Asciano - Competitors

Asciano Competition

Now Viewing Asciano's competition in: Railroads

Recent Developments

Amtrak may Increase Capacity of Acela Train - Amtrak may increase the capacity of its Acela train as travelers seeking to avoid rising air fares switch from planes to trains. Acela ridership rose 7.7 percent in the first 10 months of fiscal 2008 compared to the same period in 2007. Amtrak doesn't have any spare Acela passenger cars, so a surcharge on passenger fares is being considered to help buy more of the custom-built coaches.

Railroad Traffic Increases Slightly - US rail carload movement rose just 0.3 percent in the first eight months of 2008 compared to the same period in 2007, according to the Association of American Railroads. Industry experts cite economic weakness as a key cause of low rail traffic growth. Intermodal traffic declined 2.9 percent during the 2008 period; total freight volume rose 1.4 percent.

Hedge Fund Nominees Elected to CSX Board of Directors - Four people nominated by a hedge fund to be on the board of directors of railroad company CSX won seats on the board in July 2008, but CSX has challenged the election results. CSX had unsuccessfully sued British hedge fund The Children's Investment Fund and Brazilian hedge fund 3G Capital Partners, accusing them of evading federal securities filing requirements while securing enough CSX stock to sway the board of directors' election. Some industry experts say that the election of the nominees could make it easier for the hedge funds to force CXS to take actions that favor the hedge fund investors rather than the company and its other stockholders.

Competitive Landscape

Demand is driven by consumer spending and fuel prices, as high gas prices shift freight transport from trucks to rail. The profitability of individual companies depends on efficient operations and controlling maintenance expenses. Large companies have advantages in owning substantial miles of railroad track connecting major cities. Small companies can compete effectively by servicing local routes and transporting a wide variety of commodities. The industry is highly capital-intensive: average annual revenue per worker for a typical Class I railroad is $250,000.

Full Industry Overview For Railroads

Railroads Industry Forecast

from Hoover's/D&B subsidiary First Research

The output of US rail transportation is forecast to grow at an annual compounded rate of 4.5 percent between 2008 and 2013.

Rail Transportation Growth Stabilizes

First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.