Rail Transportation

More than 500 customers across nearly every segment of the American freight economy have publicly backed the proposed Union Pacific and Norfolk Southern combination, with support growing through recent Surface Transportation Board filings. Recent filings included more than 150 new letters from customers, first responder organizations, community leaders and elected officials, adding to the more than 2,000 statements submitted with the railroads' amended application. Twenty-three new shippers from industries including agriculture, energy, fertilizer, forest products, food and automotive cited benefits of a single, integrated coast-to-coast rail network, including expanded market access, stronger supply chains, improved reliability and new growth opportunities. Union Pacific and Norfolk Southern say the combined railroad, described as America's first seamless coast-to-coast freight rail network, is expected to generate approximately $3.5 billion in annual savings and shift an estimated 2.1 million truckloads from highways to rail each year. The transaction remains subject to Surface Transportation Board review and approval, with the two companies expecting completion in the third or fourth quarter of 2027.

Canadian National Railway's U.S. subsidiaries have reached an agreement with Amtrak to resolve a decade-long dispute over passenger service delays, equipment issues, and late station departures. Canadian National Railway is the parent company of U.S. rail subsidiaries Illinois Central Railroad Company and Grand Trunk Western Railroad Company, which own the lines Amtrak uses for intercity routes including the City of New Orleans, Illini, Saluki, and Wolverine. The dispute centered on Amtrak blaming CNI for prioritizing freight over passenger routes, while CNI blamed Amtrak for freight delays tied to equipment issues or late station departures, and CNI had pushed proposals to the Surface Transportation Board that would hold Amtrak financially responsible for delays. Under their eight-year operating agreement, the two sides agreed to a revised performance payment system more closely aligned to the Federal Railroad Administration's on-time performance standard, regular reviews of Amtrak's schedules, and a process to address operational issues and resolve disputes, and they will also work together to equip Amtrak trains with Onboard Shunt Enhancers. Canadian National COO Patrick Whitehead said the company is pleased to have reached agreements that allow it to move forward with a clear framework for safely and efficiently sharing its network, adding that together with the deployment of OSE technology, these agreements will support safer grade crossings and reliable passenger and freight service. Although the agreement ends the decade-long dispute, Canadian National shares are lower as the negotiations highlight the railroad's persistent on-time performance challenges.

CN's U.S. rail subsidiaries and Amtrak have reached agreements that strengthen their partnership and support safe, reliable passenger and freight service on CN's U.S. rail network. The parties signed a new eight-year operating agreement governing Amtrak service on CN-owned rail lines, resolving a more than decade-long proceeding before the Surface Transportation Board concerning terms and conditions for Amtrak services such as the City of New Orleans, Illini/Saluki, and Wolverine. The agreement establishes a revised performance payment system more closely aligned with the Federal Railroad Administration's on-time performance standard, regular reviews of Amtrak's schedules, and processes to address operational issues and resolve disputes. In addition, the parties will work together on a process for Amtrak to equip its trains operating on CN's network with Onboard Shunt Enhancers, a technology that improves how trains are detected as they approach rail grade crossings and helps ensure crossing warning systems activate when they should. Installation of the OSEs is supported through FRA funding and builds on more than a decade of research and testing led by CN, Amtrak and the FRA.

UBS upgraded Union Pacific to a Buy rating on Wednesday, lifting the rail stock from Neutral. Analyst Thomas Wadewitz said the firm's analysis of key customer markets points to a second year of strong volume growth setting up for Union Pacific in 2027, with low inventories signaling further growth in steel volumes and elevated energy prices expected to keep supporting the petroleum and products segment. Wadewitz and his team forecast EPS of $13.41 for 2026 and $14.90 for 2027, both above consensus. UBS sees the combination of solid EPS delivery and optionality on a potential merger with Norfolk Southern supporting attractive upside over the next 12 months, though Wadewitz expects the regulatory review process to be challenging with an uncertain outcome. Shares of Union Pacific rose 0.5% to $285.39 at 11:59 a.m., against a 52-week high of $315.99.

