Author Topic: Class 1 service ratings  (Read 449 times)

ckpcpqq

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Class 1 service ratings
« on: January 24, 2019, 10:31:58 PM »
Railway Age magazine has published the results of a 4th quarter survey of rail shippers concerning quality of service by the seven Class 1 roads.  They were asked to rate service as either excellent, good, fair or poor.  Here are the results, along with several other rated topics concerning rates, rail vs. truck, etc. 

https://www.railwayage.com/freight/class-i/rail-service-improving-cowen-4q18-shipper-survey/

Briefly, for each Class 1, here is the percentage of shippers who classified its service as excellent or good:

BNSF:   76%
KCS:     73
UP:       64
CSX:     63
CP:       62
CN:       58
NS:       51

Maybe it's just coincidence, but the highest rated road is also the only one that has not adopted some form of PSR.


Kim_Heusel

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Re: Class 1 service ratings
« Reply #1 on: January 24, 2019, 11:17:41 PM »
Maybe it's just coincidence, but the highest rated road is also the only one that has not adopted some form of PSR.

And also not beholden to Wall Street.

Kim Heusel

IU_Tower

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Re: Class 1 service ratings
« Reply #2 on: January 25, 2019, 12:20:01 AM »
And also not beholden to Wall Street.

Kim Heusel

Just owned (indirectly) by Warren Buffet & Berkshire Hathaway.....

crblue

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Re: Class 1 service ratings
« Reply #3 on: January 25, 2019, 06:23:42 AM »
I think the distance from Wall Street has more to do with this result than PSR. BNSF railroad's parent company is a wholly owned subsidiary of Berkshire Hathaway. It's been reported elsewhere that BNSF writes Berkshire Hathaway a check on, I believe, a quarterly basis. It sounds like a situation of as long as the checks keep coming, in B-H pretty much leaves BNSF management to run the railroad as they see fit. BNSF management isn't constantly worried about their short term stock price or what the Wall Street analysts say about them. That said, BNSF Executive Chairman Matt Rose is retiring in April. His replacement may take the railroad in a different direction.

What I find more interesting about this survey is that CSX, CN, and CP, which have all had the benefit of EHH's wisdom, are grouped fairly tightly in the middle of the ranking while NS, which only recently started implementing facets of PSR, is firmly at the bottom.

ckpcpqq

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Re: Class 1 service ratings
« Reply #4 on: January 25, 2019, 10:45:33 AM »
I think the distance from Wall Street has more to do with this result than PSR. BNSF railroad's parent company is a wholly owned subsidiary of Berkshire Hathaway.

Well, the two themes are connected.  Because BNSF is not a separate, publicly traded corporation, it feels no pressure from Wall St types to move to PSR as a way of improving their operating ratio to what those "experts" consider an acceptable level.

Also, unlike CP and CSX, BNSF is immune to corporate raiders.