GLG News by Railcar Market Experts (EU)

    Coal prices are on the rise in many regions.  The sales price per ton only tells a portion of the story; the sulfur content of the coal also determines its final sales price to the customer.  Sulfur emissions credit prices affect the final sales price as discussed in...

The TCI hedge fund has formally launched a proxy battle with CSX by nominating a minority slate of directors in order to force the changes they wish to see.  Some of the changes they are advocating would be harmful for the company's long-term financial health.  Therefore, it can be concluded...

    There are many production-related issues that point to a bullish coal market in 2008 and 2009.      The commentary section below discusses these bullish signals.

Freightcar America announced that they were closing the production facility in Johnstown PA after failing to reach an agreement with the unions at the facility to restructure their agreement. The company said that the costs would amount to $34.3 million and would be subtracted from the fourth quarter...

    The Wyoming Powder River Basin (PRB) Joint Line in May 2005 experienced two major derailments believed by the BNSF and the Union Pacific to be attributable to coal falling off the coal railcars on this rail line and fouling the ballast and preventing proper drainage.  Coal...

    Thermal coal into Europe continues to be above $100/tonne (metric ton) for 2008 as measured by the API 2 Index into Northern Europe.  It is up ~67% from prices for this same period quoted at the beginning of 2007.       The commentary calculates...

A Fitch Ratings report has predicted that railroads, although likely to face weak traffic demand in 2008, will fare better than trucks because grain and coal volumes should increase over the rails and the vaunted “pricing power” of the railroad companies will remain in force. So what else is new, and...

The STB blocked the NS from spinning off of the ownership of the majority of its rail lines in Michigan while essentially retaining full control of these tracks after the divestiture.  In the long run this type of action on the STB's part will prove to be pro-competitive for rail shippers,...

Union Tank Car announced that it is reducing its production rate at two of its three manufacturing plants effective immediately. Moreover, it is possible that production will also be reduced at the Alexandria LA. The company has indicated that demand has been falling and that the production, which had...

Hunter Harrison predicted that there will be investor pressure on the major railroads in the US to merger and that a large transaction will occur within the next five to six years. Hedging his bets just a little, he further said that these developments would not involve the CN, at least not until 2009...