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Short Line Railroad Traffic Climbs 2.2 Percent, Outpacing Class I Traffic in First Quarter 2006

Posted on: Tuesday, 16 May 2006, 09:00 CDT

RMI, the market leader and largest independent provider of accurate, reliable, comprehensive and secure rail information services to the transportation industry, today reports the RailConnect Index(R) Quarterly Analysis of Traffic Statistics for the First Quarter 2006. In its Quarterly Analysis, which is designed to provide railroads and rail shippers with insight on short line growth and trends, RMI reports that short line carload traffic increased by 2.2 percent in the first quarter ending March 25, 2006.

The RailConnect Index is the rail industry's only source of short line traffic statistics and includes traffic summaries of 14 commodity groups from nearly 265 short line, regional and terminal switching railroads in North America.

"Our data highlights the continued growth within Intermodal transportation and the fact that more and more shippers continue to rely on short line railroads to deliver Intermodal services," explains Pete Kleifgen, Chairman of RMI. "In fact, Intermodal traffic accounted for 50 percent of short line year over year growth."

Winners and Losers: Trends in Commodity Traffic

Two commodity groups experienced double digit growth in the first quarter, Stone, Clay & Aggregates at 11.9 percent and Farm & Food (excluding grain) at 10.1 percent. Short line Intermodal traffic took third place at seven percent growth versus the same period for 2005. Intermodal continues to rank first in terms of the largest commodities represented in the Index in terms of units.

While overall growth has increased, RMI's RailConnect Index(R) Quarterly Analysis did point to the fact that five of 14 commodity groups declined, with Ores showing the largest change at -12.6 percent. On Class I railroads, half of the commodity groups declined, led by Chemicals down -5.3 percent, while Intermodal led all Class I growth with a 5.3 percent increase.

Overall, short line traffic grew in the first quarter of 2006 with Stone, Clay & Aggregates; Farm & Food (excluding Grain); Intermodal; Grain and Waste & Scrap Materials as the list of the top five performers in the first half of 2005.

Top Performers: 2006 verses 2005 Rankings Summary:

Traffic Comparisons

Short lines proved consistent once again quarter to quarter in types of traffic handled. Originated traffic accounted for 36 percent of all short line traffic in the first quarter 2006 and in the first quarter 2005. Terminated traffic accounted for 41 percent compared to 42 percent in 2005 and bridge traffic accounted for 10 percent compared to nine percent in 2005. Local traffic remained consistent at 14 percent in 2006 and 2005. In 2006, local traffic grew 2.8 percent during the first quarter. Bridge traffic, the most vulnerable type of traffic for short lines, accounted for 10 percent of 2006 and 2005 traffic and grew at seven percent during the first quarter of 2006.

Based on historic seasonality in local and bridge traffic, RMI expects that local traffic will grow as the year progresses while bridge traffic will decline as a percentage of total carloads.

While short line carload traffic increased overall by 2.2 percent in the first quarter 2006, Class I growth through week 12 was 1.8 percent. Excluding bulk and Intermodal commodities, short line carload growth was flat, while Class I carload growth declined.

RMI Data Collection Process

RMI collects and aggregates the data for the RailConnect Index through the company's RailConnect(R) suite of services. The RailConnect applications enable more than 295 railroads and rail shippers in the U.S., Canada, and Mexico to manage rail operations, improve customer service and reduce costs. From its current RailConnect customer base, RMI processes more than seven million carloads annually for railroads, rail shippers and railcar leasing companies.

RMI's RailConnect Index Quarterly Analysis is available for distribution and publication to industry analysts and trades journals. The Index is also available to RailConnect customers free of charge.

About RMI

RMI is the largest independent provider of accurate, reliable, comprehensive and secure rail information services to the transportation industry. Founded in 1979, RMI is recognized as the most successful Business Services Provider (BSP) in the industry with an in-depth knowledge of rail operations and a proven ability to translate complex business processes into valuable management information services. Currently, RMI processes approximately seven million carloads annually for railroads, rail shippers and railcar owners. RMI's services are accessed via the Internet through RailConnect(R) (www.railconnect.com), a web-based portal to the company's integrated suite of proprietary information services, which are used to manage rail operations, improve customer service and reduce costs. Services include transportation, revenue, equipment, shipper freight and fleet management services and related executive information systems. RMI is an independent, privately owned company based in Atlanta. For more information about RMI, visit www.railcarmgt.com.

Source: Business Wire

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