Enterprising Investor
5 years ago
Trinity Industries, Inc. Announces the U.S. Supreme Court Declines to Review Fifth Circuit Court of Appeals Ruling (1/07/19)
DALLAS--(BUSINESS WIRE)--Trinity Industries, Inc. (NYSE:TRN) announced today that the United States Supreme Court has denied Joshua Harman’s request to review the Fifth Circuit Court of Appeals’ holding that the company did not violate the False Claims Act regarding the ET Plus® highway end terminal system. This ruling further confirms the company’s long-standing belief that no fraud was committed. The Supreme Court’s denial of Mr. Harman’s petition ends this case.
Please refer to Note 18 to the financial statements in Trinity’s Form 10-Q for the period ended September 30, 2018, for additional information about Joshua Harman, on behalf of the United States of America, Plaintiff/Relator v. Trinity Industries, Inc., Defendant and the Company’s highway products and other litigation.
Information from the FHWA pertaining to the ET Plus® System may be found at: http://www.fhwa.dot.gov/guardrailsafety/.
For additional facts and product information related to the ET Plus® System may be found at: www.etplusfacts.com.
About Trinity Industries
Trinity Industries, Inc., headquartered in Dallas, Texas, owns businesses that are leading providers of rail transportation products and services in North America. Our rail-related businesses market their railcar products and services under the trade name TrinityRail®. The TrinityRail integrated business platform provides railcar manufacturing, maintenance and modifications, as well as railcar leasing and management services. Trinity also owns businesses engaged in the manufacture of products used on the nation’s roadways and in traffic control, as well as logistical and transportation businesses that provide support services to a variety of industrial manufacturers. Trinity reports its financial results in three principal business segments: the Rail Group, the Railcar Leasing and Management Services Group, and the All Other Group. For more information, visit: www.trin.net.
Trinity Highway Products, LLC is a subsidiary of Trinity Industries, Inc.
https://www.businesswire.com/news/home/20190107005676/en/Trinity-Industries-Announces-U.S.-Supreme-Court-Declines
Enterprising Investor
5 years ago
Trinity Industries, Inc. Announces Completion of Spin-off of Arcosa, Inc. and Resizing of Corporate Credit Facility (11/01/18)
DALLAS--(BUSINESS WIRE)--Trinity Industries, Inc. (NYSE: TRN) (“Trinity”), announced today that it has completed the separation of its infrastructure-related business, Arcosa, Inc. (“Arcosa”), a growth-oriented manufacturer of infrastructure-related products and services with leading positions in construction, energy, and transportation markets. The spin-off was effected through a pro rata dividend to Trinity’s stockholders of all outstanding Arcosa shares and is intended to qualify as a tax free distribution for federal income tax purposes.
Arcosa will begin trading “regular way” on the New York Stock Exchange under the ticker symbol “ACA” at market open today. As a result of the spin-off, Trinity’s focus will center on its integrated rail manufacturing, leasing, and services businesses while continuing to operate its highway products and logistics businesses.
“Today marks an exciting day for the future of Trinity Industries and our history of evolutionary growth,” said Timothy R. Wallace, Trinity’s Chairman, Chief Executive Officer and President. “We applaud all of our employees for their energy and enthusiasm in achieving this important milestone. The spirit in which they approached their individual contributions to the separation is testament to our core values of flexibility, collaboration, and dedication to excellence.”
Mr. Wallace continued, “I look forward to focusing our attention and resources on growth initiatives in the North American railcar industry while optimizing our capital structure to support our operational and financial objectives. Trinity’s history of expanding its products and services gives me a great deal of confidence in our ability to continue to improve, expand, and grow the Company’s footprint in the North American railcar industry.”
In conjunction with the spin-off and go forward operations of the Company, Trinity also announced today that it has resized and extended its unsecured corporate revolving credit facility through November 2023. The facility was previously scheduled to mature in May 2020. The facility commitment was also decreased from $600 million to $450 million to more appropriately align with the size of the Company’s continuing operations.
