access a video of the interview. Railway Age Contributing Editor Larry Kaufman’s interview with BNSF Executive Chairman Matt Rose follows the main story.
Norfolk Southern’s Jan. 12, 2015 announcement about consolidating its Pocahontas and Virginia divisions “is notable,” and CSX is facing “continued industrial challenges,” according to Cowen and Company Managing Director and Railway Age Wall Street Contributing Editor Jason Seidl.
In remarks at the Midwest Association of Rail Shippers annual meeting on Jan. 13, 2015, Lance M. Fritz, President and CEO of Union Pacific, while declining to comment specifically on the proposed CP/Norfolk Southern merger, said, “I believe a Class I rail merger is not in the best interests of the rail industry and not in the best interests of our customers.” Canadian Pacific did not appreciate Fritz’s comments, and fired a shot across UP’s bow.
The Railway Supply Institute (RSI) has promoted Amanda Patrick to the position of Vice President of Trade Shows and Member Relations, the association announced Jan. 14, 2016.