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It’s confidential and no-fault.

And the result, according to the Federal Railroad Administration, is a significant reduction in rail workplace derailments that too often lead to serious injury and death — plus, as a bonus, better labor/management relationships and improved operational performance.

We’re talking about four pilot projects called Confidential Close Call Reporting System (C3RS), whose core value is that railroaders don’t intentionally make mistakes, and the most effective means of correcting workplace errors that have the potential to cause death, injury and accidents is to investigate the cause in a non-judgmental environment.

In a review of C3RS pilot projects on Amtrak, Canadian Pacific, New Jersey Transit and Union Pacific, the FRA also determined they result in supervisors becoming “more fair and cooperative” and placing a greater value on safety relative to productivity, fewer discipline cases, and workers more willing to raise safety concerns with management.

C3RS is a collaborative effort involving the FRA, carriers, the UTU and the Brotherhood of Locomotive Engineers and Trainmen. 

The pilot projects encourage engineers, conductors, trainmen and yardmasters to report — without fear of discipline or FRA enforcement action, even if rules violations are involved — close calls that may have resulted in accidents or injuries.

All C3RS reports by employees are collected anonymously and kept confidential. With names and locations masked, a C3RS peer review team recommends corrective action, such as improved training, changes in physical plant, changes in existing federal safety laws or regulations, changes in carrier operating rules, and improved training and/or education.

Examples of close calls include varying levels of risk, such as leaving pieces of equipment unsecured, improper blocking, operating trains beyond track authority, or violating operating rules.

UTU International Vice President John Previsich spearheads the UTU involvement in the four C3RS pilot projects – systemwide on Amtrak and New Jersey Transit, and at CP’s Portage, Wis., yard, and UP’s North Platte, Neb., yard.

At UP, which has the most experience with  C3RS, the pilot project has led to reformatting track warrants so they are easier to read, and with a UP officer observing that C3RS “is helping UP move from a blame culture to one that bridges communication gaps between employees and management.”

BNSF reported a 15 percent increase in profit forf the first quarter 2012 versus first quarter 2011, citing improved pricing and higher fuel surcharges.

BNSF’s first quarter 2012 operating ratio of 74.4 percent was one percentage point lower than for the first quarter 2011. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

BNSF operates in 28 states and two Canadian provinces.

 

Canadian National reported a 16 percent increase in profit for the first quarter 2012 versus first quarter 2011, saying its bottom line was helped by a mild winter and improved economic conditions.

CN’s first quarter 2012 operating ratio of 66.2 percent was almost 3 percentage points better than its 69.0 operating ratio for the first quarter 2011. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

CN is primarily a Canadian railroad. Its U.S. holdings include what were formerly Detroit, Toledo & Ironton; Elgin, Joliet & Eastern; Grand Trunk Western; Illinois Central; and Wisconsin Central.

 

Canadian Pacific reported a 318 percent increase in profit for the first quarter 2012 versus first quarter 2011.

The key was a more than 10 percentage point improvement in CP’s operating ratio, which fell to 80.1 percent for the first quarter 2012 – down from 90.6 for the first quarter 2011. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

Canadian Pacific is primarily a Canadian railroad. Its U.S. holdings include Class I Soo Line and regional railroad Delaware & Hudson.

 

Even with sharply reduced coal loadings, CSX reported a 14 percent increase in profit for the first-quarter 2012 versus first-quarter 2011. CSX credited price hikes and increased shipments of automobiles, metals and intermodal (trailers and containers on flatcars) as the reason.

CSX said coal loadings for the quarter were down 14 percent, but automobile and auto-related traffic rose 18 percent.

The CSX first-quarter 2012 operating ratio of 71.1 percent was a record for the first quarter. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

CSX operates some 21,000 route miles in 23 states and the District of Columbia.

Kansas City Southern  reported a 17 percent improvement in profit for the first quarter 2012 versus first quarter 2011, with the railroad citing “robust” intermodal and automotive traffic along with “growing cross-border traffic with Mexico.”

KCS’s first quarter 2012 operating ratio of 71.2 was 2.6 percentage points improved from its operating ratio for the first quarter 2011. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

KCS operates some 3,500 route miles in 10 states in the Central and South-Central U.S., as well as Kansas City Southern de Mexico, a primary Mexican rail line.

