Latest news with #freightrail
Reuters
4 days ago
- Business
- Reuters
BNSF hires Goldman, CSX seeks bankers as Union Pacific sparks rail M&A race, sources say
July 21 (Reuters) - BNSF Railway has hired Goldman Sachs (GS.N), opens new tab and CSX Corp (CSX.O), opens new tab is in talks to bring on financial advisers, as rival Union Pacific's interest in acquiring Norfolk Southern sparked a wave of deal preparations that could reshape the U.S. freight rail industry, sources said. The moves by BNSF, owned by Warren Buffett's Berkshire Hathaway (BRKa.N), opens new tab , and Jacksonville-based CSX come after Union Pacific (UNP.N), opens new tab began exploring a potential acquisition of Norfolk Southern (NSC.N), opens new tab, which could create a $200 billion coast-to-coast rail network and mark the most significant consolidation in the sector in decades. Any potential deal is expected to undergo intense regulatory scrutiny and remains far from certain. Goldman and CSX declined to comment. BNSF did not immediately respond to a Reuters request for comment. Shares of Norfolk Southern were up 2.4% in extended trading. Berkshire bought BNSF in 2010, paying $26.5 billion for the 77.4% of the railroad it didn't already own. The last major rail merger occurred in 2023, when Canadian Pacific acquired Kansas City Southern, forming the first network to span Canada, the U.S. and Mexico. That deal followed a failed bid by Canadian National, underscoring how competitive pressures can quickly escalate in the sector. In 2024, Union Pacific led the industry with $24.3 billion in revenue, followed by BNSF, CSX, Canadian National ( opens new tab Norfolk and Canadian Pacific Kansas City ( opens new tab. Talks between Union Pacific and Norfolk Southern are still in early stages, the people said. Any merger would require approval from the Surface Transportation Board, which could take up to two years. CSX would be a better fit for Union Pacific than Norfolk Southern, said David O'Hara, managing director at MKP Advisors. 'With first-mover advantage, Union Pacific will buy whoever in the East wants to make themselves available," O'Hara said. "And whoever is left out in the cold ultimately will get bought by Burlington Northern - that will almost have to happen."
Yahoo
4 days ago
- Business
- Yahoo
BNSF hires Goldman, CSX seeks bankers as Union Pacific sparks rail M&A race, sources say
By Sabrina Valle (Reuters) -BNSF Railway has hired Goldman Sachs and CSX Corp is in talks to bring on financial advisers, as rival Union Pacific's interest in acquiring Norfolk Southern sparked a wave of deal preparations that could reshape the U.S. freight rail industry, sources said. The moves by BNSF, owned by Warren Buffett's Berkshire Hathaway, and Jacksonville-based CSX come after Union Pacific began exploring a potential acquisition of Norfolk Southern, which could create a $200 billion coast-to-coast rail network and mark the most significant consolidation in the sector in decades. Any potential deal is expected to undergo intense regulatory scrutiny and remains far from certain. Goldman and CSX declined to comment. BNSF did not immediately respond to a Reuters request for comment. Shares of Norfolk Southern were up 2.4% in extended trading. Berkshire bought BNSF in 2010, paying $26.5 billion for the 77.4% of the railroad it didn't already own. The last major rail merger occurred in 2023, when Canadian Pacific acquired Kansas City Southern, forming the first network to span Canada, the U.S. and Mexico. That deal followed a failed bid by Canadian National, underscoring how competitive pressures can quickly escalate in the sector. In 2024, Union Pacific led the industry with $24.3 billion in revenue, followed by BNSF, CSX, Canadian National Norfolk and Canadian Pacific Kansas City. Talks between Union Pacific and Norfolk Southern are still in early stages, the people said. Any merger would require approval from the Surface Transportation Board, which could take up to two years. CSX would be a better fit for Union Pacific than Norfolk Southern, said David O'Hara, managing director at MKP Advisors. 'With first-mover advantage, Union Pacific will buy whoever in the East wants to make themselves available," O'Hara said. "And whoever is left out in the cold ultimately will get bought by Burlington Northern - that will almost have to happen."
