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Rail News Home Maintenance Of Way

11/23/2011



Rail News: Maintenance Of Way

Tie purchases and production showed seasonal slips in September, RTA says


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Following a large increase in August, crosstie purchases followed seasonal norms in September, declining 1.5 percent to 2.4 million units, according to the Railway Tie Association’s (RTA) monthly crosstie market report. Tie production tumbled 7.5 percent to 2.1 million units and tie inventories dipped 1.7 percent to 15.4 million units.

In the third quarter, tie purchases totaling 7 million units exceeded second-quarter levels by “an explosive” 24 percent, RTA officials said in the report. Production rose 16 percent to 6.3 million units.

Through 2011’s first nine months, production stood at 17 million units, up 42 percent year over year — evidence that producers have rebounded from a weak 2010, RTA officials said. Purchases grew 14 percent to 17.8 million units.

Meanwhile, 12-month rolling data showed purchases were growing at an annual rate of about 17 percent, approaching a recent high of 22 million ties, RTA officials said. Production of 22.3 million units was growing at an annual rate of 39 percent. The inventory-to-sales ratio stood at 0.70 — the lowest reading in three years, RTA officials said — versus 0.73 in August.