Commentary

For Railcar Buyers, Time to Pull the Trigger, Soon

Takeaways from Cowen and Company’s recent Rail Equipment Webinar show that locomotive upgrades remain solid, as traffic growth continues. Elevated inquiries for newly built railcars should begin to translate into orders gradually, despite the steel premium. Lessors are well-positioned as freight demand rises, railcar supply decreases and new builds fall short of replacement levels this year.

Commentary

Follow-up Thoughts to “Amid Rising Demand, Who’s ‘Steeling’ the Show”

Here are a few follow-up thoughts to our May 7 report, Car Conundrum: Amid Rising Demand, Who’s “Steeling” the Show. We believe a cyclical inflection point and a number of macro factors could elevate interest

Commentary

STB Action Creates More Equitable Demurrage Approach

Picture a customer who receives a hefty invoice from an auto repair shop with several additional charges and no details regarding the nature of these fees. The customer is left facing the question of whether to dispute the bill, and if so, how. Such has been the experience of U.S. rail shippers in recent decades when receiving invoices from the railroads for demurrage charges, which are applied by railroads for costs incurred when shipments are held up beyond a reasonable time.

Commentary

High-Speed Debate Continues—in Congress

The long-simmering controversy over high-speed rail (HSR) continued during a May 6 hearing before the House Subcommittee on Railroads, Pipelines and Hazardous Materials. Its theme: “When Unlimited Potential Meets Limited Resources: The Benefits and Challenges of High-Speed Rail and Emerging Rail Technologies.”

Commentary

The Case for a Traction Power Feasibility Study

In modern railway systems, electricity “is a convenient power source for efficient mass transportation,” according to Alan L. Cinsavich and Priyan De Silva of Helios Electric, a Washington, D.C.-based provider of full-service engineering,

Commentary

The Target Is Actually the Hunter

FINANCIAL EDGE, RAILWAY AGE MAY 2021 ISSUE: The scuffle between CP and CN to acquire Kansas City Southern requires comment. In the 2021 Railroad Financial Desk Book, it was noted that KCS’s

Commentary

Amid Rising Railcar Demand, Who’s ‘Steeling’ the Show?

Railcar demand is on the rise, but so is the price of steel, which Cowen and Company estimates has put a 15%-25% premium on newly built equipment.

Commentary

Ninth and Final in a Series (Renamed from “Farewell, Long-Distance Trains?”): It’s Time for Congress to Get Busy

We are getting our daily trains back! Congress spoke, delivering funding for Amtrak to restore the long-distance trains that had been cut to tri-weekly service to daily operation.

Commentary

Chess Game for Railroad Real Estate (UPDATED)

A bidding war has broken out for the Kansas City Southern, but it’s actually more like a chess game. Here are some observations about what it all could mean, especially in terms of railroad “real estate,” from my economist observation post.

Commentary

What Do Shippers Seek From Railroads?

Resiliency is among the key takeaways from Sergio Rebelo, who kicked off the recent 2021 Rail Equipment Finance (REF) Virtual Conference. He is the MUFG Bank Distinguished Professor of International Finance at Northwestern University’s Kellogg School of Management.

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