A bit kinkily, that agreement is called a domination agreement in Germany. It defines a corporate power exchange.
Getting the necessary votes was easy. Volkswagen owns more than 75 percent of MAN. In the end, 98 percent of the shares voted Ja. Apart from trucks, MAN builds big diesel engines for ships and power plants. The company may not look like much to the untrained eye, but after Volkswagen passenger cars and Audi, MAN is the third largest brand at Volkswagen, says Automobilwoche.
Until now, Volkswagen did not count the approximately 150,000 MAN/Scania trucks sold worldwide as theirs. This is most likely to change, and could bring Volkswagen a step closer to a fulfillment of its world s largest automaker dream. The race is tight this year, and could become a bit tighter. 150,000 units more could bring Volkswagen perilously close to GM.
The London Congestion Charge is an unpleasant fact of life for the many motorists whose livelihoods necessitate them entering the City
It is an almost certain fact that this additional motoring tax will spread, like the bubonic plague, to other cities of Britain in the not too distant future
From July 2013 it will get worse as the cut-off point for exemption on the grounds of low emissions will be reduced from the present 100g/km to a demanding 75g/km
At a stroke, thousands of cars that were previously exempt will be liable to pay
The only recourse for owners is to either cough up or trade-up for to one of the super-low emission cars, all of which have one thing in common a mains plug
Just lately it seems that the furore surrounding electric cars has died down as the present limitations of electrical automotive technology are at this time seemingly insurmountable
Nevertheless the car makers are pressing on with a selection of models
Nothing wrong with these cars of course they are eminently suited to the urban life, but the spectre of limited range still hangs over them
There are about a dozen new plug-in electric cars that will beat the congestion charge and benefit from the government s grant scheme
Some have been around long enough to be appearing on the second hand market
It might make sense for road commuters to have two cars: one for work and something for the weekend, as it were
Possibly the best used car choices would be the Prius, the Ampera and the Leaf
The good old Toyota Prius has been with us for a while now and recent improvements have reduced the CO to a meagre 49g/km, easily beating the target
It can manage about fifteen miles on electricity alone so technically it could cross the City on battery juice alone
The Vauxhall Ampera was designed to be an extended range vehicle from the outset, so battery power is backed up by a small petrol engine, but for the London run should do the journey on a fresh charge
2012 models are slowly creeping onto the used market
Then there is Nissan s Leaf
It can manage over one hundred miles on a single charge in the right circumstances, although this would be reduced if power is consumed by ancillary equipment
The latest model is much better but if the canny owner can live with the limitations of the earlier version then it should do the job well
It doesn t matter which way Britain s motorists turn, they will still be confronted by some form of automotive taxation
Cars like those above may not be the first choice for driving fans but as work transport they will soon be the only way to go
(Handy Shipping Guide)
Gold Vanishes in Air Cargo Heist Whilst Technology Aids Enforcement
With another massive air cargo crime this week comes good news for road haulage freight truck operators as Heavy Vehicle Electronic License Plate Inc (Help), a not-for-profit public-private partnership dedicated to advancing the safety and efficiency of the transportation industry, has announced that it is to bolster its support of stolen cargo recovery efforts by delivering CargoNet theft alerts through the Automated Vehicle Identification (AVI) system, PrePass.
Firstly the story of a scheduled American Airlines flight from Guayaquil, Equador into Miami, Florida. The plane was disembarked in the early hours on Tuesday and five cargo handlers unloaded the freight carried aboard. Amongst the items was a single box containing $625,000 worth of gold. Closed circuit TV has the freight moved to the far side of the aircraft and shortly after shows a cargo tug passing the area, stopping and proceeding out of shot. The tug was found later several gates away and sworn statements from the staff on the tarmac state none know who was driving and, with the gold still missing, the FBI is appealing for information. Read more here1.