Reuters
7 days ago
- Business
- Reuters
Union Pacific, Norfolk Southern explore cross-continental railroad merger, source says
NEW YORK, July 18 (Reuters) - Union Pacific (UNP.N), opens new tab, the largest U.S. freight railroad operator, is exploring a possible acquisition of Norfolk Southern (NSC.N), opens new tab to create a $200 billion coast-to-coast rail network, a person familiar with the matter said. Talks are in early stages, the person said, with no guarantee talks will progress or that any deal would pass what would be expected to be a lengthy, detailed regulatory review. The two companies declined to comment. Any deal to unite two of the six largest freight rail operators in North America is likely to draw intense regulatory scrutiny. Major shippers in the steel, chemical and grain industries are expected to lobby against any further concentration in an industry that has consolidated from over 100 Class I railroads in the 1950s to just six today. Union Pacific shares fell 2.7% in Friday afternoon trading, while Norfolk Southern rose 1.52%. A combination would mark a shift in the U.S. freight rail landscape, creating a single-line network stretching from coast to coast, changing the current divide between western and eastern regional operators. Norfolk is recovering from a tumultuous past couple of years that included the firing of its previous CEO amid ethics investigations, a boardroom battle with activist Ancora, and a train derailment that cost the company about $1.4 billion. A merger between Union Pacific and Norfolk Southern would create the first modern West-to-East single-line freight railroad in the U.S. Earlier this year, Union Pacific CEO Jim Vena said a transcontinental merger would be good for customers, eliminating the need for interchanges between carriers in Chicago — a longstanding bottleneck — and reducing costly delays for shippers. But critics warn that such consolidation could reduce competition, a possible concern for regulators. With fewer major players in the market, shippers may face higher costs and diminished service options. "We suspect certain shipper groups could get vocal on the perceived lost competition a merger would bring," Barclays analyst Brandon R. Oglenski said. Discussions between the two operators, first disclosed by Semafor, spurred speculation that competitors would also consider concentration. "History teaches that mergers and acquisitions within the railroad industry will inspire and motivate additional M&A," said Mike Steenhoek, executive director of the Soy Transportation Coalition. That happened earlier this decade when Canadian Pacific offered to acquire Kansas City Southern, which prompted CP's main competitor – Canadian National – to submit their own offer to acquire Kansas City Southern. Ultimately the Canadian National offer was not allowed to proceed, and Canadian Pacific did acquire Kansas City Southern in 2023 - creating the first railroad to link Canada, the U.S. and Mexico. In 2024, Union Pacific led the industry with $24.3 billion in revenue, followed by BNSF (privately held, owned by Berkshire Hathaway) (BRKa.N), opens new tab, CSX (CSX.O), opens new tab, Canadian National ( opens new tab, Norfolk and Canadian Pacific Kansas City ( opens new tab. "The energy and momentum toward the remaining two U.S. based Class I railroads – BNSF and CSX – pursuing a merger would be considerable," Steenhoek said. A regulatory decision could take 16 to 22 months, with merging carriers required to notify the Surface Transportation Board three to six months before filing an application, followed by a year-long evidentiary review and a final ruling within 90 days, Oglenski said. A potential Union Pacific acquisition of Norfolk Southern could have material synergy, he said. "Any deal would face serious review from regulators," said Emily Nasseff Mitsch, equity analyst at CFRA.
Zawya
08-07-2025
- Business
- Zawya
Protecting the future of South African rail network requires private participation
South Africa's freight rail network is under strain, yet it remains one of the country's greatest opportunities for economic renewal and industrial growth. For investors, freight users, and logistics specialists, this is a chance to help rebuild a critical national asset while unlocking long-term value in a sector essential to the country's recovery. Source: jplenio1 via Freepik On the Northern Corridor alone, the coal artery to Richards Bay, Transnet estimates R13bn is needed for critical maintenance. That's 10% of its entire debt book. And in just the next fiscal year, R2bn is required to restore even basic functionality. Transnet cannot fund this rehabilitation. Its five-year capital requirement is estimated at around R65bn, money it doesn't have. To support this, the government in May approved a R51bn guarantee facility: R41 billion to meet Transnet's funding needs over the next two years, and R10bn for liquidity support. This comes barely 18 months after a previous R47bn guarantee, underscoring how desperate the situation is. With Transnet struggling and the government under pressure, it was clear that something needed to change. Transnet and the Department of Transport have finally acknowledged that they cannot fix the system alone, and are calling for co-investment and co-operation. This is a major shift. Opening the doors to private sector participation not only aims to revitalise the rail network, restoring export capacity, but also provides the opportunity to revive mining communities, attract investment, and enhance national competitiveness. Private sector participation In March 2025, Transnet issued a Request for Information (RFI) to gauge private