Booming growth on freight railroads

[tt342998]

Derailed
Recession has stalled transportation-sector growth locally
Sunday,  October 11, 2009 3:35 AM
By Dan Gearino

THE COLUMBUS DISPATCH

In good times, Buckeye Yard on the Far West Side is alive with the screech of metal on metal.

Now, it is a kind of parking lot. Hundreds of idled locomotives and rail cars are spread across acres of track, just west of I-270 and south of Roberts Road.

Read more at:

http://www.dispatch.com/live/content/business/stories/2009/10/11/empty_trains.ART_ART_10-11-09_D1_KSFAME8.html?sid=101

[noozer]

I think the reporter fails to account for the impact of fuel costs in her assumptions about expected growth in hauling freight by highway and air.  That one big reason why rail was growing so steadily until earlier this year.

[noozer]

Shippers are the focus as rail plan develops
(NITL) The National Industrial Transportation League -- Logistics Management, 10/28/2009

The Association of American Railroads (AAR) issued a statement characterizing the Federal Railroad Administration‘s (FRA) Preliminary National Rail Plan as an "excellent first step in developing a longer-range national rail plan" that ensures the U.S. freight rail system continues to be safe, efficient and cost effective.

The full preliminary National Rail Plan is available on FRA‘s Web site:

http://www.fra.dot.gov/Downloads/RailPlanPrelim10-15.pdf.

Full article at:

http://www.logisticsmgmt.com/article/366647-Shippers_are_the_focus_as_rail_plan_develops.php

[noozer]

19 Oct 2009

For More Information Contact:
AAR Communications
Holly Arthur 202-639-2100
harthur@aar.org


AAR Lauds FRA Preliminary National Rail Plan
Recognizes Need for Law, Policies that Support Healthy Freight Rail


WASHINGTON, D.C. – Oct. 19, 2009 – The Association of American Railroads (AAR) today applauded the Federal Railroad Administration’s (FRA) Preliminary National Rail Plan and its recognition that freight rail’s investment in infrastructure maintenance and capacity enhancements meets national safety, reliability and capacity needs.


“This preliminary plan is an excellent first step in developing a longer-range national rail plan that ensures the U.S. freight rail system continues to be the safest, most efficient and cost effective in the world,” said AAR President and CEO Edward R. Hamberger.


In its plan, FRA highlighted the many achievements of freight rail since being partially deregulated in 1980. In addition to significant safety and energy efficiency improvements, FRA cited freight rail’s inherent efficiency as the reason the industry has been able to build and maintain its own infrastructure, add capacity, host passenger operations, and pay hundreds of millions of dollars in local property taxes to communities all around the country.


“Railroads are eager to meet the freight and passenger transportation challenges of the 21st century, and having a national rail plan will allow us to set policies that ensure success,” said Hamberger. “We look forward to working with FRA as they meet with rail stakeholders around the country to address the many important issues outlined in the plan’s framework, including cost equity, safety technologies and energy efficiency.”


The full preliminary National Rail Plan is available on FRA’s Web site: http://www.fra.dot.gov/Downloads/RailPlanPrelim10-15.pdf


# # #


Editors Note: The Association of American Railroads is a Washington, D.C.-based trade association whose members include the major freight railroads, or Class I railroads, of the U.S., Canada and Mexico, as well as Amtrak. Class I railroads represent 67 percent of the U.S. freight rail mileage and 90 percent of freight railroad industry employees. Railroads account for 43 percent of intercity freight volume — more than any other mode of transportation. To learn more about how freight rail works for America, the environment and for you, please visit: www.freightrailworks.org.

http://www.aar.org/NewsAndEvents/PressReleases/2009/10/101909_FRARailPlan.aspx

[Robert Pence]

PBS segment on Chicago's effect as rail freight choke point:

http://video.pbs.org/video/1113563932/

[noozer]

Buffett's Berkshire buys Burlington Northern railroad
USA Today

NEW YORK (AP) — Warren Buffett's Berkshire Hathaway says it has agreed to buy Burlington Northern Santa Fe railroad and will ask shareholders to split Berkshire Class B stock (BRKB) 50-to-1 to help make that deal happen.

