Railroads not affected by bad economy

[Motley]

I just read an interesting article about how BNSF posted the same financial numbers as they did last year. And that they are projecting a 30% increase in Intermodal rail services.

Apparently the railroads are immune to the bad economy the last couple of years. I had no idea, I figured they would be eliminating jobs like all the other US companies, but instead had job growth in the railroads.

Here's the article. http://www.nxtbook.com/nxtbooks/sb/ra0910/#/18

 

[SD45T-2]

Not on the ex SP line threw Arizona. Before 2006 You would see Trains STACKED up. ALl the way from Colton-EL paso. Now you dont see shit.

I call Bullcrap on BNSF.

 

[kenw]

they're affected, they just adjust better than some.

 

[Motley]

Hmm, well maybe since companies are trying to cut back costs, they end up using rail services and get rid of costly trucking expenses. I've been hearing that alot lately.

Kind of ironic too, back when railroads were practically eliminated due the the growth of the Interstate highway system. Mainly passenger service.

 

[wheeler1963]

You don't remember the pictures of the long line of diesels parked everywhere?? On every railroad?? They had to adjust just like all of us have.

 

[Motley]

I call Bullcrap on BNSF.

So you're saying BNSF is fudging their numbers? Like Enron. LOL

 

[julienjj]

Corporation are clearly dropping trucking in favor of railways if possible.
where i live there where only a few enterprise deserved by the railroad, first there was a petrochemical plant about 50Km away(they received a lot of ultx and gatx tanker, often in a 7 car drawbar-ed), near that plant, there is an arcelor mittal foundry (the received flatened cars in gondolas) and a coop of farmers, that export grains to make beer .
A lot of places had acces to a siding but didnt used it, now there are cars parked there, and are replaced 2-3 times a week, like a compagny that make parts for Elka suspention, they have completly switched to train shipment and have build a shed to load/unload cars inside. Train delivery is also a good way of skipping traffic

 

[Brakie]

Corporation are clearly dropping trucking in favor of railways if possible.
Snip!

A lot of places had acces to a siding but didnt used it, now there are cars parked there, and are replaced 2-3 times a week, like a compagny that make parts for Elka suspention, they have completly switched to train shipment and have build a shed to load/unload cars inside. Train delivery is also a good way of skipping traffic

As a fun fact CSX and NS handles more boxcars then intermodal by a wide margin.

 

[Chris Roy]

I'm pretty sure that if BNSF hadn't experienced any ill effects of the bad economy, it would have taken a lot more than $27 billion for Warren Buffett to buy it. That being said, he wasn't going to buy a company that didn't have strong fundamentals and good prospects for growth as the economy rebounds.

 

[NH Mike]

CSX has been running frequent ads on TV where they note some things as cost per mile to move X number of tons on one gallon of fuel. Other ads point out the trains don't take up highway space like trucks and a lessened overall environmental impact with cleaner emission diesel locomotives.

Every day on the news there is another story related to air travel either with aircraft problems or getting through terminals. Might as well mention the added fees for baggage and one airlines bright idea to charge for using the toilet. The very industry that all but killed off passenger travel is now helping to bring it back, at least for the short term. Amtrak's Northeast Corridor trains are fully booked every day with few exceptions and you won't get a seat without reservations. When we rode the Crescent in April that train was sold out in all coach seats and a little over 1/2 full in 1st class and sleepers. Ticket prices certainly have a lot to do with it as these days people have more time than money.


Yes some railroads on some divisions are seeing an increase but then I wonder how others like CN is doing out in the Detroit area with auto sales down an average of 18 - 30% across all the manufacturers.