FirstEnergy Settles Coal Transport Dispute
U.S. power company FirstEnergy Corp agreed to pay $109 million to settle a legal dispute with two railroads concerning a long-term coal transportation contract, the Ohio based company said in a federal filing on Wednesday. FirstEnergy said its FirstEnergy Generation unit would pay CSX Corp's CSX Transportation and Berkshire Hathaway Inc's BNSF Railway in three annual installments beginning May 1, which would be guaranteed by FirstEnergy.
Trump Win Boosts Coal, Hits Renewable Stocks
The prospect of an abrupt shift in U.S. climate policy under President-elect Donald Trump lifted the shares of U.S. mining equipment giant Caterpillar Inc, North American railroads and other companies tied to fossil fuels, and slammed shares of renewable energy firms. Trump has called climate change a hoax, said he would rip up the Paris climate treaty and promised to revive the U.S. coal sector. His victory caused dismay at a climate policy conference in Morocco on Wednesday.
Norfolk Southern Profit Dips on Falling Freight Volume
Norfolk Southern Corp, the No. 4 U.S. railroad, on Wednesday reported a higher quarterly net profit, citing a 7 percent drop in freight volumes led by a precipitous decline in coal. The Norfolk, Virginia-based company posted second-quarter net income of $405 million or $1.36 per share, down more than 6 percent from $433 million or $1.41 per share a year earlier. Analysts had on average expected earnings per share of $1.35. Reporting By Nick Carey
TSX Rises as Railways, Pipelines Gain
Canada's main stock index rose on Wednesday, led by railway and pipeline stocks in a broad-based but relatively shallow recovery from Tuesday's slip. The most influential gainer on the index was Canadian Pacific Railway Ltd, which rose 5.5 percent to C$194.88 after the company made public a proposal to buy Norfolk Southern that it said could help it save $1.8 billion. Its rival, Canadian National Railway Co advanced 1.7 percent to C$78.32.
U.S. Rail Freight Falls as Coal Declines
Freight carried by major U.S. railroads fell by 7 percent in the second quarter of 2015 compared with the same period in 2014, confirming that large parts of the industrial economy are in recession. The major Class 1 railroads carried 431 billion ton-miles of freight in the three months ending June, down from 463 billion ton-miles in 2014, according to the U.S. Surface Transportation Board . Changes in freight volumes reflect broader difficulties in the industrial economy.
As Coal Wanes, Consumers Key for U.S. Rails
Investors in U.S. railroad stocks, who have been punished in 2015 by an accelerating decline in high-margin coal shipments, now are pinning their long-term hopes on a resurgence in consumer spending. Their bet is that a strengthening economy will produce enough demand that railroads will be able to replace the income lost to years of declining coal use with so-called intermodal shipping - the movement of containers stuffed with clothing, furniture and other consumer goods.
Norfolk Southern Profit Down on Lower Coal, Fuel Surcharges
U.S. railroad Norfolk Southern Corp on Monday reported a lower quarterly net profit due to falling coal freight shipments and a decline in fuel surcharge revenue. The Norfolk, Virginia-based railroad reported second-quarter net income of $433 million or $1.41 per share, down 23 percent from $562 million or $1.79 per share a year earlier. Analysts had on average expected earnings per share for the quarter of $1.42. Reporting By Nick Carey
Train Lobby Pushes to Weaken Safety Rule
Billionaire investor Warren Buffett is set to be a chief beneficiary of a bid by Senate Republicans to weaken new regulations to improve train safety in the $2.8 billion crude-by-rail industry, a key cog in the development of the vast North American shale oil fields. A series of oil train accidents, including the July 2013 explosion of a train carrying crude in Lac-Megantic, Quebec, that killed 47 people, led U.S. and Canadian regulators to announce sweeping safety rules in May. Among other things, U.S.
Weak Coal, Strong Dollar Impact Norfolk Southern Profit
U.S. railroad Norfolk Southern Corp on Wednesday reported a lower net profit, sparked by a drop in coal volumes as utilities burned more lower-cost natural gas and U.S. exporters were hurt by the strong dollar. The fourth-largest U.S. railroad said that severe winter weather on the East Coast had hurt results. Norfolk Southern's coal-related revenue fell 16 percent to $455 million from $541 million a year earlier. "While the market uncertainties remain…
Driver Shortage Makes Capitalizing on Low Oil Hard for Truckers
A chronic shortage of drivers means America's long-haul trucking companies are struggling to capitalize on cheap fuel prices that could allow them to take goods shipments away from railroads. A 50 percent fall in oil prices from their peak last year should have erased some of the cost advantage railroads enjoy, especially for longer hauls. But for customers hoping to save money by switching from train to truck, the lack of drivers makes that harder.
Norfolk Southern Hurt by Declining Coal Volume
Norfolk Southern Corp, the No. 4 U.S. railroad, on Monday reported slightly lower fourth-quarter profit due partly to a 15 percent drop in coal revenue. The Norfolk, Virginia-based company said gains in its intermodal, or consumer goods shipments and its merchandise segment that includes chemical and agricultural goods, largely offset the fall in coal revenue. Norfolk Southern said the drop in coal was caused by a weak global export market and fewer shipments of coal to utilities…
Philadelphia Energy Firms Seek Rail Line Changes
Philadelphia-area energy officials are in talks with the local commuter rail agency to increase access to a three-mile stretch of rail near the city's airport to allow for greater shipments of Bakken crude oil, people familiar with the talks told Reuters. The outcome of the negotiations will determine whether Monroe Energy, the Delta subsidiary that runs the 165,000-barrel-a-day refinery in Trainer, Pennsylvania, will be…
Norfolk Southern Profit Falls on Lower Demand
U.S. railroad Norfolk Southern Corp reported an 18 percent fall in quarterly profit as coal shipments dropped. The company's net income fell to $368 million, or $1.17 per share, in the first quarter ended March 31, from $450 million, or $1.41 per share, a year earlier. Net income in the prior-year quarter included a $60 million gain from a land sale. Railway operating revenue dropped 1.8 percent to $2.69 billion. Revenue from coal shipments fell 15 percent. Reporting by Sagarika Jaisinghani in Bangalore
Evolution or revolution? LNG and the railroads: Kemp
Electro-Motive Diesel, the world's largest diesel locomotive manufacturer, has taken delivery of the first of four specially designed liquefied natural gas (LNG) tenders ultimately destined for use on the Canadian National railroad. The remaining tenders, each equipped with a fuel tank capable of carrying 45,500 litres of LNG, are due to be delivered before the end of June, according to specialist industry publication "Railway Age".
Evolution or Revolution? LNG and the Railroads
Electro-Motive Diesel, the world's largest diesel locomotive manufacturer, has taken delivery of the first of four specially designed liquefied natural gas (LNG) tenders ultimately destined for use on the Canadian National railroad. The remaining tenders, each equipped with a fuel tank capable of carrying 45,500 litres of LNG, are due to be delivered before the end of June, according to specialist industry publication "Railway Age".
