A leasing company peer was lamenting the state of the railcar marketplace, the downward and steady pressure on railcar lease rates and the dim prospects for a 2017 rebound. The discussion turned to the topic of the seeming disconnect between the rail economy, which has been declining, and the overall economy, which continues to move forward albeit at a slower than optimal pace. Why might a seasoned leasing veteran be concerned at this anomaly?
Cowen and Company Managing Director and Railway Age Wall Street Contributing Editor Jason Seidl attended the North East Association of Rail Shippers (NEARS) Fall Conference and offers the following generally positive report:
The Surface Transportation Board (STB or Board) on Sept. 22 released an independent study it commissioned from InterVISTAS Consulting LLC that examined the STB’s approach to freight rail rate regulation and options for simplification of that approach. Edward R. Hamberger, President and CEO of the Association of American Railroads (AAR), says the findings confirm the critical need for sound economic regulation, and on Sept. 23 issued the following statement:
Cover story, September issue: Like most Class I railroads, Union Pacific has had to make adjustments to deal with sharp declines in coal and other commodities. While its $3.75 billion 2016 capital program is lower than last year’s, it upholds a strong commitment to maintaining a state of good repair, building capacity and improving technology. As well, UP is committed to sustainability. And then there’s yet another historic UP steam locomotive undergoing restoration.
A Surface Transportation Board study on the Board’s SAC (stand-alone cost) rate reasonableness methodology is complete and can be downloaded at the link below.
The Greenbrier Companies Inc. has appointed Jim Cowan President of Greenbrier International, reporting to Greenbrier Chairman and CEO William A. Furman.