 

Norfolk Southern reported a 26 percent improvement in profit for the first quarter 2012 versus first quarter 2011, citing pricing strength and an increase in intermodal traffic that offset a 6 percent reduction in coal traffic.

NS’s first quarter 2012 operating ratio of 73.3 was improved from the 74.9 percent operating ratio for first quarter 2011. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

Norfolk Southern operates some 20,000 route miles in 22 states and the District of Columbia.

 

Union Pacific reported a 35 percent improvement in profit for the first quarter 2012 versus first quarter 2011, with the railroad citing a 15 percent increase in shipments of automobiles and gains in the number of carloads of other industrial products that offset dampening demand for coal transport.

UP’s first quarter 2012 operating ratio of 70.5 was 4.2 percentage points better than for the first quarter 2011. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

Union Pacific operates some 32,000 route miles in 23 states in the western two-thirds of the U.S.

OSHA logo; OSHASadly, there is a part of “no” that railroads just can’t understand. So, once again, the Department of Labor’s Occupational Safety and Health Administration (OSHA) has hit a railroad in the wallet for violating an employee’s rights as protected under the Federal Railroad Safety Act of 1970, which was supplemented by the Rail Safety Improvement Act of 2008.

The latest wallet-lightening fine was imposed by OSHA against Union Pacific for retaliating against a Pocatello, Idaho, based locomotive engineer who was forced to work and prevented from seeking medical treatment for a migraine headache, blurred vision, dizziness, vomiting and a bloody nose.

OSHA found that the engineer’s supervisor – who also was ordered to pay a portion of the fine – used “threats and intimidation to dissuade the engineer from seeking or gaining access to medical care during his shift.”

Yes, the UP supervisor chose to order an ill locomotive engineer, whose situational awareness was clearly compromised, to operate the train.

Said OSHA in imposing more than $25,000 in punitive and compensatory damages, plus attorney fees: “It is critically important that Union Pacific Railroad employees know that OSHA intends to defend the rights of workers to report safety concerns. We will bring the full force of the law to make sure workers who are retaliated against for reporting health and safety concerns are made whole.”

Incredibly, this was the sixth time since 2009 that OSHA has found Union Pacific in violation of an employee’s rights enumerated by the Federal Railroad Safety Act of 1970 and the Rail Safety Improvement Act of 2008. BNSF, Metro North Railroad, Norfolk Southern and Wisconsin Central also have been penalized by OSHA for similar violations.

In late 2011, Union Pacific was ordered immediately to reinstate an employee and pay him back wages, compensatory and punitive damages and attorney fees totaling more than $300,000 after the employee was suspended, without pay, and then terminated after notifying UP of an on-the-job injury.

The Federal Railroad Safety Act of 1970 extended whistleblower protection to employees who are retaliated against for reporting an injury or illness requiring medical attention. The Rail Safety Improvement Act of 2008 added additional requirements ensuring injured workers receive prompt medical attention, and established prohibitions on carrier intimidation and harassment of injured workers aimed at ending a culture that placed the winning of carrier safety awards and year-end managerial bonuses as a higher priority than treatment and prevention of injuries.

The purpose of these laws — passed by Congress after the UTU documented a railroad culture of harassment and intimidation against injured and ill workers — is to protect rail workers from retaliation and threats of retaliation when they report injuries or illness, report that a carrier violated safety laws or regulations, or if the employee refuses to work under certain unsafe conditions or refuses to authorize the use of safety related equipment.

An employer is outright prohibited from disciplining an employee for requesting medical or first-aid treatment, or for following a physician’s orders, a physician’s treatment plan, or medical advice.

Retaliation, including threats of retaliation, is defined as firing or laying off, blacklisting, demoting, denying overtime or promotion, disciplining, denying benefits, failing to rehire, intimidation, reassignment affecting promotion prospects, or reducing pay or hours.

Earlier this year, OSHA elevated in agency priority its whistleblower protection efforts, placing enforcement directly under OSHA’s assistant secretary of labor. OSHA said the elevation was an effort “to strengthen employees’ voices in the workplace.”

