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: Does rebuilding locomotives beat buying new?

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

Ever check out the list prices of brand-new main line diesel-electric locomotives? They are expensive – about $3 million each.

People get mesmerized by the horsepower quoted. Nah! You want pulling power – and less top-end speed. Speed is what you require horsepower for. But dragging heavy long freight trains is the North American business model. You need to...

https://s29755.pcdn.co/news/commentary:-is-rebuilding-locomotives-better-than-buying-new?

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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