Berkshire Hathaway already owns about 22% in Burlington Northern and says it will pay $100 a share in cash and stock for the 77.4% of the company Berkshire doesn't already own, putting BNSF's value at about $34 billion.

The price represents a premium of 31.5% over Burlington Northern's closing stock price on Monday. The deal has been approved by the boards of both companies.

Full story at:
http://www.usatoday.com/money/industries/2009-11-03-berkshire-bnsf-buffett_N.htm

[Sherman Cahal]

WHOA.

In a statement announcing the deal on Tuesday, Buffett said railroads are key for U.S. growth and will grow as the nation grows.

"It's an all-in wager on the economic future of the United States," he said. "I love these bets."

What a badass!

[noozer]

Railroad industry media take on the BNSF/Buffett story:

Berkshire Hathaway to buyout BNSF for $44 billion
Progressive Railroading Magazine


Berkshire Hathaway Inc. long has owned a piece of Burlington Northern Santa Fe Corp. Now, the firm owned by billionaire Warren Buffet has struck a $44 billion deal to own the Class I lock, stock and barrel.

Today, Berkshire Hathaway and BNSF announced they reached a definitive agreement under which Buffet’s firm will acquire the remaining 77.4 percent of the Class I’s outstanding shares for $100 per share in cash. Berkshire Hathaway’s largest-ever deal — which is valued at $34 billion for the stock transaction and includes $10 billion of outstanding BNSF debt — will increase the firm’s holdings in the railroad to 100 percent.

More at: http://www.progressiverailroading.com/news/article.asp?id=21867

And from Railway Age Magazine:

"One analysis suggests Berkshire Hathaway not only is committing to the future of U.S. freight railroading, but is also making a strategic move to bolster support for coal energy despite environmental concerns. Berkshire Hathaway owns MidAmerican Energy Holdings, which controls power companies in the Midwest and Pacific Northwest regions served by BNSF, and which has voiced disapproval over climate change legislation aimed at coal-fired plants."

http://www.railwayage.com/breaking-news/berkshire-hathaway-to-buy-bnsf-for-34-billion.html

[noozer]

Buffett's firm to buy Burlington Northern
Berkshire Hathaway will acquire unowned stake of railroad in a cash-and-stock deal worth $44 billion.
By David Ellis, CNNMoney.com staff writer
Last Updated: November 3, 2009: 10:39 AM ET

NEW YORK (CNNMoney.com) -- Warren Buffett's Berkshire Hathaway said Tuesday it will buy railroad operator Burlington Northern Santa Fe for $44 billion.

Berkshire (BRKA, Fortune 500), which already has major stake in Burlington Northern, said it would acquire the remaining 77.4% of the company in a cash-and-stock offer worth $100 per share....

...."Our country's future prosperity depends on its having an efficient and well-maintained rail system," Buffett said in a statement.

Find this article at:
http://money.cnn.com/2009/11/03/news/companies/buffett_burlington_northern/index.htm 

[noozer]

    


BNSF Investor Contact: Linda Hurt      Berkshire Hathaway Contact:
(817) 352-6452               Marc Hamburg
                     402-346-1400
BNSF Media Contact: John Ambler
(817) 867-6407

BERKSHIRE HATHAWAY INC. TO ACQUIRE BURLINGTON NORTHERN SANTA FE CORPORATION (BNSF) FOR $100 PER SHARE IN CASH AND STOCK

[/font][/size]

BNSF will continue to operate from its Fort Worth, TX headquarters and will become a wholly owned subsidiary of Berkshire Hathaway

FORT WORTH, TX / OMAHA, NE – Nov. 3, 2009 – The boards of directors of Berkshire Hathaway Inc. (NYSE: BRK.A;BRK.B) and Burlington Northern Santa Fe Corporation (BNSF; NYSE: BNI) today announced a definitive agreement for Berkshire Hathaway to acquire for $100 per share in cash and stock the remaining 77.4 percent of outstanding BNI shares not currently owned to increase its holdings to 100 percent.   Based on the number of outstanding BNI shares (including shares currently owned by Berkshire) on Nov. 2, 2009, the transaction is valued at approximately $44 billion, including $10 billion of outstanding BNSF debt, making it the largest acquisition in Berkshire Hathaway history.