UTU designated legal counsel have pledged to investigate and assist UTU members in bringing complaints under these laws.

A rail employee may file a whistle-blower complaint directly with OSHA, or may contact a UTU designated legal counsel, general chairperson or state legislative director for assistance.

A listing of UTU designated legal counsel is available at https://www.smart-union.org/td/designated-legal-counsel/ or may be obtained from local or general committee officers or state legislative directors.

To view a more detailed OSHA fact sheet, click on the following link:

www.osha.gov/Publications/OSHA-factsheet-whistleblower-railroad.pdf

CANADIAN NATIONAL

Canadian National reported a 9 percent increase in profit for calendar-year 2011 versus calendar-year 2010.

The CN calendar-year operating ratio of 63.5 percent was a slight improvement over the 63.6 percent operating ratio for calendar-year 2010. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

CN said “solid operational and service performance helped CN deliver exceptional financial results.”

CN is primarily a Canadian railroad. Its U.S. holdings include what were formerly Detroit, Toledo & Ironton; Elgin, Joliet & Eastern; Grand Trunk Western; Illinois Central; and Wisconsin Central.

 

CANADIAN PACIFIC

Canadian Pacific reported a 12 percent reduction in profit for calendar-year 2011 versus calendar-year 2010.

The CP calendar-year 2011 operating ratio of 81.3 was a steep increase from the 77.6 percent calendar-year 2010 operating ratio. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

CP said, “We exited 2011 having made meaningful progress on the three pillars of our multi-year plan: driving growth, expanding network capacity to safely and efficiently support higher volumes and controlling costs.

Canadian Pacific is primarily a Canadian railroad. Its U.S. holdings include Class I Soo Line and regional railroad Delaware & Hudson.

 

CSX

Despite reductions in agricultural, chemicals, coal and intermodal shipments, CSX reported an 11 percent increase in profit for calendar-year 2011 versus calendar-year 2010.

The CSX calendar-year operating ratio of 70.9 percent was an improvement from the 71.1 percent operating ratio for calendar-year 2010. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad. For the fourth quarter 2011, the CSX operating ratio increased to 71.5 percent from 70.0 percent for the fourth-quarter 2010.

CSX Chairman Michael Ward told investors, “Our performance in 2011 has set a strong foundation for growth.”

CSX operates some 21,000 route miles in 23 states and the District of Columbia.

 

KANSAS CITY SOUTHERN

Kansas City Southern reported a 26 percent increase in profit for calendar-year 2011 versus calendar-year 2010.

The KCS calendar-year operating ratio was 70.9 percent versus 73.2 percent for calendar-year 2010. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad. For the fourth quarter 2011, the KCS operating ratio was 71.6 percent, an improvement from fourth-quarter 2010.

The railroad said 2011 was “the first time in our railroad’s 125 years we attained over $2 billion revenue and two million carloads.”

KCS operates some 3,500 route miles in 10 states in the Central and South-Central U.S., as well as Kansas City Southern de Mexico, a primary Mexican rail line.

 

NORFOLK SOUTHERN

Norfolk Southern reported a 28 percent increase in profit for calendar-year 2011 versus calendar-year 2010.

The railroad’s calendar-year 2011 operating ratio of 71.2 percent was a 1 percentage point improvement over calendar-year 2010. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

NS said said it “achieved all-time records for revenues, operating income, net income, and earnings per share during 2011, and set fourth-quarter records for revenues, net income, and earnings per share.”

Norfolk Southern operates some 20,000 route miles in 22 states and the District of Columbia.

UNION PACIFIC

Union Pacific reported an 18 percent increase in profit for calendar-year 2011 versus calendar-year 2010, citing improvements in “core pricing.”

UP’s calendar-year 2011 operating ratio of 70.7 percent was but one-tenth of one-percent off its record 70.6 percent operating ratio for 2010. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad. UP’s operating ratio of 68.3 percent was a record fourth-quarter low, and almost two percentage points improved from its 2010 fourth-quarter operating ratio.

UP said it still had 1,030 employees on furlough at year-end – down from 1,500 at year-end 2010 and well below the 4,200 on furlough at the end of 2009.

“We expect continued slow but steady economic growth in 2012,” Union Pacific CEO Jim Young said.

