Union Pacific

NS started the New Year with a network-wide event “raising awareness around the importance of working safely and maintaining a safe work environment.” Pictured: NS railroaders from Whitaker Yard in Austell, Ga. (NS Photograph)

Class I Briefs: NS, UP

Norfolk Southern (NS) kicked off 2024 with a network-wide safety event. Also, Union Pacific (UP) will serve CertainTeed Roofing’s new warehouse and distribution center in Bryan, Tex.

  • News

UP Beefs Up Border Patrol

Union Pacific, which with Ferromex and BNSF suffered a severe service disruption in December when U.S. Customs and Border Protection unnecessarily closed the U.S./Mexico rail bridges at Eagle Pass and El Paso,

(Port of Oakland Photograph)

Goods Movement Tracker Debuts at Port of Oakland

The Port of Oakland, Calif., on Jan. 4 reported the launch of an app that provides “real-time visibility on goods movement” and allows customers to “move cargo through the port more efficiently and securely.”

“While rail bridge closures at Eagle Pass and El Paso affect approximately 45% of UP’s cross-border business, we expect the impact on overall volumes to be minimal due to quick resolution of activity,” TD Cowen analysts report. (Union Pacific Photograph)
Commentary

TD Cowen’s 2024 Rail Preview

We modestly lower our fourth-quarter 2023 estimates on mix pressures that are likely to be somewhat mitigated by fuel tailwinds. Intermodal recovery comes at the price of yield given the protracted over-the-road (OTR) rate trough. A revenue per carload rebound is likely a late-2024 story, at best. First-quarter 2024 should see typical seasonal softening, which is well understood as the focus shifts to recovery. We favor Union Pacific (UP) and Norfolk Southern (NS) in 2024 on margin recovery prospects.

Union Pacific International Railroad Bridge view from Piedras Negras, Mexico. Wikimedia Commons/Manuel Velez

Eagle Pass, El Paso Rail Crossings Resume Operations

Following five days of closures at Eagle Pass and El Paso, Texas, U.S. Customs and Border Protection (CBP) announced Dec. 22 the reopening of these key international crossings, according to an Association of American Railroads (AAR) release.

LyondellBasell has awarded UP for “safe, reliable service.” Representing the railroad at an awards presentation were Marty Russell, General Director-Sales, left, and Senior Managers-Train Operations Ryan Broeckelmann and Chad Toussaint, third and fourth from left. (UP Photograph)

Class I Briefs: NS, UP

Norfolk Southern (NS) holds an interim home Value Assurance Program (VAP) workshop for residents of East Palestine, Ohio, and hosts the Georgia Safe Driving Summit. Also, Union Pacific (UP) earns a safety award from Gulf Coast plastics customer LyondellBasell.