Progressive Railroading magazine asked numerous railroad executives, both freight and passenger, their outlook and challeneges for the coming year. Reprinted below is the response given by Walter Rich, which can be found in the current issue of Progessive Railroading. Other respnses can also be found at:
http://www.progressiverailroading.com/
Walter Rich, president & CEO, New York, Susquehanna & Western Railway
The year ahead:
We've had a great year in ‘04, our revenue and carloads are up about 25 percent -- we see continued growth in ’05. We’re successfully converting markets from truck to rail; we're penetrating the construction debris market and are picking up new distribution customers, like BOC Gas Co. We want to divert long-haul truck to long-haul rail --we connect with NS, CSX and CPR, so we can provide long-haul service to customers. We want permanent conversions, not temporary ones--permanent ones will justify the capital we invest to fix up our property.
Challenges:
We're like a rubber band stretched tight -- we're short on locomotives, train crews and real estate to support new infrastructure. We're doing our best to address these issues. We've expanded some yards, we're hiring now and will hire more people next year, and we're going to acquire another 10 locomotives, high-horsepower, six-axle units. I’m not sure if we're going to do that with operating leases or by purchasing.
Legislation:
We've had a good year by getting the tax credits and the repeal of the diesel fuel tax. The IRS is forming regulations for the tax credits. In the short term, we need to make sure the regulations match the intent of Congress, and the tax credits are only for three years and only provide a drop in the bucket for what short lines need. So we have to work to extend the credits.
http://www.progressiverailroading.com/
Walter Rich, president & CEO, New York, Susquehanna & Western Railway
The year ahead:
We've had a great year in ‘04, our revenue and carloads are up about 25 percent -- we see continued growth in ’05. We’re successfully converting markets from truck to rail; we're penetrating the construction debris market and are picking up new distribution customers, like BOC Gas Co. We want to divert long-haul truck to long-haul rail --we connect with NS, CSX and CPR, so we can provide long-haul service to customers. We want permanent conversions, not temporary ones--permanent ones will justify the capital we invest to fix up our property.
Challenges:
We're like a rubber band stretched tight -- we're short on locomotives, train crews and real estate to support new infrastructure. We're doing our best to address these issues. We've expanded some yards, we're hiring now and will hire more people next year, and we're going to acquire another 10 locomotives, high-horsepower, six-axle units. I’m not sure if we're going to do that with operating leases or by purchasing.
Legislation:
We've had a good year by getting the tax credits and the repeal of the diesel fuel tax. The IRS is forming regulations for the tax credits. In the short term, we need to make sure the regulations match the intent of Congress, and the tax credits are only for three years and only provide a drop in the bucket for what short lines need. So we have to work to extend the credits.
I know I'm getting old... My insurance company sent me only half a calendar this year!
