BNSF President and CEO Katie Farmer kicked off the program talking about BNSF’s focus on innovation, noting that BNSF has four times as many patents as other railroads and it intends on bringing more technology into railroad operations more rapidly. In discussing the BNSF project in Barstow (the Barstow International Gateway, “BIG”), Farmer identified BIG as a “state-of-the-art facility” meant to address changing supply chain needs and the needs of the Port of LA/LB, providing additional flexibility and adding close to 100 miles of new track. BIG is scheduled to being operation in 2028.
Farmer noted the BNSF focus on service with the quote, “We believe that good consistent service is table stakes” and is preparing the network during the current weakness in loadings to handle increasing freight volumes. BNSF currently has 1,000 locomotives in storage right now stored in good running, ready for service condition.
Kenny Rocker, Executive Vice President Market and Sales from Union Pacific, presented on UP’s focus on safety, service and operational excellence. Rocker is encouraged by the positive feedback from customers on the current high level (“truck-like”) service being provided by UP. He highlighted the railroad’s focus on delivering new technology tools and on the first mile/last mile impact on business growth.
In discussing how UP is focused on marketing and growth, Rocker discussed the large opportunity pipeline of UP and the occasionally long-tail sales cycle for rail service and the need to work with customers to make sure they understand that every carload matters. UP is ready to provide zero emission motive power from the West Coast to Chicago when the technology is available, also noting that UP publishes emissions by traffic lane.
Rocker sees growth in loads for petrochemicals and products related to production of plastics and energy commodities, and cross-border Mexican traffic.
Patrick Fuchs, Chairman of the Surface Transportation Board, has, since becoming Chairman, worked to make the STB more efficient and to focus on clearing the STB’s docket. He noted that STB is committed to learning more about the industry to become a more effective agency. Fuchs noted the need to see the big picture of how the railroad system operates and the complexity of it and how it complicates the mission of the STB.
Fuchs discussed the tension between passenger and freight rail using the same system, noting, “It’s not the railroads vs. Amtrak.” Rather, it is a basket of constituencies, passengers, ports and municipalities that all need to work together.
In discussing the future of the STB, Fuchs is looking to create more standard procedures and timeframes to create patterns of good governance and a transparent agency. He sees this as a response to today’s environment and policy demands.
Ed Elkins, Executive Vice President and Chief Marketing Officer from Norfolk Southern, talked about NS being poised, based upon improved service metrics and railroad integration to claw back market share for business that may have been lost to other transportation modes. NS is looking to apply total quality management in its approach to railroads operations, growth and structure. The momentum behind that ideology starts with CEO Mark George and Chief Operating Officer John Orr.
Elkins is working to make the ease of doing business with NS better for current and new customers. That requires fostering changes more quickly, such as developing a customer business index that tracks the customer experience metrics to identify successes and shortfalls. NS is also focused on trying to streamline processes and touchpoints for forward facing activities for customers. NS advocates operations and marketing interaction with customers to generate total success, and is placing mobile technology tools with crews to create more efficiency and improve throughput.
Kate Suprenuk, President of Leasing and Manufacturing at UTLX & Procor, shared her perspective on the tank railcar market, highlighting continued strength for lessors. While some customers are trimming excess capacity, overall car supply remains tight as many await a more favorable new car investment environment.
New car prices remain elevated, driven by financing costs and higher prices for U.S.-sourced raw materials. Plate steel indices are up 35% year-to-date, narrowing the gap with tariffed foreign steel. Suprenuk believes U.S. steel prices have likely peaked. She also addressed regulatory developments, expressing support for the current Administration’s efforts to streamline processes and enhance clarity without compromising safety. Suprenuk emphasized the important and ongoing role of the Railway Supply Institute in advancing these regulatory improvements.
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