About the Spin-off
The Arcosa stock dividend occurred effective at 12:01 a.m. local New York City time on November 1, 2018. Trinity stockholders of record as of 5:00 p.m. local New York City time on October 17, 2018 received one share of Arcosa common stock for every three shares of Trinity common stock held as of the record date. No fractional shares of Arcosa’s common stock were distributed. Fractional shares of Arcosa’s common stock were aggregated and are being sold on the open market. The aggregate net proceeds of the sales will be distributed pro rata (based on the fractional share such holder would otherwise be entitled to receive) to Trinity stockholders who would otherwise have been entitled to receive a fractional share of Arcosa’s common stock.
COMPANY DESCRIPTIONS
About Trinity Industries
Trinity Industries, Inc., headquartered in Dallas, Texas, owns businesses that are leading providers of rail transportation products and services in North America. Our rail-related businesses market their railcar products and services under the trade name TrinityRail®. The TrinityRail integrated business platform provides railcar manufacturing, maintenance and modifications, as well as railcar leasing and management services. Trinity also owns businesses engaged in the manufacture of products used on the nation’s roadways and in traffic control, as well as logistical and transportation businesses that provide support services to a variety of industrial manufacturers. Trinity reports its financial results in three principal business segments: the Rail Group, the Railcar Leasing and Management Services Group, and the All Other Group. For more information, visit: www.trin.net.
About Arcosa
Arcosa, Inc., headquartered in Dallas, Texas, is a growth-oriented manufacturer of infrastructure-related products and services with leading positions in construction, energy, and transportation markets. Arcosa reports its financial results in three principal business segments: the Construction Products Group, the Energy Equipment Group, and the Transportation Products Group. For more information, visit www.arcosa.com. Beginning on November 1, 2018, Arcosa will begin “regular-way” trading on the NYSE under the symbol “ACA.”
https://www.businesswire.com/news/home/20181101005084/en/Trinity-Industries-Announces-Completion-Spin-off-Arcosa-Resizing
Enterprising Investor
6 years ago
Trinity Industries, Inc. Announces Third Quarter 2018 Highlights in Anticipation of Investor Day (10/04/18)
DALLAS--(BUSINESS WIRE)--Trinity Industries, Inc. (NYSE: TRN) (“Trinity”), as previously announced, will host an Investor Day today at 9:00 a.m. Eastern time in New York. The presentation will be webcast and participants can register at www.trin.net/events-and-presentations.
The management team plans to discuss certain financial information at today’s Investor Day, which may include the following highlights:
• Receives orders of approximately 7,700 railcars and delivers approximately 4,000 railcars during the third quarter in the Rail Group
• Expects railcar deliveries of 20,500 - 21,000 and anticipates 2019 deliveries to increase approximately 10 to 15%
• Railcar lease fleet utilization improves from 97.1% at the end of thesecond quarter to approximately 97.6% at the end of the third quarter
• Expects to incur an estimated pre-tax charge of between approximately $23 million and $28 million, or approximately $0.13 to $0.18 per share as fully diluted on an after-tax basis, during the third quarter as a result of the classification of certain of its businesses included in the other component of the Energy Equipment Group as assets held for sale; these businesses are included in the standalone financials of Arcosa, Inc.
• Repurchases approximately $50 million shares of common stock during third quarter, leaving $350 million remaining under its current authorization
The Company expects to complete the spin-off of Arcosa, Inc. (“Arcosa”) to Trinity shareholders on November 1, 2018, subject to the satisfaction or waiver of a number of conditions, including certain conditions described in the Information Statement included in Arcosa’s Form 10filed with the Securities and Exchange Commission and in the form of the Separation and Distribution Agreement, which is filed as an exhibit to the Form 10. Trinity and Arcosa expect all conditions to the Arcosa distribution to be satisfied or waived on or before the distribution date, November 1, 2018 at 12:01a.m. Eastern time in New York.
As a result, the Company is withdrawing its full year 2018 earnings per share guidance as it is no longer relevant since it includes full year anticipated earnings expectations for Arcosa. Unless otherwise noted above, full year 2018 segment guidance is also withdrawn as the businesses comprising Trinity’s current reporting segments will change post spin. In conjunction with the release of its third quarter results, Trinity expects to provide certain guidance information for 2019,reflecting the spin-off of Arcosa.