UBS upgraded Union Pacific Corp. to Buy from Neutral and raised its price target to $339 from $310, sending the shares up 1.57% in premarket trading. The new target sits roughly 19% above current prices. The firm forecasts earnings of $13.41 per share in 2026 and $14.90 in 2027, running 3% and 5% above consensus, and models 2028 earnings of $16.15 per share against roughly $13.60 implied by the current price at 21x earnings. UBS expects 10% EBIT growth in 2027 and projects 3.5% volume growth that year, with intermodal up 6% to 7% on current trends and the relationship between intermodal performance and the truckload pricing cycle. The firm said low inventories should lift steel volumes while elevated energy prices support petroleum and products, and noted that rail pricing typically lags truck, pointing to stronger pricing for Union Pacific and making price and mix against inflation a neutral rather than a headwind.

SK Hynix and Intel shares each rose more than 2.5% premarket after a Reuters report that SK Hynix was in talks with Intel to manufacture memory chips in the U.S. for the first time, though SK Hynix said no decisions have been made regarding any partnership with Intel. J.B. Hunt Transport Services tumbled more than 11% after warning that its earnings may fall between 5% and 10% in the third quarter compared to the previous three-month period, a decline it attributed to internal adjustments for rising rates of purchase transportation. Expedia fell more than 2.5% after Morgan Stanley downgraded the stock to underweight, citing a weak risk/reward profile and greater exposure to a potentially weaker consumer. Energy stocks moved lower as U.S. oil prices fell 2% following a report that energy inventories rose last week, with Diamondback Energy down almost 4%, Occidental Petroleum off 1%, and ExxonMobil and Devon Energy each down almost 1%. Paychex rose more than 1% on a Wolfe Research upgrade to peer perform, while Union Pacific gained 1.5% after UBS upgraded the stock to buy.

Daqin Railway announced on the evening of September 14 that it had repurchased 12.4915 million shares for the first time that day through the Shanghai Stock Exchange trading system via centralized bidding, accounting for 0.0629% of the company's total share capital of 19.863 billion shares. The highest repurchase price was 4.83 yuan per share and the lowest was 4.78 yuan per share, with total funds paid of 59.99995 million yuan excluding transaction fees. The buyback plan was approved at the second meeting of the company's eighth board of directors on August 3, 2026, and at the second extraordinary shareholders' meeting of 2026 on August 20. The repurchase amount is between 400 million yuan and 500 million yuan, with a price ceiling of 7.10 yuan per share. The repurchased shares will be cancelled to reduce the company's registered capital, and the implementation period is within six months from the date of shareholder approval, from August 20, 2026, to February 19, 2027. The company said it will implement further repurchases within the buyback period based on market conditions and fulfill information disclosure obligations in a timely manner. The 2026 semi-annual report released the same day showed that the company achieved operating revenue of 39.597 billion yuan in the first half of the year, up 6.20% year on year. Net profit attributable to shareholders of the listed company was 4.255 billion yuan, up 3.40% year on year. The company plans to distribute a cash dividend of 0.08 yuan per share before tax, totaling 1.589 billion yuan, accounting for 37.35% of first-half net profit attributable to the parent company.

Surapong Laoha-Unya, Executive Director and Chief Executive Officer of the MOVE business line at BTS Group Holdings Public Company Limited, or BTS, told the Stock Vision news team that total rail system ridership continues to grow even as the overall economy slows. The Green Line, both the northern and southern sections, averages more than 800,000 passengers per day, and when the Green Line, Pink Line, and Yellow Line are combined, total system ridership stands at about 1 million passengers per day. The Yellow Line continues to show improving growth, while the Pink Line has seen ridership rise to nearly 100,000 passengers per day. The company is pressing ahead with marketing and promotion strategies, including new ticket products such as monthly passes and tickets valid for a set number of days, and is organizing events along rail routes to generate revenue during event periods. In the advertising business on the Pink and Yellow lines, the focus is on train wrap advertising. The Mix & Match business is trending better this year. For business expansion, BTS sees opportunities in the country's rail infrastructure, aiming to expand in Bangkok, the surrounding provinces, and the regions, and is open to both public-private partnership models, or PPP, and contracts to manage and operate trains. It is especially interested in the Phuket rail project. As for the U-Tapao airport project, work is under way to push forward the portions that can proceed immediately without waiting solely for the high-speed rail link connecting three airports to be ready, since the project has already been running for more than six years.

