Santa Fe Decay

Railroad Weekly May 8, 2023

Photography by Frederick Manfred Simon © www.SteelWheels.Photography

Inside This Issue

·   Santa Fe Decay: BNSF A Profit Laggard. Cause for Concern?

·   Oath of Growth: CN Tells Investors How and Where it Will Expand

·   Auto Halo: Ferromex Boosts Margins as Vehicle Revenue Soars    

·   Much to Sue About Nothing: UP Ask Court to Overturn CP-KCS Merger

·   Scope for Hope: Beleaguered Intermodal Market Showing Signs of Life

·   Hope vs. Hype: How Excited Should Railroads Really Be About Nearshoring?   

·   Fed Tightens but Outlook Brightens: Employment Up and Oil Down      

·   Increase the Lease: Trinity Reports Railcar Pricing Power

Publisher’s Note: Thanks to all who purchased my new book American Places: A Profile of Local Economies Across the U.S.  The hardback version should be available for shipment this week. Click on the link to read a sample! On a separate note, I look forward to meeting any of you who might be attending the NARS event in Chicago later this month. Feel free to reach out at jay@railroadweekly.com

Track Talk

“I feel very comfortable that we will grow our volumes above the economy in the next couple of years. And then when you layer on the scheduled railroading model with the benefits to the customers that I’ve just talked about, I think we can be comfortable that we will be able to price above rail inflation.”  

-Canadian National CFO Ghislain Houle      

The Latest

·   They call it the “Woodstock of Capitalism.” It’s the annual Berkshire Hathaway shareholder gala, held last week in Warren Buffett’s hometown of Omaha, Nebraska. Ironically, that’s also Union Pacific’s hometown too. Berkshire’s railroad is UP’s rival BNSF, which in conjunction with the annual meeting, released its first quarter financials. The giant railroad earns consistent profits for Berkshire. But its margins