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Researched by Industrial Info Resources (Sugar Land, Texas)--Weakness in the energy and manufacturing sectors took its toll on U.S. rail traffic in 2015, but that didn't stop rail carriers from kicking off projects worth more than $4 billion, according to Industrial Info's database.
U.S. rail traffic in 2015 dropped 2.5% from the previous year, according to the Association of American Railroads (AAR). Rail traffic volume last year totaled 27,976,850 carloads and intermodal units, down by 698,391 carloads and intermodal units from 2014. "Weaknesses in energy and manufacturing, as well as, world economic softening, had a negative impact on both carload and intermodal traffic in 2015," AAR Senior Vice President of Policy and Economics John Gray said in a press statement. "Railroads can't do much about the macroeconomic environment, but what they have done and are doing is making sure they operate safely and efficiently to maximize their customers' opportunities to grow their own business."
Total U.S. carload traffic for 2015 was 14,266,204 carloads, down 6.1%, while intermodal containers and trailers were 13,710,646 units, up 1.6%.
Citing lower crude-by-rail shipments and other factors, most of North America's freight rail carriers reported lackluster returns for the first three quarters of 2015. For related information, see November 13, 2015, article - North American Rail Earnings Mostly Down for Third-Quarter 2015 and October 15, 2015, article - CSX Railway Expects Slump in Coal, Crude Oil to Lower Volumes in Fourth-Quarter 2015.
Despite the traffic slump, maintaining the 140,000-mile U.S. rail network and about 100,000 rail bridges remains a priority for the freight rail industry. For related information, see September 30, 2015, article - North American Railroads Invest in Revitalizing Aging Bridges.
Last year saw the kickoff of 89 U.S. rail-related projects worth more than $4.1 billion. The lion's share of the investments--more than $3.7 billion--went into upgrades and rehabilitation. One of the project kickoffs that does not involve upgrades or rehabilitation work is CSX Corporation's (NYSE:CSX) (Jacksonville, Florida) intermodal terminal on the site of the former Pittsburgh and Lake Erie Railroad Yard in McKees Rocks and Stowe Township, Pennsylvania. The $50 million project will provide western Pennsylvania shippers direct intermodal access, helping to shift long-haul freight from highway to rail. Polivka International (Wedington, North Carolina) has partnered Trumbull Corporation (Pittsburgh, Pennsylvania) to construct the terminal. Completion is set for early 2017.
Industrial Info is also tracking 128 U.S. rail-related projects worth $9.15 billion that are planned to kick off this year. One of those projects set for kickoff in 2016 is Burlington Northern Santa Fe's (BNSF) (Fort Worth, Texas) $500 million Southern California International Gateway Intermodal Facility in Los Angeles. Able to handle 2.8 million container units per year, the facility will serve the ports of Los Angles and Long Beach. Completion is set for mid-2019. BNSF is a subsidiary of Berkshire Hathaway (NYSE:BRKA) (Omaha, Nebraska).
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five 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. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
U.S. rail traffic in 2015 dropped 2.5% from the previous year, according to the Association of American Railroads (AAR). Rail traffic volume last year totaled 27,976,850 carloads and intermodal units, down by 698,391 carloads and intermodal units from 2014. "Weaknesses in energy and manufacturing, as well as, world economic softening, had a negative impact on both carload and intermodal traffic in 2015," AAR Senior Vice President of Policy and Economics John Gray said in a press statement. "Railroads can't do much about the macroeconomic environment, but what they have done and are doing is making sure they operate safely and efficiently to maximize their customers' opportunities to grow their own business."
Total U.S. carload traffic for 2015 was 14,266,204 carloads, down 6.1%, while intermodal containers and trailers were 13,710,646 units, up 1.6%.
Citing lower crude-by-rail shipments and other factors, most of North America's freight rail carriers reported lackluster returns for the first three quarters of 2015. For related information, see November 13, 2015, article - North American Rail Earnings Mostly Down for Third-Quarter 2015 and October 15, 2015, article - CSX Railway Expects Slump in Coal, Crude Oil to Lower Volumes in Fourth-Quarter 2015.
Despite the traffic slump, maintaining the 140,000-mile U.S. rail network and about 100,000 rail bridges remains a priority for the freight rail industry. For related information, see September 30, 2015, article - North American Railroads Invest in Revitalizing Aging Bridges.
Last year saw the kickoff of 89 U.S. rail-related projects worth more than $4.1 billion. The lion's share of the investments--more than $3.7 billion--went into upgrades and rehabilitation. One of the project kickoffs that does not involve upgrades or rehabilitation work is CSX Corporation's (NYSE:CSX) (Jacksonville, Florida) intermodal terminal on the site of the former Pittsburgh and Lake Erie Railroad Yard in McKees Rocks and Stowe Township, Pennsylvania. The $50 million project will provide western Pennsylvania shippers direct intermodal access, helping to shift long-haul freight from highway to rail. Polivka International (Wedington, North Carolina) has partnered Trumbull Corporation (Pittsburgh, Pennsylvania) to construct the terminal. Completion is set for early 2017.
Industrial Info is also tracking 128 U.S. rail-related projects worth $9.15 billion that are planned to kick off this year. One of those projects set for kickoff in 2016 is Burlington Northern Santa Fe's (BNSF) (Fort Worth, Texas) $500 million Southern California International Gateway Intermodal Facility in Los Angeles. Able to handle 2.8 million container units per year, the facility will serve the ports of Los Angles and Long Beach. Completion is set for mid-2019. BNSF is a subsidiary of Berkshire Hathaway (NYSE:BRKA) (Omaha, Nebraska).
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five 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. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
