Railroad News

The Regional Transportation Authority (RTA) board of directors has adopted the 2017 operating budgets for the RTA, Chicago Transit Authority (CTA), Metra and Pace, totaling $3 billion. 

 

12/15/2016    

Rail News: Federal Legislation & Regulation

12/15/2016    

Rail News: High-Speed Rail

Metra joined the likes of the Southeastern Pennsylvania Transportation Authority Dec. 14 when the commuter railroad announced a three-year agreement with Uber, which will be the agency’s “official rideshare partner.”

 

12/15/2016    

Rail News: Security

12/15/2016    

Rail News: Passenger Rail

The Surface Transportation Board (STB) announced Dec. 14 its adoption of a final rule to establish procedures for board-initiated investigations regarding railroad issues of national or regional influence pursuant to Section 12 of the STB’s Reauthorization Act of 2015 (Reauthorization Act), Pub. L. No. 114-110, 129 Stat. 2228 (2015).

 

12/15/2016    

Rail News: Federal Legislation & Regulation

12/15/2016    

Rail News: Rail Industry Trends

Rail News Home Rail Industry Trends December 2016 Rail News: Rail Industry Trends

Compiled by This email address is being protected from spambots. You need JavaScript enabled to view it., Managing EditorNothing like a high degree of uncertainty heading into 2017 after dealing with a lot of volatility throughout 2016. That’s the position Class I chief executive officers find themselves in, which makes it difficult to gauge their respective railroad’s chances of growing revenue and traffic next year.The contentious presidential election didn’t provide much clarity on the economy’s direction or business climate’s condition after a mostly sluggish 2016 spelled traffic drops and revenue declines for Class Is. And with the new year about to dawn, there were more questions than answers about the impending administration’s business-building objectives.For example, several media outlets last month questioned whether President-Elect Donald Trump’s proposal to “tear up” the North American Free Trade Agreement would negatively impact Kansas City Southern, which generates a good chunk of its annual traffic and revenue from business in Mexico. But as of mid-November, there wasn’t enough information available to make an informed decision, says KCS President and CEO Patrick Ottensmeyer.“The truth is, we don’t know yet,” he says. “The government is run by checks and balances. It would take congressional action to get something done that would be drastic.”KCS should have a seat at the table to address anything that could directly impact the company, Ottensmeyer believes.“We want to engage in the dialogue,” he says.In the meantime, KCS isn’t doing anything differently despite the murkiness. Ditto for the other Class Is. They plan to stay the course until there’s a reason to alter it.Following are comments from Class I leaders about how they expect to continue “grinding it out” next year, as CN President and CEO Luc Jobin characterizes it. In addition to Ottensmeyer and Jobin, Progressive Railroading received emailed responses to “Outlook 2017” questions from BNSF Railway Co. President and CEO Carl Ice; CSX Chairman and CEO Michael Ward; Canadian Pacific CEO E. Hunter Harrison; and Union Pacific Railroad Chairman, President and CEO Lance Fritz. Norfolk Southern Corp.’s responses were submitted by Executive Vice President and Chief Marketing Officer Alan Shaw.The online version of this December issue article includes longer responses from some of the seven execs, as well as Outlook 2017 commentary from OmniTRAX Inc. CEO Kevin Shuba (see far below).Q: What's your take on the potential for volume growth in 2017? Are there certain commodities/business groups you feel pretty good about heading into next year?Fritz: As outlined in our third-quarter earnings release, the macro-economic environment faces several significant challenges: an unstable global economy, a relatively strong U.S. dollar and continued soft demand for consumer goods, specifically those shipped via intermodal containers. However, certain segments of the economy are showing signs of life, and we’re optimistic about volume growth in some business segments. For example, increasing crude oil and natural gas prices are encouraging indicators for our coal and shale-related businesses. We also were pleased to see strength in the overall grain market and expect lumber to be stronger as housing starts continue expanding. Additionally, light vehicle sales remain robust, forecasted to finish 2016 less than half a percent lower than 2015’s record rate, still well above levels immediately following the Great Recession.Lance Fritz

12/14/2016    

Rail News: Supplier Spotlight

Art Lloyd, a long-time board member of the San Mateo County Transit District (SamTrans) and the Peninsula Corridor Joint Powers Board (JPB) that oversees Caltrain, died Dec. 4 in his California home at 91 years old.

 

12/14/2016    

Rail News: Federal Legislation & Regulation

12/14/2016    

Rail News: Short Lines & Regionals

Canadian Pacific Railway Limited (CP) has appointed Jane L. Peverett to its board of directors, effective Dec. 13, 2016. 

 

12/14/2016    

Rail News: Union Pacific Railroad

12/14/2016    

Rail News: Union Pacific Railroad

12/14/2016    

Rail News: Passenger Rail

Union Pacific Railroad (UP) will soon replace the electrical system on its Portland-based Steel Bridge to improve lift bridge redundancies and enhance electrical system access for bridge maintenance staff.