For All Rail Freight, Amtrak's Fight With The Union Pacific Signals More Change

Summary

• Amtrak's lawsuit against the Union Pacific Railroad seems to be a test case, which if won, could spread to all the major freight railroads.
• We sense that Amtrak will win, further pushing haulers toward a more tenable long-term financial model.
• Short-term results for the majors might be volatile with the likely coming changes.
• Without firm plans in place, we would avoid buying for long-term investing, Union Pacific or CSX.
• When the dust settles from the East Palestine derailment, investors might consider buying Norfolk Southern with its well-thought-out change in vision.

chameleonseye/iStock via Getty Images

With many headline freight train derailments and clashes between Amtrak and host railroads including the Union Pacific (UNP) particularly along the former Southern Pacific Sunset route, freight railroad business models may once again be push

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