Late Breaking Rail Industry News
| January 6, 2009 |
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"These statistics show that the trend of double-digit growth that we have experienced over the past three years is continuing," said SFRTA Executive Director Joe Giulietti in a statement. Tri-Rail officials say ridership has continued to grow even as fuel prices declined in the latter months of 2008.
| January 6, 2009 |
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The readers will aid conductors handling customers boarding at locations without a ticket agent or ticket machines, Amtrak said. At present, conductors assisting such passengers must process credit card purchases manually and without online authorization.
Amtrak still will require most passengers to have a ticket before boarding a train. And onboard purchases will not be accepted for reservation-only trains, such as Acela service.
The national passenger rail carrier expects to award a contract for the card readers by the end of February, and expects the card readers to be introduced during the summer throughout the system. Spokesman Cliff Black says Amtrak eventually will equip its conductors with electronic scanners to read bar-coded boarding passes that passengers can print at home.
| January 6, 2009 |
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The corridor, a project initiated in 2002 by Gov. Rick Perry, was to incorporate 4,000 miles of toll roads, utility lines, and railroad rights-of-way in a superpath up to 1,200 feet wide. The Trans-Texas Corridor concept was opposed by various parties, including the Texas Farm Bureau, environmental organizations, and some rail passenger advocacy groups.
Saenz "told folks at the forum that the Trans-Texas Corridor, as it was originally envisioned, is no more," a TxDOT spokesperson said. "Instead, what we’ve got is a series of smaller projects."
| January 6, 2009 |
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Attorneys for Barrington say STB acted improperly in approving the acquisition, claiming STB based its decision on a flawed environmental review process. Barrington filed a legal petition asking STB to stay its decision, while it also seeks a review of the ruling by the U.S. Circuit Court of Appeals in Washington.
"We believe that the decision is premature and is shortsighted in examining serious concerns raised by thousand of residents, transportation experts and elected leaders," said Barrington Village President Karen Darch, who is also co-chair of The Regional Answer to Canadian National, a coalition of some Chicagoland municipalities still fighting CN's efforts.
STB's decision becomes effective Jan. 23, at which time CN is expected to complete its purchase of the EJ&E from current owner U.S. Steel Corp. CN has reached agreement with numerous towns in both Illinois and Indiana concerning environmental mitigation, and also with Amtrak concerning ongoing passenger rail access.
| January 5, 2009 |
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Those declines contributed to the full-year falloff in carloads, down 2.2%, and intermodal, off 4.2%, compared with 2007's 52-week total. Total volume in 2008 declined 1.2% from the previous year's total.
Canadian carload volume fell 25.7% for the week ending Dec. 27, while intermodal dropped 35.%%. Full-year Canadian carloads in 2008 fell 6.3% from 2007 levels; Canadian intermodal volume for 2008 defied the downward trends, notching a 1.4% gain over 2007 levels.
Kansas City Southern de Mexico reported carloads down 21.7%, and intermodal down 5.9%, for the week ending Dec. 27; the railroad's annual carloadings fell 7.9% compared with 2007 numbers, but its intermodal traffic gained 6.6% for the year compared with 2007.
Ferrocarril Mexicano SA de CV said carloads fell 24%, and intermodal declined 12.9%, for the week ending Dec. 27. For the full year of 2008, carloads gained 3.1%,and intermodal slipped 0.2%, compared with 2007 totals.
| January 5, 2009 |
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"What we are asking is that our government deal with the worst economic slowdown in our lifetime through a recovery program that has in every sense a 'buy America' clause," Daniel R. DeMico, chairman of the steel giant Bucor Corp., told The New York Times.
Public transit is a priority on most stimulus wish lists, including this one.
"If the president-elect really follows through, he'll fund a lot of mass transit projects," Wall Street deal maker Wilbur R. Ross, Jr., who put together the Arcelor Mittal USA steel conglomerate, told the Times. ""all the big cities have these projects ready to go."
| January 5, 2009 |
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Bombardier Transportation President Andre Navarri commented: "The new generation of double-deck coaches is an outstanding example of our continuous product innovation here at Bombardier Transportation. It is now possible to combine double-deck coaches with multiple-unit technology. This is the largest framework agreement for vehicles that DB has ever awarded to a single supplier."