sector interest in freight rail and port logistics. Three priority corridors are up for revival: • Coal to Richards Bay • Iron ore to Saldanha • Container traffic to Durban An accompanying Request for Proposal (RFP) is due later this year with additional RFIs, including for manganese and passenger rail corridors, on the horizon. For the mining sector and freight operators, the imperative to engage is both strategic and financial. Involvement in the rail network and operations isn't just about moving goods. It's about de-risking operations, ensuring cost efficiency, and unlocking long-term returns through access to mission-critical infrastructure. The government has made clear that while the state will retain ownership of the rail network, operational control and financial input can be shared. To do so, there are various participation models, from track upgrades and terminal development to end-to-end corridor management. While the private sector could participate piecemeal in select parts of the rail network, we believe infrastructure rehabilitation must be approached as a whole. Fragmented efforts won't deliver the operational continuity, safety, and efficiency required; only a corridor-wide view can. Some stakeholders may choose to invest; others may wish to operate. What matters is alignment. Alignment of participants who can bring capital, capability and/or execution strengths to the table. No single entity can take on this scale of work alone, but the potential is already clear. During the RFI portal's open period, between 24 March and 9 May, the site drew 11,000 visits and generated 163 official responses to the RFI, the transport ministry revealed. The most effective influence will come from consortiums, blending the resources of miners, funders, original equipment manufacturers (OEMs), and logistics experts. Each must contribute more than just money. Deep expertise and delivery capacity will be critical. This all has to be collaborative. This is echoed by the industry players, who have made it clear that if they are to participate, there needs to be a fundamental mindset change. They want a say in how the railway line is funded, managed, and maintained. Without this level of system-wide influence, private players lack the investment security they desire, making participation far less attractive. The mining industry is not primarily motivated by financial gain from logistics operations; it wants predictability, efficiency, and transparency, which are all qualities currently in short supply. For freight users, the prize is a network that works: one that moves product efficiently to port, reduces reliance on road freight, and supports long-term growth. This is not just about trains. It's about national recovery. Decisions made over the next year will determine whether South Africa can restore lost export volumes, revive its mining heartlands, and reassert its economic potential. The forthcoming RFP is more than a procurement exercise; it's an opportunity to shape the future. The mining industry, investors and operators need to prepare now: understand the policy environment, assess the corridors, and consider where their strategic interests align. For the private sector, the moment to step in is now. Not to take over, but to build together. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
Yahoo
05-07-2025
- Business
- Yahoo
Here's What to Expect From Westinghouse Air Brake's Next Earnings Report
Valued at a market cap of $36.6 billion, Westinghouse Air Brake Technologies Corporation (WAB) delivers advanced technology solutions for the freight rail and passenger transit sectors. Headquartered in Pittsburgh, Pennsylvania, its offerings include diesel-electric and LNG-powered locomotives, engines, electric motors, propulsion systems, and equipment for marine and mining applications. The company is set to release its fiscal Q2 earnings before the market opens on Thursday, July 24. Ahead of this event, analysts expect WAB to report a profit of $2.17 per share, up 10.7% from $1.96 per share in the year-ago quarter. The company has exceeded Wall Street's earnings estimates in three of the last four quarters, while missing in another occasion. UnitedHealth Stock Is One of the Worst-Performing S&P 500 Stocks in 2025. Should You Buy the Dip? AI Isn't Just About Nvidia: 2 Rising Stars in the Artificial Intelligence Race 'It's a Miracle': Nvidia CEO Says Their New Technology Takes 'AI Supercomputing to a Whole New Level' Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! For fiscal 2025, analysts expect WAB to report a profit of $8.72 per share, up 15.3% from $7.56 in fiscal 2024. Shares of WAB have surged 35.7% over the past 52 weeks, outperforming both the S&P 500 Index's ($SPX) 13..4% rise, and the Industrial Select Sector SPDR Fund's (XLI) 22.8% surge over the same time frame. WAB shares surged 5.9% after the company reported its Q1 results on April 23. Revenue rose 4.5% year-over-year to $2.6 billion, slightly surpassing consensus estimates, driven by increased net sales across both of its operating segments. Adjusted operating margin expanded by 190 basis points, fueling a 14.1% year-over-year rise in adjusted operating income. Adjusted EPS came in at $2.28, marking a 20.6% increase from the prior year and beating Wall Street expectations by 13.4%. Wall Street analysts are moderately optimistic about WAB's stock, with a "Moderate Buy" rating overall. Among the 11 analysts covering the stock, six recommend "Strong Buy" and five advise 'Hold.' The mean price target for WAB is $216.40, indicating a marginal potential upside from current price levels. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
