Railway Age magazine

TexAmericas Center, which owns and operates the third ranked mixed-use industrial park in the U.S., announced July 29 that COIM USA, a specialty chemical manufacturer and part of the global COIM Group, has acquired a 20-acre site featuring a 25,000-square-foot rail-served facility on the Texarkana, Texas-located campus.

Texarkana is a major east-west and north-south rail hub, with numerous rail lines converging, as well as more than 125 trains passing through the community each day. Union Pacific (UP), Canadian Pacific Kansas City (CPKC), Texas Northeastern (TNER), and TexAmericas Center Rail (TACR) efficiently serve the TexAmericas Center campus, as well as the overall Texarkana market.

The property was acquired from Palmer International and includes “critical logistics and transload infrastructure that will bolster COIM’s manufacturing and distribution capabilities across North America.”

The acquisition, the industrial park says, includes existing logistics and transload infrastructure along with COIM USA launching a new line of renewable polyols, primarily made from Cashew Nutshell Liquid (CNSL), a rapidly renewable, plant-based material. The new product line “complements COIM’s existing Isoexter line of polyester polyols, expanding the company’s sustainable product offerings while delivering enhanced performance for customers.”

“This acquisition represents a significant milestone in COIM USA’s long-term growth strategy,” said COIM USA President Michelangelo Cavallo. “The TexAmericas Center location broadens our geographic reach, expands our sustainable portfolio, and enhances COIM USA’s ability to serve customers with greater speed, efficiency, and resiliency.”

In addition to current operations, COIM USA says it is evaluating a major mid-south expansion, with TexAmericas Center positioned as a contender. The proposed development would add 100 million pounds of new production capacity by the end of 2027.

“By establishing a presence at TexAmericas Center, COIM USA will gain operational cooperation and supply chain redundancy, a critical step in ensuring consistent service and delivery to customers across the U.S.,” the company noted.

COIM USA will be positioned in a region where Texas and Louisiana together produce 80% of the nation’s primary petrochemical supply—TexAmericas Center sits at the heart of one of the most vital chemical production corridors in the country. In fact, according to TexAmericas Center, Texas’ chemical shipments are valued at more than $117 billion, and more than half of all U.S. chemical production is rooted in the state.

This chemical production is the foundation for countless goods, including pharmaceuticals, computers, and other everyday items.

“This investment is not only a win for COIM USA, but also another step forward for TexAmericas Center as a hub for green industries,” said TexAmericas Center Executive Vice President and Chief Economic Development Officer Eric Voyles. “Texarkana has a proud legacy as a manufacturing center, but we’re greener than you might think. Projects like this move us closer to becoming a recognized Eco-Industrial Park.”

The chemical manufacturing sector, the industrial park says, continues to thrive in TexAmericas Center’s 75-mile regional radius:

• “The industry contributed $1 billion in GDP in 2022, six times the national average.
• “Employment is growing at 1.1% annually, compared to the national average of 0.8%.
• “3,080 individuals graduate annually from area postsecondary programs tied to chemical manufacturing.
• “Within 75 miles, 53 chemical and petroleum/coal processing companies employ more than 32,000 people.”

The post COIM USA Acquires Rail-Served Facility on TexAmericas Center Campus appeared first on Railway Age.

Turnouts, an essential railroad network trackwork component, have numerous complex, costly and labor-intensive maintenance requirements. They also have specific challenges that railroad maintenance-of-way departments have been dealing with for generations. Addressing them is critical to operating a safe, fluid and efficient network, with minimum maintenance downtime. Among these challenges:

• Switch rods, which traditionally reside in cribs, must be removed for tamping.
• Inadequate switch tamping creates an unstable track surface, leading to switch failure.
• Insulation failures can occur between two bolted steel switch rods.
• Wood headblock crossties can fail to maintain gauge and can break under the switch machine due to timber crosstie decay.
• Concrete headblock crossties can break under a switch machine due to reduced cross-section or overhung load vibrations.

As such, railroads are actively seeking opportunities to increase track stability while reducing costs.

The new Universal HST® Hollow Switch Tie from voestalpine Railway Systems Nortrak is designed specifically to address the unique maintenance and structural needs of a turnout. Pairing the Universal HST® with our Unistar HR Switch Machine creates what we believe is the most advanced and seamless turnout control system in the industry.