Also, Arcosa will host an Investor Day today at 1:00 p.m. Eastern timein New York. Today’s event represents Arcosa’s introduction to the investment community as it prepares for its separation from Trinity in a tax-free distribution to Trinity shareholders for U.S. federal income tax purposes on November 1, 2018. A copy of the presentation materials will be filed by Arcosa in a Current Report on Form 8-K and made available at www.arcosa.com.
https://www.businesswire.com/news/home/20181004005332/en/Trinity-Industries-Announces-Quarter-2018-Highlights-Anticipation
Enterprising Investor
6 years ago
Trinity Industries, Inc. Board of Directors Approves Separation of Arcosa, Inc. (9/25/18)
Record Date – October 17, 2018
Distribution Date – November 1, 2018
Arcosa expects to begin “regular-way” trading on the NYSE on November 1, 2018 under the ticker ACA
DALLAS--(BUSINESS WIRE)--Trinity Industries, Inc. (NYSE: TRN) (“Trinity”) announced today that its Board of Directors formally approved the separation of its infrastructure-related businesses from Trinity through a distribution of all of the common stock of Arcosa, Inc. (“Arcosa”) held by Trinity to Trinity stockholders. In connection with the approval, the board has also set the distribution ratio, record date, and distribution date for the separation. As a result, the following will occur:
- The distribution is expected to be made at 12:01 a.m. local New York City time on November 1, 2018 to Trinity stockholders of record as of 5:00 p.m. local New York City time on October 17, 2018, the record date for the distribution.
- On the distribution date, Trinity stockholders will receive one share of Arcosa common stock for every three shares of Trinity common stock held as of the record date.
- Following the distribution, Arcosa will be an independent, publicly-traded company on the New York Stock Exchange, and Trinity will retain no ownership interest in Arcosa.
“Today’s announcement marks one of the final steps toward completing the separation of Arcosa from Trinity Industries, and I continue to be extremely excited about the future for both companies,” said Timothy R. Wallace, Trinity’s Chairman, CEO and President. “This year marks Trinity’s 85th year as a company, and its 60th year as a public company. As Trinity has grown through the years, our dedicated employees have worked together to build an unparalleled portfolio of industry-leading businesses. We are proud of Trinity’s history of success and rich corporate culture, both of which we believe establish an excellent foundation for a stronger future. Following the separation, Trinity will concentrate its focus on being a premier provider of rail transportation products and services to customers while continuing to generate high quality earnings and returns for our stockholders.”
Antonio Carrillo, Arcosa’s President and Chief Executive Officer added, “I am honored to have led our team to this important milestone as we move closer to a successful launch of Arcosa as a standalone public company. We are very proud of our historical roots as part of Trinity, and are equally honored to be part of the bright future we see ahead for our Arcosa stakeholders. We have a fantastic organization, built upon an established platform of leading businesses in the construction, energy, and transportation markets, with long-standing customer relationships and opportunities to grow in attractive markets through disciplined organic investments and acquisitions. To arrive at this important juncture has required a tremendous collaborative effort among Trinity and Arcosa employees, whose talent and dedication will support the success of each company’s new future.”
Arcosa Common Stock Distribution
As stated above, the Trinity Board of Directors approved a pro rata dividend of Arcosa common stock owned by Trinity to be made on November 1, 2018 (the “distribution date”) to Trinity stockholders of record as of 5:00 p.m. local New York City time on October 17, 2018 (the “record date”). The distribution will be effective at 12:01 a.m. local New York City time on the distribution date. Each Trinity stockholder of record will receive one share of Arcosa common stock for every three shares of Trinity common stock held by such stockholder as of the record date. No fractional shares of Arcosa’s common stock will be distributed. Fractional shares of Arcosa’s common stock will be aggregated and sold on the open market, and the aggregate net proceeds of the sales will be distributed ratably in the form of cash payments to Trinity stockholders who would otherwise be entitled to receive a fractional share of Arcosa’s common stock.