“Our country’s future prosperity depends on its having an efficient and well-maintained rail system,” said Warren E. Buffett, Berkshire Hathaway chairman and chief executive officer.  “Conversely, America must grow and prosper for railroads to do well. Berkshire’s $34 billion investment in BNSF is a huge bet on that company, CEO Matt Rose and his team, and the railroad industry. 

“Most important of all, however, it’s an all-in wager on the economic future of the United States,” said Mr. Buffett.  “I love these bets.”

“We are thrilled to have the opportunity to become a part of the Berkshire Hathaway family,” said Matthew K. Rose, Burlington Northern Santa Fe chairman, president and chief executive officer. “We admire Warren’s leadership philosophy supporting long-term investment that will allow BNSF to focus on future needs of our railroad, our customers and the U.S. transportation infrastructure. This transaction offers compelling value to our shareholders and is in the best interests of all of our constituents including our customers and employees.”


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Terms of the Transaction

The definitive agreement provides that each share of BNI common stock will at the election of the shareholder be converted into the right to receive either (i) a cash payment of $100.00 or (ii) a variable number of shares of Berkshire Hathaway Class A or Class B common stock, subject to proration if the elections do not equal approximately 60 percent in cash and 40 percent in stock. The stock component of the consideration is subject to a “collar” whereby the value of each Berkshire Hathaway share received is fixed at $100.00 if the price of Berkshire Hathaway Class A stock at closing is between approximately $80,000.00 and approximately $125,000.00 per share. If the value of Berkshire Hathaway Class A stock is outside of this collar range at closing, then the number of shares received of Berkshire Hathaway Class A stock will be fixed at either 0.001253489 per BNI share for values below the collar range, or 0.000802233 per BNI share for values above the collar range. The shareholder may receive Class A or, in lieu of fractional Class A shares, equivalent economic value of Class B Berkshire Hathaway shares, subject to certain limitations as described in the definitive agreement.

The transaction requires approval by holders of two-thirds of BNI’s outstanding shares (other than shares held by Berkshire Hathaway), and customary closing conditions, including Department of Justice review.  Closing is expected to occur during the first quarter of 2010.

BNSF Railway Company will continue to focus on providing outstanding service to its customers from its Fort Worth, TX, headquarters. Included in the transaction are all assets and subsidiaries of BNSF.

Goldman, Sachs & Co. and Evercore Partners, Inc. acted as financial advisors to BNSF and the company’s legal counsel is Cravath Swaine & Moore LLP.  Berkshire Hathaway’s transaction counsel is Munger, Tolles & Olson LLP.

At 8:30 a.m. eastern, BNSF executive management will conduct a briefing for investors and other interested parties. The briefing will be Web cast and available via the investor relations section of www.bnsf.com. The call in number is (800) 398-9367 and the replay number is (USA) (800) 475-6701, (International) (320) 365-3844, and access code 122409. The briefing will not include a question and answer session.

BNSF is a holding company and through its principal operating subsidiary, BNSF Railway Company, BNSF owns and manages one of the largest railroad systems in North America.