The HST® is an advanced switch support system consisting of robust, maintenance-free formed steel crossties, high strength composite “Blue Rods,” and an optional rotary assist back-drive assembly. The crossties are redundantly insulated in all areas, ensuring no single path to shunt is allowed. They allow switch rods to be relocated from cribs into the hollow portion of the crosstie, facilitating continuous mechanized surfacing though the turnout without the requirement of removing and reinstalling switch rods. Use of high-strength composite “Blue Rod” insulated switch rods allow for a single fabricated rod to be utilized, removing the insulation failure point between two bolted steel rods. Switch plates attached to the crosstie with permanent Huck fasteners increase gauge widening resistance through the switch, with resistance exceeding 40,000 pounds. A robust, steel switch machine mounting plate is permanently affixed to the crosstie and can accommodate any switch machine.

Now, this innovative system has been vastly improved with the Universal HST®.

“Previous generations of the HST® required a specific design for each turnout size, hand, and machine position (left or right on the field side),” says R&D Engineering Manager Eric Gray. “In a situation where a switch machine was relocated from one side of track to the other, or a left-hand crosstie was needed in a right-hand turnout, the HST® had to be disassembled, reinsulated and reassembled. The Huck fasteners had to be cut off—quite a process for customers. As an example, some of our customers have been in situations where, during installation, they realize there isn’t enough room for the switch machine, and they need to relocate the machine to the other side of the track. A slight change in the field could previously delay a customer’s schedule by weeks. That’s why we developed this new design, the Universal HST®.”

“The Universal HST® provides greater flexibility to maintainers by being adaptable to dynamic installation and maintenance, offering the flexibility to use one unit for all turnout sizes, hand, and machine position,” notes Gray. “It uses a permanent, electrically isolated shim plate attached to the shell of the formed steel crosstie. Adaptable switch plates dependent on the switch size and/or hand can be bolted directly to the shim plate. To convert from one switch size or hand to another, it’s now as simple as unbolting the existing plate and replacing it with a new switch plate of the desired size or hand. This is why the Universal HST® is much more maintainer friendly, giving railroads the ability to easily stock items and convert from hand or size to another without the need to handle insulation. Everything except the running plates the rails sit on is assembled, insulated, and ready to go. The plates are bolted on and easily removed. All a maintainer needs to do is remove the plates, spin the hollow switch ties around and reinstall the plates. If you ordered plates for a No. 20 turnout and then decided you wanted to use that HST® on a No. 15 turnout, instead of having to purchase an entire system, you only need two new running plates. So now, we have one base unit that will work for any turnout.”

The Universal HST® works seamlessly with voestalpine Railway Systems Nortrak’s Unistar HR Switch Machine. The Unistar HR offers mounting flexibility (gauge or field side, and on tunnel walls), is flood safe, and can withstand temperatures as low as -40°C (-40°F) without heater elements. With integrated end position detection, installation time is just 2.5 hours. It weighs 80% less than competitors’ switch machines and no lift assist is required. It’s non-handed design reduces spare parts requirements. MTTR (mean time to replace) is 25 minutes; MTBF (mean time between failures) is 1.5 million hours.

The Unistar HR features a Single Drive Unit with up to four drive, locking and detection setting levels for switches and MPFs (moveable point frogs)

The Universal HST® “is the ideal foundation for installing a Unistar HR,” says Vice President of Signaling Chris Nordstrom. “Since the Unistar HR is agnostic to the side of the turnout on which it’s installed, it’s a clean, easy process, a clean layout. All the electrical connections and hydraulic lines are protected inside the hollow steel crosstie. We’re getting a lot of positive customer feedback. One installation team told us it took half the amount of time as installing the same machine on a traditional wood crosstie layout, noting that it could be retrofitted into any turnout.”

The Universal HST® and Unistar HR pairing aligns with voestalpine Railway Systems Nortrak’s broader goal of positioning ourselves as a system solution provider. We offer a full range of equipment and services—from fastening products to complete switch panels with integrated monitoring systems. We bring together global expertise and experience while maintaining a strong local presence. Our North American team includes some of the industry’s top experts, and we’re proud to offer Buy America-compliant solutions.

The post Perfect Pairing: voestalpine Railway Systems Nortrak Universal HST® (Hollow Switch Tie) + Unistar HR Switch Machine appeared first on Railway Age.

