More Flourishers than Faders
Chief executive officers (CEOs) of Class I railroads expect growth in a number of areas in 2014, citing transportation of crude oil, drilling materials, and grain as contributors to business. Coal, lumber, and paper products are expected to be among the weaker products. 2014 is likely to be a year of ups and downs, though many CEOs expect to see more ups than downs. Concerns include potential regulatory changes that may impact competition and operations. The improving U.S. housing market will support growth of the intermodal sector, as well as the transportation of construction materials. The intermodal sector has improved in recent years due to shortened travel times. Despite the recession of the last few years, many CEOs predict expansion to come in 2014.