Trading of Trinity and Arcosa Shares
Shares of Trinity common stock will continue to trade “regular-way” on the New York Stock Exchange (“NYSE”) under the symbol “TRN” through and after the November 1, 2018 distribution date. Any holder of shares of Trinity common stock who sells Trinity shares “regular way” through the close of trading on the day prior to the November 1, 2018 distribution date will also be selling their right to receive shares of Arcosa common stock in the distribution. It is anticipated that Trinity shares will also trade “ex-distribution” (that is, without the right to receive shares of Arcosa common stock in the distribution) beginning on or about October 16, 2018, and continuing through the close of trading on the day prior to the distribution date. Investors should consult with their financial advisors about selling their shares of Trinity common stock on or after the record date and on or before the distribution date. Beginning on November 1, 2018, “regular-way” trading in Trinity stock will reflect the distribution of Arcosa.
A “when-issued” public trading market for Arcosa’s common stock is expected to begin on or about October 16, 2018 on the NYSE and continue through the close of trading on the day prior to the distribution date. Beginning on November 1, 2018, “when-issued” trading will end and Arcosa will begin “regular-way” trading on the NYSE under the symbol “ACA.”
Information About the Separation
The distribution of Arcosa’s shares will be made in book entry form, which means no physical share certificates of Arcosa will be issued. No action is required by Trinity stockholders in order to receive shares of Arcosa common stock in the distribution and they will not be required to surrender or exchange their Trinity shares.
Prior to the distribution date, Trinity will mail an information statement to holders of Trinity common stock as of the record date. The information statement describes Arcosa, including the risks of owning Arcosa common stock and other details regarding the distribution and is an exhibit to Arcosa’s Registration Statement on Form 10, as amended (the “Form 10”), which Arcosa has filed with the Securities and Exchange Commission (the “SEC”) and is available at www.sec.gov.
The completion of the Arcosa distribution is subject to the satisfaction or waiver of a number of conditions, including the Form 10 for the Arcosa common stock being declared effective by the SEC and certain other conditions described in the Information Statement included in the Form 10 and in the form of Separation and Distribution Agreement, which is filed as an exhibit to the Form 10. Trinity and Arcosa expect all conditions to the Arcosa distribution to be satisfied on or before the distribution date.
The Arcosa separation has been structured to qualify as a tax-free distribution to U.S. holders of Trinity common stock for U.S. federal income tax purposes. Cash received in lieu of fractional shares will, however, be taxable. Trinity stockholders should consult their tax advisors with respect to the U.S. federal, state, local and non-U.S. tax consequences of the Arcosa separation.
https://www.businesswire.com/news/home/20180925006067/en/Trinity-Industries-Board-Directors-Approves-Separation-Arcosa
Enterprising Investor
6 years ago
Trinity Industries, Inc. Introduces the Spin-off Company Name of Arcosa, Inc. and Announces Filing of Initial Form 10 Registration Statement for the Planned Spin-off (5/15/18)
Separation Remains on Track for Completion in the Fourth Quarter of 2018
DALLAS--(BUSINESS WIRE)--Trinity Industries, Inc. (NYSE: TRN) (“Trinity”) today introduced the name of its future infrastructure company as Arcosa, Inc. (“Arcosa”) following the separation of the two companies into independent, publicly-traded companies. The previously announced spin-off transaction remains on track to be completed in the fourth quarter of 2018 through a tax-free spin of Arcosa to Trinity stockholders.
We are pleased to announce the name of Arcosa, our future, publicly-traded infrastructure company,” said Antonio Carrillo, the President and Chief Executive Officer of Arcosa. “Our new name symbolizes the ‘arc’ of progress for our business and our ongoing commitment to meeting critical infrastructure needs through innovation, entrepreneurship, and flexibility. We will have a new name, but our individual businesses have built reputations for quality, service, and operational excellence over decades. We are proud of our historical roots as part of Trinity, and are equally honored to be part of Arcosa’s exciting future as a standalone public company.”
Today with the introduction of Arcosa, Trinity has also announced the filing of the initial Form 10 with the U.S. Securities and Exchange Commission. The initial Form 10 contains a preliminary information statement providing details related to the business, strategy, and historical financial results of the new infrastructure company.
