A reader emails this article from the Seattle Times entitled "Railroads back on track for freight, profit." Excerpt:
After years of retrenchment, railroads across North America are reporting record profits and rolling forward with massive expansion projects of the kind that haven't been seen in decades.
The growth has been fueled by a continuing flood of cargo containers filled with Asian products, which ended the coal industry's 102-year streak as rail's biggest revenue generator in 2003 and has surged farther since then.
Railroads are gaining ground on the rival trucking industry, which is suffering from sharply higher diesel costs and a shortage of long-haul drivers. But companies that move goods by train are complaining about increasing rates and delays.
"It's a new day dawning for the railroads," said Don Hodges, whose Hodges mutual fund lists railroads as some of its largest investments. "The railroads have been underperformers for so many years that people stopped paying attention to them. I think there is a lot ahead of them even yet."
Check out the whole thing.
Recent Comments