LANSING, Mich. (Michigan News Source) – Despite many obstacles to delivery, unfulfilled orders, and barely avoiding a massive rail labor union strike in the past year, several railways which traverse Michigan are reporting successful quarters.
One of the largest US Class-I rail carriers who recorded great success was CSX, which had $14.9 billion in revenue for the year 2022, increasing nearly 20% compared to 2021. The railway also experienced a 16% jump in the company’s stockholders’ earnings per share according to Michigan Farm News.
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“The ONE CSX team made great progress this quarter, delivering strong earnings as our network performance continued to gain momentum,” President and Chief Executive Officer, Joe Hinrichs said in a statement, “With the right resources now coming into place, we can turn our full attention to the opportunities ahead in 2023 and beyond. Going into the new year, our entire company remains focused on providing exceptional customer service that will enable us to win share from trucks and drive profitable growth over the long term.”
Similarly, Norfolk Southern Corporation, which services Michigan, experienced growth despite higher operating costs caused by higher fuel prices, increased claim costs,and higher compensation and benefits according to the company. Fourth quarter railway operating revenue was up 13%, at $3.2 billion, while income from railway operations was up 5%, at $1.2 billion.
“In the fourth quarter and throughout 2022, Norfolk Southern made significant progress in our financial performance, service improvement, and engagement with our craft team members,” Norfolk Southern President and Chief Executive Officer Alan H. Shaw said in a statement. “Our team delivered double-digit percentage growth in revenue as well as earnings per share and achieved record revenue and operating income for the year. We also outlined a bold new strategic plan to create long-term shareholder value and a pathway for future growth for Norfolk Southern.”
Another one of the big four rail carriers, Union Pacific, has also made significant growth at 14% for operating revenue at $24.9 billion recording all time highs for earnings per share, net income, and operating income last year.
So far, BNSF Railway has not released its yearly reports, but has shared its 2023 capital investment plan of $3.96 billion which will cover various costs including maintenance of the company’s core network and related assets, expansion and efficiency projects, and traffic growth in tracks and bridge projects.
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In June, the Surface Transportation Board Chairman Martin Oberman followed up on a previous order to the nation’s largest railroads for not complying with new standards.
“We are in the middle of a rail service crisis and the Board continues to receive reports about persistent, acute, and dramatic problems in rail transportation, disrupting critical supply chains and shutting down companies,” Oberman said in a statement.
At the hearing, the STB determined that the railroads would also need to provide more detailed information to demonstrate the monthly process in increasing the size of their work forces to levels needed to provide reliable rail service according to Michigan Farm News.
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