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Researched by Industrial Info Resources (Sugar Land, Texas)--With U.S. freight rail traffic approaching pre-recession levels, the American Association of Railroads (AAR) says the industry is likely to spend a record amount on infrastructure and equipment. U.S. freight railroads estimate they will hire 15,000 people this year and spend $29 billion on network maintenance and expansions, according to the AAR's 2015 outlook report.
Industrial Info is tracking 274 U.S. rail-related projects worth $18.47 billion. This includes 110 projects worth more than $6.6 billion that are under construction; 25 projects worth more than $1 billion that are in the engineering phases; and 139 projects worth nearly $11 billion that are in the planning stages, where a variety of factors could alter their outcome.
For 2015, Industrial Info shows 145 projects worth $9.83 billion that are scheduled for kickoff.
Traffic levels are the highest since 2007, according to the AAR report, which added that 18 of the 20 commodity categories tracked by the association showed increases in 2014.
Total rail carloads and intermodal traffic surpassed the 550,000-unit mark for seven consecutive months in 2014, compared with 11 months in 2006 and eight months in 2007, according to AAR data.
Railroads saw a 4.5% increase in carload and intermodal traffic in 2014. The AAR noted a number of factors led to the increase, including a record grain crop, increased demand for coal to generate electricity, and better general economic conditions.
"Another exciting indicator of overall economic growth is the meteoric rise in U.S. rail intermodal, the containers and trailer traffic that can travel by truck, rail or both," the AAR said. Intermodal rail traffic grew by 665,630 units from 2013. Railcar traffic for grain and other farm products increased by 128,567 units; traffic from crushed stone, sand and gravel shipments increased by 122,567 units; traffic for petroleum and petroleum products increased by 90,185 units; and coal movements increased by 55,554 units.
Railroads plan to hire 15,000 workers this year to address forecasted retirements, normal attrition and traffic growth.
"Overall, the major Class I freight railroads had 8,000 more employees at the end of 2014, compared with the year before, a net increase of 4.9%, to more than 170,000 employees," the AAR said.
The AAR describes itself as a railroad policy, research and technology organization focusing on the safety and productivity of rail carriers. AAR members include the major freight railroads of the U.S., Canada and Mexico, as well as Amtrak.
North American railroads such as BNSF Railway, a subsidiary of Berkshire Hathaway (NYSE:BRK.A) (Omaha, Nebraska), have announced plans to beef up capital expenditures (capex) this year. The railway said it will invest $6 billion in capex this year, compared with $5.5 billion last year. The planned investments for 2015 include $2.9 billion to replace and maintain core network and related assets, nearly $1.5 billion on expansion and efficiency projects, $200 million for continued implementation of positive train control (PTC), and about $1.4 billion for locomotives, freight cars and other equipment.
For related information, see January 23, 2015, article - Railroads Report Fourth-Quarter 2014 Profit Growth, Expect Lower Crude Shipments.
Two of the larger rail-related projects being tracked by Industrial Info involve ocean ports.
With a total investment value of $500 million, a grassroot commodity manifest terminal on the Houston Ship Channel in Texas is set for construction kickoff in fourth-quarter 2015, with completion in fourth-quarter 2017. Located on a 1,080-acre site, a waterfront tract will accommodate five deepwater docks, as well as two barge docks, according to the project owner, Texas Deepwater Industrial Port (TDIP). The marine terminal could be constructed to accommodate a variety of uses, including the import and export of dry and liquid bulk commodities as well as break-bulk, heavy-lift, project cargo and roll-on, roll-off operation.
The facility also will include significant rail infrastructure with capabilities, including unit train capacity; on-dock rail, dry and liquid bulk loading and unloading; trans-loading operations; manifest storage for more than 1,500 cars; and railcar cleaning and repair operations, according to TDIP. Rail service to the site will be provided by the Port Terminal Rail Association (PTRA) (Houston, Texas), Union Pacific Railroad (NYSE:UNP) (Omaha, Nebraska) and BNSF.
