Tuesday, February 21, 2006

Hear My Train A Comin'

Good to read in this morning's Los Angeles Times that 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 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 further ahead since then. Railroads are gaining ground on the rival trucking industry, which has been suffering from sharply higher diesel costs and a shortage of long-haul drivers. But companies that move their goods by train are complaining about increasing rates and delays.


Blogger Charles said...

That "decades of underperformance" is a bit of a crock. US freight railroads have been investing in new technology since at least the mid 80s. Like most everywhere the problem is how to move more tonnage when it's not practical to increase the size of the pipe. NZ railfreight has a hope of cashing in on that as SH1 gets more congested over the central NI.

11:07 PM  

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