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Rail News Home Maintenance Of Way

7/28/2011



Rail News: Maintenance Of Way

RTA report: Tie production, purchases jumped in June


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Both crosstie production and purchases posted “good showings" in June, according to the Railway Tie Association’s (RTA) monthly crosstie market report. Production jumped 25 percent to 2.1 million units and purchases climbed 23 percent to 2.1 million units compared with June 2010 figures. In addition, the tie inventory hovered at 16.1 million units, a figure that continued to hold relatively steady the eight months prior to and including June.

In the second quarter, tie production increased 2.6 percent to 5.4 million units and purchases rose 9.3 percent to 5.6 million units compared with first-quarter data, the report states. Through the year’s first half, production stood 50 percent higher than the level reached at 2010’s midpoint, while purchases were up 8 percent, RTA said.

Meanwhile, 12-month rolling through June showed purchases were growing at an annual rate exceeding 12 percent. Purchases appeared to have “reached a plateau right around 20.5 million ties,” the report states. Production “roared back” from a low of 15.9 million units in August 2010 to reach 20.7 million units, and was growing at an annual rate of more than 25 percent, RTA officials said. June’s inventory-to-sales ratio was 0.79, up from May’s 0.77 but down from June 2010’s 0.87.