Headford Consulting is at present looking to employ Deep Sea Export Clerk on Thu, 16 May 2013 11:30:36 GMT. Job Title: Deep Sea Export Operator Location: Preston Brook/Runcorn Salary: ‘ 18,000 – ‘ 24,000 We are currently recruiting for an experienced Sea Freight Export Clerk in the Preston Brook area to work for a well established medium sized Freight Forwarder. The candidate we are looking for will be joining a small and friendly team handling a mixture of Sea Freight shipments worldwide covering both…
Location: Runcorn, England Description: Headford Consulting is at present looking to employ Deep Sea Export Clerk right now, this job will be situated in England. Further informations about this job opportunity kindly see the descriptions. Job Title: Deep Sea Export Operator Location: Preston Brook/Runcorn Salary: ‘ 18,000 – ‘ 24,000 We are currently recruiting for an experienced Sea Freight Export ! Clerk in the Preston Brook area to work for a well established medium sized Freight Forwarder. The candidate we are looking for will be joining a small and friendly team handling a mixture of Sea Freight shipments worldwide covering both imports. Duties will include: This is a fast paced role and will require a candidate willing to learn and adapt with the role. A candidate who possesses a strong backgrou! nd in Ocean Freight operations able to hit the ground running.! Previous experience of working for an NVOCC freight forwarder is essential for this role.- .If you were eligible to this job, please give us your resume, with salary requirements and a resume to Headford Consulting.
Location: Runcorn, England
Description: Headford Consulting is at present looking to employ Deep Sea Export Clerk right now, this job will be situated in England. Further informations about this job opportunity kindly see the descriptions. Job Title: Deep Sea Export Operator Location: Preston Brook/Runcorn Salary: ‘ 18,000 – ‘ 24,000
We are currently recruiting for an experienced Sea Freight Export ! Clerk in the Preston Brook area to work for a well established medium sized Freight Forwarder. The candidate we are looking for will be joining a small and friendly team handling a mixture of Sea Freight shipments worldwide covering both imports.
Duties will include:
This is a fast paced role and will require a candidate willing to learn and adapt with the role. A candidate who possesses a strong backgrou! nd in Ocean Freight operations able to hit the ground running.! Previous experience of working for an NVOCC freight forwarder is essential for this role.- .If you were eligible to this job, please give us your resume, with salary requirements and a resume to Headford Consulting.
Interested on this job, just click on the Apply button, you will be redirected to the official website
This job will be started on: Thu, 16 May 2013 11:30:36 GMT
Official provider for import logistics to supply the new plant in the city of Ponta Grossa in Brazil
Berlin/Essen/S o Paulo, May 15, 2013 DB Schenker in Brazil has been chosen as the preferred logistics service provider of DAF Trucks. The Brazilian arm of the global logistics provider will be responsible for export consolidation, supply-chain visibility and import logistics in support of DAF Brazil s new truck assembly plant in the city of Ponta Grossa in the state of Paran . DB Schenker will be responsible for the door-to-door air and ocean transportation between DAF Brazil s European supply-base and the Brazil assembly plant. Further, DB Schenker will be responsible for the Brazilian customs clearance and final delivery.
According to Tim Horton, Global Account Manager for PACCAR (DAF s parent company), DB Schenker will also provide the DAF Brazil materials planners with a purchase order management solution and detailed supply-chain visibility utilizing the premium Integrated Cargo Management tool, Scout . This premium supply-chain visibility tool was a key factor in PACCAR s decision to choose DB Schenker as their preferred logistics service provider for the new plant , Horton says.
DB Schenker participated in the DAF Brazil European Supplier Days Event in Eindhoven in the Netherlands, the world headquarters of DAF in October 2012. For five days, DB Schenker and DAF presented Brazilian customs and documentation requirements to more than 180 European suppliers kicking-off the logistics implementation for the new plant.
According to the Chief Operating Officer of DAF Trucks in Brazil, Luiz A. De Luca, the decision to work with DB Schenker in Brazil allows to further develop and expand the global partnership that DB Schenker has with PACCAR and DAF in other countries. Surely we have a quality partner in DB Schenker to support our international logistics processes and to bring our components from Europe with a focus on quality on-time service, so that we can introduce our brand in Brazil with great success , so Horton.
To National Sales Manager of DB Schenker in Brazil, Clara Beuttenm ller, this partnership with DAF Trucks reinforces the company s goal of bringing innovative solutions to the automotive industry in Brazil. The logistics for the supply of the DAF plant in Ponta Grossa is not limited to effectiveness on meeting production deadlines, consolidation processes and transport. It also illustrates our vendor management and supply-chain visibility solutions throughout the globe, with dedicated teams in the Netherlands and Paran operating as Control Towers to ensure quality in the logistics process from beginning to end, she says.
