Rail News Home Norfolk Southern Railway 8/10/2021 Rail News: Norfolk Southern Railway
Norfolk Southern Corp. yesterday released its 14th annual corporate responsibility report, which now is named the environmental, social and governance (ESG) report to better reflect the company’s holistic commitment to sustainability.The Class I ramped up its sustainability efforts in 2020, in part by becoming the first major North American railroad to issue green bonds — which totaled $500 million — and establishing a science-based target for a 42% reduction in greenhouse-gas emissions intensity that’s consistent with the Paris Agreement on climate change, NS officials said in a press release.“At Norfolk Southern, sustainability is in our DNA — a part of everything we do as a company. From environmental stewardship to the safety and development of our entire team, we are in the business of a better planet, committed to bold leadership and deliberate action,” said NS Chairman, President and Chief Executive Officer James Squires.Some of the the milestones listed in the ESG report include:• spending $166 million with diverse suppliers;• making $13.1 million in total corporate contributions across the company’s 22 state footprint;• nearly doubling renewable energy usage to 18% in deregulated markets as of May 1, 2021, and establishing a new goal of using 30% clean energy by 2030;• diverting 81% of waste from landfills;• recycling 100% of old wood ties and more than 90% of steel ties;• recycling all 400 miles of rail replaced each year; and• reclaiming more than 6,200 tons of used oil.For more information about NS’ sustainability efforts, read this cover story in Progressive Railroading’s August issue.
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BNSF Railway Co.’s financial performance was promising in the second quarter, with total revenue up 26% to $5.8 billion, operating income up 28% to $2.2 billion and net income up 34% to $1.5 billion on a year-over-year basis.
In addition, total traffic jumped 24% to 2.6 million units and the railroad’s operating ratio improved 0.7 points to 60.4. The higher volume was partially offset by a 2% drop in average revenue per car/unit in 2021’s first half resulting from business mix changes, BNSF officials said in a Q2 performance summary posted on the Class Is’ website.
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Canadian Pacific has upped the ante in its competing attempt to acquire Kansas City Southern by issuing a new offer it’s characterizing as superior, achievable, pro-competitive and strategic.
In a letter sent to KCS’ board, CP President and Chief Executive Officer Keith Creel describes the Class I’s new offer, which is a stock and cash transaction representing an enterprise value of about $31 billion. The offer values KCS at $300 per share, representing a 34% premium based on the CP stock closing price on Aug. 9 and KCS unaffected stock closing price on March 19, 2021.