Rail Renaissance - Wall Street Journal

Today, The Wall Street Journal had two items of concern to the railroad industry. One is an article describing the new business such as Bakken Crude that the industry enjoys, but followed be an editorial endorsing the Keystone Pipeline, which if laid, would adversely affect Bakken Crude rail traffic:

http://online.wsj.com/article/SB1000142 ... 91132.html

Brief passage:

• Welcome to the revival of the Railroad Age. North America's major freight railroads are in the midst of a building boom unlike anything since the industry's Gilded Age heyday in the 19th century—this year pouring $14 billion into rail yards, refueling stations, additional track. With enhanced speed and efficiency, rail is fast becoming a dominant player in the nation's commercial transport system and a vital cog in its economic recovery

While the article outlines the capital expenditures for five of the seven Class I's and is informative on the strength of that, it really consisted of "softball journalism". Several industry spokesmen were interviewed - including one from the American Trucking Association. I doubt if much "ground was broken" with those who follow industry affairs.

But alas, "The Journal is The Journal" and while I sincerely respect any publication that has a strong "firewall" between reporting of the news and expression of opinion by either columnists or an editorial board, it seemed incongruous that, on the same day, that an optimistic article appeared, there also appeared an editorial urging that the Keystone Pipeline be laid:

http://online.wsj.com/article/SB1000142 ... 53732.html

Brief passage:

• Four government environmental impact statements in the last five years have concluded that the 1,700-mile pipeline would present no significant harm to the environment. The Alberta oil sands produce a mere 0.01% of the world's carbon emissions, and the crude will find its way to foreign markets one way or another. If not via pipeline, then by tanker or rail, whose emissions could exceed Keystone's.
  
  The Senate vote is symbolic since the budget outline lacks the force of law. Still, the vote reflects the growing bipartisan consensus that a private investment creating tens of thousands of jobs trumps the scare tactics of environmentalists. The politician out of the mainstream here is Mr. Obama.

Obviously I disagree with this Editorial position. The roads are gearing up "to handle it" - every time I observe a tank car unit train pass through by my MP 18.34 and placarded 1267, I know I am looking at business the industry did not enjoy in any volume earlier than the past three years. Industry stakeholders will welcome it if this business stays on the rails.

Addendum Mar 28: incidents such as this are "not needed" at this time:

http://online.wsj.com/article/SB1000142 ... 83532.html

disclaimer: author holds long positions CSX KSU UNP