Maryland Governor Larry Hogan (R) said Maryland has received a $125 million federal grant that the state hopes will lead to an expanded rail tunnel in Baltimore to allow for taller trains to travel to the Port of Baltimore.

While investing in the North American railcar market is risky right now because the market is so uncertain, Europe and India are among the places where there are “attractive’ opportunities to invest in railcars, officials with railcar lessor GATX said on the company’s second quarter earnings call on July 17.

The railroad said second quarter revenue totaled $714 million, a 5 percent increase from $682 million for the same period in 2018.

“You’ve heard me say this many, many times – we’re not going to use the lack of volume as an excuse not to make aggressive achievements on our productivity,” Union Pacific chief financial officer Rob Knight said.

“Rest assured our commitment to achieving our financial targets is unwavering and has never been stronger,” says CFO Rob Knight.

Union Pacific set an all-time record for its operating ratio in the second quarter despite lower freight volumes and a decline in freight revenue.

The continued decline of U.S. rail volumes was one of the themes mentioned in the second quarter earnings calls for CSX and Canadian Pacific.

Second-quarter net profit totaled CA$724 million compared with CA$436 million in the second quarter of 2018.

Norfolk Southern and Union Pacific are modifying some of the ways they collect demurrage and accessorial charges for some commodities, but some shippers are questioning the modifications.

“The present economic backdrop is one of the most puzzling I have experienced in my career,” says CEO James M. Foote.

“The present economic backdrop is one of the most puzzling I have experienced in my career..”

Despite a drop in profit in the second quarter, CSX’s (NYSE: CSX) operating ratio set a company record.

Canadian Pacific’s (NYSE: CP) is willing to cut costs in the second half of 2019 should macroeconomic factors put pressure on demand for rail service.

Canadian Pacific’s (NYSE: CP) second quarter net income rose 66 percent amid a 13 percent increase in company revenue, the railroad reported on July 15. CP’s financials are reported in Canadian dollars, except for earnings per share.

While operational efficiencies get the credit for a freight railroad’s improved operating ratio, other factors, such as changes in fuel prices and increases in freight rates, play significant roles according to a research paper by a law firm representing shippers in Canada.

Boeing’s (NYSE: BA) 737 MAX planes might not return to service until next year because of software and other issues that still need to be fixed.

The Port of New Orleans has reopened after Tropical Storm Barry swept through the region, although officials still stress dangerous flooding conditions for area residents.

As the Class I railroads begin reporting their second quarter earnings results next week, some members of the Wall Street community expect the lower rail volumes from the second quarter to affect the railroads’ financial results.

Year-to-date U.S. rail volumes fell yet again this week, although improving economic indicators signal that rail volumes could moderate in the weeks and months ahead.

Although the U.S. Senate Commerce Committee has voted in favor of the nomination of an additional board member to the Surface Transportation Board (STB), whether and when she will be installed remains to be seen.

“Without documented strategies for how it plans to communicate the results of its research, FRA may lose an opportunity to effectively work with internal and external stakeholders – such as railroads, rail workers and local communities – to address any risks of operating longer trains in support of the agency’s mission of enabling the safe, efficient and reliable transportation of people and goods.”

The service problems associated with precision scheduled railroading (PSR) have motivated forest products and scrap recycling shippers to press the Surface Transportation Board to renew a longstanding request for regulatory oversight.

Rail union workers are at odds with other members of the freight rail industry over how cross-border rail operations are run at Laredo, Texas.

Blocking railroad crossings in Oklahoma now could come at a financial cost for freight railroads.

In the longer-term, rail industry observers are waiting to see how and whether Genesee & Wyoming will be able to make the capital investments needed to maintain its infrastructure.

Some members of Congress remain determined to address the question of whether having more crew members on a train makes that train safer.

Iconic American chocolatier and sweets maker Hershey tied for 18th place in a list of the top 25 manufacturers, distributors and retailers that do the best job in removing supply chain inefficiencies.

Year-to-date U.S. rail volumes fell again amid a loosening truck market, receding floodwaters in the Midwest and overall economic uncertainty.

“At Wayfair, we believe that ‘everyone should live in a home that they love.’ Let’s stay true to that message by taking a stand against the reprehensible practice of separating families, which denies them any home at all,” Wayfair employees reportedly said in a letter to company leaders.

An additional $300 billion in proposed U.S. tariffs against China could result in lower railroad freight volume , but economic uncertainty and competition from trucks appear so far to be bigger threats for rail volumes.

