Greetings from Baltimore, where NEARS has been a whirlwind and the STB has fired another shot over the rails' bow. from the tweets (look for more reflection Monday);
Here we go again! While at NEARS the STB dropped the bomb-let: they will hold hearings on 4/26-27 “on recent rail service problems” of primarily the US Big 4. I expect more coal raking under the big spotlight but no real action. Still - not good!
- Happy Opening Day (Natl Holiday) and greetings from NE Asso RR Shippers meeting in Balmer- UP led off with a spirited defense of their “PSR Journey” - lower op costs open up markets and freed capacity for growth. Tough times for this argument but necessary. UP “talked the talk” on growth, ESG, and tech; time will tell about the walk!
- NS next up and faced tough service questions right off the bat (Opening Day!) to wit: “Why has NS service fallen off so much since the implementation of PSR?” No real answer as CMO Elkins on the (brave) tub-thumping tour but systemic tailwinds (ESG, JIC, even inflation) will help when (hopefully not IF) service improves...
- The key phrasing here in Balmer (after "labor additions" and "service recovery") is "Market Extension" so it would be remiss of me to exclude the new partnership announced by NS with Commtrex for transloading, a key question in CMO Elkins' presentation. Others have talked about "capacity dividends" and CSX will no doubt talk about its Quality trucking deal in the chemicals space. Meetings are chockablock with short liners, the best carload reach enabler there is...
- Trinity CEO (Jean Savage) gave an open & honest review of the rail ecosphere's need to build coalitions and inject IT into the mix (see TRINsight and Rail Pulse) as well as new TRN car types to start the walk behind the RR growth talk (backed up by a scathing small shipper presentation).
- CSX Strategy head, old pal Farrukh Bezar also talked growth (&IT) & new projects like Greenway (with the coming PAR deal a way to gain share on I-95), Quality Carriers & the Carolina Connection w/ access to Port of Wilmington NC; as for service he sees "light at the end of the tunnel" (barring, well, you know...)
- NEARS Day2 CP(KC?) CEO (Keith) Creel spoke from Augusta (hide the Azalia pics, Keith!); he responded to my questions and took on critics of their deal synergy estimates, if not head-on with numbers then as directly by pride ("they don't know how to business like we do"). We on this side of the ball need to try to quantify where possible the qualitative differences in single-line service...He also announced more orders (AC and DC) for their hydrogen-powered locos
Anthony B. Hatch
abh consulting
http://www.abhatchconsulting.com
anthonybhatch@gmail.com
Twitter @ABHatch18