Alstom has signed contracts worth €1.2 billion with TransPennine Express for the supply and long-term maintenance of a new fleet of battery-electric trains, which will be Britain's first mainline battery-electric fleet. The agreements combine a rolling stock contract worth approximately €930 million for 29 five-car battery-electric multiple units with maintenance contracts valued at around €230 million, and the order will be booked in the second quarter of Alstom's fiscal year 2026/27. The trains will be designed, engineered, built and tested at Alstom's Derby Litchurch Lane Works, with manufacturing expected to begin in 2028 and delivery from 2032, supporting more than 350 highly skilled jobs in Derby and over 5,500 roles across Alstom's UK supply chain. The order marks the first deployment of Alstom's Adessia Stream platform in the UK, and Alstom will install charging infrastructure at Hull, Scarborough and Saltburn, a UK-first on the mainline network. The fleet, funded by rail investor Rock Rail, will replace part of TPE's existing Class 185 fleet on services connecting Liverpool, Manchester, York, Hull, Scarborough and Saltburn.

Canadian National Railway Company has filed with the Surface Transportation Board a description of the anticipated conditions it plans to seek in connection with the proposed Union Pacific and Norfolk Southern transaction. The filing builds on the binding Memorandum of Understanding announced by CN and UP in July, which set a framework for CN to secure access to new locations and customers as a remedy for competitive harms of the proposed deal. CN's proposed conditions would connect its network to key areas in St. Louis and Kansas City and preserve competitive rail options for shippers in Des Moines, Iowa and central and southern Illinois that would otherwise see the number of Class I railroads serving their facilities substantially reduced. The conditions include preserving competitive options for 2-to-1 shippers in central and southern Illinois, including Hillsboro, Carlinville, Bloomington, Mt. Vernon, Granite City, Momence, Federal, Alton and Danville, as well as Des Moines, Iowa, and for 3-to-2 shippers in Des Moines and Avon, Iowa, along with new access to Kansas City, including rights between Kansas City and St. Louis and leasing UP's Neff Yard, and improved access to East St. Louis, Illinois and St. Louis, Missouri, including overhead trackage rights between Tuscola, Illinois and East St. Louis, Illinois. The anticipated conditions remain subject to STB approval and the closing of the proposed UP-NS transaction, with formal requests for conditions due on November 18.

Canadian Pacific Kansas City has achieved a new August milestone for grain shipments, transporting 2.54 million metric tonnes of Canadian grain and grain products in 26,051 carloads during August 2026, surpassing the previous records set in August 2020. This performance covers the first four weeks of the 2026-2027 crop year, which began on August 1, and reflects a strong start to the season. Across its U.S. and Canadian network, the company set a combined monthly tonnage record of 4.86 million metric tonnes and 50,396 carloads. The record builds on a robust 2025-2026 crop year, during which Canadian Pacific moved 30.66 million metric tonnes of Canadian grain, exceeding the prior annual record from 2020-2021. Monthly records were also set earlier this year in January, February, April, May, and June, underscoring favorable grain production and resilient export demand. Additionally, Canadian National Railway moved 2.50 million metric tonnes of grain in August 2026, surpassing its previous August record of 2.34 million metric tonnes set in 2020, indicating a strong start to the new crop year for both major railroads.

