Commentary

What’s Changed? Just About Everything

ASLRRA PERSPECTIVE, RAILWAY AGE, JUNE 2020 ISSUE: National survey data indicate that 70% of Americans have not left their homes to visit family or friends, more than 50% have not gone into work, 20% do not leave their home to shop for the essentials of life, and 33% have someone in their household that has either lost a job or took a pay cut because of the coronavirus outbreak. A stunning 39 million Americans have filed for unemployment since early March.

Commentary

Put Aside Narrow Interests. Think About What’s Best

WATCHING WASHINGTON, JUNE 2020 ISSUE: This question should be at the forefront of the Surface Transportation Board’s agenda: What is the future of rail freight transportation? The STB should put all its other discretionary regulatory work to the side and call in the railroads and key stakeholders and facilitate a discussion of how the industry can recover to serve the future American economy. All internecine sniping and conflict should be pushed aside.

Commentary

There May Be No New “Normal”

In response to Jim Blaze’s interesting “Railroad Mega-mergers” article from earlier this week, I’m not sure that the historical perspective will apply in a developing “new normal” business economy in the United

Commentary

U.S. Railroads Resurgent With Digitization at Just the Right Time

The first plans to build a U.S. transcontinental railroad from East to West were drawn up in 1845. As “Last Spike” ceremonies came to an end during the late 1800s, this vast investment in infrastructure became the core of American culture and economic power.

Commentary

Railroad Mega-mergers: To Be Feared, or a Path to Business Growth?

About once a year, someone pens a North American rail merger column. Why not one from a rail economist? This is not a “will happen” projection. It’s a strategic scenario question.

Commentary

Part 11: Circumstances Are Changing

While the COVID-19 virus was occupying most of our attention, an event so unforeseeable and strange occurred that anything remotely resembling it had previously been considered unthinkable. For a brief time in April, oil literally became equivalent to trash. It brought a negative price on the market, which meant that its owners had to pay to get rid of it, as the cost to store it kept rising. That phenomenon was a momentary hiccup of our virus-based economy, but it says something about supply, demand and the cost of infrastructure. This does have something to do with the Gateway Program, and it is time for the members of the Board of the Gateway Development Corp. (GDC) to start noticing some recent changes. As of the May 28 meeting, they had not.

Commentary

Uphill Slow, Downhill Fast, Profits First, Safety Last

Having worked in the industry for 50 years, if you consider my postretirement involvement, I will be the first to admit that today’s railroads are, in many respects, much safer than they were when I was first employed as a locomotive fireman in 1970. Credit for that goes to railroad management, employees and the Federal Railroad Administration (FRA). However, in my opinion, greater progress has been impeded for economic reasons or organization priorities—more simply put, the pursuit of self interests. Having said that, it’s time to move to the point of this article.

Commentary

When Warnings Aren’t Enough

It’s not often that I find myself in agreement with the National Transportation Safety Board. Not only is it infrequent, it’s downright uncomfortable. Truth be told, nothing worries me more than finding myself in agreement with a government agency, or a panel of experts, or the vice president operations of whatever railroad I happen(ed) to be working for at the time.

Commentary

From Anderson to Flynn to … ?????

As Amtrak enters it 50th year, many of its schedules bear little resemblance to the service that was offered a mere two months ago. President and CEO Richard Anderson is out (though serving in a transitional role), and William Flynn is in. Will that change at the top mean much to Amtrak customers and supporters? The COVID-19 pandemic has knocked out a large portion of Amtrak service, as well as much local transit. Still, the nation will come back to life in some fashion, someday. How will Amtrak participate in the recovery? Anything can happen in these unpredictable times. What could happen in Amtrak’s possibly most-pivotal year?

Commentary

Does Rebuilding Locomotives Beat Buying New?

Ever check out the list prices of brand-new main line diesel-electric locomotives? They are expensive, about $3 million each. Are you mesmerized by the horsepower quoted? Nah! You want tractive effort. Hauling heavy, long freight trains is the North American business model. You need to purchase tractive effort.

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