trysail
Catch Me Who Can
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Railroads Gain on Coal Shipping Rebound From Record Low
http://www.bloomberg.com/news/2013-...shipping-rebound-from-record-low-freight.html
By Jeff Kearns
May 1, 2013
Railroads in the U.S. such as Union Pacific Corp. and Burlington Northern Santa Fe may be rolling past the record slump in coal volume as costlier natural gas and summer weather rekindle demand from the nation’s power plants.
The seven largest railroads hauled 106,728 carloads of coal in the week ended April 20, up 22 percent from a record low at the end of 2012, Association of American Railroads data show. With coal accounting for 21 percent of all carloads, the gain helps mend a weak patch for an industry challenged by a decline in coal volumes that began in 2008.
Shipments of coal, the largest source of energy for electrical power generation around the world, slumped at all three of the biggest U.S. railroads last year as utilities began switching to natural gas. Rising natural gas costs, combined with a pickup in the economy and forecasts for a warmer summer, indicate the hit to rail revenue from coal is dissipating...
Fort Worth, Texas-based BNSF handled 33 percent of the coal hauled in the U.S. and Canada last year, the biggest share among the seven largest railroads, according to data compiled by Bloomberg. Union Pacific was second with 26 percent, followed by Norfolk Southern at 17 percent and CSX at 16 percent...
...Union Pacific is poised to benefit from demand for coal from the Powder River Basin. The area helps make Wyoming the largest U.S. producer of coal, exceeding the next six biggest coal-producing states combined, according to the Energy Department. Wyoming produced 39 percent of the U.S. total in the first quarter, while No. 2 West Virginia and No. 3 Kentucky combined accounted for 22 percent, according to Energy Department data...
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http://www.bloomberg.com/news/2013-...shipping-rebound-from-record-low-freight.html