Union Pacific operates some 32,000 route miles in 23 states in the western two-thirds of the U.S.

BNSF, which is privately held, has not yet posted its 2011 financial results. They will be added when available.

Once again, the Department of Labor’s Occupational Safety and Health Administration (OSHA) has ordered a railroad to reinstate an employee and pay him back wages for violating an employee’s rights as a whistleblower.

In the latest OSHA order, Union Pacific was ordered immediately to reinstate an employee in Idaho and pay him back wages, compensatory and punitive damages and attorney’s fees totally more than $300,000.

The unidentified UP employee had filed a whistleblower complaint with OSHA, alleging suspension without pay and then termination 23 days after notifying the company of an on-the-job injury. OSHA’s investigation found reasonable cause to believe that the disciplinary charges and termination were not based on the complainant breaking a work rule, but on the complainant reporting an injury to the railroad, in violation of the Federal Railroad Safety Act’s whistleblower protection provisions.

“The safety of all workers is endangered when employers intimidate injured workers so that they do not report injuries,” OSHA said in assessing the penalties.

This was the fifth OSHA whistleblower violation against Union Pacific since 2009. BNSF, Metro North Railroad, Norfolk Southern and Wisconsin Central also have been penalized by OSHA for violating workers’ whistleblower rights.

As UTU rail members are painfully aware, railroads have routinely tied managerial bonuses to low reportable injury rates among employees, creating a culture of fear through harassment and intimidation – a culture that discourages the reporting by workers of on-duty injuries and allows railroads to claim an industry safety award accompanied by glowing press releases as to its low employee-injury rate.

After collecting file drawers full of verified complaints from members of carrier harassment and intimidation following an on-duty injury, the UTU’s National Legislative Office was successful in shepherding through Congress the Federal Rail Safety Act of 2007.

The law’s purpose is to protect rail workers from retaliation and threats of retaliation when they report injuries, report that a carrier violated safety laws or regulations, or if the employee refuses to work under certain unsafe conditions or refuses to authorize the use of safety related equipment.

An employer also is prohibited from disciplining an employee for requesting medical or first-aid treatment, or for following a physician’s orders, a physician’s treatment plan, or medical advice.

Retaliation, including threats of retaliation, is defined as firing or laying off, blacklisting, demoting, denying overtime or promotion, disciplining, denying benefits, failing to rehire, intimidation, reassignment affecting promotion prospects, or reducing pay or hours.

A rail employee may file a whistle-blower complaint directly with OSHA, or may contact a UTU designated legal counsel, general chairperson or state legislative director for assistance.

A listing of UTU designated legal counsel is available at https://www.smart-union.org/td/designated-legal-counsel// or may be obtained from local or general committee officers or state legislative directors.

To view a more detailed OSHA fact sheet, click on the following link:

www.osha.gov/Publications/OSHA-factsheet-whistleblower-railroad.pdf

The Department of Homeland Security has been ordered by a federal district court in Nebraska to cease assessing fines against Union Pacific and seizing its rolling stock following discovery of illegal narcotics on trains originating in Mexico and delivered by Mexican railroads to UP at the Mexican border.

The court said U.S. Customs and Border Protection — an agency of the Deparatment of Homeland Security — exceeded its authority in assessing the fines and seizing the railcars in which the illegal narcotics were found.

UP, which sued the federal government, said it had been wrongly assessed more than $37 million in fines and penalties by Customs and Border Protection after the illegal narcotics were found in rail equipment delivered to UP at the Mexican border crossings at Brownsville, Texas, Calexico, Calif., and Nogales, Ariz. The court cancelled the $37 million in fines and penalties.

Earlier this year, UP agreed to spend some $50 million to improve its border- crossing security, and to work more closely with Customs and Border Protection. UP has assigned railroad police, K-9 teams and private security contractors to its border crossings in an effort to find those narcotics when the railcars are delivered by the Mexican railroad. UP also paid to construct an office and observation towers for use by Customs and Border Patrol officers.

WASHINGTON – The U.S. Surface Transportation Board has determined that only one major railroad – Union Pacific – was “revenue adequate” in calendar year 2010.

A railroad is considered “revenue adequate” if it achieves a rate of return on net investment equal to at least the current cost of capital for the railroad industry.

