Media Kit » Try RailPrime™ Today! »
Progressive Railroading
Newsletter Sign Up
Stay updated on news, articles and information for the rail industry



This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.




railPrime
View Current Digital Issue »



Rail News Home Rail Industry Trends

9/21/2006



Rail News: Rail Industry Trends

Five of seven Class Is boost average velocity the past month, Bank of America Securities says


advertisement


Most Class Is have increased average train velocity during the past four weeks. CSX Transportation’s average velocity of 20.4 mph rose 3 percent on a year-over-year basis, according to Bank of America Securities L.L.C.’s ground transportation research report for the week ending Sept. 15.

“The data coincides with our recent shipper survey that reported modest service improvements at this railroad,” the report states.

However, Norfolk Southern Railway — which is dealing with traffic volume growth of more than 3 percent this year — saw average velocity drop 1.6 percent to 22.1 mph during the past four weeks and 2.4 percent to 21.5 mph year to date (YTD) compared with similar 2005 data, according to the report.

In the West, Kansas City Southern’s average train speed rose 10.8 percent to 24.4 mph during the past four weeks and 2.4 percent to 23.8 mph YTD. BNSF Railway Co.’s four-week average increased 1 percent to 23.3 mph compared with similar 2005 data.

“BNSF is on the right path to improving its service metrics, as management remains focused on velocity improvements,” the report states. “Nevertheless, average system velocity has declined 4 percent year to date as BNSF continues to absorb solid levels of volume growth (plus 6.6 percent YTD).”

Union Pacific Railroad’s YTD average is down, too, declining 0.3 percent to 21.3 mph. During the past four weeks, the Class I’s average train speed dropped 3.4 percent to 21.2 mph compared with similar 2005 data.

In Canada, both large roads have boosted average velocity during the past four weeks and YTD, the report states. Canadian Pacific Railway’s four-week average increased 20 percent to 25.2 mph and YTD average rose 15.5 percent to 25.2 mph; Canadian National Railway Co.’s four-week average went up 1.8 percent to 26.2 mph and YTD average increased 2.3 percent to 25.9 mph compared with similar 2005 data.

“We expect continued operational improvement at CN, given its focus on execution, a siding expansion program and Smart Yard initiatives,” the report states.