Canadian Pacific Kansas City reported record monthly grain transportation volumes in August 2026, and also set a new annual record for grain moved over its network by the end of that month. Canadian National Railway also reported record monthly grain transport in August 2026, highlighting the role of Canadian railways in keeping North American supply chains running. The record volumes support the company's freight-shift strategy, which aims to capture more bulk and intermodal freight from trucks and short sea routes across its three-country network spanning Canada, the United States, and Mexico. However, sustaining this level of traffic while recently resolving a signals and communications strike could pressure labour, maintenance, and network reliability, especially with Canadian National Railway competing for similar volumes and projects like the Meridian Speedway still needing to deliver on promised synergies.

Unifor is celebrating the federal government's announcement that Alstom has been awarded a $4.7 billion contract to build 313 passenger cars for VIA Rail, securing significant work for Unifor Local 1075 members at its Thunder Bay facility. The contract marks the first time in four decades that VIA Rail passenger cars will be built in Canada, as part of the renewal of VIA's long-distance, regional, and remote fleet. Cars will be manufactured and assembled in Thunder Bay and La Pocatière, Quebec, with design and engineering in Saint-Bruno-de-Montarville. The work is expected to create about 700 jobs in Quebec and Ontario and generate more than $1.6 billion in economic benefits. Alstom will also invest $38 million in upgrades to the Thunder Bay plant. Unifor National President Lana Payne called it a tremendous victory for members and Canadian manufacturing, noting the contract ensures public procurement dollars support Canadian workers.

On July 15, 2026, Tobu Railway began service for Tokyo's first "walk-through facial recognition gates" at Ikebukuro and Kamitabashi stations on the Tojo Line. The service is available to passengers holding PASMO commuter passes for sections including the two stations. The gates utilize the biometric authentication service "SAKULaLa," developed jointly with Hitachi, where cameras installed on the automatic ticket gates recognize faces to verify identity, allowing passengers to pass without stopping. Tobu Railway had previously introduced the system at Tobu Utsunomiya Station in May 2026, and for these two stations, existing automatic ticket gates were modified to accommodate the system. To expand the number of stations with the system, the company has collaborated with OMRON Social Solutions, Nippon Signal, and Toshiba to enhance the versatility of the facial recognition system. On the security front, the system combines Hitachi's "PBI" technology with Panasonic Connect's facial recognition technology, storing biometric information in the cloud in a form that cannot be restored, and generating and deleting secret keys each time. Ikebukuro Station, with an average of about 420,000 users per day, is the company's largest station and includes commercial facilities, making it a model case for the implementation.

BTS Group Holdings is accelerating preparations to support the government's common ticketing policy for electric trains, which is set to take effect on January 1, 2027. Mr. Surapong Laohanya, executive director and head of the MOVE business unit, revealed that discussions are underway with the government to adapt the EMV payment system for the Green and Gold lines, which do not yet support it, while the Pink and Yellow lines already do. The challenge is that the Green Line has over 1,000 fare gates, and installation could take about a year and a half, so they are considering installing additional swing gates like those on the Pink and Yellow lines. Currently, the BTS group serves about 1 million passengers per day, with the Green Line carrying over 800,000, the Pink Line nearly 100,000, and the Yellow Line about 60,000. Studies show that the common ticket could increase system-wide ridership by 10-20%, especially on the Pink Line, which connects to the Green Line at Wat Phra Si Mahathat station. Meanwhile, the Yellow Line still relies on area development along its stations and new urban planning, which will enhance its long-term potential.

Beijing-Shanghai High-Speed Railway released its 2026 interim report. Total operating revenue was 21.842 billion yuan, up 3.94% year-on-year, and net profit attributable to the parent company was 6.771 billion yuan, up 7.21% year-on-year. Net cash inflow from operating activities was 10.685 billion yuan, up 4.05% year-on-year. The company's asset-liability ratio was 20.94%, gross margin was 45.36%, return on equity was 3.23%, and diluted earnings per share was 0.14 yuan. The number of shareholders was 222,700, and the top ten shareholders held 80.61% of the total share capital.