To manage the entire import process, DB Schenker will provide a dedicated team to meet the needs of DAF Brazil in Ponta Grossa.
About DB SchenkerDB Schenker has more than 95,000 employees in 130 countries and over 2,000 offices present in the main economic centers of the world. In Brazil, Schenker do Brasil Transportes Internacionais Ltda. operates since 1973 and has over 590 employees at ten offices across the country, as well as highly qualified partners in major cities in Brazil.
About DAF TrucksDAF is a leading truck brand in Europe with 16% market share above 16 tons. DAF is also a leader in tractors in Europe.In 2011 PACCAR announced an investment of $ 200 million in the construction of the new plant DAF Trucks with technology in Ponta Grossa, Paran . The plant will produce models DAF XF, CF and LF for the Brazilian market. The plant will begin operations in September 2013 and will produce 10,000 trucks per year at full capacity.PACCAR is a global leader in technology, design, production and customer service for light, medium and heavy, high quality trucks, under the names Kenworth, Peterbilt and DAF. PACCAR also designs and manufactures advanced diesel engines, provides financial services and information technology and distributes truck parts related to its principal business. PACCAR shares are traded on the Nasdaq Global Select Market under the symbol PCAR, and the company website is www.paccar.com1
SOURCE: Submitted by DB Schenker
- DB Schenker to be European Logistics Service Provider for SolarEdge10
- DB Schenker and BMW cooperate for high quality service in Japan11
- DB Schenker wins Best Road Haulier and Green Service Provider in Asia Pacific12
- Continental and DB Schenker Logistics signed contract about warehousing on the Philippines13
- DB Schenker Logistics Expands Innovative Transport Monitoring Service14
- ^ www.paccar.com (www.paccar.com)
- ^ www.dbschenker.com/presse (www.dbschenker.com)
- ^ 3PL (www.logisticsmatter.com)
- ^ DB Schenker (www.logisticsmatter.com)
- ^ Distribution (www.logisticsmatter.com)
- ^ Freight (www.logisticsmatter.com)
- ^ Logistics (www.logisticsmatter.com)
- ^ Warehousing (www.logisticsmatter.com)
- ^ http://www.logisticsmatter.com/2013/05/15/db-schenker-signs-service-contract-with-daf-trucks/ (www.logisticsmatter.com)
- ^ DB Schenker to be European Logistics Service Provider for SolarEdge (www.logistic-partners.com)
- ^ DB Schenker and BMW cooperate for high quality service in Japan (www.logistic-partners.com)
- ^ DB Schenker wins Best Road Haulier and Green Service Provider in Asia Pacific (www.logistic-partners.com)
- ^ Continental and DB Schenker Logistics signed contract about warehousing on the Philippines (www.logistic-partners.com)
- ^ DB Schenker Logistics Expands Innovative Transport Monitoring Service (www.logistic-partners.com)
Posted on 14, May 2013
According to statistics from ICEX, Idescat, The World Trade Organization and the Export1 Climate survey from ACC1 ‘, over 45,000 Catalan companies were encouraged to export their products in 2012 and of these, approximately 14,000 are regular exporters today. This means that currently, exports represent a 28,1% of the Catalan GDP and it is estimated that this percentage will continue to increase in the coming years so entrepreneurs will increase their interest in sell and promote their products in other countries, especially in emerging markets such as Latin America, where the economic growth is evident.
During 2012 Catalan exports to Latin America increased a 21% being the main recipient countries Argentina, Venezuela, Mexico2, Peru and Colombia. It is also estimated that although most of the exports are from major Catalan companies, Latin America represents a great opportunity for small and medium businesses that intend to extend their export process and can take advantage of the catalan prestige that large enterprises have left in this area.
The main export sectors are chemicals and pharmaceuticals with 25.9%, automotive with 16.5%, agri-food with 11.6%, textile, metallurgical and machinery with a 6.4% each, and finally the electricity sector with 4.7% With the publication of this figures, the Catalan Government seeks to encourage other sector and entrepreneurs to increase their exports.
Tuscor Lloyds is a global freight forwarder and shipping agent specialising in the transportation of project cargoes. Our team of break bulk, out of gauge, abnormal load and multimodal specialists have the skills and resources to transport cargo to some of the worlds most remote destinations.
