Railroad News

12/19/2016    

Rail News: CSX Transportation

Rail News Home MOW December 2016 Part 1 : Outlook 2017: Railroad contractors see challenges, opportunities Part 2 : Outlook 2017: Larry Laurello, Delta Railroad Construction Inc. Part 3 : Outlook 2017: Greg Grissom, Georgetown Rail Equipment Co. Part 4 : Outlook 2017: Bill Dorris, J-Track LLC Central Division Part 5 : Outlook 2017: Kevin Riddett, RailWorks Corp. Part 6 : Outlook 2017: Don Alexander, Savage Rail News: MOW

— By This email address is being protected from spambots. You need JavaScript enabled to view it., EditorLast year at this time, railroad contractors were gearing up for a challenging 2016. Concerns about a lumbering economy, flagging freight-rail traffic and falling Class I capex figures worried some while the hope for increases in short-line and transit-rail business buoyed others.A year later, the concerns and hopes remain pretty much the same, with a new form of fuzziness — how rail rates, priority wise, for the Trump administration. But here in late 2016, there may be a bit more of an upside in the "hope" column of the ledger, if for no other reason than the contracting crowd has gotten used to navigating murky waters. It's part of the planning deal. And in the rail realm, so is infrastructure upkeep.On the freight-rail side, 2017 "looks OK, but certainly not markedly better," Chuck Baker, president of the National Railroad Construction & Maintenance Association (NRC), told attendees of RailTrends 2016, which was held Nov. 17-18 in New York City. (For a RailTrends recap, click here.)Based in part on feedback from NRC member contractors and suppliers, Baker expects the sluggish economy to remain sluggish for the near term. Meanwhile, persistent rumblings about even lower capex numbers in Class I country only serve to curb planners' enthusiasm about 2017’s prospects."No railroad has announced publicly, but reading between the lines, you could hope for flat spending, at best — and I’d expect [Class I spending] will be down," Baker says. "They're making less money, less profit, generally, so it's not magic. When business is down, fewer projects meet your internal ROI hurdle."Regardless, freight railroads will set aside a good chunk of change for contract work, just as they did this past year and as they have for a while now."They don't make 50-year decisions based on 12 months of data," says Baker, who expects 2017 Class I capex totals "will still be quite high, in the scheme of things."Meanwhile, contractors that have a diverse customer base or provide unique technology or services tend to do better when railroad spending is down or flat."That's a tremendous kind of protection against headwinds," Baker says.The outlook for transit-rail business appears to be a bit brighter (see page 31), particularly in communities that approved passenger-rail initiatives on Nov. 8. On Election Day, voters approved 33 of 48 local and statewide public transit measures — including a $120 billion transit plan in Los Angeles County — according to the American Public Transportation Association.Baker isn't expecting "significant grant dollars" or a massive cash infusion from the Trump administration or Republican-controlled Congress ("Republicans historically have been far less interested in funding rail transit and intercity passenger rail"), but there could be "big opportunities” for contractors via the Transportation Infrastructure Financing and Innovation Act and other initiatives, he believes."It's increasingly important for transit agencies to be more cost-efficient," Baker adds. "NRC members have a big opportunity to help there — from providing track signal infrastructure maintenance to rehab work. There seems to be a huge amount of anecdotal evidence and stories that, when contractors are involved, they can do this work more efficiently than large, in-house MOW forces in the public sector that have been shielded from competition. I think it's fair to believe we’ll have an ally in the new administration."What were contractors thinking about as they prepared to turn the page on 2016?Before the election, we queried a sampling of them about the year ahead. Specifically, we asked: What does 2017 look like? Better? Similar? Worse? Why? What's your 2017 forecast for the railroad contracting segment or your business? And: How is your organization gearing up to prepare? Emailed responses from five high–ranking execs at contracting firms appear below.Larry Laurello, Delta Railroad Construction Inc.
Greg Grissom, Georgetown Rail Equipment Inc.
Bill Dorris, J-Track LLC Central Division
Kevin Riddett, RailWorks Corp.
Don Alexander, Savage next page
Keywords Browse articles on National Railroad Construction and Maintenance Association NRC Chuck Baker railroad contractors contractor outlook Class I spending Class I capex RailTrends Contact Progressive Railroading editorial staff.

