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Rail News Home Rail Industry Trends

3/18/2009



Rail News: Rail Industry Trends

Around the intermodal horn: From KCSR's UPS honors to ATA's tonnage forecast to Texas port's trade corridor funding


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United Parcel Service recently recognized the Kansas City Southern Railway Co. (KCSR) for providing consistent and reliable service during the peak season last year. In the fourth quarter, KCSR moved trains for UPS without experiencing a service failure — registering a “perfect” peak season.

“This peak season performance demonstrates KCSR's ability to provide consistent and reliable service across its network,” said Scott Arvidson, KCSR executive vice president and chief operating officer, in a prepared statement.

Meanwhile, the American Trucking Associations (ATA) projects that the long-term prospects for all transportation modes — including rail and intermodal — remain bright despite current weak demand for freight transportation services.

In the association’s newly released “ATA U.S. Freight Transportation Forecast to 2020” study conducted by IHS Global Insight, ATA predicts that during the next 11 years, total freight tonnage will increase more than 26 percent and total freight transportation revenue will rise 68 percent.

Trucks’ share of total tonnage will rise gradually from last year’s 68.8 percent to 70.9 percent by 2020. However, rail’s overall share (including carloads and intermodal loads) will slip slightly from 14.9 percent to 14.7 percent, the study shows. Air cargo tonnage is estimated to increase from last year’s 14.5 million tons to 22 million tons by 2020.

Finally, the Port of Corpus Christi will receive $8.25 million from the Texas Transportation Commission to help fund the completion of the $15 million Joe Fulton International Trade Corridor. The stimulus funds will be used to repave 2.25 miles of roadway and complete an asphalt surface treatment for the roadway’s eastern portion.

The trade corridor includes about 12 miles of new and existing roadway coupled with seven miles of new rail line.