Long-Term Infrastructure Stock Plays?

FirefighterB said: "Okay, I've been hearing more and more about our aging infrastructure system and it's finally starting to sink in. We had that steam pipe explosion in Manhattan, the bridge collapse in Minnesota, an aging rail and subway system (as well as new and expanding systems proposed as gas prices and city sprawls increase...Austin is close to building a commuter rail and they're talking one from SA-Austin), as well as many other bridges around the country in need of replacement, sewer and water pipes in downtown areas that are reaching 100+ years old, aging dams, etc. If you think about many of these things that we rely on every day, they ARE really starting to get beyond their functional years. So, do you think we are nearing the beginning of a massive rejuvenation of these basic services? If so, what are the companies that are going to be the benefactors of this?"

thezster said: "My opinion - it's news of the day (sadly) and after a few weeks we will have forgotten it and moved on... Obtaining Federal funds for those types of repairs is akin to pulling teeth, once the media gets off the story, and the consequences you envision will require years and years of slow, steady work to pull off... If you're investing for your great grandchildren - then get into the contracting companies that do that type of work.... Otherwise, expect more of the same...."

Rbreb13 said: "Z has it pegged. Long term plays here once the hype dies off. Everytime theres a disaster these things come up and the fervor dies within a few weeks."

AlfredSokol said: "I agree with the Zster. And it points out just how cowardly public policy really is. Even when these idiots [B]know[/B] something bad will happen they ignore it, hoping it will bite someone else in the ass later. I know much of the rustbelt infrastructure has been on death's door for 25 years. I don't think anyone is working on it."

Kloewer said: "I like KSU. They dominate rail shipping between the US and Mexico. They're also building a new terminal (to be finished in 2008) at the Port of Lazaro Cardenas in eastern Mexico. This port aims to become a major Asian-American shipping hub as western US ports max out their capacities. On top of that, the WSJ had a story this morning about the looming West Coast Dockworkers' labor talks. Remember the last time they had labor talks? Cargo ships sat idle in the Pacific for days. These overpaid dockworkers are making sure American ports can't install more efficient automated transshipment equipment. That's bad for US ports, but good if you've got a slice of alternative entry points. I believe KSU is a great way to capitalize. I bought it a couple years ago, and have been adding to my position with the recent drop in rail stocks."

AlfredSokol said: "I think I once heard these dockworkers make $69 an hour! Not bad at all."

Kloewer said: "[QUOTE=AlfredSokol]I think I once heard these dockworkers make $69 an hour! Not bad at all.[/QUOTE] According to the Journal, "about 60% of longshoremen get an average of $127,000 a year," and "now have 100% of their benefits paid for by the employers." Not a bad scam."

AlfredSokol said: "Yeah, it sort of negates the whole "stay in school" arguments."

FirefighterB said: "[QUOTE=AlfredSokol]Yeah, it sort of negates the whole "stay in school" arguments.[/QUOTE] Hahaha. Ain't it the truth? I've got a nice, big, ornately lettered piece of paper (with gold stamp, mind you) that's doing me absolutely nothing. I think I'm eligible for a job paying 35k in NYC, which at a 30-something% tax rate, I'll be doing just fine...yeah. I agree with your sentiment about things not getting fixed, guys. But, I'm just wondering if it'll be more of a FORCED thing. I know Bloomberg's putting money into the subway system because he's a green mayor. It's kinda hard to push mass transit when it's running on 100 year old technology that's not so reliable and it's overcrowded, so he's doing something about it. They are having the first new construction (the 2nd Avenue Line) on a subway line since the 70's to try to alleviate the pressure on a parallel line. I think as fuel prices continue to go up, IMHO, there will be a resurgence in, either or both: 1. Re-urbanization, which will require many of these services that have become derelict to be revived or (this also has the added bonus of "cheaper" and housing with more character) 2. Many cities will build or add onto public transit and commuter rail systems. Unless people just become accustomed to paying and budgeting this much for gas, with debt ratios being where there at and housing not appreciated (if not depreciating), I can't see people being able to stand gas continuing higher... This bridge collapse will be forgotten, but, regardless they will have to build another one in its place. They will have to put more steam pipes as the current ones fail. They will have to add new rail track as lines and services expand. I didn't necessarily mean that these accidents will cause outrage and all of the decrepit infrastructure will be replaced. But, I think it could be signs that much of this stuff could soon be failing."

newinvestor123 said: "Here's a neat play on rail lines that doesn't seem to have caught Buffet fever yet: PRPX. They essentially make replacement parts for railroads, but they have been making some nice acquisitions in the last few years and have a few nifty products coming online, like an automatic rail lubrication device (which I don't believe is exclusive to this company) and some kind of device which uses lasers to detect stress on the rail line and wireless communication to send the information to a computer, which determines whether the line is in danger of failure or not (I believe that is a patented system). They also sell normal, run of the mill stuff which is required to run railways, and their customers are numerous - Not all of their eggs are in one basket. Pretty good fundamentals all around, growing revenue, etc, etc. I think that high energy prices are going to bring about a resurgence in rail transport, both of goods and people, which, I believe, is what Buffett is thinking too - But it's hard to find a rail stock which hasn't appreciated 50% or more in the last year. I think PRPX is up only 30% or so, and if the market would stop frickin dropping, I might pick some up. Water infrastructure is good too, but the hype has pushed up water stocks pretty well. I haven't looked at [URL="http://caps.fool.com/ViewTag.aspx?ws=Water+Infrastructure&tagid=884&ref=http%3a%2f%2fcaps.fool.com%2ftagrankings.aspx%3fws%3d*infrastructure"]these[/URL] individually, but you might want to."