Jason Seidl, TD Cowen-Class I Service, Growth and the Final Consolidation Round

Without volume and market share growth, the Class I’s may be at
risk—or be forced to look at merging. Investors continue to await
the next leg of Class I railroad earnings growth. While margin
gains from current levels are expected, PSR (Precision Scheduled
Railroading) is no longer the investor story it once was, and the
railroads must prove they can grow to maintain their premium
multiples. In this wide-ranging conversation with Railway Age
Editor-in-Chief William C. Vantuono, Wall Street Contributing
Editor Jason Seidl, Managing Director at TD Cowen, explores the
factors that can drive railroad market share growth, including
high-quality, consistently reliable service; ease of doing
business; industrial development projects; regulatory relief
allowing technological advancement; and potential mergers producing
a U.S. transcontinental network. While the track record for
industry volume growth has been questionable, Seidl views the
growth levers “as largely in railroad control.”