2015: A game changer for the U.S. rail industry?

Well, here we are. There’s one week left in 2015. Typically, I spend holiday break reflecting on what made the past year memorable. What were some of the events or developments that made the year stand out? Typically, I would reflect, but I think there’s something a bit different about 2015. I think instead of reflecting, it may be time to do some research.

2015 was a tough year for the U.S. rail industry. It was tough for inevitable declines on coal volumes to be neglected any longer and an overestimated crude-by-rail industry backfired in 2015, only adding to the struggles in energy shipments. No railroad was exempt from these difficult situations. Union Pacific and BNSF Railway have had to deal with above average furloughs and CSX Transportation has been placed in a difficult position with its heavy presence in an area most affected by the coal market. And Norfolk Southern? Well let’s just leave that alone for right now.

From the Positive Train Control (PTC) extension to the nation’s biggest transportation bill in more than a decade, 2015 had us on the edge of our seats. Both eastern Class I railroads mothballed historic pieces of mountain grades to offset a weakening coal industry. And the market isn’t looking too great going forward. That’s going to be a tough subject in 2016.

Trains used to run at 100-150-cars, but now, we are watching 30,000 ton coal drags climb over the Alleghany mountains well above 200 cars. Railroads are getting creative with their operating practices in an effort to improve efficiency. The technology is there to do it and there’s no better time to utilize it.

Railroads are vulnerable as a result of market demands and the infrastructure that supports those troublesome commodities. We’ve seen this with the most recent back-and-forth between Canadian Pacific and Norfolk Southern. How will that play out? Well, as we learned on Dec. 23, third time is not a charm. But that’s far from over, in my eyes, too

As I said, rather than reflect on 2015, it’s time to do some research. It’s time to look for some subtle cues that may help piece together the puzzle going into the next year. What we’ve learned in 2015 will ultimately give structure to 2016.  What we’ve read and watched in the fourth quarter alone should give us some direction as to what we can expect in 2016. And as we press forward, let’s remember not to take any of it for granted. Above all else, railroads are businesses, after all.

Based on your observations, what do you expect for 2016? And as rail enthusiasts and photographers, will any of the developments over the past 12 months shape and mold your travel plans for 2016? I want to hear from you all… 

Be sure to check out Trains' Top 10 stories of 2015 online at the News Wire and learn more about how railroads are improving efficiency by running long, heavier trains in an upcoming feature story.