Berkshire Hathaway Inc.  is a holding company owning subsidiaries engaged in a number of diverse business activities including property and casualty insurance and reinsurance, utilities and energy, manufacturing, retailing and services. . .
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Forward-Looking Statements
Statements contained herein concerning projections or expectations of financial or operational performance or economic outlook, or concerning other future events or results, or which refer to matters which are not historical facts, are "forward-looking statements" within the meaning of the federal securities laws.  Similarly, statements that describe BNSF’s or Berkshire Hathaway’s objectives, expectations, plans or goals are forward-looking statements.  Forward-looking statements include, without limitation, BNSF’s or Berkshire Hathaway’s expectations concerning the marketing outlook for their businesses, productivity, plans and goals for future operational improvements and capital investments, operational performance, future market conditions or economic performance and developments in the capital and credit markets and expected future financial performance.  Forward-looking statements also include statements regarding the expected benefits of the proposed acquisition of BNSF by Berkshire Hathaway. Forward-looking statements involve a number of risks and uncertainties, and actual results or events may differ materially from those projected or implied in those statements.

Important factors that could cause such differences include, but are not limited to: adverse changes in economic or industry conditions, both in the United States and globally; continuing volatility in the capital or credit markets and other changes in the securities and capital markets; changes affecting customers or suppliers; competition and consolidation in the industries in which BNSF and Berkshire Hathaway compete; labor costs and labor difficulties; developments and changes in laws and regulations; developments in and losses resulting from claims and litigation; natural events such as severe weather, fires, floods and earthquakes or acts of terrorism; changes in operating conditions and costs; and the extent of BNSF’s or Berkshire Hathaway’s ability to achieve their operational and financial goals and initiatives.  In addition, the acquisition of BNSF by Berkshire Hathaway is subject to the satisfaction of the conditions to the completion of the acquisition and the absence of events that could give rise to the termination of the merger agreement for the acquisition, and the possibility that the acquisition does not close, and risks that the proposed acquisition disrupts current plans and operations and business relationships, or poses difficulties in employee retention.

We caution against placing undue reliance on forward-looking statements, which reflect our current beliefs and are based on information currently available to us as of the date a forward-looking statement is made.  We undertake no obligation to revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs.  In the event that we do update any forward-looking statements, no inference should be made that we will make additional updates with respect to that statement, related matters, or any other forward-looking statements.  Any corrections or revisions and other important assumptions and factors that could cause actual results to differ materially from our forward-looking statements, including discussions of significant risk

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factors, may appear in BNSF’s or Berkshire Hathaway’s public filings with the Securities and Exchange Commission (the “SEC”), which are accessible at www.sec.gov, and which you are advised to consult.



Additional Information
In connection with the proposed transaction, Berkshire Hathaway will file with the SEC a registration statement that will include a proxy statement of BNSF that also constitutes a prospectus of Berkshire Hathaway relating to the proposed transaction.  Investors are urged to read the registration statement and proxy statement/prospectus and any other relevant documents filed with the SEC when they become available, because they will contain important information about BNSF, Berkshire Hathaway and the proposed transaction.  The registration statement and proxy statement/prospectus and other documents relating to the proposed transaction (when they are available) can be obtained free of charge from the SEC’s website at www.sec.gov, Berkshire Hathaway’s website at www.berkshirehathaway.com and BNSF’s website at www.bnsf.com.  In addition, these documents (when they are available) can also be obtained free of charge from Berkshire Hathaway upon written request to Corporate Secretary or by calling (402) 346-1400, or from BNSF upon written request to Linda Hurt or John Ambler or by calling (817) 352-6452 or (817) 867-6407.
BNSF, Berkshire Hathaway and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from shareholders in connection with the proposed transaction under the rules of the SEC.  Information regarding the directors and executive officers of BNSF may be found in its 2008 Annual Report on Form 10-K filed with the SEC on February 13, 2009 and in its definitive proxy statement relating to its 2009 Annual Meeting of Shareholders filed with the SEC on March 16, 2009.  Information regarding the directors and executive officers of Berkshire Hathaway may be found in its 2008 Annual Report on Form 10-K filed with the SEC on March 2, 2009 and in its definitive proxy statement relating to its 2009 Annual Meeting of Shareholders filed with the SEC on March 13, 2009.  These documents can be obtained free of charge from the sources indicated above.  Additional information regarding the interests of these participants will also be included in the registration statement and proxy statement/prospectus regarding the proposed transaction when it is filed with the SEC.

