Some of us own several railroad stocks. It is the best way to diversify across multiple industries. I have been doing well on a railroad serving the iron ore mines in Australia.
Railroads are cyclical. I do know railroads that are good granger lines, CP is not one.
Look at the carload reports, the last one for last year and for the second week of this year. If coal shipments are dropping the AAR does not know it.
Dirt - it is FLAT across Iowa and Nebraska with a gentle rise through most of Wyoming. I used to ride it from Denver to Laramie.
The only railroad that you can use for comparison to CSX is Norfolk Southern. Despite the problems the UP has getting through the Rockies, it has over a thousand miles of straight flat running and is significantly larger than the eastern railroads. CSX and NS are nearly the same size and similar running conditions. Both have much almost but not quite redundant track.
On the CSX map, plot the best route to move traffic from Nashville to Jacksonville. That is hard to do; there are 5 routes that are very similar.
For those of you who missed this morning's conference call, UNP had a very good quarter, driven in part by increased shipments of sugar beets and beer. Having Coors as a customer must be good for business.
nolij - Thanks. I found out about a similar deposit in Kentucky, but with sandstone,which, would be a better material for making roads than limestone.
A fractionator plant will be required. This would apply heat and vacuum to crude oil to suck out the gases (methane, possibly ethane, butane and propane). This would be a partial oil refinery and cost millions of dollars and a couple of years to build.
CSX does need more powerful, fuel efficient locomotives. If only the EPA would stop interfering with the production of locomotives. How many different horsepower configurations is GE making that is tier 4 - one? and EMD is zero? There is still a market for 4 axle and 6 axle 2,000 HP road switchers, but there is no NEW engine that is tier 4. Yesterday I watched a 4,000 engine hauling 2 boxcars.
The crude that is coming from fracking, from what I understand, is much lower in the long chain hydrocarbons that are used for making asphalt. With the lower margins per gallon of crude, has the production from conventional wells cut back to the point that there is a possibility of a shortage in the heavier hydrocarbons that are used for asphalt?
Are we relying more and more on the crude from Venezuela and Canada for this important product?
Could this whole market change in the near future?
I care about return on assets and return on equity.
Trying to compare the OR between 2 railroads is foolish, especially if the railroads are in different countries with different accounting standards.
CP is the point of origination of the crude. CP did not collect the information on the volatility (flash point) of the oil and did not notify the MM&A of the danger of the product that was being carried. This is standard operating procedure on carrying all hazardous materials when there is a railroad interchange. However the fault was not all CP's because it was not tested before being transferred to the tank cars. Also the crude becomes more and more dangerous as it is hauled.
Consider a bottle filled with Coca-Cola; the carbon dioxide gas in it stays in the coke under pressure until the cap is popped and it fizzes out. The Bakken oil crude is full of methane and ethane gases while underground and pressurized, when it is transferred to a tank car the pressure is reduced and it starts fizzing out the same way into the dome of the car. Results - it is far more explosive than regular crude without the gases in the the dome.
MIDNIGHT TRADER 4:55 PM ET 1/13/2015
04:55 PM EST, 01/13/2015 (MT Newswires) -- Company Name: CSX CORP Quarter: FQ -2014 - Q4, 2014-12
Estimated Locomotive Fuel Consumption
--- Actual: 128.2, Est: 123.2, Surprise (vs. consensus): -4.05%
--- Actual: 82.0, Est: 91.7, Surprise (vs. consensus): -10.60%
Revenue per unit
--- Actual: 1811.0, Est: 1819.5, Surprise (vs. consensus): -0.47%
Revenue per unit-Intermodal
--- Actual: 665.0, Est: 662.2, Surprise (vs. consensus): 0.42%
Revenue per unit-Rail-Automotive
--- Actual: 2737.0, Est: 2829.8, Surprise (vs. consensus): -3.28%
Revenue per unit-Rail-Merchandise
--- Actual: 2585.0, Est: 2632.7, Surprise (vs. consensus): -1.81%
Revenue per unit-Rail-Merchandise-Agricultural Products --- Actual: 2736.0, Est: 2716.0, Surprise (vs. consensus): 0.74%
Revenue per unit-Rail-Merchandise-Chemicals
--- Actual: 3468.0, Est: 3507.7, Surprise (vs. consensus): -1.13%
Revenue per unit-Rail-Merchandise-Food and Consumer --- Actual: 2870.0, Est: 2845.2, Surprise (vs. consensus): 0.87%
Revenue per unit-Rail-Merchandise-Forest Products
--- Actual: 2675.0, Est: 2703.6, Surprise (vs. consensus): -1.06%
Revenue per unit-Rail-Merchandise-Metals
--- Actual: 2561.0, Est: 2574.6, Surprise (vs. consensus): -0.53%
Revenue per unit-Rail-Merchandise-Phosphates and Fertilizers --- Actual: 1646.0, Est: 1612.0, Surprise (vs. consensus): 2.11%
Revenue per unit-Rail-Total Coal
--- Actual: 2256.0, Est: 2247.8, Surprise (vs. consensus): 0.37%
--- Actual: 465.0, Est: 463.4, Surprise (vs. consensus): 0.34%
--- Actual: 722.0, Est: 701.4, Surprise (vs. consensus): 2.94%
--- Actual: 1923.0, Est: 1927.2, Surprise (vs. consensus): -0.22%
Revenue-Total Merchandise-Agricultural Products
--- Actual: 301.0, Est: 297.7, Surprise (vs. con
The current government might try to put a tariff on imported oil, which could cause some nasty repercussions at the World Trade Organization.