Late Breaking Rail Industry News
| September 19, 2008 |
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| September 19, 2008 |
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Though problems remained, UP was able to report significant progress in its recovery from Hurricane Ike, which impacted 2,000 miles of track across its Southern Region: "Crews have been working around the clock to clear downed trees and other debris and place generators to power signal systems [and] most of the impacted subdivisions are now back in service… . In the Houston area, operations at Setegast, Englewood, and Strang yards are resuming, along with several industry-served yards as water levels recede and employees are able to return to work."
| September 19, 2008 |
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Bidders must submit their proposals by March 31, 2009. The winner will be announced on July 31. Reuters noted that President Felipe Calderon's government has launched a number of infrastructure projects this year, partly to help relieve the stress on Mexico's economy caused by U.S. business woes.
| September 19, 2008 |
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Supporters of the measure say the percentages are significant, and a rejection of the stance offered by opponents, including NotoProp1. Last year voters turned down a sweeping proposal embracing transit and road improvements; this year's Proposition 1 is a standalone measure for public transit investment.
Verona, N.J.-based SurveyUSA interviewed 1,000 adults from the Sound Transit District between Sept. 12 and Sept. 14. "Of the adults, 881 were registered to vote. Of the registered voters, 573 were determined by SurveyUSA to be likely voters in the 11/04/08 general election," the company says on its website.
| September 19, 2008 |
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"An industry-high 81% of automobile were shipped by rail, the most fuel-efficient means of product transportation," the Honda report says, adding, "CO2 emissions from automobile transport were reduced by 5,493 metric tons though the use of more fuel-efficient Auto-Max rail cars."
The 2008 North American Environmental Report covers the company’s fiscal year 2008 operations ending Mar. 31.
| September 19, 2008 |
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The City Council’s Transportation and Infrastructure Subcommittee is considering extending the service Friday and Saturday nights, and for special events such as the 2009 NBA All-Star Game, to be held at U.S. Airways Center.
Currently, the light rail’s scheduled to operate daily from 4 a.m. until midnight only. Metro CEO Richard Simonetta says additional operating hours would cost $350,000 per year. Advocates for extended hours suggest at least some costs would be recovered through additional revenue.
Debbie Cotton, director of Phoenix’s Public Transit Department, and city staff members said they would look into such issues and report back to the subcommittee during its next meeting on October 2.
| September 18, 2008 |
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Built around an interview with Railway Age Editor William C. Vantuono, the CNN feature tells an upbeat story of the contribution railroads are making to the national economy and describes what still needs to be done to permit railroads to carry their share of a national freight package that is expected to double in size by 2035.
Interviewed at CNN's New York studios, Vantuono sets the tone in his opening comments: "Railroads are setting records—record income, and record revenues. Shippers have discovered that, in many cases, it’s much more efficient to ship by rail than to ship by truck."
Vantuono points out that "railroads own, operate, and pay taxes on their infrastructure." Noting that they need to invest $148 billion in their system to carry the transportation burden anticipated by the federal government, he said a tax credit proposed in pending legislation in Congress "would be a substantial boost. It's something that’s absolutely needed."
"The Return of the Iron Horse" also describes how railroads are far more fuel efficient and environmentally friendly than highway transport.
| September 18, 2008 |
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AAR said 18 of 21 carload commodity groups were down from the year-ago period. Loadings of motor vehicles and equipment fell 25.1%, while lumber and wood products declined 18.4% and primary forest products were off 16.2%. Defying the overall decline, metallic ores gained 20.1%, and coal rose 7.0%, over the comparable week one year ago.
Canadian carload traffic for the week dropped 3.0% compared with the period a year ago, though intermodal traffic rose 4.6%; the intermodal segment was the highest weekly total since AAR began reporting Canandain data in 1996.
Carload freight on the Kansas City Southern de Mexico during the week was down 12.3% from the 2007 week; intermodal traffic rose 11.7% compared with year-ago volume.
| September 18, 2008 |
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"Given the substantial, wide-ranging public interest benefits of our planned acquisition of the EJ&E, we cannot permit regulatory delay to imperil this transaction," said CN President and CEO E. Hunter Harrison, in a statement.
"We are convinced - and many business and community leaders agree - that the transaction will be good for the Chicago region as a whole. It would ease rail congestion, which is critically important to the region's economy and its continued role as one of America's most important transportation hubs. If unaddressed, rail congestion threatens $2 billion of dollars of production and 17,000 jobs in the Chicago region over the next 20 years," Harrison said.
"Second, the transaction would benefit the environment of the overall Chicago region. For every community along the EJ&E line in the suburbs of Chicago that would see increased train traffic as a result of the transaction, nearly double that number along CN lines in inner Chicago would see decreased rail operations. In fact, roughly 60 communities inside the EJ&E arc would benefit from reduced train traffic as a result of the transaction. That would mean a better quality of life for residents of the Chicago region, with less pollution, fewer idling trains and fewer blocked crossings," said Harrison.
