Biggest stories of the year

[Andy Cummings]

Folks —

As many of you know, at the end of each year, we do a "Top 10 list" of the biggest stories in railroading for the year. Here's what last year's looked like.

So: Tell us what you think the Top 10 for 2010 should be.

Also, just for fun, what were the most humorous or bizarre stories for the year? Around the office, we're talking about the angry Subway conductor in New York who threw passengers' food out the window of moving trains.

Best,

[carnej1]

One item I hope you include is Caterpillar owned Progress Rails's acquisition of Electro-Motive diesel,  a major boost to CAT's locomotive sector business..

[YoHo1975]

Yeah, I'm not sure there is a bigger story than Cat buying EMD. Assuming you consider Berkshire Hathaway's purchase of BNSF as being from last year. 

[Paul_D_North_Jr]

In no particular order:

- UP's 18,000-ft. long intermodal 'test' train from El Paso (?) to LA;

- As noted above, Berkshire-Hathaway's actual closing on its purchase of BNSF;

- As also noted above, Progress Rail's purchase of the ex-ABB building in Muncie for a US plant;

- Rebound in rail traffic much faster than the economy in general;

- Major railroads continue funding and building capacity improvements (in addition to 'maintenance'-type replacements and repairs);

- NS finishes "Heartland Corridor" clearance improvement project;

- CN starts PTC installation of antennas in Wisconsin;

- HSR starts and funding announced by Obama administration and states;

- HSR stops and funding cancellations announced by Republicans and new state governors, including NJ's cancellation of NJT's new Hudson River Tunnels;

- NS successfully issues $250 Million of 100-year 6 % bonds, increased from $100 Million in response to demand;

- Whatever else significant happens in the remaining 8% or so of 2010 (rest of December).

- Paul North.

[Modelcar]

carnej1

One item I hope you include is Caterpillar owned Progress Rails's acquisition of Electro-Motive diesel,  a major boost to CAT's locomotive sector business..

.....And hopefully, a shot in the arm here for our Muncie economy.

We have lost major, mostly automotive parts manufacturing plants / businesses here in last several decades.

The potential Progress Rail work will be greatly appreciated.  Several other businesses too....Example: Brevini to manufacture gear boxes for power producing wind mills.  Manufacturing facility now being prepared here in Park One. 

I understand a rail spur back into Park One has been approved locally, and should {or maybe already started}, be finished by next season, and it is needed for the Brevini gear box shipments.

[RudyRockvilleMD]

A few of the top railroading stories in 2010.

Governors-Elect of Ohio and Wisconsin rejecting federal funds for passenger railroad in their states.

Starting, then cancelling the  construction of a new Trans- Hudson River railroad tunnel to New York. 

Chinese unmodified 302 mph High Speed Train.

[beaulieu]

The world's longest railway tunnel holed through in Switzerland, the Gotthard Base Tunnel.

[Avianwatcher]

Union Pacific trying to extort an outrageous amount of money from Amtrak in order to make the Texas Eagle a daily!

[samfp1943]

         My nominee is the New York/ New Jersey ARC Tunnel Project. 

  Which was stopped in its tracks by N.J. Gov. Chris Christie due to the inability of New Jersey to be able fund its commitment to the Feds to fund New Jersey's part  of the ARC Project.

        And again in 2011, it will be the on-going saga of the Feds vs. New Jersey. The Federal Government's attempt to recover from New Jersey some $725 millions already paid to New Jersey for expenses to plan,explore and engineer the ARC Tunnel Project.     I think it will continue tobe wil be the next year's chapter in the ARC story.

[greyhounds]

The defeat of Representative James Oberstar, chariman of the House Transportation and Infrastructure Committee.

Oberstar was working in lockstep with Senator Rockefeller to reimpose stringent economic regulation on the freight railroads.  This would have diverted significant funds from the railroads and greatly limited their ability to expand and grow.

http://www.joc.com/government-regulation/oberstar-targets-rate-challenges-rail-bill

When Minnesota voters did not return Oberstar to office this threat to railroad financial health was greatly reduced.

[zugmann]

The fact that many of us have yet to be banned from Trains.com doesn't rank in the top 10???????

[rixflix]

Well I guess we're hanging in there. Just don't type in female dog or crab about it.

RIX

[Modelcar]

..........Rix....Why is your avatar a red "X"....?

[rixflix]

Quents,

It's because I'm a little short on how to do these things. I'd like to do that as a sexy sixty transplanted Pennsylvanian and post pictures as well.

Let's continue on the personals and evacuate this thread.

Biggest stories?

I am recently doubting  the efficacy of some of the high speed rail projects but support the freight corridors.

And hooray for Muncie!!! How can you stand it out there in the flatlands?

rix.

[Modelcar]

Yes, as you know Rix, we're former Pennsylvanian's.....Been out here 48 years plus now.   Yes, it's flat, and today, we received some snow...but not too bad,  Looks like perhaps, 2.5".  First this much this season.

Rix, did you see we're getting a big business here to build EMD locomotives, and perhaps some other RR equipment....Going into our former ABB transformer plant.....Well suited to such a business.

