The resurgence of the economy and the development of intermodal freight facilities have seen a return to investment in transport companies on the stock markets in recent months. The growing confidence that the improvements to the infrastructure have provided has created bullish markets for these companies who are also projecting increased earnings in the future. This is on the back of increased traffic that is expected across the US when the Panama Canal project winds up in 2015 when the anticipated higher volume of traffic impacts on the US intermodal network.

Transport stocks have outperformed the general growth in the markets during 2012 and these prices seem set to continue to deliver higher returns. The improvement in employment figures as well as the beginning of a recovery in the housing market is also expected to lead to increases in consumer spending that will facilitate further growth in the transport sector.

The railways are leading this return to the black, and due to the intensive refitting of many rail lines to be geared towards handling intermodal freight, their growth is expected to continue well into the coming years. After four years of declining demand for truck transport the situation is turning around and demand for freight services is beginning to increase again. A large part of the return to productivity is based on automotive shipments which are set to return to pre-2009 growth. The uncertain environment of the global airline industry is also expected to put further upward pressure on air freight costs and send even more business to the intermodal networks.

At the same time some railways are refitting to shift from operating as bulk carriers to handling containers as the decline in demand for coal has seen their tonnages diminish. The shift to intermodal carriers by some railways will make it far more economical to transport containers over small distances and increase the freight volume for many carriers. In the eastern states CSX has been improving its infrastructure by strengthening bridges and widening tunnels in order to allow their trains to carry more freight. This in turn is producing greater profits and further driving the bullish market for transport shares.

As the economy continues to become stronger the importance of the transport sector to further growth will see it continue to be a strong, reliable investment. This will ensure that the funds are there to carry on developing the infrastructure that the industry will need to remain competitive in the 21st century.

References:
https://etfdailynews.com/2013/04/16/3-transportation-etfs-in-focus/
https://news.investors.com/business/041313-651854-earnings-preview-how-are-railroads-dealing-coal-decline.htm