Should the Class I railroads see U.S. rail volumes sustainably increase, furloughed workers could be called back to meet network capacity needs, resulting in a bump up of headcount levels. But another factor that could affect headcount levels in the long-term is the deployment of automation technologies.

The implementation of precision scheduled railroading has contributed to dwindling morale and could result in creating unsafe working conditions should the federal government withhold intervention, according to union witnesses at a June 20th Congressional hearing on rail safety.

Autonomous trains might be fully running in remote Australia, but it will take awhile before those kinds of trains will be rolling down the North American countryside.

U.S. rail volumes trended downward again for the week ending June 15, with weekly volumes falling over 5 percent and year-to-date volumes declining nearly 3 percent, according to the latest data from the Association of American Railroads.

The Kraft Heinz Company is a Shipper of Choice not only because the company strives to create an efficient supply chain through investments in technology, but also because the food producer is dedicated to ensuring its supply chain promotes sustainability and social responsibility.

North Dakota’s lawmakers are fighting Washington state’s new crude-by-rail law, saying it could curtail shipments of state-produced Bakken crude oil.

The Federal Railroad Administration is awarding more than $326 million in grants to help states and localities repair, maintain and build rail infrastructure supporting freight rail and intercity passenger rail.

Flooding impacts, cheap natural gas prices, and trade and economic uncertainty could be factors contributing to a significant slump in weekly U.S. rail volume.

The American Short Line and Regional Railroad Association is urging Congress to pass legislation that would make permanent the tax credit that short lines receive for infrastructure improvements.

The transition to e-commerce and anticipated advances in automated trucking are forcing the freight railroads to adapt to supply chains that require railroads to be more responsive and nimble. One way that the railroads are seeking to address this challenge is by hiring executives outside of the railroading community, in the hopes that placing a non-rail executive in a leadership role will help the railroad weather systemic changes within the supply chain.

The Surface Transportation Board is considering initiating a more formal review of how it resolves rail rate disputes.

“It’s just a confusing time for all of us in transportation and anybody in manufacturing or business in general to have a really good sense of why we’re seeing this kind of softness,” said CSX chief executive officer Jim Foote.

U.S. intermodal volumes fell 5.9 percent in May, while carloads fell 2.1 percent amid economic uneasiness and uncertainties surrounding U.S. trade between Mexico and China.

The railway moved 15 million metric tonnes of grain for export through Vancouver in May, breaking the record set in May 2017 by 5 percent, the company said on June 4.

The U.S. Supreme Court declined to hear a case again about whether Amtrak can have a role in crafting the on-time performance metrics and standards for the freight railroads. The Court’s June 3 action paves the way for Amtrak and the Federal Railroad Administration to finish establishing those metrics and standards.

Canadian National’s (NYSE: CNI) strategy to build up its eastern network could include even more partnerships with trucking and intermodal partners, the company’s chief executive officer said at an investor conference.

e railroad industry is “concerned” about a possible disruption of the North American supply chain should the U.S. impose tariffs on imports from Mexico. But for now, the rail industry is taking a wait-and-see stance.

Only 17 percent of the relationships between the U.S. passenger and freight railroads required to utilize positive train control technology have interoperability, meaning that the host railroad can communicate with a non-host train through the technology, according to data released by the Federal Railroad Administration.

U.S. rail volumes tumbled 6.7 percent for the week ending May 25 as slumping intermodal volumes dragged total volumes lower. Softness in the housing and manufacturing sectors could be contributing to lower U.S. rail volumes year-to-date.

Government agency Transport Canada has released a proposed regulation requiring the use of video and voice recorders in locomotive cabs of freight trains operating in Canada.

Eastern U.S. railroad CSX intends to increase the speed of its trains along a route in Alabama to Georgia as part of broader efforts to increase train velocity and improve network fluidity.

The Federal Railroad Administration is withdrawing its notice of proposed rulemaking for train crew staffing. Regulating train crew staffing is not necessary or appropriate for rail operations to be conducted safely, the agency said.

“The board has the authority to define reasonable practices. If you were in our shoes, what would you do?” said Surface Transportation Board vice chairman Patrick Fuchs to a panel representing BNSF, Canadian National and Canadian Pacific.

U.S. rail volumes fell again for the week ended May 18, while Canadian volumes grew, according to the latest data from the Association of American Railroads. The theme of higher U.S. carloads but lower intermodal volumes was also expressed by CSX this week.

“The economy feels pretty good right now,” GWR chief executive Jack Hellmann said at an investor conference on May 14.

