Rail News Home BNSF Railway 5/3/2022 Rail News: BNSF Railway
BNSF Railway Co. late last week reported double-digit increases in first-quarter 2022 revenue, net income and operating expenses compared with the same period a year ago.Total revenue in Q1 2022 climbed 10% to nearly $6 billion; operating income rose 8% to $2 billion; net income increased 10% to $1.4 billion; and operating expenses jumped 12% to $3.9 billion compared with the same quarter last year, according to a statement posted on BNSF's website.The Class I posted an operating ratio of 64.6% for the quarter, up from 63.7% a year ago.BNSF attributed the revenue increase primarily to a 14% increase in average revenue per car/unit resulting from higher fuel surcharge revenue driven by higher fuel prices along with increased rates per car. Revenue was partially offset by a 3% decrease in unit volume.In addition, BNSF reported revenue changes resulted from the following:
• Consumer products volumes decreased 8% due to lower international intermodal volumes caused by supply-chain challenges and lower automotive shipments;
• Agricultural products volumes fell 4% primarily because of lower grain exports, which were partially offset by higher volumes of ethanol and related commodities;
• Industrial products volumes rose 1% primarily due to growth in the U.S. industrial economy; and
• Coal volumes climbed 14% due to increased electricity generation, higher natural gas prices and improved export demand.BNSF attributed the increase in operating expenses to higher compensation and benefits, higher fuel costs and inflation.
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Rail News Home Norfolk Southern Railway 5/2/2022 Rail News: Norfolk Southern Railway
Alan Shaw Photo – nscorp.com
Alan Shaw Photo – nscorp.com
Alan Shaw yesterday began his first day as Norfolk Southern Railway’s new president and CEO.
Today, Shaw sent to NS employees an open letter that outlines the Class I’s priorities under his leadership, starting with restoring service to meet customers' expected level of service quality. The railroad is "taking the right steps" toward that goal by accelerating its new TOP|SPG operating plan and hiring the conductors the railroad needs to execute the plan reliably, he wrote.