Asciano - Competitors

Asciano Competition

Now Viewing Asciano's competition in: Railroads

Recent Developments

Hedge Funds Vie for CSX Boardroom Control - A proxy fight erupted in May 2008 between two hedge funds and the management of railroad company CSX over control of CSX's board of directors. The hedge funds, The Children's Investment Master Fund (TCI) and G3 Capital Partners, claim that shareholders will benefit from their opposition slate of five nominees to CSX's board, who the funds say have vast experience in the railroad business. CSX claims that the hedge funds are more interested in short-term gains while the company is focused on the reinvestment necessary for longer-term success. The two hedge funds and their nominees to the CSX board control about 8 percent of CSX stock.

US Representative Urges High-Speed Rail - US Representative Mica of Florida says that a high-speed rail system in the New York to Washington corridor would ease congestion in the heavily traveled area. Mica co-sponsors The Passenger Rail Improvement Act, which would provide $14.4 billion to fund Amtrak, high-speed rail projects, and passenger grants for states. The Rail Infrastructure Development and Expansion Act aims to provide $24 billion to build the New York to Washington high-speed network.

Rail Traffic Mixed - US railroads reported mixed traffic in April 2008, according to the Association of American Railroads (AAR). Compared to April 2007, carloads of rail freight increased 0.9 percent, but intermodal units fell 2.1 percent. Commodities freight gains included grain, up 20.6 percent; coal, 5.3 percent; and chemicals, 2.9 percent. AAR suggests that the increase in rail freight traffic may indicate that the US economy isn't slowing as much as some economists predicted.

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 2007 and 2012.

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.