Opinion

Commentary

• July 05, 2022
• Class I

U.S. Rail System Still Deteriorating, On Balance

We’re now in the second half of 2022, when the four major U.S. Class I’s have committed to turning their operations around, but the current state of play is not encouraging. Only Union Pacific has made any progress in recent months, but that has been from a low base and fading somewhat over the past two weeks. We would regard UP and Norfolk Southern as now in a “steady state” and it’s the other two we’re more worried about in terms of trajectory.

Commentary

• July 05, 2022
• Finance/Leasing

Cowen: GATX ‘Improving Return Dynamics’

GATX has taken advantage of low interest rates over the past few years to improve its debt profile, which is currently 90% fixed, with an average maturity of 10 years. Meanwhile, spot lease rates are expected to continue their seven-quarter run of sequential growth. This should lead to progressively higher returns for the company, which is now likely to focus on locking into much higher lease terms.

Commentary

• July 05, 2022
• Regulatory

Will SCOTUS Ruling Chill STB, FRA?

Whether the Surface Transportation Board (STB) and Federal Railroad Administration (FRA) will suffer from a June 30 Supreme Court (SCOTUS) trimming of regulatory agency authority to interpret their own governing statutes and remedy ambiguities remains to be seen.

Commentary

• July 03, 2022
• High Performance

Part 7: What the Texas Court Did, and Didn’t, Say

In the previous article in this series, I looked at the surprising decision by the Supreme Court of Texas in the case of Miles v. Texas Central Railroad & Infrastructure, Inc. and Integrated

Commentary

• July 01, 2022
• Regulatory

Analysis: ‘Big 4’ Revised STB Service Recovery Plans

The four largest U.S. freight railroad companies—BNSF, CSX, Norfolk Southern, Union Pacific—all reported, per the request of the Surface Transportation Board, supplemental information about their efforts to improve service and network fluidity. This is, of course part, of an ongoing STB service investigation with public hearings held back on April 26 and 27 of this year.

Commentary

• June 28, 2022
• High Performance

Part 6: The Texas Supreme Court Rules

I thought it was all over but the waiting: The beleaguered Texas Central high-speed rail (HSR) project, which would have sent fast trains between Dallas and the outskirts of Houston, was dead.

Commentary

• June 27, 2022
• Class I

Cowen: Adjusting the Tracks for 2Q22

At Cowen and Company, we are adjusting our railroad estimates ahead of second-quarter 2022 earnings. Continued rail congestion is hindering volume (still below 2019 levels), while pricing is expected to be on par with first-quarter levels.

Commentary

• June 27, 2022
• Class I

Dissecting Failed Rail Labor Talks

It is more than two years since the rail industry’s 12 labor unions and management (representing most Class I railroads and some smaller ones) commenced bargaining to amend contracts defining wages, benefits and work rules.

Commentary

• June 24, 2022
• Regulatory

Political Pedantry, NIMBY Nervousness, Maritime Mendaciousness

Recently, three filings with the Surface Transportation Board in opposition to the Canadian Pacific-Kansas City Southern merger application came across the transom that strike me as odd. One is from a California Congresswoman. The second (multiple letters, actually) is from a Chicago region group called The Coalition to Stop CPKC. The third—and strangest—is from three Federal Maritime Commissioners.

Commentary

• June 17, 2022
• Regulatory

Did NMB Cozy-Up to Rail Labor?

It may be the “snooker” of this century, and there’s not much railroads can do about it so long as Democrats control both chambers of Congress.