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catoismymotor (36.70)

2014: A boost to Norfolk Southern?

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August 19, 2010 – Comments (3) | RELATED TICKERS: NSC , GWR , KEX

If everything in this article from NPR is accurate in 2014 a new wider lane will open in the Panama Canal and the only port on the eastern seaboard that can accomodate these largest of the large freighters is Norfolk, Virginia. Savannah, Charleston and New York City are not prepared to handle the size of these ships. It will take years, maybe most of a decade, for environment impact studies to be performed before any action is taken to dredge river bottoms, move bridges and contruct new docks at these three other cities.

My conclusion: With the increased traffic that will be coming into and leaving Norfolk, Virginia I may wager (put money where mouth is) that Norfolk Southern will see a major increase in business as a result. I have not looked into whether or not Genesee Wyoming operates in coastal Virginia but if they do I am sure they would handle some increase in traffic along with trucking companies that do business in the local area.

Captain Cato

 

3 Comments – Post Your Own

#1) On August 19, 2010 at 7:00 PM, blesto (31.75) wrote:

Hey Captain Cato!

Good article. I think a company like Great Lakes Dredge & Dock Corp (NASDAQ:GLDD) should benefit also.

Cheers

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#2) On August 19, 2010 at 11:36 PM, catoismymotor (36.70) wrote:

Admiral Blesto,

Great point!

Captain Cato

 

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#3) On October 12, 2010 at 2:28 AM, soupron (< 20) wrote:

Cato, Great article, I live just off a NS track that hauls Cat. large mining trucks and scrapers out of their Decatur, Ill. plant. Cat mining business is very good, and Ford is selling the new Tuarus out of south Chicago, and one of there suv out of St Louis, so NS is staying busy on that plus its usual commodities from the grain harvest that comes out of this area which is quit large. 75 to 100 car trains are not unusual made up of nothing but grain cars. NS I think is doing well and can only get better with your input. Thks soupron

 

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