---
title: "Rails Crossing"
url: https://independentstockanalysis.com/rails/
description: "Rail Traffic Nears 4 Year High at Value Plays . First, this is a function of the U.S. private sector economy being decent ( Mark Perry ). “If you are…"
published: 2012-08-30
updated: 2012-08-30
---

# Rails Crossing

Published 2012-08-30

Posted on

by

J.J. Butler

Rail Traffic Nears 4 Year High at [Value Plays](http://www.valueplays.net/2012/08/30/rail-traffic-nears-4-year-high/).

First, this is a function of the U.S. private sector economy being decent ([Mark Perry](http://mjperry.blogspot.com/2012/08/private-real-gdp-grew-by-33-over-last.html#links)). “If you are looking for better-than-expected global economic indicators, welcome home; they are mostly here in the US.” ([Yardeni](http://blog.yardeni.com/2012/08/global-economic-indicators.html)). Even the Michigan Economy Shifts Into High Gear ([Mark Perry](http://mjperry.blogspot.com/2012/08/michigan-economy-rebounds-to-ten-year.html#links)). Lumber: [Financial Post](http://business.financialpost.com/2012/08/27/canadian-lumber-sees-a-resurgence/).

Much of the shale oil growth is being transported by rail too; see what [Statoil](http://www.statoil.com/en/NewsAndMedia/News/2012/Pages/OilTranisRolling.aspx) is doing. Crude on the rails: in for the long haul at the [Financial Post](http://business.financialpost.com/2012/08/24/crude-on-the-rails-in-for-the-long-haul/). It’s not just the oil either, the frac sand needs to be hauled too! [Star Tribune](http://www.startribune.com/business/166656556.html?page=all&prepage=2&c=y&refer=y).

Week old charts by [Greg Harmon](http://dragonflycap.com/2012/08/20/the-railroads-are-chugging-along/)and [Chess](http://ibankcoin.com/chessnwine/2012/08/21/divergent-views/).

In short, coal is down while oil, cars and lumber are up. The strength of the rails is remarkable in the face of coal being in a depression. Remember, a significant portion of Appalachian coal will not return to market in a rebound, while coal haul distances will increase as exports increase.

The rails are worthy of more investigation!