Also with a $500 million price tag is BNSF's proposed intermodal rail facility in Los Angeles, California. The 2.8 million-container-unit-per-year facility would serve both the Port of Los Angeles and the Port of Long Beach. Proposed construction kickoff is slated for mid-2016, with completion in mid-2019. BNSF is working with project management firm Moffat & Nichol (Long Beach, California) on the proposed facility.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
Industrial Info is tracking 274 U.S. rail-related projects worth $18.47 billion. This includes 110 projects worth more than $6.6 billion that are under construction; 25 projects worth more than $1 billion that are in the engineering phases; and 139 projects worth nearly $11 billion that are in the planning stages, where a variety of factors could alter their outcome.
For 2015, Industrial Info shows 145 projects worth $9.83 billion that are scheduled for kickoff.
Traffic levels are the highest since 2007, according to the AAR report, which added that 18 of the 20 commodity categories tracked by the association showed increases in 2014.
Total rail carloads and intermodal traffic surpassed the 550,000-unit mark for seven consecutive months in 2014, compared with 11 months in 2006 and eight months in 2007, according to AAR data.
Railroads saw a 4.5% increase in carload and intermodal traffic in 2014. The AAR noted a number of factors led to the increase, including a record grain crop, increased demand for coal to generate electricity, and better general economic conditions.
"Another exciting indicator of overall economic growth is the meteoric rise in U.S. rail intermodal, the containers and trailer traffic that can travel by truck, rail or both," the AAR said. Intermodal rail traffic grew by 665,630 units from 2013. Railcar traffic for grain and other farm products increased by 128,567 units; traffic from crushed stone, sand and gravel shipments increased by 122,567 units; traffic for petroleum and petroleum products increased by 90,185 units; and coal movements increased by 55,554 units.
Railroads plan to hire 15,000 workers this year to address forecasted retirements, normal attrition and traffic growth.
"Overall, the major Class I freight railroads had 8,000 more employees at the end of 2014, compared with the year before, a net increase of 4.9%, to more than 170,000 employees," the AAR said.
The AAR describes itself as a railroad policy, research and technology organization focusing on the safety and productivity of rail carriers. AAR members include the major freight railroads of the U.S., Canada and Mexico, as well as Amtrak.
North American railroads such as BNSF Railway, a subsidiary of Berkshire Hathaway (NYSE:BRK.A) (Omaha, Nebraska), have announced plans to beef up capital expenditures (capex) this year. The railway said it will invest $6 billion in capex this year, compared with $5.5 billion last year. The planned investments for 2015 include $2.9 billion to replace and maintain core network and related assets, nearly $1.5 billion on expansion and efficiency projects, $200 million for continued implementation of positive train control (PTC), and about $1.4 billion for locomotives, freight cars and other equipment.
For related information, see January 23, 2015, article - Railroads Report Fourth-Quarter 2014 Profit Growth, Expect Lower Crude Shipments.
Two of the larger rail-related projects being tracked by Industrial Info involve ocean ports.
With a total investment value of $500 million, a grassroot commodity manifest terminal on the Houston Ship Channel in Texas is set for construction kickoff in fourth-quarter 2015, with completion in fourth-quarter 2017. Located on a 1,080-acre site, a waterfront tract will accommodate five deepwater docks, as well as two barge docks, according to the project owner, Texas Deepwater Industrial Port (TDIP). The marine terminal could be constructed to accommodate a variety of uses, including the import and export of dry and liquid bulk commodities as well as break-bulk, heavy-lift, project cargo and roll-on, roll-off operation.
The facility also will include significant rail infrastructure with capabilities, including unit train capacity; on-dock rail, dry and liquid bulk loading and unloading; trans-loading operations; manifest storage for more than 1,500 cars; and railcar cleaning and repair operations, according to TDIP. Rail service to the site will be provided by the Port Terminal Rail Association (PTRA) (Houston, Texas), Union Pacific Railroad (NYSE:UNP) (Omaha, Nebraska) and BNSF.
Also with a $500 million price tag is BNSF's proposed intermodal rail facility in Los Angeles, California. The 2.8 million-container-unit-per-year facility would serve both the Port of Los Angeles and the Port of Long Beach. Proposed construction kickoff is slated for mid-2016, with completion in mid-2019. BNSF is working with project management firm Moffat & Nichol (Long Beach, California) on the proposed facility.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, three offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