Rail News Home MOW December 2016 Part 1 : Outlook 2017: Railroad contractors see challenges, opportunities Part 2 : Outlook 2017: Larry Laurello, Delta Railroad Construction Inc. Part 3 : Outlook 2017: Greg Grissom, Georgetown Rail Equipment Co. Part 4 : Outlook 2017: Bill Dorris, J-Track LLC Central Division Part 5 : Outlook 2017: Kevin Riddett, RailWorks Corp. Part 6 : Outlook 2017: Don Alexander, Savage Rail News: MOW

2016 was a slow year. As I told my staff, "We spent the year on cruise control." We have seen companies move out of their normal comfort zones and bid work they would not normally be involved with.Right now, we are seeing a large amount of bidding, which points toward a good start to the season. Some of the work is new, but a lot of it is work that has been delayed for one reason or another.I still don't see anything happening in the industry to suggest things will be much different than 2016. As the budgets for the transit authorities continue to tighten, the opportunity for the maintenance work to be outsourced increases. Delta Railroad Construction is planning to hold tight and continue to bid work until things start loosening up.Hopefully, prices start coming up and everyone gets back to normal. Delta is celebrating 60 years in business 2017, and we have seen [years] much worse than 2016, so let’s see what happens in 2017.Greg Grissom, Georgetown Rail Equipment Inc.
Bill Dorris, J-Track LLC Central Division
Kevin Riddett, RailWorks Corp.
Don Alexander, Savage previous page next page
Keywords Browse articles on Larry Laurello Delta Railroad Construction Inc. Delta Railroad Construction railroad contractors contractor outlook 2017 Contact Progressive Railroading editorial staff.

Rail News Home MOW December 2016 Part 1 : Outlook 2017: Railroad contractors see challenges, opportunities Part 2 : Outlook 2017: Larry Laurello, Delta Railroad Construction Inc. Part 3 : Outlook 2017: Greg Grissom, Georgetown Rail Equipment Co. Part 4 : Outlook 2017: Bill Dorris, J-Track LLC Central Division Part 5 : Outlook 2017: Kevin Riddett, RailWorks Corp. Part 6 : Outlook 2017: Don Alexander, Savage Rail News: MOW

For our railroad customers, 2016 has been a very challenging year of reduced carloads, decreased revenues, regulatory pressures and strategic cost-cutting measures.With our Class I railroad customers focused on improving operating ratios, Georgetown Rail Equipment Co. (GREX) has continued to heavily invest in technology solutions that have had significant impacts on completing projects more efficiently and safely. The range of our next-generation products is broad, and include the new Dumptrain for Curves, while continuing to add to our suite of track inspection services. Building on the success of the Aurora Xi system, we have several new projects focused on bringing brand-new technologies to the industry, invoking a similar model of strategic research partnerships and strong internal talent.Understanding the "new" railroad environment and global economy has allowed GREX to prioritize our R&D efforts in a way that has resulted in our inspection technology taking a primary role in compliance, safety and more effective capital program decision-making.We also have blended new technology with our maintenance-of-way equipment, allowing for all-time highs in equipment up-time and effectiveness.At GREX, our historical success has always been derived from listening to our customer’s challenges and being streamlined to bringing these products to market. We are most proud of GREX’s field employees, who show an unwavering commitment to working safely and getting the job done.As we look to 2017, we feel confident that our people — along with the pipeline of new products and services — will answer the call to accelerate project completion, extend the life cycle of track assets and put more bang in each capital dollar spent.Our focus to add value to our offerings with reinvestment continues to make us a responsive partner in these uncertain times of railroad volume and other regulatory headwinds.Larry Laurello, Delta Railroad Construction Inc.
Bill Dorris, J-Track LLC Central Division
Kevin Riddett, RailWorks Corp.
Don Alexander, Savage previous page next page
Keywords Browse articles on Greg Grissom GREX Georgetown Rail Equipment Co. railroad contractors contractor outlook 2017 Aurora Xi track inspection Contact Progressive Railroading editorial staff.

Rail News Home MOW December 2016 Part 1 : Outlook 2017: Railroad contractors see challenges, opportunities Part 2 : Outlook 2017: Larry Laurello, Delta Railroad Construction Inc. Part 3 : Outlook 2017: Greg Grissom, Georgetown Rail Equipment Co. Part 4 : Outlook 2017: Bill Dorris, J-Track LLC Central Division Part 5 : Outlook 2017: Kevin Riddett, RailWorks Corp. Part 6 : Outlook 2017: Don Alexander, Savage Rail News: MOW