Union Pacific’s (UP) much-anticipated bid for Norfolk Southern (NS) was announced July 29. Both now embark on a lengthy review process, but we see the potential approval pathway justified due to U.S. supply chain benefits. NS operates well, supporting a pivot in focus to the review process. NS takeout PT moves to $320 in line with the announcement. Reiterate Buy as entry point is attractive while event-based investors remain on the sidelines.

• UP officially announced a bid for NS to create the first E-W transcon Class I as we expected. The Western Class I has agreed to pay $320/share for NS (close to our preprint takeout-based PT of $323) for a total enterprise value of $85 billion with an approximately 72%-28% stock-cash split. Shares of NS traded down on the open despite the announcement, which we believe is due to event-driven investors remaining on the sidelines. Our discussions with this investor group indicates that this is due to the long regulatory timeline (approximately six months to file and another year or so to receive final approval). Additionally, the lack of a voting trust was disappointing for that group as well. Positive developments over the course of the review process could reengage this group in our view.

• UP and NS expressed confidence in navigating the regulatory process with the Surface Transportation Board (STB), but we acknowledge a long process ahead. CEO Vena’s commentary that UP would not have taken the steps without visibility into a path forward is encouraging in our view, though he refrained from comment on the fifth STB appointment. Clarity on growth prospects and competitiveness enabled by a transcon rail supports the political case for a merger in our view. UP expects to file the application in up to six months, which is at the longer-end of the typical timeline; we would not be surprised to see UP come in well before this. While expedited filing would be appreciated by investors, we also note that the STB has recently expressed intent to streamline regulatory procedures. We will continue to monitor developments that could expedite what is usually an approximately 18-month review process. Opposition to the deal is likely from a variety of constituents as many look to receive something for their support. In terms of labor, while they may seek to strike deals, opposition could be mitigated by both Class I’s commitments to either preserve or grow jobs as matters proceed.

• UP and NS highlighted that 1 million carloads interchange between the two networks and a single-line service would slice one to two days off transit time, materially improving service. This represents approximately 6% of the combined carload base for the two Class I’s. More importantly, a unified network would enjoy significant competitive gains. Single line is conducive to OTR conversions in our view as one intermodal train amounts to about 550 trucks and sees a favorable price differential that is only hampered by service consistency. Additionally, UP openly discussed gaining share from Canadian ports as single-line service improves competitiveness into the Midwest.

• Run-rate EBITDA synergy estimates of $2.75 billion (over a three-year period) exceed our conservative assumptions as our view that upside is likely was borne out on the July 29 call. Value creation is weighted toward revenue and service (as we projected in our note here) with $1.75 billion in EBITDA accretion from revenue synergies expected (excluding adjustment from concessions). We estimate this is about 4.5% of the combined revenue base compared to the originally targeted Canadian Pacific-Kansas City Southern figure of about 6%, which we note approximately doubled over the years. We thus acknowledge upside to revenue synergies. Cost synergies are penciled in at $1 billion.

• The $320/share takeout price and $85 billion EV implies approximately 9.5x ’26E EV/EBITDA including run-rate synergies and valuation has come in below our expected level. For reference, we estimate CP paid 12.8x in the KCS deal. The deal is structured per 72%-28% stock-cash split and approximately 18-month review process places close in early 2027 when the financing event will occur given no voting trust. Management expects EPS accretion starting year two and reaching HSD by year three.

• Cash component of the bid at $88.82/NS share will be financed with a split of cash on hand and debt. UP expects to relever to 3.3x at closing as a result, which we believe is within comfortable ranges for them, especially considering synergies. Integration to result in a sizeable $2 billion in additional capex but UP sees a 60% all-in increase in FCF off combined ’24 levels by the end of year three. Both Class I’s have suspended buybacks through the merger process.

• NS reported a second-quarter 2025 that was in line today on EPS but with a 63.4% OR, beating our estimate slightly as metrics hold up well. Well-understood macro uncertainty led NS to lower FY OR improvement guide to 100bps and introduced a downside case for top-line growth at 2% year-over-year, keeping the high end intact with prior at 3%. We believe the lowered guide is a modest downward revision and we lower ’25 and ’26 estimates slightly while acknowledging that NS’s operations are in good shape heading into the review process. We lower our takeout-based PT to $320 to reflect today’s announcement.

The post Vena’s Art of the Deal With NS appeared first on Railway Age.