Class I railroad

Union Pacific posts flat quarterly results despite volume growth

Union Pacific (NYSE: UNP) reported flat quarterly earnings Thursday as a decline in fuel surcharge revenue offset record freight revenue that flowed from industry-leading volume growth.

“We had a solid start to the year. … [W]e delivered record first-quarter operating performance,” CEO Jim Vena told investors and analysts on the railroad’s earnings call. “Further, we had the strongest carload growth of the Class I’s as we worked closely with our customers to meet their needs in an uncertain...

https://www.freightwaves.com/news/union-pacific-posts-flat-quarterly-results-despite-volume-growth

Central Oregon & Pacific takes over UP operations in Eugene, Oregon, Saturday

Genesee & Wyoming short line Central Oregon & Pacific can take over local operations from Union Pacific in Eugene, Oregon, as soon as Saturday, federal regulators have ruled.

In a unanimous decision Tuesday, the Surface Transportation Board denied the SMART-TD union’s request to scrutinize and reject the lease deal. The decision also denied Central Oregon & Pacific’s request that the board partially waive labor notification requirements.

G&W will take a phased approach to beginning operations on...

https://www.freightwaves.com/news/central-oregon-pacific-takes-over-up-operations-in-eugene-oregon-saturday

North American trade disputes an opportunity for CPKC, CEO says

NEW YORK — Canadian Pacific Kansas City CEO Keith Creel looks at the uncertainty swirling around North American trade and sees opportunity.

CPKC (NASDAQ: CP) has a lot riding on the outcome of tariff spats involving the U.S., Canada and Mexico: The 2023 merger of Canadian Pacific and Kansas City Southern was a $30 billion bet on North American trade.

If tariffs ultimately make U.S. markets less attractive to companies based in Canada and Mexico, then those companies are going to look for new...

https://www.freightwaves.com/news/north-american-trade-disputes-an-opportunity-for-cpkc-ceo-says

Improved Cumberland, Maryland, yard helps CSX reduce train starts

NEW YORK — CSX is moving more tonnage on fewer trains this year as part of a significant reduction in the number of road train starts.

The 10% decline in coal volume this year has contributed to the reduction, Chief Financial Officer Sean Pelkey told an investor conference Tuesday. “But there’s a significant amount of reengineering of the network,” he said. “The Cumberland Yard … has been a big driver of that.”

CSX has completed a reconfiguration of the yard in Cumberland, Maryland, that nearly...

https://www.freightwaves.com/news/improved-cumberland-maryland-yard-helps-csx-reduce-train-starts

NS: CSX Virginia terminal railroad antitrust claims a ‘ghost story’

WASHINGTON — Norfolk Southern has urged the Surface Transportation Board to continue a case of regulatory housekeeping involving control of Virginia terminal railroad Norfolk & Portsmouth Belt Line.

Last month CSX told the STB that the Justice Department was probing its allegations about anticompetitive conduct involving NS and NPBL at a major Norfolk container terminal. CSX also asked the board to conduct a thorough review of competitive issues at the Norfolk International Terminal.

CSX contends...

https://www.freightwaves.com/news/ns-csx-virginia-terminal-railroad-antitrust-claims-a-ghost-story

Class I railroads, shippers alike weigh in on federal agencies’ feedback request

A photograph of a train at a highway grade crossing.

An August request from the Surface Transportation Board (STB) and the Federal Railroad Administration (FRA) asking the Class I railroads to report how they’re addressing service issues amid rising rail volumes got a response from shippers as well.

Shippers seek data for first-mile/last-mile movements

A coalition of shippers is asking the Board and FRA to consider collecting data covering first-mile and last-mile rail movements so that the Board can have a more informed view of rail service.

“Our...

https://s29755.pcdn.co/news/class-i-railroads-shippers-alike-weigh-in-on-federal-agencies-feedback-request

Class 1 railroads may make some cost-cutting measures permanent

A photograph of a train in a rail yard. There are electricity lines above the train and behind it.

The Class I railroads are considering retaining some of the measures they implemented to scale down operations as a result of the coronavirus pandemic, according to comments some executives have made at recent industry conferences.

“I’m very confident that as we do add back resources, we will not add them back on a one-to-one basis,” said CN (NYSE: CNI) Chief Financial Officer Ghislain Houle at the Deutsche Bank 11th Annual Virtual Global Industrials & Materials Summit on June 9.

Houle was...

https://www.freightwaves.com/news/class-1-railroads-may-make-some-cost-cutting-measures-permanent

Norfolk Southern shuffles its departments

A photograph of a train hauling intermodal contrainers.

Norfolk Southern (NYSE: NSC) has restructured some of its departments amid the departure of Chief Strategy Officer John Scheib on June 1.

Strategy and operations functions previously led by Scheib will be integrated into the finance, operations and marketing divisions of Norfolk Southern (NS) to create “efficiencies and closer alignment among teams,” NS said.

The changes include the following:

  • The Strategic Planning Department will move to the Finance Division, led by Chief Financial Officer Mark...

https://www.freightwaves.com/news/norfolk-southern-shuffles-its-departments