"CSX and Norfolk Southern are about to see a very powerful combination of coal fundamentals bottoming, intermodal growth accelerating at a very nice incremental margin, and the and oil-by-rail trend beginning to take hold materially over the next 18 months," he said.
He thinks railroads also stand to win over a larger piece of the intermodal shipping containers business. They've raised bridges and other obstacles to allow for double-stacking of those shipping containers, making rail a more cost-effective route for ever shorter runs.
And if pipelines start being built en masse, that's a nice business for railroads as well.
"They get to haul all that material and equipment in and out," he said.
Another pipe dream.Coal plants are scheduled to close as we speak.The Epa is reviewing the next round of reductions in coal emissions.Which will be even more stringent.Coal exports are soon to be heavily taxed as well.