J-Track LLC is headquartered in College Point, N.Y. In May, J-Track opened a new Central Division operation based in Lisle, Ill., a suburb of Chicago. As everyone knows, timing is everything. The timing in starting this new venture in Chicago has worked out well for us. A slower-than-normal 2016 in the rail industry is not a good thing under normal circumstances, but it did allow us to take a slow and steady pace in opening this new business taking advantage of the opportunities that were afforded us during the second half of 2016.During the presidential election process, both Clinton and Trump stated that they supported large infrastructure programs as part of their election platforms — great news for the construction industry. If this support actually comes to fruition, we will see the start of many new projects in the coming year. Clinton had outlined a five-year, $275 billion dollar program, while Trump stated that he intended to double this amount. The rail industry is a huge part of our infrastructure and is currently in need of tremendous repairs and upgrades, which have been lagging behind now for years. Such spends would generate a lot of track work for design engineering companies, rail contractors, suppliers and many other businesses that play a pivotal role in our industry.J-Track's New York and Chicago divisions look forward to gaining our share of the work to be let for public and private bid opportunities in 2017. We are very well positioned within the two largest rail markets in the country, and expect the coming year to be full of new projects and new challenges alike.Our experienced workforce continues to grow along with our customer base. We look forward to each and every opportunity to provide our skill set and experience to a vast array of customers that include transit agencies, Class I roads, short lines and private industry.I would like to wish all my friends, colleagues and the rail industry as a whole, a safe, healthy and prosperous 2017.Larry Laurello, Delta Railroad Construction Inc.
Greg Grissom, Georgetown Rail Equipment Inc.
Kevin Riddett, RailWorks Corp.
Don Alexander, Savage previous page next page
Keywords Browse articles on J-Track LLC J-Track Central Division Bill Dorris railroad contractors contractor outlook 2017 Contact Progressive Railroading editorial staff.

Rail News Home MOW December 2016 Part 1 : Outlook 2017: Railroad contractors see challenges, opportunities Part 2 : Outlook 2017: Larry Laurello, Delta Railroad Construction Inc. Part 3 : Outlook 2017: Greg Grissom, Georgetown Rail Equipment Co. Part 4 : Outlook 2017: Bill Dorris, J-Track LLC Central Division Part 5 : Outlook 2017: Kevin Riddett, RailWorks Corp. Part 6 : Outlook 2017: Don Alexander, Savage Rail News: MOW

RailWorks' track businesses have clearly been impacted by the significant downturn in the Class I market in 2016. RailWorks has the advantage of an extensive North American footprint, which includes growing transit and technology businesses. As a result, we are able to leverage other markets to offset a cyclical downturn in any one of our businesses.Our transit businesses both in the U.S and Canada should be robust for the foreseeable future, due to unprecedented public transit spending commitments and a RailWorks backlog that is at historic levels.For 2017, we are cautiously optimistic about a recovery in the Class I market with continued record-setting opportunities in the transit market. RailWorks has some promising projects developing in our technology business HSQ Technology, in particular, involving transit communications systems.In addition, we continue to actively look at acquisitions that will provide immediate accredited financial results and capitalize on our significant channels to market.[For 2017,] we forecast a flat or slight decline in our railroad contracting segment for commercial/industrial, and Class I and regional railroad markets. However, we see a robust pipeline of opportunities on the transit side of our business over the next three to five years. Our focus will be to grow our market position in all of our businesses by delivering cost-competitive services and setting industry standards for quality and on-time delivery.The safety of our employees, customers, suppliers and job-site partners remains our highest concern. We are focused on driving a safety culture of zero incidents and holding all of our stakeholders accountable. To support those goals, RailWorks is investing in new training programs and systems. We also are realigning our safety resources to better equip our employees and provide additional support in the field.Larry Laurello, Delta Railroad Construction Inc.
Greg Grissom, Georgetown Rail Equipment Inc.
Bill Dorris, J-Track LLC Central Division
Don Alexander, Savage previous page next page
Keywords Browse articles on RailWorks Corp. Kevin Riddett railroad contractors contractor outlook 2017 HSQ Technology RailWorks Contact Progressive Railroading editorial staff.

Rail News Home MOW December 2016 Part 1 : Outlook 2017: Railroad contractors see challenges, opportunities Part 2 : Outlook 2017: Larry Laurello, Delta Railroad Construction Inc. Part 3 : Outlook 2017: Greg Grissom, Georgetown Rail Equipment Co. Part 4 : Outlook 2017: Bill Dorris, J-Track LLC Central Division Part 5 : Outlook 2017: Kevin Riddett, RailWorks Corp. Part 6 : Outlook 2017: Don Alexander, Savage Rail News: MOW

