Working rail roads and their tracks.

[MossRoad]

 

[Hay Dude]

What's the difference if you substitute 'bailout for General Motors', for 'railroads'? What do you propose, to save the status quo?

What I've read supports what Moss said, coal is no longer the most economical fuel for generating energy so it's losing market share.

Look at this article on Buffet's long term view of his BNSF investment. He seems to think railroads will continue to do fine after the decline of coal unit trains.

Learning From Buffett About Investing In Railroads: The BNSF Case Study

Railroads are catching attention as logistics and transportation become key aspects of our economies. Read here to get an overview of Buffett's investment in BNSF.

seekingalpha.com

Oh I didn’t know I was proposing anything about ”bailouts to railroads” too. lol
Again, without speaking for me as you have been doing, I’m asking theories, opinions, Lord forbid maybe a few facts on what railroads will do to make up for the loss of coal.

 

[BravoXray]

Thats the kind of information I’m looking for. “Pilfering freight from smaller railroads” doesn’t sound too promising. I guess the rail lines going to the power plants themselves are toast, too.

You should pick up some issues of Trains magazine. Lots of great information on what is going on in the railroad industry. A lot of interviews of railroad CEOs and other operational, IT and financial personnel.

 

[MossRoad]

Thats the kind of information I’m looking for. “Pilfering freight from smaller railroads” doesn’t sound too promising. I guess the rail lines going to the power plants themselves are toast, too.

Most likely. Many coal plants being converted to natural gas. Pipelines will replace train tracks.

Also, many new gas fired peaker plants are popping up along existing natural gas lines, and many natural gas lines are being upgraded/added to. We've got a big line running through our area. A few years ago they added another pipe along side it. And now there are two gas peaker plants along that line. So they don't need rail at new gas power plants.

 

[MossRoad]

Pretty interesting article on how railroads will cope with the losses of coal revenue in the future. 4 years old.

How will dwindling coal freight affect rail shippers?

The demand for coal from utilities is expected to drop by 50% by 2030, which would lead to a $5 billion revenue loss for railroads, according to Moody's.

www.supplychaindive.com

 

[Hay Dude]

Thats a huge loss.
I bet NG and the rails & rail gear that carry it are next in the environmentalists crosshairs.
First coal, then NG.

 

[MossRoad]

And don't forget that occasionally (more than occasionally) railroads shoot themselves in the foot.

Railroad under fire for costly decrease in coal shipments - WyoFile

Lagging rail service has cut Wyoming coal production by about 30 million tons — an estimated $60 million loss in state revenue, industry says.

wyofile.com

 

[California]

I guess the rail lines going to the power plants themselves are toast, too.

This isn't new.

60 years ago I watched an oil pipeline being built over Donner Pass (7k ft) from California into Nevada and beyond. Owner? Southern Pacific Railroad, at the time the primary carrier of petroleum products from the Richmond refineries over that same corridor. It was more profitable for SP to make that huge investment, compared to hauling the product in tank cars. And potentially, eventually cheaper for the consumers - including generating plants - at the destination.

 

[Hay Dude]

See, it’s not so bad to talk about the business side of “rail roads and their tracks“.
It doesn’t all have to be pictures of rail cars & engines.

 

[MossRoad]