“Today’s filing marks an important step in the process toward establishing two independent, publicly-traded companies with high-performing businesses and long-term growth potential,” said Timothy R. Wallace, Trinity’s Chairman, Chief Executive Officer, and President. “We believe that this strategic separation will enable both companies to enhance their competitive positions, advance distinct investment theses, and optimize their balance sheets and capital allocation priorities to achieve the best returns for their respective stockholders.”
As detailed in the initial Form 10 filing, Arcosa is expected to be a growth-oriented manufacturer and producer of infrastructure-related products for construction, energy, and transportation markets. With $1.5 billion in 2017 revenues and $132 million in 2017 operating profit, Arcosa plans to leverage its strong platform of businesses to capitalize on North American economic expansion and infrastructure spending, which should present compelling strategic opportunities. The new company, with a strong balance sheet and planned committed credit availability and debt capacity, is expected to have the financial flexibility to pursue organic capital investments and acquisitions. Arcosa will have a leadership team with a track record of growth and the proven ability to operate efficiently in cyclical markets.
Following the spin-off transaction, Trinity’s business portfolio will include railcar leasing and management services, railcar manufacturing, railcar maintenance, railcar aftermarket parts, tank car heads manufacturing, and the highway products business.
Trinity will continue to dedicate resources to pursue TrinityRail®’s vision of being a premier provider of rail transportation products and services in North America. TrinityRail is positioned to build upon the success of its integrated rail business model, generating further growth and differentiation of its multiple, market-leading platforms while enhancing Trinity’s financial performance, capital structure, and overall value proposition to investors.
In addition, Trinity will maintain ownership and the status quo of the highway products business as it defends pending highway-related litigation. The Company has positive legal momentum following the favorable Fifth Circuit ruling and continues to evaluate long-term plans for the highway products business to enhance shareholder value.
The Form 10 is not yet effective and, as is customary, will be updated as additional information about Arcosa becomes available.
Completion of the spin-off will be subject to, among other things, the effectiveness of the Form 10 registration statement with the Securities and Exchange Commission, assurance that the separation will be tax-free to Trinity’s stockholders for U.S. federal income tax purposes, final approval from Trinity’s Board of Directors, and other customary conditions. Trinity may, at any time and for any reason until the proposed transaction is complete, abandon the separation or modify or change its terms. The separation is expected to be completed in the fourth quarter of 2018, but there can be no assurance regarding the ultimate timing of the separation or that the separation will ultimately occur.
For more information, a copy of the Form 10 registration statement is accessible by searching for filings by Arcosa, Inc. (CIK: 0001739445) on the SEC's Edgar reporting system, which can be found at http://www.sec.gov/edgar/searchedgar/companysearch.html. A copy can also be found on the Trinity Spin-Off section of Trinity’s website at www.trin.net.
J.P. Morgan Securities, LLC is serving as financial advisor to Trinity; Skadden, Arps, Slate Meagher & Flom LLP is serving as legal counsel; and KPMG LLP is serving as tax advisor. Evercore Group L.L.C. is also advising Trinity in this process.
About Trinity Industries, Inc.
Trinity Industries, Inc., headquartered in Dallas, Texas, is a diversified industrial company that owns complementary market-leading businesses providing products and services to the energy, chemical, agriculture, transportation, and construction sectors, among others. Trinity reports its financial results in five principal business segments: the Rail Group, the Railcar Leasing and Management Services Group, the Inland Barge Group, the Construction Products Group, and the Energy Equipment Group. For more information, visit: www.trin.net.
https://www.businesswire.com/news/home/20180515006540/en/Trinity-Industries-Introduces-Spin-off-Company-Arcosa-Announces
56Chevy
6 years ago
Trinity Industries, Inc.