Hi Speed rail seems to finally finding it's place in the everyday news....I'm not sure how that will go yet....Hang in there....

[caldreamer]

What about CN takeover of EJ&E, busting the bubble of all the "NIMBYS'" around Chicago.  Probably the best thing to happen to break up the traffic jam around Chicago in many years.

[Paul_D_North_Jr]

Another one:  UP's completion of Donner Pass clearance improvement work for double-stack container trains. 

[YoHo1975]

Paul_D_North_Jr

Another one:  UP's completion of Donner Pass clearance improvement work for double-stack container trains. 

 

Ooo, that is a big one.

[oltmannd]

How about (in no particular order):

NS announces steam program

Some of the $8B parcelled out for HSR and HrSR looks like it will be rejected.

EMD sold

NS Heartland Corridor finished, Crescent Corridor gains momentum (as do other PPPs like CREATE)

PTC required

Domestic Intermodal growth

Hunter Harrison retires from CN

Passenger trains as hot topic in Fall elections in WI and OH (and FL?)

UP's monster train stirs up news media

Amtrak ridership sets another record

 

Humorous and bizzare:

Capacity-constrained Amtrak decides it needs new baggage cars as first order of business

Railroad presence on social media sites, Facebook and Twitter.  

EMD locomotives remain ugly  (UP's "flared flag" SD70s were the last that didn't look like they were built from LEGOs.)

 

[oltmannd]

Also like the Gotthard tunnel and Donner Pass cleared for stacks, but that makes my list go to 11.

[coborn35]

I would think the CN Head on Collision may possibly make it. It was a pretty big deal in the Midwest.

[Andy Cummings]

I think every idea introduced here is worthy. Thanks to everyone for your input. If you come up with anything else, add to the thread; I'll be keeping an eye on it.

[Mr. Railman]

There's the increasing use of DPUs and Mid-DPUs, the new Coal port that's being planned, and the new Car manufacturing Facility in Rochelle that broke ground a few weeks back!

[jdkuehn]

I think there were three really big stories in the industry this year: 

1.)  Hunter Harrison retiring marked the end of the beginning of lower costs through better service.  Claude Mongeau seems to be tweaking the model and showing that you can still be customer friendly and operate a precision railroad.

2.) The second big story is the market share gain seen by railroads during he recovery.  Rail traffic has grown faster than growth in the economy.  Railroads have been taking market share from trucks.  Growth in intermodal has been especially strong with double digit growth.  But the market share is not from rate reductions as is shown by the strong profitability during the recovery.  Railroad traffic shows the nagging economic sluggishness this year has not been from the private sector as much as lost government jobs at the state and local level.

3.)  The third big story is the mess the Feds have made of HSR and other passenger rail projects.  The capital grants, without regard to how suffering state economies would pick up operating costs.  The rejection of Federal funds for rail projects by the states because they could not accept the risk of cost overruns.  The issues with the terms imposed on Class Ones for accepting improvement funds.  The lack of HSR funding for NE Corridor improvements.

[Bob-Fryml]

Big stories of 2010, eh?

I'm very heartened to see that despite a recessionary economy, the Class 1s in the U.S. and Canada are able to make some significant improvements in their respective Operating Ratios.  That BNSF, NS, and UP have driven their Operating Ratios below the threshold figure of 70% and yet have managed to earn less than their cost of capital as defined by the Surface Transportation Board strikes me as exercises in financial wizardry at its best.

When I first read that Union Pacific had been able, during the 3rd quarter, to return an Operating Ratio lower than that of long-time industry leader Norfolk Southern, I was stunned.  But as soon as I regained consciousness, two words immediately popped into mind:  "Deferred maintenance?" 

 

[switch7frg]

    Quentin;  could this be the revival of  Muncie / Borg Warner Gear ??  However it is a good thing to raise up from the dust .              

                                                            Jim

[Ulrich]

The big story for me and many other investors has to be that this has been a very good year where railroad stocks have done quite well all considered. Railroads have been outperforming the market in general...and in some cases by quite a substantial margin.

[coborn35]

Another good one, this year the BNSF has come under heavy fire for concealing evidence and the like in accidents. The Star Tribune is doing a four part series on it. Worth reading: http://www.startribune.com/investigators/111265174.html?elr=KArksLckD8EQDUoaEyqyP4O:DW3ckUiD3aPc:_Yyc:aUycaEacyUs

[greyhounds]

Well, if we're going to consider what The Star Tribune is saying we'd do well to consider BNSF's response to the series. 

http://www.bnsf.com/media/casefacts/

It's interesting.  Click on the links to the left such as "Fact About Cases". and don't automatically  believe everything you read in the newspaper.

 

[henry6]

One story: Class I and other railroads see recession as chance to retool and improve to meet post recession needs and gain the attention and support of the trucking industry as well as investor Berkshire Hathaway who puts its money into BNSF while Republican politicians recoil at thought of investing in the rail superstructure and service by turning backs on projects to reduce fuel consumption and environmental pollutants and increase ability to move people canceling projects like ARC and removing supprt from High Speed Rail plans.  Yep, a one sentence, one story, both of which run on and on without realistic endings!