Just saw this...

[whistlehead]

I found this was on the news when I logged into Yahoo this morning (in a list of 10 companies hit by the recession):

Norfolk Southern Corporation (down 15 percent). Recessions are bad news for freight railroads, which transport many of the products that businesses and consumers stop buying when money gets scarce. Such worries about earnings drove S&P's quality ranking for Norfolk Southern down to a C. But after sharp declines in 2009, revenues and sales are rebounding as the economy improves, and S&P has raised its quality ranking for the railroad by four notches--the biggest improvement for any company monitored by S&P over the past two years.

Just thought someone may be interested.

 

[airtime]

In this recession, unfortunatly the rail industry took a battering all around the world...

Here in the UK alone, on the East Coast Mainline - G.N.E.R went under and was replaced by National Express Trains, then National Express Trains lost it's franchise to East Coast Trains,

Virgin Trains lost the Cross Country franchise to Arriva Cross Country,

On the upside though, new company's did form, including West Coast trains and Colas rail, so sometimes there is a good spell after a bad spell.

Joe Airtime

 

[simulatortrain]

Good news is that it's picking up again.

 

[class143]

In this recession, unfortunatly the rail industry took a battering all around the world...

Here in the UK alone, on the East Coast Mainline - G.N.E.R went under and was replaced by National Express Trains, then National Express Trains lost it's franchise to East Coast Trains,

Virgin Trains lost the Cross Country franchise to Arriva Cross Country,

On the upside though, new company's did form, including West Coast trains and Colas rail, so sometimes there is a good spell after a bad spell.

Joe Airtime

Sorry to be picky but Virgin Cross Country and GNER lost the franchise before the main global recession in 2007. Colas also formed in 2007 and West Coast Railways has been around since the 1990s.

Feel like a anorak after posting this :hehe:

 

[JCitron]

Back in February, the industry was still reeling from the effects of the downturn. This is true for most industry and shipping as the manufacturers were selling of inventory. Instead of making new products the companies are shipping what's still on the warehouse shelf.

At the same time the orders are also smaller so the railroads and trucking companies are seeing smaller and smaller shipments, therefore they're retracting too. This is why UPS, FedX, Yellow/Roadway/NewPenn, and Conway laid off many drivers.

On the supply side the railroads, which ship large amounts of raw materials such as plywood and plastic pellets, are feeling the downturn on both sides. UPS and FEDx aren't using them to move finished goods, and the demand for raw materials isn't strong.

As I said this didn't happen instantly. What was reported back in February and March was happening in the year before. These effects take time to catch up on the companies.

Now as noted things are now signs of upturns. The demand for raw materials is now up as automobile manufacturers are trying to keep up with the pent up demand for new cars, housing is now up so plywood is now needed, etc. The finished goods too are now flowing out of the factories and everyone is benefiting.

Personally I saw very little freight activity in my area for nearly all of last summer right through until recently. During this time, there was little in the way of trucks on the freeway, or freight trains rolling. A little more than a month ago, I saw a big difference in the midwest where I was traveling. If anyone remembers my traveler's log on my storm chasing tour. There were more trains than I could've imagined, and way more than I saw last year at the same time! In my area the local company PanAm Railways/PanAm Southern, has been running daytime freight, which hasn't been the norm for quite some time.

John

 

[tardis626]

In this recession, unfortunatly the rail industry took a battering all around the world...

Here in the UK alone, on the East Coast Mainline - G.N.E.R went under and was replaced by National Express Trains, then National Express Trains lost it's franchise to East Coast Trains,

Virgin Trains lost the Cross Country franchise to Arriva Cross Country,

On the upside though, new company's did form, including West Coast trains and Colas rail, so sometimes there is a good spell after a bad spell.

Joe Airtime

Slightly off-topic but relevent (sort of) to joes post.

Joe- Dis you know Deutsche bahn (DB) have made an offer to buy the whole of Arriva? That will create a DB super-presence in the UK, just think about how many diffrent rail branches there is that Arriva owns the franchise.

Oh, and being slightly picky here. It's not Arriva Cross Country, it traded under Cross Country. According to a ticket inspector I was talking to (not a reliable source I know) Arriva have tried to keep the Cross Country brand seperate to the Arriva umbrella for PR reasons (?)


Regards,
Phil

 

[dricketts]

I have two close friends that work for BNSF here in my home town of Kansas City. Both have said they can see a definate uptick in business over the last 3 months. If the railroads are picking up the pace then the rest of the country won't be far behind.

 

[mhicaso]

Business has come back at an alarming rate, in the case of my railroad, they had laid off so many employee's that they were not ready for such a quick return of traffic. I also deal with csx, and ns in buffalo, and they are back to having to much traffic for the yards to handle.

 

[airtime]

Sorry to be picky but Virgin Cross Country and GNER lost the franchise before the main global recession in 2007. Colas also formed in 2007 and West Coast Railways has been around since the 1990s.

Feel like a anorak after posting this :hehe:

I didn't think Colas and West Coast Railways were going that long, and it only seems like yesterday too.

Posted by tardis626
"Did you know Deutsche bahn (DB) have made an offer to buy the whole of Arriva? That will create a DB super-presence in the UK, just think about how many diffrent rail branches there is that Arriva owns the franchise".

I didn't know this, so i wonder if we will see a new DB livery, or will they make everything EWS, or will they just keep everything the way it is to keep costs low.

Thank you for the updated information class143 and tardis626.

Joe Airtime

 

[rjhowie]

I think the thing about losing a concession here is slightly wrong - generally more because one company is not fulfilling the rules or efficient rather than the recession. It is even more patently obvious as more people use the railways than 50 years ago!