NOTICE OF ANNUAL MEETING OF STOCKHOLDERS
To Be Held on May 7, 2018
2525 N. Stemmons Freeway
Dallas, Texas 75207-2401
www.trin.net
TO: Trinity Industries, Inc. Stockholders:
Please join us for the 2018 Annual Meeting of Stockholders of Trinity Industries, Inc. The meeting will be held at the principal executive offices of the Company, 2525 N. Stemmons Freeway, Dallas, Texas 75207, on Monday, May 7, 2018 , at 8:30 a.m., Central Daylight Time.
https://ih.advfn.com/p.php?pid=nmona&article=77126612
Marker:
Trinity Industries, (TRN)
$31.65 down -1.1 (-3.36%)
Volume: 2,969,957
56Chevy
6 years ago
Trinity Industries, Inc. Announces Intention to Spin-off Company’s Infrastructure-Related Businesses
Date : 12/12/2017 @ 8:00AM
Source : Business Wire
Stock : Trinity Industries, Inc. (TRN)
Quote : $37.21 1.41 (3.94%) @ 12:47PM
[....]
The transaction is expected to result in two separate public companies that will benefit from leading positions in their respective industries, strong free cash flow generation, and compelling growth opportunities. Following the transaction, each company will have distinct corporate strategies and capital allocation priorities:
-Trinity’s portfolio of businesses will be comprised primarily of Trinity’s industry-leading rail-related businesses which are marketed under the trade name TrinityRail®. TrinityRail’s integrated business model consisting of rail manufacturing, leasing, and services provides customers with a comprehensive offering of rail transportation solutions, products, and services. TrinityRail’s financial profile is expected to generate stable cash flows and earnings growth opportunities throughout the manufacturing cycle, giving the company an ability to pursue an optimized capital structure, efficiently allocate capital, and effectively leverage its multiple rail platforms.
-The new infrastructure company will be a growth-oriented company that is focused on infrastructure-related products and services. Trinity’s infrastructure businesses have leading positions in construction, energy, and marine markets throughout North America and are also positioned to grow free cash flows. The new infrastructure company will have the balance sheet strength and capital allocation flexibility to pursue growth through acquisitions and to capitalize on the large and growing market opportunity in North American infrastructure spending.
[....]
Source:
https://ih.advfn.com/p.php?pid=nmona&article=76277574
*Big day today!!
Enterprising Investor
6 years ago
Trinity Industries, Inc. Announces Fifth Circuit Denies Petition for Rehearing En Banc in False Claims Act Case (11/14/17)
DALLAS--(BUSINESS WIRE)--Trinity Industries, Inc. (NYSE:TRN) announces that earlier today the United States Court of Appeals for the Fifth Circuit, in a per curiam order, denied the Relator’s Petition for Rehearing En Banc in Joshua Harman, on behalf of the United States of America, Plaintiff/Relator v. Trinity Industries, Inc. and Trinity Highway Products, LLC, Defendants.
The Company will continue to monitor any pursuit by the Relator of further appellate recourse in this matter.
Please refer to the Company’s Note 18 to the financial statements in Trinity’s Form 10-Q for the period ended September 30, 2017 for additional information about Joshua Harman, on behalf of the United States of America, Plaintiff/Relator v. Trinity Industries, Inc. and Trinity Highway Products, LLC, Defendants and the Company’s other litigation.
Information from the FHWA pertaining to the ET Plus® System may be found at: http://www.fhwa.dot.gov/guardrailsafety/.
Additional facts and product information related to the ET Plus® System may be found at: www.etplusfacts.com.
COMPANY DESCRIPTION
Trinity Industries, Inc., headquartered in Dallas, Texas, is a diversified industrial company that owns complementary market-leading businesses providing products and services to the energy, chemical, agriculture, transportation, and construction sectors, among others. Trinity reports its financial results in five principal business segments: the Rail Group, the Railcar Leasing and Management Services Group, the Inland Barge Group, the Construction Products Group, and the Energy Equipment Group. For more information, visit: www.trin.net.
Trinity Highway Products, LLC is a subsidiary of Trinity Industries, Inc.
http://www.businesswire.com/news/home/20171114006640/en/Trinity-Industries-Announces-Circuit-Denies-Petition-Rehearing
Enterprising Investor
7 years ago
Farmers’ Grain Bounty, Crop Exports Buoy U.S. Railroads (11/15/16)
Rail traffic is still recovering from years of steep declines in coal, oil shipments
By Doug Cameron and Jesse Newman
A record fall harvest and surging crop exports are boosting U.S. railroad operators, who are still feeling pain from the collapse of coal and oil shipments.
