Western Railroad Discussion > Colorado Coal UP, PRB down

Link
http://www.progressiverailroading.com/union_pacific/news/Union-Pacific-reports-mixed-coal-train-counts-for-November--33525

Let me quote the actual numbers from the link:

"UP loaded 866 coal trains in the Southern Powder River Basin (SPRB) last month compared with 1,040 trains in November 2011. The Class I serves 10 mines in the SPRB. UP also loaded 245 coal trains last month in the Colorado/Utah Region versus 201 trains a year ago. The railroad serves five coal mines in Colorado and five mines in Utah."

Hmmm - makes me wonder why CO/UT coal loads are up while the PRB is down.

Joe - watching daily coal trains on the Joint Line in Castle Rock, CO

jsnoy Wrote:
-------------------------------------------------------
> UP also loaded 245 coal
> trains last month in the Colorado/Utah Region
> versus 201 trains a year ago. The railroad serves
> five coal mines in Colorado and five mines in
> Utah."
>
> Hmmm - makes me wonder why CO/UT coal loads are up
> while the PRB is down.

I'm going to guess at least in part minimum tonnages required by long-term contracts, although I have NO proof of that. Could just be more demand for higher Btu coal.

It may also be tied to the expectation that December in the east and southeast will be milder than forecast 60 days ago, and utilities are keeping their coal piles relatively trim right now.

Many generating stations will adjust their forecast burn rate based on the weather outlook / power demand expected, which triggers demands for a little more or a little less coal delivery. That could be fewer cars per train, a longer interval between delivery, etc.