(Reuters circulated the following on May 26, 2011.)
NEW YORK — A recovering U.S. economy and rising fuel prices are giving the nation’s railroads a chance to muscle in on what long has been trucker’s turf — the shipment of consumer products.
Big companies including Union Pacific Corp (UNP.N) and CSX Corp (CSX.N) are stepping up their investment in intermodal shipping — handling the 53-foot boxes that are moved expeditiously from ship to truck to train around the world, carrying goods from appliances to toys.
Taking advantage of rising fuel prices — U.S. diesel costs have surged some 32 percent over the last year — railroad executives are looking to snag more business from their trucking rivals.
That marks an expansion from railroads’ traditional strong suit, hauling bulk commodities such as coal and grain.
Full story: www.reuters.com