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Railroads in NA - Industry reports


tol1
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Whenever I go back to this topic, I look at:

https://www.aar.org/

 

Every year, they come out with Class I statistics:

https://www.aar.org/Documents/Railroad-Statistics.pdf

 

Railways have a great past and great future and will likely remain as a privately owned infrastructure.

Thanks for posting. I kindof forgot about the quality statistics that AAR puts out.

 

Took another look now. Looks like things haven't been going so well for rails since 2014. I'm not sure their current valuations are justified.

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Whenever I go back to this topic, I look at:

https://www.aar.org/

 

Every year, they come out with Class I statistics:

https://www.aar.org/Documents/Railroad-Statistics.pdf

 

Railways have a great past and great future and will likely remain as a privately owned infrastructure.

Thanks for posting. I kindof forgot about the quality statistics that AAR puts out.

 

Took another look now. Looks like things haven't been going so well for rails since 2014. I'm not sure their current valuations are justified.

 

Freight revenue per ton-mile has held up actually, but returns have converged. The industry has pricing power, but volumes have gone down materially.

 

 

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"Took another look now. Looks like things haven't been going so well for rails since 2014. I'm not sure their current valuations are justified."

"Freight revenue per ton-mile has held up actually, but returns have converged. The industry has pricing power, but volumes have gone down materially."

 

and:

If you look at CNR PE now, it is in the historical low range.

 

So a firm/industry hit by short term issues with good long term prospects. Value investing?

 

This may belong to a separate thread, but a few comments about CNR:

-consistent operating history

-leader in efficiency

-main transportation alternative for many (inescapable for some)

-asset base resulting in very high barriers to entry

-long term comparative advantage to other forms of transportation

 

This is not a high level growth company and the capex burden is high. Also, pension liabilities are getting larger.

 

But, if I would go fishing for 10 to 15 years, this stock/industry would be on my target list.

 

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"Took another look now. Looks like things haven't been going so well for rails since 2014. I'm not sure their current valuations are justified."

"Freight revenue per ton-mile has held up actually, but returns have converged. The industry has pricing power, but volumes have gone down materially."

 

and:

If you look at CNR PE now, it is in the historical low range.

 

So a firm/industry hit by short term issues with good long term prospects. Value investing?

 

This may belong to a separate thread, but a few comments about CNR:

-consistent operating history

-leader in efficiency

-main transportation alternative for many (inescapable for some)

-asset base resulting in very high barriers to entry

-long term comparative advantage to other forms of transportation

 

This is not a high level growth company and the capex burden is high. Also, pension liabilities are getting larger.

 

But, if I would go fishing for 10 to 15 years, this stock/industry would be on my target list.

 

Am also digging deeper in the NA railroad space and echo the suggestion to discuss in separate thread.

 

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