Farmers across the Midwest -- benefiting from good weather during much of the growing season -- are expected to bring in about two billion more bushels of corn and soybeans than they did last year. Many rely on railcars to transport their crops from grain elevators to processing plants around the country, or to the coasts for export.
Shipments of grain and soybeans are up around 6.5% this year, and set a record of over 26,000 carloads a week during the peak of the harvest in October, according to the Association of American Railroads, a trade group. Leasing company GATX Corp. said every one of its grain cars was in use during the third quarter. CSX Corp., the third-largest U.S. railroad, said grain shipments shot up 27% in the third quarter compared with a year earlier, helping fuel a rally in the company’s stock.
Even so, booming grain traffic hasn’t erased years of steep declines in coal shipments, still the biggest single source of rail traffic, according to industry data. Overall, freight carloads are down 6% this year and thousands of cars designed to carry oil and industrial products are sitting idle.
Railroads are betting the grain boom will continue. Analysts say some orders for oil-tank cars are being converted into purchases of new grain cars. Through the third quarter, deliveries of covered-top railcars used most often in grain service are up 147% from the same period last year, according to the Railway Supply Institute, a trade group.
The railroad operators also have spent billions of dollars to add capacity so they can ship grain faster and with fewer traffic jams. Those improvements have helped avoid a repeat of the 2014 harvest. That year, big crop volumes and more crude-oil shipments caused snarls across the rail network, holding up trains and driving up grain prices. Grain shipments were up nearly 20% last month compared with October 2014, without major delays, rail operators say.
“More grain is moving this harvest to export channels and it’s moving faster,” said Nate Asplund, chief executive of Wahpeton, N.D.-based Red River Valley & Western Railroad Co.
BNSF Railway Co. spent $15 billion over the past three years, much of it to link crop-producing areas to ports in the Northwest and Gulf Coast, said John Miller, vice president for agricultural products. The Berkshire Hathaway Inc.-owned company, the biggest shipper of agricultural products in North America, said such shipments climbed 13% in the third quarter.
Among the improvements: Some 1,000 miles of double track, which allows trains to pass in opposite directions along the same route, and high-speed grain loaders to improve efficiency. Trains hauling 100 or more grain cars are making an average of three trips a month this year compared with 1.8 in 2014, said railroad executives.
Regional railroads like Red River have also invested in new track and facilities. Railroad operators are using new railcars that are shorter and deeper, allowing more to be hauled by a single train. Canadian Pacific Railway Ltd. has increased its grain trains to a record 124 cars, and plans to raise this to as many as 134.
Railroads of all sizes have borrowed scheduling tips from the airline industry to maximize capacity.
Just as low-cost carriers look to maximize the number of flights a day from their jets with quick airport turnarounds, railroads have found more efficient ways to load and unload railcars. New equipment has halved the time taken to fill or empty a 115-car train to as little as six hours.
“In the old days we talked about cars. Now we focus on turns per car,” said Mr. Asplund.
The rail industry also got an early jump on this year’s harvest.
Exports soared over the summer as buyers in China and Mexico purchased more soybeans and corn from U.S. farmers following a poor harvest in South America and concerns over currency swings.
U.S. soybean exports more than doubled in July from a year earlier to 98.4 million bushels, and more than tripled in August. Grain cars that usually remain parked until the fall harvest were pressed into service as early as June.
Grain elevator operators said the drop in coal and oil shipments has also reduced rail traffic, leaving more track open for agricultural products.
Roger Miller, chief executive of Premier Cooperative in Champaign, Ill., said in 2014 railroads prioritized oil cars ahead of grain hoppers. This year he said there is “a night and day difference.”
—Bob Tita contributed to this article.
http://www.wsj.com/articles/farmers-grain-bounty-crop-exports-buoy-u-s-railroads-1479729601
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