News Updates

Things seem to be marginally better for the freight rail business. The passenger rail business ( some would say there is no such thing) is still a world of dreams. I do not expect to see an actual high speed rail system anywhere in the USA during my lifetime.

News from the Association of American Railroads

The Association of American Railroads reported freight traffic rose to 264,030 carloads in the week ended Jan. 16, up from 236,796 loads in the prior week. Intermodal loadings last week increased to 201,728 containers from the year's first week loadings of 196,788. The Journal of Commerce

Burlington Northern Santa Fe reported a 13% drop in fourth-quarter earnings, but a profit margin of 14.6% reflected the railroad's efforts to improve efficiencies. In addition, "We have seen some improvement in volumes during the second half of 2009 and expect this gradual improvement to continue," said CEO Matthew Rose. The Wall Street Journal/Dow Jones Newswires (1/21)

Results at major U.S. railroads in the fourth quarter reflect the slow pace of economic recovery. Weak demand for coal -- an important business segment -- has hurt the industry, as has tepid consumption of imported goods. "Until employment shows some signs of improvement, you're going to have consumers stay on the sideline, and I think it's going to be pretty tough to see any kind of a strong recovery," said Jim Young, Union Pacific chief executive. ABC News/The Associated Press (1/21)

Union Pacific reported a 17% drop in fourth-quarter profit Thursday, but the results topped analysts' expectations. Although overall shipping demand remained soft, the agricultural and automotive business groups posted improvement. Additionally, CEO Jim Young offered some optimism: "Although still uncertain, the economic picture for 2010 looks somewhat more favorable than it did a year ago." Reuters