Outsourced Logistics Com Images Archive Mrktpulse01 00
Outsourced Logistics Com Images Archive Mrktpulse01 00
Outsourced Logistics Com Images Archive Mrktpulse01 00
Outsourced Logistics Com Images Archive Mrktpulse01 00
Outsourced Logistics Com Images Archive Mrktpulse01 00

Railroad Performance Better Than Expected

Nov. 17, 2006
At least on the financial front, Class 1 railroads are outperforming expectations. Burlington Northern Santa Fe (Fort Worth, Texas, www.bnsf.com) saw

At least on the financial front, Class 1 railroads are outperforming expectations. Burlington Northern Santa Fe (Fort Worth, Texas, www.bnsf.com) saw its revenues increase 19% and revenue per ton-mile rise 9% in the third quarter. Coal, intermodal and agricultural products provided the bulk of the volume growth in the quarter. With a 6.3% year-over-year increase in gross ton miles, locomotive velocity improved 0.6% and car velocity improved 4.2%. On-time performance in the mostly intermodal consumer segment improved to 78.9%.

Canadian National Railway Company (Montreal, www.cn.ca) achieved record margins, reporting a 57.4 operating ratio for the third quarter. Solid volume growth, strong pricing, and improved operations, contributed, said equity analyst Stifel Nicolaus, St. Louis. Intermodal achieved 14% revenue growth, 9% unit growth and also grew pricing by 5%.

Canadian Pacific Railway Ltd. (Calgary, Alberta, www.cpr.ca) reported a third-quarter operating ratio of 74.2 and an exchange-adjusted revenue growth of 7%. That was achieved entirely on price and fuel surcharges, not on volume growth.

CSX Corp. (Jacksonville, Fla., www.csx.com) reported that surface transportation revenues increased 14% in the third quarter to $2.4 billion. This was a result of a 12% improvement in revenue per unit and a 2% increase in units hauled. Strong agriculture volume, up 16%, was a major factor. Intermodal increased 4% as the company completed the culling of marginal traffic, reported Stifel Nicolaus.

Norfolk Southern Corp. (Norfolk, Va., www.nscorp.com) achieved 13% revenue growth (to $1.28 billion) in the third quarter despite flat traffic growth. About 40% of the revenue growth was attributed to incremental fuel surcharge and favorable traffic mix and 60% to price increases.

Union Pacific Corp. (Omaha, Neb., www.up.com) increased revenues 15% in the third quarter to $3.8 billion based on 3% volume growth and 13% unit revenue growth. A 1% drag on revenue growth resulted from an unfavorable shift in traffic mix. UP's operating ratio was 81.1 vs. 86.1 for the same period in 2005.

Latest from Transportation & Distribution

96378710 © Nattapong Boonchuenchom | Dreamstime.com
#53673151@Petar Dojkic|Dreamstime
Trucking Industry Objects to DOL Rule on Contractors
Trucking Industry Objects to DOL Rule on Contractors
Trucking Industry Objects to DOL Rule on Contractors
Trucking Industry Objects to DOL Rule on Contractors
Trucking Industry Objects to DOL Rule on Contractors