Acknowledging that the investment comes in difficult times, DB CEO Hartmut Mehdorn stated: "Precisely because worldwide economic growth is being assessed so skeptically, we must have the courage to invest in the future."
| January 5, 2009 |
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Pell is best known to the public at large as the creator of a 1973 program--"the Pell grants"--that has helped 54 million low-and moderate-income students attend college.
To rail partisans, he is known for giving a critical push to development of high speed train service in the Northeast Corridor.
Railway Age awarded Pell its first annual W. Graham Claytor Award for Distinguished Service to Ground Transportation in 1994. At a presentation ceremony in Washington, then-Publisher Robert G. Lewis commented that "the Northeast Corridor high speed [program] was only a dream until a dedicated group led by Sen. Pell got to work in the 1960s to promote the cause of high speed passenger rail in the Washington-New York-Boston corridor."
| January 5, 2009 |
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STV said its 10-year contract includes program management and project management for TTC's Transit City Light Rail Plan, which includes seven new LRT lines, "renewal" of Scarborough Rapid Transit, and four maintenance and storage facilities.
TTC's Transit City Department is expected to oversee projects valued at more than C$10 billion during the next decade. STV's role "will include providing the necessary managerial, professional, technical and administrative staffing for program management services as required by the TTC to plan, assess, direct, control, resolve, oversee and communicate the objectives of the Transit City Light Rail Plan," TTC said.
"We are delighted to be able to participate in the renewal of Toronto's transit infrastructure and the new Transit City program," said William F. Matts, executive vice president and chief operating officer of STV's Transportation and Infrastructure Division. "We realize the TTC has always been a transit leader, but the magnitude of what Toronto wants to achieve really is tremendous."
Matts said STV will open an office in Toronto and is looking to expand its work into additional Canadian provinces in the near future.
| January 5, 2009 |
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Watco acquired Millennium Rail in May 2007, followed by the purchase of Fitzgerald Railcar last June. The company says the acquisitions make Watco Mechanical Services the largest car repair company in the U.S., with 14 car repair shops, 18 mobile mechanical shops, and four locomotive shops in a 14-state territory. The consolidation will prompt no change in locations or management, the company says.
"We are extremely pleased to welcome into our Watco Family the people and families of the Millennium and Fitzgerald shops," said Dick Webb, Watco founder, in a statement. "This integration into Watco Mechanical Services should make things easier for our team, customers, vendors and other associates. We look forward to a long and mutually beneficial relationship with all involved."
| December 30, 2008 |
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In a letter dated Dec. 29, AAR President Edward R. Hamberger cited "significant factual errors and omissions that resulted in a severely skewed editorial."
"Despite the allegations of Rep. Tommy Baldwin, D-Madison, there is no real evidence backing up claims that the rail industry is abusing shippers," said Hamberger. "In fact, two recent federal studies indicate the opposite. A study conducted by the Government Accountability Office two years ago noted that between 1985 and 2000 rail rates across the board fell when adjusted for inflation, for all shippers, including captive ones. Further, the study showed that on average, rates fell even when inflation isn't taken into account. Beginning in 2001, rates began to inch back up, though they are still lower than 1985 levels."
As a result of that GAO study, Hamberger said, the Surface Transportation Board commissioned a follow-up study "focusing on the captive shipper issue. That national study, completed this fall by Madison-based Christiensen Associates, found no evidence of market abuse and specifically recommended against much of the agendas advocated by Baldwin and others."
"The Christiensen study found that rail profits are not excessive, pointing out that they are similar to those of utilities," said Hambeger. "It found that the rate increases that had taken place reflected changes in railroad costs and productivity and did no show abuse inn the market. The study also said that railroad revenues remain tight enough that giving significant rate reductions to one group of shippers would require corresponding increases in rates for other shippers."
Hamberger also said it is not true that railroads "are exempt from antitrust and transportation statutes that apply to other industries. That is false. Almost all antitrust laws apply to railroads, including those prohibiting price collusion or market allocation."
| December 30, 2008 |
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State transportation officials reportedly may seek as much as $20 billion in federal funding to supplement the $9.95 billion in state bonding power approved by voters Nov. 4. The 700-mile system is estimated to cost at least $40 billion, linking San Diego and Los Angeles to termini in San Francisco and Sacramento, the state capital.
Officials believe the Obama Administration's infrastructure investment program will include rail in general, and California's high speed rail plan in particular, as a means of signaling support for projects emphasizing energy efficiency and environmental balance.