As businesses globalize worldwide, import-export services are becoming intensive. Form transportation of raw materials to finished goods, premium logistics services are required. To cater to varied demands of diverse businesses, numerous companies provide reliable supply chains to varied sectors.
In India, there are also many logistics services provider in Mumbai who have a reputation for providing safe and cost-effective conveyance for the transportation of goods anywhere in the country. These kinds of services are made depending upon the varied business and personal needs of the clients. These companies provide leak proof robust containers of all size for carrying and distributing sensitive or perishable or delicate or aggressive fluids to the desired locations. The entire tanks range provided by them are ISO certified.
Besides these, there is an option for the best fleet of cars to accommodate and transport all kinds of goods to the right addresses. This premium service is offered to the clients at the industry leading prices. These cars are safe to transport all goods as they keep a check on their routes with the help of their advanced network branches spread all over the country. Hence there is no chance of any wrong doing while using these services.
The option for freight forwarding companies in mumbai is also worth using. They provide international freight management services to clients as per their varied requirements. These companies have designed door to door solutions for freight forwarding using the best and economical routes. All these are done to offer more quality export and import services via sea and air routes. These kinds of services have been very useful in handling custom clearance of the clients. Highly competitive tariff structure is designed for ocean freight services to covers all delivery requirements of the clients from varied market sectors.
These services involve analysis of various goods or tasks assigned for transportation. This assists to find the most economical and safe routes for the delivery of task. Best vehicles fleet is offered within the nation to cover all coastal regions. For this they have associated with the world’s most experienced agents to offer quality logistics solutions for all international freight forwarding.
The negotiated rates these companies are the best and help clients in the custom clearance and documentation process. Moreover, they analyze to compare different shipping lines for freight forwarding. Various air freight management solutions provided by the companies help in shipping all cargo to major international airports. The expert customs clearance procedures offered to clients for clearing their cargo in India, both export and import are just fabulous. They use the unmatched expertise of various freight forwarders to assist clients in clearing their cargo any where across the globe. So use these cost effective logistics and international freight management services to have exceptional freight forwarding services experiences.
The author of this article is an experienced writer. He has written many informative articles on various topics. In this article you can find valuable information about logistics services providers in mumbai1.
Consistent with the current macroeconomic trends, railroads started the year on a mixed note. Going by the rail traffic report for the first quarter 2013, growth in automotive and petroleum products shipments was steady while coal and grain shipments continued to cast a shadow over the rail freight industry.
According to the Association of American Railroads (AAR) rail traffic report, cumulative performance of the North American railroads (including U.S., Canadian and Mexican railroads) have fallen 1.5% year over year in the first quarter of the year. The biggest contributor to this decline was grain, which dropped 11%. Coal volumes followed closely, falling around 7%.
Going by the quarterly performance of the class 1 railroad, we see continued lower volumes from most of these carriers. One of the largest class 1 railroads in North America — Union Pacific Corp. ( UNP1 – Analyst Report2 ) — registered first quarter volume decline of 2% year over year. Another major railroad CSX Corp. ( CSX3 – Analyst Report4 ) also reported a similar level of decline in its volumes. Going forward, Canadian counterpart, Canadian Pacific Railway Ltd. ( CP – Analyst Report5 ) also experienced lackluster growth trend with flat volume growth on a year-over-year basis.
However, railroad operators like Kansas City Southern ( KSU6 – Analyst Report7 ) , Norfolk Southern Corp. ( NSC8 – Analyst Report9 ) and Canadian National Railway Company ( CNI10 – Analyst Report11 ) have shown modest volume growth, mainly driven by the emerging automotive business and rising petrochemical shipments.
Notably, despite mixed carload results, these carriers have mostly generated positive earnings in the reported quarter. The primary catalyst to this bottom-line performance was operational efficiency even in times of low market demand. Rising employee productivity, deploying fuel-efficient locomotives and undertaking railroad safety measures are some of the key drivers of profitability even in adverse market conditions.
Rail carriers like Canadian Pacific recorded operating ratio improvement of 430 basis points year over year. Continued focus on maintaining asset efficiencies, safety measures and increased productivity have been the prime contributors to Canadian Pacific s success in the first quarter. There are several other near-term growth catalysts in the railroad industry.
