America is still mired in recession, but the railroad industry continues to show financial strength.
Most railroads over the past week reported strong improvements in profit and operating efficiency for the first quarter 2011. Stocks of Union Pacific and Kansas City Southern hit 52-week highs this week, while Norfolk Southern’s stock reached an all-time high.
For the first 16 weeks of 2011, U.S. rail carloadings are up 4 percent over the same period in 2010, while intermodal (trailers and containers atop flat cars) are up 8.9 percent.
In expectation of an improving economy, railroads have boosted orders for new freight cars, ordering as many during the first quarter 2011 as for the entire calendar-year 2010.
What’s driving the rails? Fuel efficiency has a lot to do with increased intermodal traffic. The Federal Railroad Administration says railroads are from 1.9 to 5.5 times more fuel efficient than trucks, and with diesel fuel prices spiking, there is a clear competitive advantage available to railroads so long as they can maintain reliable and consistent service quality.
Related News
- TD to transit agencies: Let’s try “every single thing” to protect our operators
- SMART-TD Union Demands Action in Wake of Los Angeles Bus Hijacking
- Former Alt. VP, GC ‘Pate’ King passes away
- We say: ‘No crew, no engine, NO WAY that’s safe!’
- New report blows the whistle on railroads who cover up injuries and death
- Youngkin vetos Virginia two-person freight crew bill
- REEF Act passes in Senate committee
- SMART-TD provides focused training for bus and transit officers
- Oberman calls out UP, BNSF for cutting jobs when they should focus on growth
- BNSF labor cuts mean Warren Buffett is more about dollars than sense — SMART-TD responds