California's congressional delegation includes House Speaker Nancy Pelosi and Sen. Dianne Feinstein, both of whom have voiced outspoken support for the state's high speed rail efforts. Just days after the election, Feinstein said, "There is legislation that will set up 11 regional systems in the U.S. for highspeed rail, and we will qualify as one of them." She added, "I think we've now got our ducks in order to be No. 1 on that list, and as an appropriater, that will be a job of mine."
"It seems like the stars are aligned," said Rod Diridon, executive director of the Mineta Transportation Institute and a member of the California High Speed Rail Authority. The authority anticipates $12 billion to $16 billion in federal funds, $6.5 billion to $7.5 billion in private investment, and $2 billion to $3 billion in local and/or county contributions.
Quentin Kopp, chairman of the authority board, said the state will seek stimulus funding to accelerate construction of some or all of the 600 grade-crossing projects required, in order to meet the Obama Administration's desire to fund projects that can move quickly. "That work could begin the earliest -- within six months to two years," Kopp said.
California could also benefit if a bill introduced by Sen. John Kerry, D-Mass., and Sen. Arlen Specter, R-Pa., identifies $23 billion in bonds for high speed rail projects. At least $10 billion of that money would be dedicated to California and the Northeast Corridor.
| December 30, 2008 |
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The transaction is expected to close as the year ends. Quality Rail Services business will be rebranded as Savage QRS, and will continue to be based in Golden, Colo.
Quality Rail Services provides locomotive fueling, mechanical, and other support services on an outsource basis, serving customers in the central and western states, with 30 locations. Its customers include BNSF, Kansas City Southern, and Union Pacific railroads, as well as shippers.
Savage provides services to companies involved in oil refining, chemicals, coal production, electric power generation, and railroads. Subsidiary CANAC Railway Services Inc. provides railroad engineering, planning, design, rehabilitation, and rail training services.
| December 29, 2008 |
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Ballots were to be counted by Dec. 30, but the company said it made the move due to holiday mail volume, winter weather, and the high number of ballot requests. YRC currently employs about 40,000 union workers.
The International Brotherhood of Teamsters and YRC agreed to a tentative plan for union members to take a pay cut to aid the company's stressed financial condition.
A trust has also been formed as part of the deal, which will give workers the opportunity to buy stock when the company recovers. Union workers will be offered warrants equal to about 15% of the company's outstanding stock, or about 10 million shares, through the trust. The trust can sell the stock after January 2010.
| December 29, 2008 |
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"Approval of this important merger, with the conditions we have imposed, marks a significant step forward in our nation's efforts to alleviate rail and highway congestion," said Board Chairman Charles D. Nottingham in announcing the decision on Christmas Eve. "I am pleased that the Board agreed, after an unprecedented public involvement process, to grant the relief that this merger will provide to the many Chicago neighborhoods that have been disproportionately burdened for many decades with rail-traffic related roadway congestion."
For CN, the case had become a cliffhanger. Its financing agreement for the transaction expires Dec. 31, and there was no guarantee that a decision would come this year.
The approval came with environmental mitigation measures sought by some 10,000 citizens in on-line communities who participated in the process.
The Board said that "although the transaction will result in environmental benefits to those living in or near Chicago, it will have adverse environmental impacts on communities along the EJ&E rail line."
Mitigation measures imposed by the board include:
--Two highway-rail grade separation projects, with CN bearing 67% of the cost of one and 78.5% of the cost of the other.
--Cameras to monitor highway-rail crossings to assist in the timely response of emergency providers.
--School and pedestrian safety measures.
--Noise reduction measures.
--A five-year environmental reporting requirement mandating quarterly reports on mitigation measures.
The Board also imposed a five-year, formal oversight period, with applicants required to submit monthly operational reports and to comply with "their extensive voluntary environmental mitigation, and with the negotiated agreements that have entered into with Amtrak and communities in Illinois and Indiana containing tailored mitigating that applicants have agreed to provide."
| December 29, 2008 |
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Shoemaker, the son of railroad executive Perry Shoemaker, rose through the ranks of the old Baltimore and Ohio Railroad. In 1965, he moved to Minneapolis and became assistant vice president of operations at the Soo Line Railroad. He then became president of the former Detroit, Toledo & Ironton Railroad, then became a railroad consultant.
