Prices for railties are expected to decline moderately, according to the Weekly Hardwood Review (WHR), but if sawmills exercise discipline, tie purchases and prices should rebound in the spring. Railroads are expected to continue buying record numbersof ties in the coming year, according to the WHR. Trends indicate that as long as business is good, railroads will spend freely on track maintenance. Freight traffic has increased by 1.6% so far over 2005, and quarterly financial reports by railroads show the increased traffic translates to increased profits.
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