Revenue adequacy determines long-term financial sustainability – the ability to pay investors competitive returns as well as covering the cost of efficient operation, which includes obtaining capital for new equipment; to maintain existing track, bridges, signal systems and other capital assets; and to fund capacity expansion.

For 2010, the STB concluded that the current cost of capital for the railroad industry was 11.03 percent, and only Union Pacific achieved a rate of return equal to or exceeding that percentage. No railroad was found to be “revenue adequate” for calendar year 2009.

For 2010, the STB determined that Union Pacific achieved a rate of return on net investment of 11.54 percent; Norfolk Southern, 10.96 percent; CSX, 10.85 percent; Kansas City Southern, 9.77 percent; BNSF, 9.22 percent; Canadian National U.S. affiliates, 9.21 percent; and Canadian Pacific U.S. affiliates, 8.01 percent.

BNSF reported a 9 percent improvement in profit for the third quarter 2011 versus the third quarter 2010.

The third-quarter operating ratio of 71.7 percent was slightly higher than the 70.8 percent for third-quarter 2010. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

BNSF, which is privately held by Berkshire Hathway, operates 28,000 route miles in 28 states and two Canadian provinces.

Canadian National reported a 19 percent increase in profit for the third quarter 2011 versus the third quarter 2010.

CN said a 4 percent increase in carloadings and a 9 percent increase in revenue, coupled with “rigorous cost control” drove its higher third quarter earnings.

CN’s third quarter 2011 operating ratio of 59.3 percent improved from the 60.7 percent operating ratio during the third quarter 2010. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

CN is primarily a Canadian railroad. Its U.S. holdings include what were formerly Detroit, Toledo & Ironton; Elgin, Joliet & Eastern; Grand Trunk Western; Illinois Central; and Wisconsin Central.


Canadian Pacific’s third quarter 2011 profit fell by 5 percent versus third quarter 2010.

CP’s third quarter 2011 operating ratio deteriorated to 75.8 percent, more than two percentage points higher than its 73.7 percent operating ratio for the third quarter 2010. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

Canadian Pacific is primarily a Canadian railroad. Its U.S. holdings include Class I Soo Line and regional railroad Delaware & Hudson.

CSX reported a 12 percent increase in profit for the third quarter 2011 versus the third quarter 2010, much of it the result of higher freight rates as traffic volume slowed.

The railroad said higher fuel surcharges improved its bottom line, offsetting higher costs. CSX said also that its earnings were helped by increased coal exports to China that offset a weakness in domestic coal shipments. Coal accounts for some 33 percent of CSX revenue.

CSX’s third quarter 2011 operating ratio deteriorated to 70.4 percent versus 69.1 percent for the third quarter 2010. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

CSX operates some 21,000 route miles in 23 states and the District of Columbia.


Kansas City Southern reported a 99 percent improvement in profits for the third quarter 2011 versus third quarter 2010, driven by higher freight rates and a record level of carloadings, boosted through increased production of automobiles in Mexico destined for U.S. markets.

“These achievements are all the more impressive given the operating challenges caused by prolonged flooding in the Midwest, particularly along the Missouri River,” said CEO David Starling. “The flooding resulted in the closure of a primary rail line into Kansas City from mid-June through Labor Day, which significantly disrupted grain and coal traffic.”

KCS’s operating ratio of 66.6 for the third quarter 2011 was a sharp improvement from the 73.5 percent in third quarter 2010. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

KCS operates some 3,500 route miles in 10 states in the Central and South-Central U.S., as well as Kansas City Southern de Mexico, a primary Mexican rail line.

Norfolk Southern reported a 24 percent increase in third quarter profit versus third quarter 2010, citing increased freight rates and a 23 percent boost in coal hauled for export.

The third quarter produced for NS “all-time records for income from operations and earnings per share, while also establishing third-quarter records for net income and operating ratio,” said NS CEO Wick Moorman.

The NS third quarter 2011 operating ratio of 67.5 was a third-quarter record low and 2.1 percentage points below its third-quarter 2010 operating ratio of 69.6 percent. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

NS operates some 20,000 route miles in 22 states and the District of Columbia.