[Robert Pence]

It's a stunning testimonial when one of America's most canny financial gurus speaks out on the importance of railroads and invests with the intent of maintaining and probably growing operations.

I'm waiting for the other shoe; a merger or acquisition between BNSF and either NS or CSX to create a seamless transcontinental freight route. When that happens, it will drive UP to hook up with whichever eastern system remains. Both systems will work to create routings that bypass Chicago and run fast all the way, with longer crew districts. Transcon rail freight will be so much faster and energy-efficient than trucks that there will be a marked increase in Road-Railer and TOFC, and dramatically fewer trucks on routes like I-80.

[GCrites80s]

I've really believed in BNI for years now. B-H is proof I'm not totally nuts.

[noozer]

Valley rails to get revamp
Bridge replacement, other work to allow for double-stacked trains

By RON SELAK JR.
Tribune Chronicle POSTED: November 8, 2009   

 WARREN - A nearly $850,000 million public and private effort to connect mid-Atlantic ports to midwest U.S. population and manufacturing markets using double-stack trains has railroad improvement projects scheduled for Trumbull and Mahoning counties.

What's going to be done locally includes bridge replacement and other projects necessary to provide the vertical clearance to allow train cars hauling two shipping containers stacked on top of one another.

Full story at:
http://www.tribtoday.com/page/content.detail/id/529485.html?nav=5021&showlayout=0

[noozer]

U.S. trucking feeling pressure from greener trains
Wed Nov 11, 2009 2:06pm EST
Thursday, 5 Nov 2009 03:52pm EST
By Basil Katz

NEW YORK, Nov 11 (Reuters) - U.S. truck operators are under pressure to improve energy efficiency as rail companies tout their green credentials and bid to win more freight haulage.

The American Trucking Association says trucks transport about 70 percent, or 10 billion tons of all U.S. freight annually. But they use at least three times as much energy as trains per ton carried, analysts say.

Full story at:
http://www.reuters.com/article/RAILRD/idUSN1136428420091111

[noozer]

Intermodal Marketers Lean More to Trains
John D. Boyd | Nov 16, 2009 3:55PM GMT
The Journal of Commerce Online - News Story

Intermodal marketing companies, middleman firms that arrange either all-highway or combined rail-truck shipments for clients such as factories or retail stores, used trains for a greater share of their load mix in the summer than they did last spring.

The Intermodal Association of North America, in its review of third-quarter industry performance, said IMCs booked combination intermodal shipments for 61.8 percent of the loads they handled in the July-September period, up a full point from the April-June quarter.

More at: http://www.joc.com/node/414670

[noozer]

Freight rail more than doubles trucks' fuel efficiency, FRA study shows
ProgressiveRailroading.com

Yesterday, the Federal Railroad Administration (FRA) released a study showing freight-rail fuel efficiency increased 22 percent between 1990 and 2006.

Entitled “Comparative Evaluation of Rail and Truck Fuel Efficiency on Competitive Corridors,” the study determined that diesel-electric locomotive improvements, increased double-stack train usage, track and signal upgrades, and longer trains were the primary fuel-efficiency drivers.

Full story at: http://www.progressiverailroading.com/news/article.asp?id=22021

It is a long report...but well worth reading at:

http://www.fra.dot.gov/Downloads/Comparative_Evaluation_Rail_Truck_Fuel_Efficiency.pdf

[KJP]

Cross-posted at:
Youngstown-Warren Steel Industry on the rebound?
http://www.urbanohio.com/forum2/index.php/topic,6916.0.html

Council OKs Purchase of Rail Line for V&M
Dec. 17, 2009 6:48 a.m.
By Dan O’Brien

YOUNGSTOWN, Ohio -- Just when you thought all the land the city needs for the proposed expansion of V&M Star’s operation on Martin Luther King Jr. Boulevard was secure, another parcel pops up.

City Council Wednesday gave the go-ahead to spend $805,000 to buy 60 acres owned by the Geneva and Wyoming Railroad so the company could re-route the rail to support its proposed operations there.