In 1987, Shoemaker began operation of Red River Valley & Western in North Dakota on about 650 miles of track. In 1991, he and others started the Twin Cities & Western, headquartered in Glencoe, Minn. (TC&W was named Railway Age's 2008 Short Line Railroad of the Year.)
"He could see around corners, and he could see where the future of railroading was going," said Doug Head of Minneapolis, a board member of both railroads and a former Minnesota legislator and attorney general. "He was a great communicator, and a soft-spoken and effective leader. Everyone who knew him respected him."
| December 29, 2008 |
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Salci also noted "Colorado Railcar Manufacturing has a major liquidity problem, and its lenders have a secured position in the assets of the company. The company is in the process of liquidation."
The Fort Lupton, Colo.-based company had been seen by some as a potential leader in rejuvenating U.S. passenger railcar manufacturing, as it sought to extend its initial manufacturing capabilities in producing luxury rail passenger equipment for specialty markets. Several U.S. transit properties tested the company's diesel multiple-unit (DMU) equipment options, but actual purchases were limited.
Among those acquiring DMUs were Portland's TriMet, for use on its Westside Express Service( to debut Feb. 9), and the South Florida Regional Transportation Authority (Tri-Rail).
| December 24, 2008 |
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In rating overall service a grade of C in 2008, up from C-minus the year before, riders surveyed cited "Station announcements that are informative" and "Train announcements that are easy to hear," as much improved from 2007. The Satisfaction Index for "Overall Service" increased from 88% last year to 89% for 2008.
"It is interesting to note that the greatest increase in grades, from a D-plus to a C-plus, was in 'Train announcements that are easy to hear,'" said NYC Transit President Howard H. Roberts, Jr. "This is most likely due to the replacement of older R42 subway cars with the new R160s. This positive result in customer satisfaction demonstrates how financial investment in new equipment through the MTA Capital Plan and effective maintenance of that equipment leads to improved service."
| December 24, 2008 |
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In addition, shipper schedules from the western gateway of Memphis, Tenn., to Orlando are available with expanded gate deadlines.
"The additional flexibility complements our existing services to the important Florida market," said CSXI President Jim Hartwig. "Customers can leverage additional efficiencies with their equipment and take further advantage of existing key lanes such as Savannah to Georgia."
| December 24, 2008 |
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U.S. intermodal volume also fell a comparable 16.5% from the year-ago period. Container volume declined 16.9% while trailer traffic fell 15.3%.
Total volume of 29.1 billion ton-miles was down 15.4% from the same week one year ago. Cumulative volume for the 51 weeks of 2008 through December 20 was off 1.9% t from 2007.
Canadian carload traffic fell 24.8% for the week compared with last year, while Canadian intermodal volume declined 11.2%. Cumulative Canadian carload traffic for the 51 weeks of 2008 through Dec. 20 were down 6.1%. Cumulative intermodal traffic still defied the downward trend, notching an increase of 1.9% from last year.
Kansas City Southern de Mexico (KCSM) carload traffic fell 16.5% for the week compared with last year, while intermodal slumped 19.3%.
Ferrocarril Mexicano (Ferromex) carload traffic rose 29.5% for the week compared with the year-ago period, and intermodal traffic also rose, up 7.4%.
| December 24, 2008 |
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Officials from all three police departments have been working closely with light rail representatives for several months to address crowd control, crowd flows, and other potential problems likely to arise along the 20.3-mile route.
The police presence will be bolstered by bomb-sniffing dogs, teams from the Transportation Security Administration, and officers from the state's Department of Liquor License and Control. Also on hand will be at least 700 citizen volunteers staffing system stations, providing information and guidance for those seeking to ride the new line.
| December 23, 2008 |
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Tucson Mayor Bob Walkup said Secretary of Transportation Mary E. Peters phoned him this week with a federal endorsement of the proposed streetcar line, giving the city the opportunity to seek federal matching funds. Tucson has committed $25 million of Regional Transportation Authority funds to the line. Walkup said the city would begin engineering and final design shortly.
Tucson voters approved the streetcar plan in May 2006.
| December 23, 2008 |
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"It could be expanded into New Milford for a very nominal amount of money per mile as compared to other types of projects," said Michael McLachlan, elected to the state Senate last month. "The track for the expansion already exists." McLachlan, said improvements to the branch during the past decade have been "frustratingly slow."
Added state Rep. Toni Boucher, R-Wilton, appointed as a ranking member of the Transportation Committee, "It's been one of my top priorities."
