Investing in a Neo-Growth Industry

In its annual review of the finance and leasing side of railroading, Progressive Railroading magazine reports on recent activity and discusses trends. As the U.S. Gross Domestic Product growth has moderated, railroads are anticipating a slight slowdown in demand, which would still be healthy given the heavy demand in 2006. The first four weeks of 2007 saw traffic decline 6.6 percent in originated carloads and 1.5 percent in intermodal units. This is somewhat higher than anticipated and is attributed to softness in housing and autos. Key issues affecting future prospects include: over-supply of railcars, rising equipment costs, the rate at which lease costs increase and how that will affect railroads’ lease-versus-buy decisions, demand for financing for overseas ventures (India, China and Russia, e.g.) and the long-term ownership structure for railway supply companies.

Language

  • English

Media Info

Subject/Index Terms

Filing Info

  • Accession Number: 01045018
  • Record Type: Publication
  • Source Agency: UC Berkeley Transportation Library
  • Files: BTRIS, TRIS
  • Created Date: Mar 2 2007 3:11PM