Patrick’s Day

Railroad Weekly January 27, 2025

courtesy: Steel Wheels Photography

Inside This Issue

· Patrick’s Day: The STB Has a New Chairman

· Q4 Earnings Begin: UP Dazzles, CSX Frazzled

· 50 Saint: UP’s O.R. Gets Down into the 50s

· Hex on CSX: RR Hit by Flurry of Misfortunes

· T-Rex of Capex: BNSF Details Latest Investment Plan

· Rate Debate: Will the Fed on Wednesday Lower, Hike, or Hold?

· Nicely Balanced: GATX Upbeat on Railcar Lease Market

Track Talk

“Last year was different than we planned, but we are proud of what we achieved and how we achieved it… We are ready for the important year ahead of us in 2025.

- CSX CEO Joe Hinrichs

The Latest

· As it turns out, that speech Robert Primus gave in Chicago earlier this month (see last week’s issue) was a farewell address of sorts. He’s not leaving the STB (his term runs through 2027). But his brief chairmanship comes to an end with President Trump’s designation of Patrick Fuchs to replace him. Fuchs is one of four current Board members, with a fifth seat vacant. Another sitting member, Michelle Schultz becomes vice-chair, replacing Karen Hedlund. The AAR called Fuchs a “thoughtful, solutions-oriented leader who lets data drive the decision-making process.” One of his likely priorities, based on past statements, is speeding up the Board’s decision making. In his statement affirming support of Canadian National’s acquisition of the Iowa Northern, for example, Fuchs offered suggestions for “focusing, expediting, and improving the Board’s review of nonmajor transactions.”

· Railroad earnings season got started last week, with Union Pacific and CSX presenting their fourth quarter results. As you’ll read in detail below, UP fared exceptionally well in the quarter. But CSX had a more challenging end to the year.