Do Railroads Make Money?

Are railroads actually a value investment, or is it just certain companies such as the Union Pacific (NYSE: UNP), or UP? The Canadian transcontinental lines do have some interesting characteristics; after all, they do provide a direct transportation link between the West Coast and the Midwest that bypasses the U.S. West Coast ports and their labor troubles. Unlike some U.S. transcontinental lines, the Canadian railways also provide direct connections to the East Coast. These railroads are also well positioned to take advantage of the oil boom in the central continent, particularly Alberta’s oil sands.