Generally, we expect the rail industry to face similar headwinds in 2017 that have made 2016 challenging — a slower economy and reduced volumes.However, there are signs the current downward pressure may not be as stark in the coming year and rail traffic could begin to level out. Sustained, low natural gas prices should promote growth in rail shipments of petrochemicals.Even so, we don’t anticipate overall growth in the rail industry in the short term. The potential for increased regulation creates additional uncertainty for both railroads and contractors.These circumstances can produce both challenges and opportunities for companies that provide services for railroads, depending on a variety of factors. In the current environment, railroads are likely to moderate their capital spending and look for ways to become more efficient.In some cases, they may cut back on contractors and retain the work themselves. Conversely, a contractor may be able to win business if it can demonstrate cost savings or perform the services more efficiently.At Savage, we value our relationships with the railroads. They are good partners and we’re optimistic about continuing to grow with them in 2017 by considering all aspects of their supply chain and offering solutions that add long-term value.Larry Laurello, Delta Railroad Construction Inc.
Greg Grissom, Georgetown Rail Equipment Inc.
Bill Dorris, J-Track LLC Central Division
Kevin Riddett, RailWorks Corp. previous page
Keywords Browse articles on Savage Don Alexander railroad contractors contractor outlook 2017 Contact Progressive Railroading editorial staff.

The U.S. Department of Transportation’s Federal Transit Administration (FTA) announced Dec. 15 a $499.39 million federal grant agreement with the Fort Worth Transportation Authority (FWTA) to build TEX Rail, a commuter rail line between downtown Fort Worth and the Dallas Fort Worth International (DFW) Airport.

 

12/16/2016    

Rail News: Rail Industry Trends

12/16/2016    

Rail News: Shippers

Union Pacific (UP) recently received its 20th American Chemistry Council's Responsible Care® Management System (RCMS) certification, which recognizes the railroad’s safe handling of hazardous materials during customer shipments.

 

12/16/2016    

Rail News: Passenger Rail

12/16/2016    

Rail News: Short Lines & Regionals

OmniTRAX, Inc. and the Port of Brownsville have teamed up to facilitate the lease of a large grain-handling facility to West Plains LLC at the port.

 

12/16/2016    

Rail News: Passenger Rail

12/16/2016    

Rail News: Intermodal

12/16/2016    

Rail News: Passenger Rail

12/16/2016    

Rail News: Passenger Rail

Representatives from Cambro Manufacturing, the North Carolina Railroad Company (NCRR) the Alamance Chamber of Commerce celebrated Dec. 15 the completion of a lead track at the North Carolina Industrial Center (NCIC) and the first freight rail shipment received by the manufacturer of food service equipment.

 

Rail News Home Rail Industry Trends December 2016 Rail News: Rail Industry Trends

— Compiled By This email address is being protected from spambots. You need JavaScript enabled to view it., Associate EditorUncertainty. That's long been the overarching theme for the transit-rail crowd. Subject to the whims of voters and the politicians they elect, transit agencies often face an unpredictable future as they plan service improvements and expansions with limited funds.But after several sweeping transit initiatives gained approval on local ballots last month, the future's looking a bit brighter for the public transportation industry. In Los Angeles County, for instance, residents passed a sales tax measure that's expected to generate $120 billion for transportation improvements in the region, including three passenger-rail projects.What's more, Congress last year passed the five-year Fixing America's Surface Transportation (FAST) Act, the first long-term surface transportation funding measure in 10 years.As American Public Transportation Association Acting President and Chief Executive Officer Dick White puts it: "If anything, the long-term certainty provided by the FAST Act coupled with President-elect Trump's focus on infrastructure investment presents a unique opportunity for transit agencies and communities looking to improve and expand public transportation options."Still, that's not to say 2017 will be without challenges; maintaining ridership while gas prices drop, for example, remains an area of concern.Below, White and six transit agency leaders share their thoughts on the year ahead. The other respondents are Henry Li, general manager and CEO of the Sacramento Regional Transit District; Keith Parker, general manager and CEO of the Metropolitan Atlanta Rapid Transportation Authority; Peter Rogoff, CEO of Sound Transit; Scott Smith, CEO of Valley Metro; Gary Thomas, president and executive director of Dallas Area Rapid Transit; and Phillip Washington, CEO of the Los Angeles County Metropolitan Transportation Authority.
What are some challenges the public transit industry will face in 2017?White: We are looking forward to developing a good working relationship with the new [presidential] administration, key appointees and key congressional leadership. The most urgent challenge is for APTA and its members to make the case for increased investment in public transportation during the discussion of an infrastructure package to stimulate growth and create jobs during the first 100 days and beyond of the new administration and Congress. We will emphasize that investing in public transportation more than pays for itself because it yields great economic benefits; every dollar communities invest in public transportation, approximately four dollars is generated in economic returns. This investment will be crucial as America continues to deal with the challenge our crumbling infrastructure. In the public transportation industry, we are facing an $86-billion-dollar backlog in state of good repair needs.Dick White