The Thai stock market index closed at 1,588.22 points, down 12.48 points or 0.78%, with a trading value of 66,470.96 million baht. Meanwhile, BTS is preparing to offer three new tranches of debentures: 2-year maturity with an interest rate of 3.20% per annum, 3-year maturity with an interest rate of 3.55% per annum, and 4-year maturity with an interest rate of 3.75% per annum. Tris Rating has assigned a credit rating of BBB+ with a negative outlook. The subscription is expected to open on September 25 and 28-29. Meanwhile, the board of SUSCO approved an interim dividend of 0.10 baht per share, with the XD date on September 10 and payment on September 25. GGC has partnered with CP Extra to collect 50,000 liters of used cooking oil per year to produce SAF fuel. SCCC is proceeding with its plan to restore a quarry in Chonburi covering 646 rai, increasing green space by 82.6%. The board of BCPG approved an interim dividend of 0.15 baht per share, totaling 450 million baht, with the XD date on September 9 and payment on September 22. RT has a backlog of 4,755 million baht and is preparing to sign additional work with the Metropolitan Electricity Authority worth 1,100 million baht in September, boosting the full-year backlog to 6,000 million baht, supporting this year's revenue of 3,800 million baht, an increase of 10%.

BTS Group Holdings (BTS) has revealed that ridership on the Green Line electric rail has continued to recover, reaching over 820,000 passenger trips per day on weekdays and approximately 900,000 per day on Fridays. Meanwhile, the Pink and Yellow Lines have achieved operating revenues that cover their expenses, strengthening cash flow. The company also benefits from government measures accelerating the U-Tapao airport and Eastern Aviation City projects, allowing double deduction of capital and operating expenditures in corporate income tax calculations, along with other incentives such as EEC Visa and reduced air transport business taxes. U-Tapao International Aviation (UTA), a joint venture company, is currently revising the Aviation City layout and developing infrastructure, with mixed-use projects to be developed gradually starting in the first half of 2027, while maintaining the target for commercial operations in 2031. Although the main Green Line concession ends in 2029, BTS has ongoing operation and maintenance contracts through 2042, while the Pink and Yellow Lines have approximately 30 years of concession remaining, ensuring long-term revenue and steady cash flow.

Beijing-Shanghai High-Speed Railway released its 2026 semi-annual report. In the first half of the year, it achieved operating revenue of 21.842 billion yuan, up 3.94 percent year on year, and net profit attributable to shareholders of the listed company of 6.771 billion yuan, up 7.21 percent year on year. The entire line carried 120 million passengers, a record high. The company noted that passenger demand growth slowed slightly, mainly due to reduced travel demand from business and migrant workers, as well as new energy vehicles and intercity buses diverting short- and medium-haul passenger flows, while intensifying civil aviation competition added long-haul pressure. During the reporting period, the company completed a change of chairman, with Li Jingwei taking over as chairman, and distributed a cash dividend of 4.668 billion yuan for the 2025 fiscal year.

Beijing-Shanghai High-Speed Railway released its 2026 semi-annual report, achieving operating revenue of 21.842 billion yuan, up 3.94% year-on-year; net profit attributable to shareholders of the listed company was 6.771 billion yuan, up 7.21% year-on-year. Among this, second-quarter net profit was 3.629 billion yuan, up 15% quarter-on-quarter from 3.143 billion yuan in the first quarter.

BTS Group Holdings (BTS) plans to offer three tranches of long-term debentures, the first series of fiscal year 2026, to general investors. Tranche 1 has a 2-year tenor with an interest rate of 3.20% per annum, Tranche 2 has a 3-year tenor with an interest rate of 3.55% per annum, and Tranche 3 has a 4-year tenor with an interest rate of 3.75% per annum. Subscription is expected to open on September 25 and 28-29, 2026, with a minimum subscription amount of 100,000 baht. The debentures are rated BBB+ with a negative outlook by Tris Rating, reflecting stable cash flows from long-term operation and maintenance contracts. In the first quarter of fiscal year 2026/27, the company reported total revenue of 7,492 million baht, up 3.4%, and recurring EBITDA of 2,822 million baht, up 3.3%, with cash and investments exceeding 54,500 million baht and a net debt-to-equity ratio of 1.34 times.

