Railroad News

CN employees who are members of United Steelworkers Local 2004 (USW) have approved a new five-year contract, the union and Class I announced yesterday.

For the past several weeks, members have been voting on the tentative agreement reached between CN and Local 2004 in December 2018. The contract covers 3,000 USW members who inspect, maintain and repair CN's system of track, bridges and infrastructure in Canada.

A Canadian Pacific unit grain train began to move on its own prior to a fatal derailment that occurred early Monday near Field, British Columbia, the Transportation Safety Board of Canada (TSB) announced yesterday.

The derailment, which occurred between the Upper and Lower Spiral Tunnel, resulted in the deaths of the train's three crew members. They were identified as conductor Dylan Paradis, engineer Andrew Dockrell and trainee Daniel Waldenberger-Bulmer.

A Canadian Pacific grain train derailed early yesterday near Field, British Columbia, resulting in the deaths of the train's three crew members.

The deceased were identified as conductor Dylan Paradis, engineer Andrew Dockrell and trainee Daniel Waldenberger-Bulmer, according to a statement issued by CP President and Chief Executive Officer Keith Creel.

By This email address is being protected from spambots. You need JavaScript enabled to view it., editor

Will business be better this year than it was last year? Will it be about the same? Worse? What are the key issues facing the rail finance and leasing sector in 2019? 

Unifor Local 100 members have voted in favor of ratifying a new four-year collective agreement with CN.

The agreement — which covers 2,100 locomotive and freight-car mechanics, electricians and apprentices — represents a "breakthrough in improvements to benefits at CN," Unifor officials said in a press release.

BNSF Railway Co. announced yesterday that plant construction and upgrade investments made by its customers in 2018 totaled nearly $3 billion.

Last year marked the eighth consecutive year that BNSF customers and local economic development organizations have invested more than $1 billion in a calendar year for new or expanded facilities, according to a BNSF press release.

CN yesterday reported fourth-quarter revenue of CA$3.8 billion, up 16 percent compared with fourth-quarter 2017 results.

Operating income climbed 19 percent to CA$1.4 billion and adjusted diluted earnings per share jumped 24 percent to CA$1.49. Diluted earnings in fourth-quarter 2017 included a deferred income tax recovery of CA$2.35 per share resulting from the enactment of a lower U.S. corporate income tax rate, CN officials said in a press release.

[Editor's note: This story has been updated to include a statement from CSX.]

New York Gov. Andrew Cuomo is threatening legal action against CSX if the Whitesboro rail bridge in Oneida County is not rebuilt.

Norfolk Southern Corp. yesterday reported record fourth-quarter income from operations of $1.1 billion, up 27 percent compared with fourth-quarter 2017 and up 9 percent on an adjusted basis.

Net income shot up 44 percent to $702 million, earnings per share jumped 52 percent to $2.57, revenue rose 9 percent to $2.9 billion, volume increased 3 percent to 1.98 million units, railway operating expenses climbed 9 percent to $1.8 billion and the operating ratio improved 5.5 points to 62.8.

Norfolk Southern Corp. has named Michael Cox vice president of taxation, effective March 1. He will succeed Robert Kesler, who is retiring.

Cox has held positions of increasing responsibility since he joined NS as assistant tax counsel in 2000. Prior to joining the company, he spent more than a decade in private industry and with the federal government, including serving as a trial attorney in the U.S. Department of Justice's tax division.

Canadian Pacific yesterday announced record operating income of CA$874 million for the fourth quarter, a 28 percent increase compared with the same period in 2017.

CP's revenue for the quarter climbed 17 percent to CA$2 billion from CA$1.7 billion a year ago. Q4 diluted earnings per share (EPS) fell 43 percent to $3.83 from $6.77 a year ago, however adjusted diluted EPS rose 41 percent to a new quarterly record of $4.55 from $3.22 in 2017, according to a CP press release.

By This email address is being protected from spambots. You need JavaScript enabled to view it., Managing Editor

Union Pacific Corp. today reported record fourth-quarter net income of $1.6 billion and diluted earnings per share of $2.12, up 29 percent and 39 percent, respectively, compared with adjusted results for fourth-quarter 2017.

Norfolk Southern Corp. has elected Thomas Kelleher as a board member, effective yesterday. He will serve as an independent director and join the board's finance and risk management committee.

Kelleher, 61, is president of global financial services and investment management firm Morgan Stanley. He also is chairman and chief executive officer of Morgan Stanley Bank N.A. Kelleher is responsible for Morgan Stanley's institutional securities business and wealth management.

Late last month, Amtrak awarded an $850 million contract to Siemens Mobility for 75 diesel locomotives as part of the railroad’s plan to replace its aging national network fleet.

nVent:
ERIFLEX

nVent offers an array of products, including nVent ERICO Cadweld, which is used for making exothermic welded connections on track. The company also offers the nVent ERIFLEX product line for electrical conduction and low voltage power distribution (AC/DC power conversion). Used across a range of industries, ERIFLEX products provide "unique advantages that are ideal for railways electrical systems, both onboard and trackside," the company said in an email.

BNSF Railway Co. has awarded its "Certified Sites" designation to two new industrial locations in Galesburg, Illinois, and Clovis, New Mexico.

The program identifies optimal rail-served sites for customer development along the Class I's network. To be considered for the designation, sites must undergo a thorough analysis that includes an evaluation of environmental and geotechnical standards, available utilities and site availability.

Today, Kansas City Southern reported record fourth-quarter revenue of $694 million, up 5 percent compared with the total in fourth-quarter 2017.

The Class I also registered record adjusted operating income of $248 million, up 4 percent, and record adjusted earnings per share of $1.56, up 13 percent  year over year. In addition, KCS’ operating ratio improved 0.9 points to 63.1, although the adjusted ratio inched up 0.3 points to 64.3.

By This email address is being protected from spambots. You need JavaScript enabled to view it., Senior Associate Editor

By This email address is being protected from spambots. You need JavaScript enabled to view it., Managing Editor

In the fourth quarter, CSX registered an operating ratio of 60.3, a 4.8 point improvement compared with its fourth-quarter 2017 ratio of 65.1 and a Q4 record, the Class I announced yesterday.