Rising Contribution of Petroleum Product Shipment
According to the AAR report, rail traffic from petroleum products has seen a whopping 46% growth in the three-month period ended Mar 30. According to the Energy Information Administration s (EIA) reports, U.S. crude oil exceeded 7 million barrels per day production, representing record growth since the last two decades. Further, in 2013, long-term projections of EIA suggest that this growth may also go up to 10 million barrels per day over a period of 2020 to 2040.
As a result, this surge represents a potential opportunity for revenue accretion, which the railroads are trying to tap with infrastructural development. According to industry sources, the role of crude oil as a revenue contributor has grown by leaps and bounds in a four-year span from a mere 3% to 30% of the oil and petroleum products shipment by railroads.
Despite the fact that rail-based crude transportation costs five times more ($10 $15 per barrel), crude shippers are compelled to rely on rail-based transport. This is due to the lack of pipeline infrastructural support in key oil and gas fields like Bakken Shale Formation in North Dakota and Montana, Eagle Ford Shale, Barnett Shale and Permian basin in Texas, the Gulf of Mexico and Alberta oil sand fields in Canada.
In 2012, Canadian National Railway, which operates along the Western Canada (Alberta region) to the Gulf Coast, has shipped approximately 30,000 tank cars of volumes of crude oil, while its counterpart Canadian Pacific shipped 53,000 tank cars of crude during the same period. Another giant railroader, BNSF Railroad of Berkshire Hathaway Inc. (BRK-B), which serves the North Dakota region reportedly earned $272 million from crude shipments last year by shipping approximately 100 million barrels of oil.
In the coming days, we expect railroads to accelerate their investment in order to create adequate service capacity for the oil and gas markets. Canadian Pacific projects crude shipment to reach up to 70,000 oil-tank cars by the year-end and move to 140,000 by the end of 2015. This kind of exponential growth in crude oil shipments is taking place across the rail industry. Consequently, we expect petroleum shipments to remain favorable and emerge as a significant revenue contributor in the long term.
Currently, Mexico is a growing market for automotive production and assembly given the lower cost of production there. As a result, markets sources predict that in the coming years, auto manufacturers are expected add capacity to accelerate manufacturing by 600,000 additional vehicles per annum. In the first three months of 2013, auto shipments by rail in Mexico increased 4.6% while in the U.S., auto shipment via rail rose about 2%. This counterbalanced the 1% drop in rail auto shipments in the Canadian market.
We believe upcoming plants by Honda Motor Co., Ltd. (HMC12), Nissan Motor Co. (NSANY13), Mazda and Audi would further boost auto production in Mexico. The facilities would also bode well for automotive shipments. Based on these proposed expansion plans, finished vehicle production in the Mexican market is expected to reach 3.5 million units in 2015, up about 35% from the 2012 production level.
The growth will provide carriers like Kansas City Southern, which operates across the Gulf of Mexico, ample opportunities to ship raw material into Mexico and return the finished products to the domestic market as well as to the U.S. and Canada. The increase in automotive production is also giving rise to new steel plants and processing centers across the company s service networks. These steel plants are likely to bring opportunities for steel shipments and other related products.
However, in the coming year, the growth can be slightly muted by the onslaught of the fiscal cliff. According to market reports, auto sales may see single-digit growth due to a change in consumer behavior owing to the U.S. tax policy changes. If the situation improves on the macro front, there should not be a cyclical downturn in the way of automotives.
The railroad industry is gaining largely from the ongoing conversion of traffic from truckload to rail intermodal. Intermodal is gaining popularity among shippers given its cost effectiveness over truck. On average, railroads are considered 300% more fuel-efficient than trucks, and we believe that intermodal will play an important role in driving the rail industry based on the growing awareness among shippers about its benefits.
Currently, rail intermodal accounts for over 20% of the railroads revenue, second in line after coal. In the coming years, we expect this contribution to only rise given the growing dependence of shippers on intermodal services.
Apart from these positives, other factors likely to have a material impact on Railroads near-term, top and bottom line growth include:
Coal represents important commodities and accounts for over 40% of railroad tonnage. According to EIA reports, coal production hit lows of 9.9 million short tons (MMst) in first quarter 2013, representing a steep decline from 22.7 MMst in the year-ago quarter. As per AAR reports, coal shipments by rail also continued to decline 8% in the U.S. market. The decline was partially offset by 11% and 9% growth in rail shipments in the Mexican and Canadian markets, respectively.