Union Pacific reported a 16 percent increase in profits for the third quarter 2011 versus third quarter 2010, citing price increases and fuel surcharges in the face of a sluggish economy, weather-related difficulties in parched Texas and sharply higher fuel prices.

UP’s operating ratio of 69.1 percent for the third quarter 2011 was slightly higher than the record 68.2 percent operating ratio it posted in the third quarter 2010. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

Union Pacific operates some 32,000 route miles in 23 states in the western two-thirds of the U.S.

As BNSF is now privately held, it does not report its earnings.

ABILENE, Kans. – A unidentified Union Pacific employee, operating a hi-rail vehicle, was killed in an accident here with a SUV at a highway-rail grade crossing, reports KAKE television news.

KAKE reported the UP employee was driving the hi-rail vehicle westbound while inspecting track when it was struck at the crossing by the SUV. The SUV driver was hospitalized with unreported injuries.

Canadian National:

Canadian National Railway July 25 reported an 8 percent increase in profit for the second quarter 2011 versus the second quarter 2010, citing a 10 percent increase in intermodal loadings (trailers and containers on flat cars) and a 14 percent increase in intermodal revenue.

CN’s second quarter 2011 operating ratio of 62.3 percent showed little change from the 61.2 percent for the second quarter 2010. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability.

CN is primarily a Canadian railroad. Its U.S. holdings include what were formerly Detroit, Toledo & Ironton; Elgin, Joliet & Eastern; Grand Trunk Western; Illinois Central; and Wisconsin Central.

Canadian Pacific:

Canadian Pacific Railway’s second quarter 2011 profit fell by 23 percent versus second quarter 2010, owing to widespread and prolonged flood disruptions, said the carrier.

CP’s second quarter 2011 operating ratio of 88.8 was four percentage points higher than the operating ratio for the second quarter 2010. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability.

Canadian Pacific is primarily a Canadian railroad. Its U.S. holdings include Class I Soo Line and regional railroad Delaware & Hudson.

CSX:

CSX July 19 reported a 22 percent increase in profit for the second quarter 2011 versus the second quarter 2010, much of it the result of higher freight rates as traffic volume slowed.

CSX said the improved profits will allow $2.2 billion in spending to make improvements to its tracks, yards and signals, and purchase additional locomotives and freight cars. The railroad also said it will increase employment by 4 percent in 2011, double its proposed headcount increase announced earlier in the year.

CSX’s second quarter 2011 operating ratio declined to 69.3, versus 7.2 for the second quarter 2010. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability.

CSX operates some 21,000 route miles in 23 states and the District of Columbia

Kansas City Southern:

Kansas City Southern July 21 reported a 19 percent improvement in profits for the second quarter 2011 versus second quarter 2010, driven by improved auto, intermodal and coal traffic as it established records for the number of carloads handled.

Its operating ratio of 71.7 was almost a full percentage point better than its operating ratio in the second quarter 2010. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability.

KCS operates some 3,500 route miles in 10 states in the Central and South-Central U.S., as well as Kansas City Southern de Mexico, a primary Mexican rail line.

Norfolk Southern:

Norfolk Southern July 26 reported a record second-quarter profit – a 42 percent improvement for second quarter 2011 versus second quarter 2010. The railroad cited increased intermodal traffic (trailers and containers on flat cars) and coal loadings as significant contributors to the improved earnings.

The NS second quarter 2011 operating ratio of 69.5 percent was slightly improved from the 69.9 percent for second quarter 2010. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability.

NS operates some 20,000 route miles in 22 states and the District of Columbia.

Union Pacific:

Union Pacific July 21 reported a 10 percent increase in profits for the second quarter 2011 versus second quarter 2010, citing prices increases and an 11 percent increase in chemicals and agricultural carloads. The railroad said it was the best-ever quarterly earnings.

UP’s operating ratio of 71.3, however, was 1.9 percent higher than second quarter 2010. Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability.

UP said it plans to hire some 4,500 new workers by the end of 2011 – 3,000 to replace those retiring and 1,500 to new positions.

Union Pacific operates some 32,000 route miles in 23 states in the western two-thirds of the U.S.

 As BNSF is now privately held, it does not report quarterly earnings.