Trains in Every Big City
Alex@alexnoris
−0.8%
since Oct 14
The idea
I believe big cities worldwide keep building and expanding rail transit for the next decade or more because nothing else moves people as well. This basket owns the companies at every stage: engineering and construction firms that design and build the lines, makers of trains, signals and power gear, concrete and steel suppliers for tunnels and track, and landlords near busy stations, with a global infrastructure fund rounding out the worldwide exposure.
What it owns
- These firms design and build new rail lines, so they get paid every time a city commits to one. · AECOMIt designs and manages transit projects for cities around the world, getting paid early when a metro decides to build., iShares Global Infrastructure ETFThis fund holds infrastructure companies worldwide, many listed only abroad, covering the global side of rail development., FerrovialIt builds and operates large infrastructure across multiple countries, earning revenue from rail and transit projects., Jacobs SolutionsIt provides engineering and program management for large rail and transit projects in cities globally., StantecIt designs transit lines and stations across North America and internationally, the planning stage before construction., Tutor PeriniIt digs subway tunnels and builds heavy civil projects in major US cities, the most complex part of new rail lines., FluorIt takes on megaprojects including rail and transit work when cities and countries commit to major infrastructure.41%
- Every line needs train parts, signals and electric power gear, and those keep needing upkeep long after opening day. · Westinghouse Air Brake Technologies (Wabtec)It makes brakes, doors and other systems for passenger trains and earns service revenue for decades after delivery., EatonIt makes the electrical systems that power stations, signals and electrified transit lines., HubbellIt makes grid and electrical equipment that electrified rail and station construction depend on., L.B. FosterIt sells rail, track parts and related products that every rail line needs to build and maintain.22%
- Tunnels, stations and track beds use huge amounts of concrete and crushed stone, bought from these suppliers. · CRHIt supplies cement, stone and concrete across North America and Europe for tunnels, track beds and stations., Vulcan MaterialsIt sells crushed stone that goes into every track bed and concrete pour on new metro lines., Martin Marietta MaterialsIt supplies stone and cement consumed in large quantities by heavy civil projects like rail construction., CemexIt makes cement across Mexico, the US, Europe and other regions to supply rail building projects worldwide.18%
- Buildings next to busy stations tend to be worth more and stay fuller as more people ride trains. · BXPIt owns office buildings in transit-heavy cities like Boston, New York and San Francisco near major stations., SL Green RealtyIt owns Manhattan office towers including buildings near Grand Central, where rail ridership supports tenant demand., Vornado Realty TrustIt owns a major cluster of property around Penn Station, so its value depends on that station's growth and rail traffic.13%
- Cash6%