BTS Group Holdings is preparing to offer three new tranches of debentures to general investors: a 2-year tranche with a fixed interest rate of 3.20% per annum, a 3-year tranche with a fixed interest rate of 3.55% per annum, and a 4-year tranche with a fixed interest rate of 3.75% per annum. The subscription period is expected to open on September 25 and 28-29, 2026. Tris Rating has assigned a credit rating of BBB+ with a negative outlook to the company and the debentures. The company reported total revenue of 7,492 million baht, an increase of 3.4% year-on-year, and recurring EBITDA of 2,822 million baht, up 3.3% year-on-year. It holds cash and highly liquid investments totaling over 54,500 million baht, and its adjusted net debt-to-equity ratio stands at 1.34 times. This debenture offering caters to investors seeking steady returns from a leading company with strong creditworthiness and stable cash flows.

Shentong Metro released its 2026 interim report. During the reporting period, net profit attributable to the parent company was 32.1851 million yuan, up 17.56% from the same period last year. Total operating revenue was 353 million yuan, up 29.79% year-on-year, and net cash inflow from operating activities was 32.5676 million yuan. The asset-liability ratio was 20.74%, gross margin was 18.65%, return on equity was 1.84%, and diluted earnings per share was 0.07 yuan. Total asset turnover was 0.16 times, up 31.01% year-on-year, marking six consecutive years of growth. The number of shareholders was 27,600, and the top ten shareholders held 63.81% of total share capital.

Union Pacific and Norfolk Southern have urged the Surface Transportation Board to reject preliminary challenges and proceed with a full review of their proposed merger, arguing that their application meets the threshold requirements. The railroads submitted a response filing on Thursday, stating that the application contains extensive evidence developed over months and provides sufficient information to determine the merger is consistent with the public interest. The filing follows the STB's Aug. 18 procedural schedule, which sets deadlines for public comments and evidentiary filings. Union Pacific CEO Jim Vena said the companies have submitted an unprecedented volume of evidence demonstrating benefits for employees, customers, and the U.S. economy. The proposed combination would create a more efficient single-line network, improve service, and shift freight from highways to rail, with projected annual operating savings of approximately $1 billion and customer savings of $3.5 billion. The application also includes commitments such as an Open Gateway Commitment and new access rights for Canadian National Railway between St. Louis and Kansas City. A decision is expected in late 2027.

Shentong Metro disclosed its semi-annual report on August 27. In the first half of 2026, it achieved operating revenue of 353 million yuan, up 29.79% year on year. Net profit attributable to shareholders of the listed company was 32.19 million yuan, up 17.56% year on year. Basic earnings per share were 0.07 yuan. The company plans to distribute a cash dividend of 0.21 yuan per 10 shares, tax included. During the reporting period, the change in operating revenue was mainly due to the consolidation of Metro Electric Technology Company, which increased the amount of this item.

High-speed Railway Electric released its 2026 interim report. Total operating revenue was 683 million yuan, up 28.12% year on year, and net profit attributable to the parent company was 32.4608 million yuan, up 14.24% year on year, with both achieving growth for two consecutive years. Net cash flow from operating activities was negative 17.1128 million yuan, an increase of 79.9006 million yuan compared with the same period last year. The company's asset-liability ratio was 44.45%, gross margin was 20.34%, up 1.66 percentage points year on year, ROE was 1.89%, up 0.19 percentage points year on year. Diluted earnings per share was 0.09 yuan, up 14.30% year on year. Total asset turnover was 0.22 times, up 24.86% year on year, and inventory turnover was 1.12 times. The number of shareholders was 7,557, and the top ten shareholders held 78.78% of the total share capital.