Here's what I'm watching in 2017

A tough year for railroads is something we all could agree with when reflecting on the year 2016. It has been a challenging year with downturns in coal and crude-by-rail. U.S. railroads have been hard-pressed to climb out of a 5 percent slump in traffic nationwide, despite a strong harvest season, an expanded Panama Canal, and steady general merchandise numbers. It hasn’t been easy when Class I railroads are trying to tackle PTC implementation, as well.

I think Class I railroads have done a good job responding to the current condition of the nation’s freight rail industry. When coal entered its fast-paced descent last year, railroads responded with big decisions. Terminals, divisions and operations were consolidated and workers were placed on furlough. Railroads leveraged a downturn in business to maintain their infrastructure, make investments in other commodity groups (think intermodal) and as a result, I think the big players in the game are now adequately prepared for when freight makes its rebound.

And with that, here’s my list of three things I’m going to watch for in 2017…

An eastbound intermodal train meets a westbound empty coal train in St. Albans, W.Va. Chase Gunnoe.

Ports along the Mid-Atlantic are spending big money to expand their capacities in response to a widened Panama Canal. I think intermodal will play a big role in how railroad volumes bounce back in the New Year. For me, I’m going to keep a close eye on  Baltimore’s Howard Street Tunnel project and its quest for federal funding. I’m also willing to bet my Christmas Dinner leftovers that we’ll see continued progress in intermodal infrastructure from the Carolinas to south Florida that coincides with CSX’s National Gateway project. Let’s also not forget that Florida East Coast could be up for grabs, too.

Keep a watchful eye on Watco

Not only is this company growing – but it is diversifying. From short line railroad acquisitions to expanding its port and terminal services, Watco has made big investments in 2016. As we head into the New Year, I’m going to see how the company’s acquisition of new bulk terminal facilities compliments its rail operations and other services. I think we are going to hear a lot more from Watco next year.

Getting creative at Amtrak

I’m looking forward to seeing how Wick Moorman’s Class I railroad experience helps expand Amtrak’s perspective. I think we are going to see some positive outcomes evolve from Moorman’s tenure at Amtrak that will benefit long-distance routes, state-managed corridors, and the Northeast Corridor. I am specifically going to keep an eye on long-distance routes and my hometown route, the Cardinal.

While not really on my watch list for 2017, I also feel obligated to include a continuation of commuter and light rail investment. The year 2016 has been a huge year for streetcar, light rail and commuter rail investment. If you are a big fan of rail transit in the U.S., I’d keep an eye on Seattle, Detroit, Kansas City, and Cincinnati.

Here’s to a prosperous and productive New Year… For you and for our railroads.