V&M is considering spending $970 million to construct a new plant at the site, which could bring 400 new manufacturing jobs and hundreds of construction jobs to the Mahoning Valley.

READ MORE AT:
http://www.business-journal.com/default.asp?sourceid=&smenu=1&twindow=&mad=&sdetail=15303&wpage=1&skeyword=&sidate=&ccat=&ccatm=&restate=&restatus=&reoption=&retype=&repmin=&repmax=&rebed=&rebath=&subname=&pform=&sc=1711&hn=business-journal&he=.com

[KJP]

CSXT to speed up work on its National Gateway project    
Monday, December 21, 2009 

With a goal of speeding freight between East Coast ports and the Midwest, CSX Transportation has undertaken what it calls the National Gateway project - an $842-million public-private upgrade of rail infrastructure to accommodate double-stack container cars, The State Journal in Huntington, W.Va., reports.

Citing forecasts of a nearly 70 percent increase in the freight industry by 2020, CSX argues that the massive multi-state rail upgrade it envisions will ease highway congestion, create new jobs and reduce pollution. A long list of public officials, including West Virginia Gov. Joe Manchin and Rep. Shelley Moore Capito, R-W.Va., have signed on to support the project.

When completed, the upgrade will enable double-stack container trains to travel from North Carolina through Virginia and Maryland, across West Virginia's Eastern Panhandle and then into Pennsylvania and on to Ohio.

READ MORE AT:
http://www.rtands.com/newsflash/csxt-to-speed-up-work-on-its-national-gateway-project.html

[noozer]

Public-private partners mark completion of CREATE's seventh project

Chicago Region Environmental and Transportation Efficiency (CREATE) program partners recently capped off another project. They completed the $13.1 million “McCook Connection” project in McCook, Ill., which will provide “additional connectivity” between BNSF Railway Co., CSX Transportation and Indiana Harbor Belt Railroad Co. (IHB) lines. The project, which began a year ago, is the seventh of 71 planned CREATE projects to reach the completion stage.

Trains previously had to wait or travel at a maximum speed of 10 mph on the lines; now, they can move through the area at 25 mph. The project provides additional capacity and congestion relief in northeastern Illinois, CREATE partners said in a project bulletin, adding that potential conflicts will be reduced between 15 to 20 freight trains and several Metra and Amtrak trains that move through the connection each day.

Full story at:
http://www.progressiverailroading.com/news/article.asp?id=22261

[noozer]

latimes.com/business/la-fi-rail3-2010jan03,0,27378.story

latimes.com
Freight trains make big comeback in nation's transportation network
Warren Buffett's recent purchase of Burlington Northern Santa Fe shows the renewed importance of railroads in the global supply chain.
By Alana Semuels
January 3, 2010

More than 4,000 miles of train tracks stretch through California, winding up the blustery Cajon Pass and snaking through the desert surrounding Barstow.

Those tracks could be seeing a lot more traffic in the next few years as trains loaded with Chinese-made toys, electronics and clothing roll eastward, connecting West Coast ports with cities across the U.S.

Warren Buffett is a believer. In November, the world's second-richest man paid $34 billion for railroad giant Burlington Northern Santa Fe Corp., despite a deep downturn in the railroad industry. Buffett characterized his investment as an "all-in wager on the economic future of the United States." But it's also a bet on globalization and the renewed importance of rail in the nation's transportation network.

More at link above:

And a quote from another business media story:

Other investors are looking at rail traffic in North America, which showed a 4.6% rise in December, the first year-on-year growth after slumping for more than a year, according to Dahlman Rose & Company. Rail carloads reached 714,015 units, up from a year ago, but still 14% lower than the same week in 2007

An increase in rail volume is a precursor of growing economic activity, as manufacturers, construction firms and car dealers are among the top railway shippers. Analysts are looking to see whether the increases continue.

