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Eastern Railroad Discussion > Which Railroads Positoned for Growth?

Date: 09/11/19 07:26
Which Railroads Positoned for Growth?
Author: PRR_4859

Good morning:

With all that has happened with most of the North American Class One railroads with Precision Scheduled Railroading (PSR), are the ones that adopted PSR early on positioning for growth, namely Canadian National?

I only ask this as I have taken some interest in this railroad as they seem to be trying to expand their reach, considering the purchase of the CSXT line in New York. Also, they recently added a second main in places between Winnepeg and Edmonton. I also seem to remember reading that CN purchased a logistics company. Has CN realized that PSR can only do so much for shareholders, and at some point traffic must grow? Is CN a good railroad with which to conduct business? Their CEO appears to want to grow the business. Could actions of the CN be a positive sign that railroads adopting PSR eventually cycle back (after a few years) to a growth mindset?

Just a thought.

Date: 09/11/19 08:39
Re: Which Railroads Positoned for Growth?
Author: Juniata

I believe CN and JJ Ruest are obviously serious about growth given the purchase of the trucking company and the recently announced contracts with COSCO. and Evergreen to handle their container business. CP seems to be leaning in that direction as well.

I have serious doubts whether CSX has crossed that river yet despite both Jim Foote and Mark Wallace talking a growth game. CSX essentially eliminated their sales force through attrition under Ward and EHH and I’ve seen nothing from CSX to indicate they are interested in growing their sales force and, by extension, their business.

NS is obviously not interested in growth if Alan Shaw’s comments at an investor conference last week are taken at face value. Alan noted the decline in both carload and intermodal volumes and then bragged about how NS pricing discipline was the strongest it’s been in years.

Frankly; I find it shameful when a CMO brags about firm pricing when business levels are falling off but; that’s the insanity of psr.

Posted from iPhone

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