Domestic coal demand, of which utility coal accounts for approximately 93%, is witnessing persistent declines. Lower natural gas prices imply that gas is largely substituting the demand for utility coal. Additionally, higher stockpile levels have resulted in lower utility coal demand. Besides, natural gas prices, another important factor that resulted in the decline of coal-powered plants are the environmental issues associated with coal burning.
However, in 2013, coal consumption in the domestic market is expected to grow 7% year over year to 948 MMst and reach up to 957 MMst in 2014 on the back of rising natural gas prices.
On the export front, the scenario remains entirely different. After reaching highs of coal export in 2012 (126MMst), EIA projects U.S. coal exports to decline 15% year over year to 107 MMst in 2013. However, 2014 may show modest improvement with exports of 109 MMst. Factors like an economic overhang in European markets, lower U.S. coal pricing, higher stockpile levels and increased exports from Indonesia as well as a recovery in the Australian mines are the primary reasons for the expected decline.
Since 2012, the Grain market has been experiencing lows due the drought in the Mid-West markets. The outlook for 2013 is also not encouraging enough to elevate rail freight shipment from its current lull.
According the rail traffic report of AAR, North American grain shipment registered a decline of almost 11% in the first three months of 2013, which was partially offset by 24.6% growth in Mexican grain shipment. In April, the U.S. Department of Agriculture (USDA) released the World Agricultural Supply and Demand Estimates (WASDE) report, which states that total U.S. corn demand, will go down by 11.1% from the year-ago level.
U.S. corn exports will hit a low of 48.2% from last year with use of ethanol decreasing 9.2%. We believe that the impact of lowered estimates would be felt on railroad shipment as rail freight serves the majority of export shipment in the crop market.
Investment in development and expansion plans remain critical when analyzing railroads prospects. These capital investments are a double-edged sword. While the investments put significant stress on margin performance, forgoing these would result in a loss of growth prospects.
Railway investments are paramount given the evolving supply chain management and increasing role of airfreight carriers in offering freight transportation services. These investments build the required infrastructure needed for railways to stay afloat in a competitive environment not only within the railroad industry but also with other modes like truck, barges and cargo airlines.
As a result, investments in infrastructural projects have been an integral part of railroads development. However, this sector, characterized by huge capital influx has been drawing funds primarily through private financing.
As a result, investment plans when undertaken can have a considerable impact on the liquidity position of the company and may lead to a highly leverage balance sheet. According to AAR reports, railroads invest approximately 17% of their annualized revenue, which compares with only 3% of average U.S. manufactures revenue on capital expenditures.
According to the Department of Transportation (DOT), the demand for rail freight transportation will increase approximately 88% by 2035. As a result, Class I carriers would have to expedite their investments to meet this growing demand.
It is estimated that railroads would require $149 billion to improve rail network infrastructure within this stipulated period. In respect of current investment requirements, railroads would invest about $24.5 billion in 2013 according to AAR. This figures project an escalating trend when compared with recorded investment of $23 billion in 2012 and $12 billion in 2011 as per AAR.
Given the growing demand and need to upgrade railroad infrastructure to meet new regulations, deployment of fuel-efficient locomotives, upcoming rules on track sharing, railroad safety and high-speed rail services make it mandatory for railroads to infuse more capital on development projects. According to DOT, almost 90% of the railway capacity needs to be upgraded to meet the expected rise in demand level by 2035. Hence, for railroads it is important to balance profitability levels while investing in infrastructural development projects.
Currently, the U.S. railroad industry dominates less than 50% of total freight in America , indicating a huge opportunity for increasing market share. This opportunity can only be exploited by building railroad infrastructure that caters to the varied requirements of shippers.
The railroad industry as a whole offers a number of opportunities that are difficult to ignore from the standpoint of investors.
Discretionary Pricing Power: The freight railroad operators function in a seller s market and have enjoyed pricing power since 1980, when the U.S. government adopted the Staggers Rail Act. The idea was to allow rail transporters to hike prices on captive shippers like electric utilities, chemical and agricultural companies in order to improve profitability of the struggling railroad industry. As a result, of the Staggers Rail Act, railroads are hiking their freight rates by nearly 5% per annum on average, while maintaining a double-digit profit margin.