Full story at: http://online.wsj.com/article/SB10001424052748704789404574636413584486326.html?mod=dist_smartbrief

[noozer]

Intermodal Takes Record Share From Trucks
John D. Boyd | Feb 8, 2010 3:46PM GMT
The Journal of Commerce Online - News Story


U.S. freight shippers sent their highest shares yet by intermodal combination moves in the 2009 fourth quarter, compared with using trucks only, said transportation consultants FTR Associates.

Intermodal, which pairs short-haul trucking with long-haul rail service, took an estimated 13.3 percent of the long-haul market for international and domestic containerized freight, FTR said.

That is up 0.2 percent from the third quarter and is “slightly above the previous high-water mark” in fourth-quarter 2008, FTR said.

Full story at: http://www.joc.com/node/416539

[noozer]

http://www.bloomberg.com/apps/news?pid=20601103&sid=aOLsZCyllcdo

Buffett Takes on Chokepoint in Chicago With Burlington Northern
By John Lippert

Feb. 10 (Bloomberg) -- Warren Buffett and Bill Gates face a roadblock on the route toward payoff on their investment in U.S. freight transportation.

Chicago, whose railroads made it hog butcher for the world a century ago, is a tangle of bottlenecks where a quarter of the nation’s rail freight stalls while trying to navigate the city.

“We can’t keep running trains from Los Angeles to Chicago in 55 hours and then take 36 hours to get a rail car from one side of Chicago to the next,” said Matt Rose, chief executive officer of Burlington Northern Santa Fe Corp. “We either need to fix Chicago or avoid it.”

More at link above:

[audidave]

^Good article.  I've said it before if the only "thing" Obama gets done in office is helping to take out the rail obstacles in Chicago, then he will have done a lot.  If its inefficient to get freight in and out of Chicago its obviously going to be hell to get passenger trains into Chicago.  Alas if those things are corrected, a 4hr train trip from Cleveland would be very competitive with air.

But obviously the main thing economically would be the massive efficiencies created by getting Chicago rolling again.  This would clearly affect every surrounding state and then many states beyond those and shrink the world once again.

[noozer]

Analysts: Robust rail revenue growth predicted     
Railway Age Magazine

Two leading railroad industry analysts have weighed in with projections on railroad traffic and revenue growth.

Dahlman Rose & Co. recently held a seminar with freight economist and transportation industry veteran Noel Perry, who offered a wide array of observations, views, and predictions on the railroad and trucking industries.

“On the rail front Perry’s traffic forecast calls for 2010 carloading growth reaching the 6% to 7% range, with growth accelerating in 2011,” said Director-Equity Research and Railway Age Contributing Editor Jason Seidl. “While a vigorous return of traffic, along with solid pricing, should lead to strong revenue growth over the next few years, top line improvement will not necessarily be accompanied by equally robust operating profits, according to Perry.
 
Full story at: http://www.railwayage.com/breaking-news/analysts-robust-rail-revenue-growth-predicted.html

[noozer]

Union Pacific CEO sees signs of improved economy
Sunday, March 14, 2010 6:45 AM EDT


NEW YORK (AP) — The CEO of Union Pacific said Friday that shipments carried by the nation's biggest railroad are stronger than expected this year, but are still a long way from full recovery.

In an interview with The Associated Press, Union Pacific's Jim Young said some key segments, including agricultural, automotive and intermodal shipments show signs of strength. Railroads are indicators of the nation's broader economic health because many things consumers and businesses use every day are shipped by rail.

"I'm not willing to say the challenges are over, but some areas are pretty strong," Young said.


More at URL: http://www.themorningsun.com/articles/2010/03/14/business/srv0000007809909.prt

[noozer]

J.P. Morgan raises rail profit outlook     
Railwayage.com

Citing strengthening traffic, J.P. Morgan analysts in an investor alert Friday raised their 2010 and 2011 profit outlooks for five major U.S. and Canadian railroads—CSX Corp.; Norfolk Southern Corp., Union Pacific Corp., Canadian National Railway, and Canadian Pacific Railway Ltd.

More at: http://www.railwayage.com/breaking-news/j.p.-morgan-raises-rail-profit-outlook.html