At least 35 groups will be testifying before the Surface Transportation Board this week to provide their perspective on how the Class I railroads assess demurrage and accessorial charges. The charges have become controversial because some shippers say the changes that the Class I railroads have made in administering the charges are unfair.

A Trinity Industries subsidiary has bought 230 acres in Iowa to construct a multi-million-dollar railcar maintenance facility. The facility’s location in Butler County will give Trinity access to the Class I railroad network and the upper Midwest, Trinity said.

Nevada joins Colorado in requiring freight trains to have at least two crew members on board. Meanwhile, preliminary data from the Surface Transportation Board shows April rail headcount level to be the lowest so far in 2019 and since January 2017.

Rail congestion in regions such as Chicago and Houston may have eased for now, but the railroads will still need to find ways to increase capacity at those busy city locations as the U.S. population grows, Class I railroad executives said at an investor conference this week.

Executives with eastern railroads CSX and Norfolk Southern expressed confidence this week that they can compete alongside trucks for e-commerce business.

Canadian rail volumes rose again year-to-date for the week ended May 11, while U.S. rail volumes continued downward amid U.S. tariff uncertainty and a fuzzy economic picture.

A number of rail equipment lessors and manufacturers have been merging and consolidating in recent months as a way to leverage themselves against marketplace changes brought about by precision scheduled railroading. Meanwhile, industry observers are watching whether railcar utilization grow in 2019.

Big data and shifting consumer preferences will revolutionize freight transportation, according to Association of American Railroads panel.

A Canadian National (NYSE: CNI) subsidiary has acquired the intermodal assets of Alberta-based H&R Transport, a company that specializes in the over-the-road, temperature-controlled service. The acquisition will expand CN’s presence […]

Canadian Pacific (NYSE: CP) and Canadian National (NYSE: CNI) both moved record volumes of grain in April, following a harsh winter that sometimes curtailed rail shipments. Canadian National said on […]

The partnership between ride-sharing company Lyft (NYSE: LYFT) and Google-affiliated, self-driving car technology company Waymo is just one initiative in Lyft’s strategy to stake a claim in the emerging market […]

Ride-hailing company Lyft (NYSE: LYFT) reported a first quarter 2019 net loss of $1.14 billion, or a net loss of $48.53 per share, the company said on May 7. In […]

Union Pacific (NYSE: UNP) announced which intermodal terminals it would close around Chicago, Illinois, weeks after hinting on its first quarter earnings call that it planned to consolidate operations there. […]

Berkshire Hathway (NYSE: BRK) chairman and CEO Warren Buffett said he would be willing to consider some form of precision scheduled railroading (PSR) for western U.S. railroad BNSF, although he […]

The uncertainty over whether and when the U.S. and China will reach a trade agreement this year is creating a cloudy outlook for grain volumes this fall.

“We expect uncertainty to persist in the grain market due to the foreign tariffs,” said Kenny Rocker, Union Pacific (NYSE: UNP) executive vice president for marketing and sales.

April rail volumes fell year-over-year but rose slightly from March 2019, the Association of American Railroads (AAR) said on May 1. But the AAR predicted that improving economic conditions could lead to rail volumes stabilizing or growing in the second half of the year, although some uncertainties still persist.

A staff report by the Surface Transportation Board (STB) recommending how board members should modify existing rate review methodologies got a mixed reaction from the Association of American Railroads (AAR), a trade group representing the Class I railroads, Amtrak and other carriers.

BNSF (NYSE: BRK) says proposed rules in Oregon would make it harder for the railroad to comply with the common carrier obligation, a federal mandate requiring a railroad to provide transportation to all parties and for all goods, including hazardous materials.

Rail shippers could gain more leverage in rate disputes should the Surface Transportation Board (STB) proceed with its staff recommendations for how to reform rate review methodologies.

Legislation has been approved by the Washington State Legislature that could restrict the movement of crude oil via railroads. The bill is sitting on the desk of Gov. Jay Inslee (D).

U.S. rail traffic dipped again for the week ending April 20, according to data from the Association of American Railroads.

Norfolk Southern (NYSE: NSC) expects to have the next stage of its new operating plan in place by the end of July. In this next stage, which Norfolk Southern dubs “TOP 21,” the railroad will seek to run heavier trains and have them run faster along some routes.

Despite higher operating income, Trinity Industries’ (NYSE: TRN) first quarter 2019 net profit fell 24 percent to $30.6 million from $40.2 million in the first quarter of 2018. TRN consists of three business segments: a rail group that includes the manufacturing of rail parts and tanks; a leasing group; and a highway products and logistics service.

