railroad competition

Fertilizer shippers seek carrier reforms to address supply chain snags

Tank cars at rail yard

Fertilizer shippers are pressuring the Biden administration for transportation-related changes they say will help lower their costs and make them more competitive in world markets.

The industry’s recommendations, which include regulatory and other changes affecting trucking, rail and maritime, were in response to an information request published earlier this year by the U.S. Department of Agriculture’s Agricultural Marketing Services (AMS) in which the agency asked for help identifying issues...

https://www.freightwaves.com/news/fertilizer-shippers-seek-carrier-reforms-to-address-supply-chain-snags

FreightWaves Classics/Fallen Flags: Gulf, Mobile & Ohio Railroad made key acquisition in 1940

There are many people interested in former transportation companies, whether they were trucking companies, railroads, airlines or ocean lines. They are called “fallen flags,” and the term describes those companies whose corporate names have been dissolved through merger, bankruptcy or liquidation.

On this date 81 years ago, the new Gulf, Mobile & Ohio Railroad (GM&O) took control of the  Mobile & Ohio Railroad (M&O), which had declared bankruptcy.

This was a key railroad consolidation in the...

https://www.freightwaves.com/news/freightwaves-classicsfallen-flags-gulf-mobile-ohio-railroad-made-key-acquisition-in-1940

FreightWaves Classics: The Atlantic Coast Line was one of several strong Southern railroads

An Electro-Motive company photo features a gorgeous A-B set of new Atlantic Coast Line locomotives circa 1951. (Photo: american-rails.com)

In 1920, the U.S. railroad network was still near its peak. There were over 250,000 miles of track being used by over 1,000 railroads. Over 1.5 million men and women were employed in the industry. 

By 2020, the number of railroads in the U.S. was down to about 700. However, the vast majority of the 700 are short line railroads; there are only seven Class I railroads operating (and that will drop to six when the Kansas City Southern Railway is acquired). The miles of railroad track in use has...

https://www.freightwaves.com/news/freightwaves-classics-the-atlantic-coast-line-was-one-of-several-strong-southern-railroads

FreightWaves Classics: The Soo Line was founded to serve Twin Cities’ millers and ag interests

As many railroad buffs know, at one time there were hundreds of North American railroads. Over the decades bankruptcies, mergers, acquisitions, etc. have shrunk that number considerably. There are now only seven Class I railroads in North America, and that number is likely to shrink to six in the near future. The Canadian Pacific Railway and the Canadian National Railway have both made bids to buy the Kansas City Southern Railway.

The Soo Line Railroad

The Soo Line Railroad (SOO) is the primary...

https://www.freightwaves.com/news/freightwaves-classics-the-soo-line-was-founded-to-serve-twin-cities-millers-and-ag-interests

Commentary: Will railroads grow organically or just recover?

The views expressed here are solely those of the author and do not necessarily represent the views of FreightWaves or its affiliates. 

That search for modal share growth is still fundamentally the real strategic challenge for the seven Class 1 North American railroads.

 Profitability remains excellent.

 Net cash flow? Down a bit during the second quarter of 2020 as the COVID-19 pandemic economic shock hit. We will find out by how much less over the next few weeks as second quarter earnings are...

https://s29755.pcdn.co/news/commentary:-will-railroads-grow-organically-or-just-recover?

Commentary: Should we fear mega-railroad mergers?

The views expressed here are solely those of the author and do not necessarily represent the views of FreightWaves or its affiliates.  

About once a year, someone pens a North American rail merger column.  Why not one from a rail economist? This is not a “will happen” projection. It’s a strategic scenario question.

If a merger proposal is announced, here is a quick checklist of what you will want to examine as to details.

Suggested railroad M&A process checklist

Source: Lots of M&A post-review case...

https://www.freightwaves.com/news/commentary-should-we-fear-mega-railroad-mergers

Commentary: Making a tough best guess market forecast

The views expressed here are solely those of the author and do not necessarily represent the views of FreightWaves or its affiliates.  

Forecasting is hard enough to do when you have accurate and timely data. It’s almost impossible when your data is not up-to-date. 

There is an old adage: Forecasting is like driving blindfolded while your partner looks rearward and telegraphs the next turn based on what you recently passed. That is tough to do on a curved road. It is mpossible on a road never...

https://s29755.pcdn.co/news/commentary:-making-a-tough-best-guess-market-forecast

Commentary: When will PSR-driven volume and service growth emerge?

The views expressed here are solely those of the author and do not necessarily represent the views of FreightWaves or its affiliates. 

This week’s strategic question is “What are the bold new benefits shippers can expect now that the freight railways are super-efficient?”

It is May, and freight carriers – including the railroads – have issued their first quarter 2020 report cards. Simultaneously, it is a time of considerable economic uncertainty.

Previously in such crises, certain companies and...

https://s29755.pcdn.co/news/commentary:-when-will-psr-driven-volume-and-service-growth-emerge?

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