Duopolistic Market Structures: Railroads have by and large gained by practicing discretionary pricing in the freight market. In the prevailing duopolistic rail industry, railroad operators will be able to reap maximum benefits from rising prices when the overall demand grows.
This remains evident from the geographic distribution of markets between major railroads. Union Pacific and Burlington Northern Santa Fe control the western part of the U.S., while CSX Corp. and Norfolk Southern control the eastern part. On the other hand, Canadian Pacific and Canadian National control inter country rail shipment between the U.S. and Canada.
Despite the above mentioned positives, the freight railroad industry, like other industries, faces certain external and internal challenges. These are as follows:
Capital Intensive Nature: Railroad is a highly capital intensive industry that requires continued infrastructural improvements and acquisition of capital assets. Moreover, industry players access the credit markets for funds from time to time. Adverse conditions in credit markets could increase overhead costs associated with issuing debt, and may limit the companies ability to sell debt securities on favorable terms.
Positive Train Control Mandate: The Rail Safety Improvement Act 2008 (RSIA) has mandated the installation of PTC (Positive Train Control) by Dec 31, 2015 on main lines that carry certain hazardous materials and on lines that involve passenger operations. The Federal Railroad Administration (FRA) issued its final rule in Jan 2010, on the design, operational requirements and implementation of the new technology. The final rule is expected to impose significant new costs for the rail industry at large.
Price Regulations: The pricing practices of U.S. freight railroads are the major reasons of friction with captive shippers, who move their products through rail and do not have effective alternatives. According to the latest studies by the STB, approximately 35% of the annual freight rail is captive to a single railroad, allowing it monopoly pricing practices.
The unfair pricing power exhibited by the U.S. railroads has attracted congressional intervention for exercising stringent federal regulations on railroads. Congress has discussed railroad price regulation but has not passed any new rule so far.
U.S. Environmental Protection Agency: Railroads remain concerned about the proposed regulation by the U.S. Environmental Protection Agency (EPA) for power plants across 27 states. The proposed guideline Carbon Pollution Standard for New Power Plants aims at restricting emission of carbon dioxide by new power plants under Section 111 of the Clean Air Act. The standard proposes new power plants to limit their carbon-dioxide emission to 1,000 pounds per megawatt-hour.
Power plants fueled by natural gas have already met these standards but the majority of the units using conventional resources like coal are exceeding the set limit, as they emit an average of 1,800 pounds of carbon-dioxide per megawatt-hour. Railroads, which transport nearly two-thirds of the coal shipment, are most likely to be impacted by the implementation of the new regulation that could pose a significant threat to utility coal tonnage.
- ^ UNP (www.zacks.com)
- ^ Analyst Report (www.zacks.com)
- ^ CSX (www.zacks.com)
- ^ Analyst Report (www.zacks.com)
- ^ Analyst Report (www.zacks.com)
- ^ KSU (www.zacks.com)
- ^ Analyst Report (www.zacks.com)
- ^ NSC (www.zacks.com)
- ^ Analyst Report (www.zacks.com)
- ^ CNI (www.zacks.com)
- ^ Analyst Report (www.zacks.com)
- ^ HMC (www.zacks.com)
- ^ NSANY (www.zacks.com)
Ed Dahlberg of Clifton turned himself in to Fairfax County Police at around 9 p.m. on Wednesday, and was served with a misdemeanor assault charge, according to Fairfax County Police.
Dahlberg is charged with assaulting a taxi driver and fleeing the scene on foot in the early morning of Friday, April 26.
The 39-year-old taxi driver, Mohamed Salim, is Muslim, and claims that Dahlberg compared him to the Boston Marathon bombing suspects and repeatedly punched him, resulting in a fractured jaw, a head injury and hearing loss.
Salim, a US Army veteran, picked up Dahlberg at the Country Club of Fairfax2 on the early morning of Friday, April 26. The cab driver took 11 minutes of video of Dahlberg drunkenly arguing over Muslim extremism3 and provided the video to the Washington Post.
If you re a expletive Muslim flying jets into the World Trade Center, then expletive you, I will slice your expletive throat right now, Dahlberg said.
Dahlberg then knocked the phone away as Salim tried to call the police. Dahlberg then fled the scene on foot.
