Progressive Railroading

Newsletter Sign Up
Stay updated on news, articles and information for the rail industry



This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.


View Current Digital Issue »


RAIL EMPLOYMENT



Rail News Home Financials

5/13/2013



Rail News: Financials

Florida East Coast Railway registered revenue, volume gains in Q1


advertisement

Late last week, Florida East Coast Railway L.L.C. (FEC) reported first-quarter revenue of $68.8 million, up 20 percent compared with first-quarter 2012 primarily because of strong intermodal and aggregates business.

Intermodal revenue jumped 21 percent to $40.7 million and volume rose 4.2 percent to 93,600 units — accounting for 73 percent of total traffic — because the railroad realized rate increases in most classes of traffic and registered more export volume.

Driven by aggregates demand, carload revenue climbed 29 percent to $24.7 million and volume soared 55 percent to 34,200 units. The revenue gain also reflects a continuing partial recovery of Florida's home building and road construction markets, and a slightly stronger automotive market, FEC officials said in a first-quarter financial performance review.

The railroad also reported that operating income jumped 44 percent year over year to $17.4 million and the operating ratio improved 4.2 points to 74.7. Operating expenses increased 14 percent to $51.4 million primarily due to higher labor/benefits, purchased services and fuel costs.

Looking ahead, some ongoing drivers for intermodal business will be a continued focus on truck-to-rail conversions and maximizing market pricing, as well as the launch of some on-dock rail services, FEC officials said.

In the second half, the railroad expects to start up on-dock service at the Port of Miami after finalizing on-dock track and loading requirements with the port. In addition, near-dock service at Port Everglades is projected to begin in first-half 2014 after an intermodal container transfer facility is completed.



Contact Progressive Railroading editorial staff.

More News from 5/13/2013