GLG News by Railcar Market Experts (EU)

    The Surface Transportation Board (STB) decided two Western coal transportation rate cases for the transportation of Powder River Basin coal in favor of the BNSF on September 10, 2007. Besides the STB’s decision being positive for the coal-hauling Class I Railroads, it is also...

    Section 29 of the U.S. Tax Code provides a tax credit to create synthetic fuel from coal material. The Section 29 tax credits date back to the early-1970s in the energy crisis and were designed to encourage more domestic, rather than foreign, energy sources. In many cases, without...

The new intermodal terminal on Canada’s West Coast will begin operation this fall, and CN hopes that traffic will be diverted from other West Coast ports to its less congested facility and rail lines. It sounds good in theory, but there are several other West Coast ports with good highway and rail connections...

    A few decisions in September 2007 have been good news for building new coal-fired power plant generation. This shows it is not impossible to build a new coal-fired plant because of coal’s carbon dioxide emissions and the belief by some that these emissions contribute to global...

    Consol Energy Inc.’s continued placement of Northern Appalachian Coal as discussed in this and other announcements demonstrate the scrubber and high heat and sulfur content thesis the company has been discussing for over two years.     The...

    As the article points out, metallurgical coking coal prices are on the rise. The commentary section discusses the producers in this space and the potential affect on thermal coal.

CP Rail announced that they will purchase the DM&E railroad for $1.5 billion, plus an additional $1.0 billion in the future if an extension is completed into the Powder River Basin coal area by 2025. The DM&E is a conglomerate of a number of bankrupt and abandoned rail lines that was assembled...

    The Canadian Pacific and its acquisition of the Dakota Minnesota & Eastern (DM&E) along with potential build-out to the Powder River Basin Joint Line are discussed below.

    The proposals in Congress for a reduction in carbon dioxide (CO2) emissions include what is called a “Cap and Trade” program. Under a Cap and Trade program, the amount of annual CO2 emissions would be capped and an entity would have to have a CO2 allowance for each ton (or metric...

Times keep changing, but the long range transportation infrastructure needs do not change.  Long range, shippers will need additional rail capacity and should be interested in maintaining truck capacity and repairing highway infrastructure. Shippers who recognize this will support their carriers...