That may be the end of the video, but not the story.
“After the recording Dahlberg got out of the car, and (Salim) said, ‘I’m going to call 911,’ and he (Dahlberg) gets back into the car, called the suspects in the Boston Marathon bombings his cousins and punched him a couple more times before running into the woods,” said Salim’s attorney Gadeir Abbas of the Council on American-Islamic Relations.
Salim refused treatment at the scene, and drove himself to INOVA Fair Oaks Emergency Department.
The hospital report shows that Salim had a fractured jaw and a head injury. No specifics were available on the extent of the head injury. Salim, who also complained of pain in his right ear, was then prescribed with pain killers, which warn that he not drive or operate heavy machinery.
Abbas is working for the Commonwealth’s Attorney to get Dahlberg’s potential sentencing over the alleged assault increased by classifying it as a hate crime.
“At this point what Mohamed is focused on is seeking justice in this case through the criminal justice process, and here a local prosecutor can send a message that active acts of violence against muslims are out of place in Virginia,” said Abbas, adding that Salim is weighing options on whether to file a civil suit against Dahlberg.
Aiming to quell community concern, the company behind a controversial 33-acre trucking and distribution center on the Los Alamitos-Cypress border plans to cut the number truck bays at the planned site, a spokesman said.
Industrial developer Prologis1 will to drop some of the 129 truck bays originally proposed for the planned facility at Katella Avenue and Enterprise Drive in Cypress, according to Atle Erlingsson, vice president of Prologis corporate communications.
Our ultimate goals here is to develop a property that s welcomed, said Erlingsson, who announced the company’s new proposal Monday. Erlingsson said it was in response to community feedback.
We re looking to make a considerable decrease in the number of truck bays, he said.
Erlingsson said it would be several weeks before he would know the exact number of truck bays would decrease.
The project has been a contentious issue for a number of residents in Garden Grove, Los Alamitos, Rossmoor and Cypress, who say the plan would intensify traffic, damage streets and increase pollution posing health risks, especially for children.
Erlingsson said that the facility would be a boon to the local business community and would be LEED certified2. He added there was much misinformation about the project, including its economic, social and environmental impacts and even the projects description: it s a distribution center, he said, and not a truck depot.
We should point back to our track record, Erlingsson said. (We build) all high-quality, class-A facilities. We only build the best of the best.
Recently the Los Alamitos City Council voted 5-0 to oppose the development.3 Officials, also told the city manager and the city attorney to begin taking actions to protect the city” from the proposed development.
Cypress officials did not respond to calls for comment Monday afternoon.
Los Alamitos Councilman Richard Murphy said didn t he know if the proposed change in the site plan would change his opposition to the project.
It would have to be a dramatic decrease, Murphy said. (And) I m not sure that that (Prologis statement about truck bays) gives us any guarantee of reduction in the amount of trucks going in.
Murphy said he wants more information, which won t be forthcoming until Cypress releases the results of its report on the possible effects of the project on the surrounding community.
We re going to wait and see until the environmental impact report comes out, Murphy said. I imagine when that comes out, there s going to be feathers flying everywhere.
Lois Waddle, a resident of Los Alamitos Carrier Row just across the street from the planned facility, is one of the activists protesting the project.
To the 40-year Los Alamitos local said even one truck bay is too many.
No trucks. No commercial trucking. No bays, said Waddle, a retired realtor and teacher.
Waddle, who hopes Cypress will turn the area into a park with recreation or community centers, said she doesn t want to see the traffic, pollution and noise the project would generate.
I just can t see that they would intentionally destroy this land when it could be something so beautiful, Waddle said.
She said that locals can check out more about protests against the project at OC4us.com
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- ^ Prologis (www.prologis.com)
- ^ LEED certified (www.usgbc.org)
- ^ Council voted 5-0 to oppose the development. (losalamitos.patch.com)
- ^ The Rossmoor Homeowner s Association has opposed the plan (losalamitos.patch.com)
- ^ recent scoping meeting (losalamitos.patch.com)
- ^ Cypress City Council meeting. (losalamitos.patch.com)
- ^ other top stories here (losalamitos.patch.com)
- ^ Facebook (www.facebook.com)
- ^ Twitter (twitter.com)
- ^ daily email (losalamitos.patch.com)