November 2004

Contact Us:
Info@RailForce.com

RailForce, Inc.
PO Box 205
Granbury, TX 76048
817.579.9942
 

Third Quarter Earnings Reports and recent national press coverage paint a complex picture of the railroad industry. Unprecedented demand has driven some companies to record breaking earnings, while others struggle, turning record demand into inefficient operations and higher than average overhead and operating costs. Analysts agree on the factors creating pressure on the railroad industry. Demand for freight transportation has increased due to an upturn in the economy, continued growth in international trade, and a trend away from highway transportation due to rising fuel costs and labor shortages in the trucking industry. At the same time, the railroad industry is seeing a shrinking pool of qualified labor and a shortage of available equipment.  

Railroads such as the Burlington Northern and Norfolk Southern have responded to the increased demand through quick hiring and accurate planning. They have turned the current climate into record breaking earnings. Norfolk Southern’s new President Charles W. “Wick” Moorman attributes their success to “providing higher value transportation products driven by premier operating performance.” 

The counter point to these successes is the highly publicized challenge facing the Union Pacific Railroad. UP has come under fire for huge backlogs and rail congestion, especially in the Houston are. Congestion has led to higher operating costs through low productivity. UP reported $202 million in income for the third quarter of 2004, substantially less than the $300 million reported for the third quarter 2003. In addition, the challenges facing UP are passed directly on to industries that rely on UP’s rail system . Passenger train service is disrupted and big shippers such as UPS and Dow Chemical are forced to alter their shipping methods and production schedules to avoid delays and backups.

This issue of the RailForce Newsletter examines these issues in greater detail. From national press coverage to Third Quarter Earnings Reports these articles cover the challenges facing the industry, and the outlook for the future.

The Tech Corner
Internet Tips

We all know that we should not open attachments in e-mails from an unknown source. But would you open an unexpected attachment in an e-mail from someone you know? Please don't.

 Spammers are lifting e-mail addresses from companies with websites and using them to send viruses and spam. They are hoping you will open an e-mail if comes from a name you trust.

Before opening the e-mail, see if the subject makes sense. "Your account has been suspended" is one example. This doesn't make sense coming from a company that prints your business cards. If you do open the e-mail, and the text does not make sense, is too vague, or is gibberish, do not open any attachments without verifying that it is a legitimate e-mail.

At RailForce, Inc., we will never send you an attachment by e-mail that you are not expecting. Our newsletter will always have the current date and "RailForce News" in the subject. If you ever have any questions about the legitimacy of an e-mail, report it to us: webmaster@railforce.com

Has this newsletter been helpful? Are there more topics that you would like to see covered? We are here to serve the railroad community, so send us your ideas, concerns or suggestions.