Keeping current

As I perused some recent news stories, trying to keep current, I found some electrifying news. I was shocked to find out that Norfolk Southern sees the possibility of electrifying its lines in the not too distant future.

Before I got too wired, I read further that Union Pacific is not interested in any electrification at this time. I guess that means that while Uncle Pete may have continued the left-handed operation of the old C&NW, don’t look to see the progeny of Milwaukee Road Little Joe’s in UP’s Armour yellow any time soon.

Also out West, BNSF is giving electrification a look, even if a distant one. That should really charge up the railfans, especially the juice freaks.

The Journal of Commerce reported that an NS executive said his company is exploring the potential to eventually electrify some freight rail lines in connection with passenger rail corridors, but the UP’s chief executive said he is not considering freight electrification.

The JOC noted that, earlier this year, BNSF’s top man, Matthew Rose, said he was in talks with transmission line companies that want to install new power lines in his railroad’s right-of-way. He said BNSF was exploring whether that could help the railroad convert large parts of its network to electric motive power.

Supposedly, some other large carriers were looking at the same options, as Congress and the Administration push to upgrade the capacity of the U.S. electricity grid.

In addition, the JOC points out that the Obama Administration’s push to jump-start high-speed passenger rail lanes could push freight lines to electrify some of their trains, since true high-speed trains run on electricity and their most likely corridors might be in lanes now owned by freight railroads.

Does this mean we all should run right out and invest in cables and catenary-stringing equipment companies? Will electrification enable the railroad industry to pull the country out of the recession?

I’m as famous as a prognosticator as I am as an economist, i.e., not at all, so don’t bet your retirement funds on what I just said. Then again, seeing what all the so-called experts did with our retirement funds, maybe my call is just as good as anybody else’s. Based on my recent statements, I think my retirement funds decided to retire before I did.

There really are a couple of points to the above ramblings. First, if I can’t have a little fun in this job, it’s time to pack it all in and go rock on the back porch. Second, when railroads talk about some obscenely expensive projects such as electrification, they don’t get the same reaction they used to. As recently as the early 1980s, most people were betting against the industry’s very survival and would have been convulsed with laughter at any grandiose plans. Even a few years ago, any such talk would have raised questions about what the speaker was smoking.

Now railroads have some pricing power for the first time in many decades, and they are using it wisely. Despite groans and moans from companies who allege railroads are a monopoly that gouges them, many, many shippers are noticing improvements in service and reliability. Some of it, of course, is due to traffic reductions, but a lot of that improvement comes from massive investments—I’m talking billions of dollars—that railroads have made into infrastructure and rolling stock.

And the basis for all this investment comes down to deregulation. Few things would short-circuit these massive investments and improvements faster than reregulation. And with rail rates lower than they were 25 years ago in terms of real dollars, how can those companies backing reregulation—mostly coal-burning utilities and chemical companies who make a far better rate-of-return than railroads do—justify returning to the system that almost put the railroad industry out of business?

Railroader or supplier, if you haven’t let your elected officials know you’re against reregulation and why, it’s time you did. It’s up to us to fight this battle. Our jobs may depend on it.