Both Boucher and McLachlan noted the state's Bond Commission recently approved $2.5 million to study a new signal system on the line that could improve service.
Connecticut's Department of Transportation oversees funding for Metro-North capital costs within the Nutmeg State, with its primary focus on Metro-North's New Haven line, running from its namesake city to Grand Central Terminal in Manhattan.
| December 23, 2008 |
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The free event will be held at the Region of Waterloo (Ontario) council chambers, in hopes of raising the profile of high speed rail, according to Paul Langan, founder of High Speed Rail Canada.
"The timing is pretty well right on the money in terms of passenger rail," Langan said. The group believes the federal and provincial governments could help kick-start the economy by spending millions of dollars on rail travel, while greening the environment by reducing reliance on vehicles.
Noting the potential shift in transportation attitudes south of the 49th parallel, Langan said, "The United States is the latest country to promote rail transportation, while Canada continues to lag behind." But even Canada is changing, he said.
High speed rail in Ontario and Quebec has been studied seven times since 1984.
| December 23, 2008 |
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One gathering, entitled Downtown Phoenix Rising, will celebrate light rail, the Phoenix Convention Center's new North Building, and numerous downtown projects, says Terry Madeksza, representing the Downtown Phoenix Partnership, a business group.
"This is the perfect opportunity to reintroduce people to downtown," Madeksza said, noting thousands of people, including many who seldom travel to the city's downtown, are expected to visit during the weekend.
The initial $1.3 billion, 20.3-mile route runs through Phoenix and Tempe, with its eastern terminus located in Mesa, Ariz.
| December 22, 2008 |
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The move precedes a scheduled vote Jan. 8 by the Montgomery County Planning Board on the project, which runs from Bethesda to New Carollton, Md. in Prince George's County, connecting to Washington's Metrorail system at either end. Light rail support has been solid within Prince George's County; by contrast, Montgomery County residents appear split among those favoring light rail, those seeking BRT as a "cheaper" solution, and those opposed to any transit project at all.
The board will review the planners’ recommendations during its public hearing, and then send its input to the county council. The Maryland Transit Administration is the final decision-making body.
Planners recommended keeping the Capital Crescent/Georgetown Branch bike trail tunnel under Wisconsin Avenue in Bethesda. The trail should continue through the tunnel but be constructed above the train, they say. Planners also recommend widening the trail, where possible, as part of the project.
| December 22, 2008 |
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"We are acting quickly and without delay because railroads will need guidance on how to create plans to deploy PTC systems by the end of 2015,” said FRA Acting Administrator Clifford C. Eby. Eby noted that the first deadline mandated by Congress in a new rail safety law is April 2010, when major freight railroads, along with intercity and regional rail operators, must submit their PTC implementation plans to FRA for approval.
Eby said developing new rules is a necessary first step to specify how the technically complex PTC systems must function and to describe how FRA will assess a railroad's PTC implementation plan before it can become operational. FRA is already working with its Railroad Safety Advisory Committee to identify key issues and will release a recommendations report in April, he said.
FRA also is coordinating efforts with the Federal Communications Commission to make available a sufficient amount of radio frequency spectrum essential for PTC technology to function properly as it sends and receives a constant stream of wireless signals about the location and speed of passenger and freight trains moving along rail lines.
The agency is working closely with Metrolink, Union Pacific, and BNSF to accelerate the deployment of PTC in the Los Angeles area by the end of 2012, Eby said. A Metrolink passenger train collided with a UP freight move in Chatsworth, Calif., last September.
"I am encouraged that the major freight railroads have reached agreement for the interoperability of PTC technology across different rail systems," said Eby.
The FRA has done extensive PTC-related technical research in recent years and significantly revised federal signal and train control regulations to support development of the safety technology, he said.
| December 22, 2008 |
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The project is part of DOT's Border Congestion Relief Program, designed to aid and accelerate transportation-related capacity and operational improvements at border crossings.
"Border congestion creates an unnecessary obstacle to efficient trade with our international partners. Providing alternative routes for freight transport is good for the economy and the American people," Peters said in a statement.
The new railroad bridge and East Loop Bypass project also would enhance safety by eliminating numerous highway-rail grade crossings. Peters said that as part of the congestion relief program, the project would receive priority access to many of DOT's assistance programs, including loans and other innovative financing mechanisms. News managed by NewsPro.
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