GATX’s (NYSE: GATX) first quarter profit fell 46 percent to $41.5 million, or $1.12 per diluted share, from $76.3 million, or $1.98 per diluted share, in the first quarter of 2018. Chicago-based GATX is a railcar lessor, providing railcars and boxcars to freight railroads and shippers.

The number of employees working for the U.S. operations of the Class I railroads rose by nearly 1 percent in the first quarter of 2019 compared with the same period last year, according to data collected by the Surface Transportation Board.

“This past winter was one of the most challenging in my railroading career,” Canadian Pacific (NYSE: CP) president and chief executive officer Keith Creel said. “I applaud our employees for their resiliency in overcoming loss and pushing through extraordinary conditions and challenges throughout February and March. Our commitment to precision scheduled railroading [PSR] enabled a strong recovery, and gives us a solid foundation moving forward.”

The Greenbrier Companies (NYSE: GBX) is planning to buy the manufacturing arm of American Railcar Industries as a way to increase its North American presence.

Add Ohio and Washington state to the list of states where leaders are debating whether to require freight railroads to have at least two crew members per train. Ohio and Washington state legislators have introduced bills this spring mandating a minimum crew size for freight trains. Washington state’s bill takes the debate one step further by also defining how many crew members should be operating a train that’s carrying crude oil.

Union Pacific’s (NYSE: UNP) first quarter net profit rose 6 percent amid company efforts to rationalize or reorganize existing assets to streamline operations under precision scheduled railroading (PSR).

Higher coal and chemicals volumes drove U.S. carloads upward on a weekly basis for the first time since late February, according to the latest data from the Association of American Railroads (AAR). But despite that weekly gain for U.S. carloads, overall U.S. rail traffic still softened.

Kansas City Southern (NYSE: KSU) said its first quarter 2019 net profits rose nearly 16 percent amid its ongoing transition to precision scheduled railroading (PSR).

Canadian National (NYSE: CNI) plans to appeal a determination by a federal regulator that the railway breached rail service obligations last fall at the congestion-prone Port of Vancouver.

CSX (NYSE: CSX) achieved an operating ratio of less than 60 percent in the first quarter amid continued efforts to employ precision scheduled railroading (PSR) throughout its network.

The U.S. Department of Agriculture (USDA) lowered its export projections for corn and wheat in the 2018-2019 harvest season amid slumping grain volumes and Midwest rail operations coping from last month’s record flooding.

With almost all of the Class I railroads transitioning to precision scheduling railroading (PSR), an operational model that emphasizes running railcars on a fixed schedule, a question surfacing within the rail industry is how much emphasis should the railroads place on lower operating ratio.

Year-to-date rail volumes for every commodity except petroleum and petroleum products slumped last week in the United States, according to the Association of American Railroads.

Precision scheduled railroading (PSR) can’t succeed if the Class I railroads aren’t able to fold the shortline railroads into the new operating model, according to one of the early developers of the precision railroading model.

Canadian National (NYSE: CNI) yesterday unveiled plans to invest US$505 million in capital projects along its U.S. corridor spanning from Wisconsin to Louisiana.

The Surface Transportation Board wants to hear from shippers and the Class I railroads on whether the railroads should supply more rail performance data to the board.

Norfolk Southern’s (NYSE: NSC) chief marketing officer sought to assuage shippers’ concerns at a rail shippers’ conference on April 5, saying his company would engage with shippers and seek opportunities to grow capacity as NSC transitions to the precision scheduled railroading (PSR) operating model.

Precision scheduled railroading (PSR) could benefit customers and shippers, but its deployment pace and how shippers respond to changes will be key to its success, panelists said today at the North East Association of Rail Shippers conference in Baltimore, Maryland.

U.S. rail volumes fell again last week as rail service issues continue to plague the post-flooding Midwestern landscape.

Canadian National (NYSE: CNI) laid out plans to invest C$615 million this year in network infrastructure in eastern Canada amid wider efforts by stakeholders to revamp Canada’s transportation infrastructure and support the nation’s export markets.

The Canadian Transportation Agency (CTA) is seeking public comments on amendments to regulations that govern the rail rates that Canadian National and Canadian Pacific set for hauling grain in western Canada.

Union Pacific (NYSE: UNP) confirmed that it is slowing down its pace of construction at the multi-million dollar Brazos classification yard in Robertson County, Texas. This comes amid UNP’s plans to implement precision scheduled railroading and modify its operating plan to minimize railcar classification events.