CN last month proposed to STB a compromise that would have allowed STB to rule on the transportation merits of the EJ&E acquisition while completing its environmental review of the transaction. Last week STB turned down the proposal, noting it could not conduct an environmental review independently of the other merits of the proposed merger.
| September 18, 2008 |
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Villaraigosa said the move was to emphasize the need for safety and Metrolink transparency as priorities that, in his view, were lacking following the accident Sept. 13 in Chatsworth, Calif., when 25 people died following a collision between a Metrolink passenger train and a Union Pacific freight train.
Metrolink spokeswoman Denise Tyrrell resigned Monday after she drew criticism from Metrolink superiors for her performance immediately following the crash. Tyrrell, following consultation with other Metrolink officials, had acknowledged the possibility that Metrolink was responsible for the incident.
Villaraigosa appears to believe that Metrolink officials' subsequently chose to "assume a defensive posture" and disavow Tyrrell's comments, one source has noted. Publicly, "The mayor believes that the public deserves answers and the agency needs changes, and he's taking the leadership to get it done," said Villaraigosa spokesman Matt Szabo.
| September 18, 2008 |
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Details of that plan have become public, with many of them seemingly unrelated to the NJ Transit plan, which would build two tunnels under the Hudson River and terminate at a new underground station on Manhattan's West Side, linked by walkway to the existing Penn Station but, in essence, operating as a separate railroad operation.
Gov. Paterson appears to be advancing an expansion of Penn Station's track capacity southward to the block between Seventh and Eighth avenues, from 30th to 31st streets, which could hold perhaps five or six new tracks, as well as extend the length of existing Tracks 1 through 4.
Cost of the plan, which would involve significant underground tunneling work, has not been made public, and funding for such a venture is uncertain, given current fiscal constraints on New York and on Amtrak, owner of Penn Station.
Nonetheless, the latest revival of the Moynihan Station plan--even as a standalone plan separate from NJ Transit's cross-Hudson rail design--reportedly has backing from some key figures, including Federal Transit Administrator James Simpson, Chris Ward, executive director of the Port Authority of New York & New Jersey, and the city of New York.
"We hope any plan that's eventually adopted optimizes space for rail travel, doing the most for expanding rail capacity in a general sense, and at the station specifically," said Amtrak spokesman Cliff Black.
| September 17, 2008 |
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Analyst Lee Klaskow Wednesday said the drop in UP share price gives investors a buying opportunity. Klaskow also said the stock's value will grow as UP reprices legacy contracts and continues to make operational improvements.
Klaskow increased full-year estimates for 2008 and 2009, and suggested that UP could exceed its own expectations in the third quarter, results of which will be announced next month.
| September 17, 2008 |
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The bill would impose penalties, including $100,000 fines, for companies that fail to comply with the implementation timetable. The two California senators seek to pass the measure before Congress recesses for the election campaign, probably by the end of next week.
An estimate by the Federal Railroad Administration for nationwide PTC implementation places the cost at roughly $2.3 billion. "The expectation is that as this technology matures, it is going to be implemented in a high (usage) area," said FRA spokesman Warren Flatau. "Having a positive train control system in place, I can say with 90-to-95% confidence, would have prevented this (Chatsworth) accident."
On Monday, Rep. James Oberstar, D-Minn., chairman of the House Committee on Transportation, asserted that action was need to prevent accidents such as the one in Chatsworth, where 25 passengers were killed when a Metrolink passenger train collided with a Union Pacific freight train. Regular Metrolink rail service resumed Tuesday through the site.
"Our legislation requiring [positive train control] would substantially reduce the number of serious train accidents because it provides safety redundancy to protect against human performance failures," said Oberstar. "However, the unwillingness of rail companies to make the needed investments in safety have prevented this technology from being fully implemented."
Rail industry representatives vigorously dispute Oberstar's assertion. Speaking for the Association of American Railroads, Patti Reilly said that the rail industry has spent $200 million developing train control systems, but variables, such as ensuring compatibility among different railroad companies and accounting for varying weight and length of trains, has made any easy technological fix an elusive pursuit.
Meanwhile, investigation by the National Transportation Safety Board has found that existing rail safety measures at the Chatsworth site, including signals, appear to have functioned as expected; Re-enactment of the crash by NTSB suggests that the Metrolink engineer did not apply his brakes even after bypassing a red signal. NTSB said the UP freight train did apply its brakes. The three-car Metrolink consist was traveling at 42 mph; the 17-car UP train was moving at 41 mph.
| September 17, 2008 |
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The company will operate as a wholly owned subsidiary of Pittsburgh-based A. Stucki Co. Bill Roschek will continue to manage operations, while Clayton Baker will assume responsibilities for sales.
"This is a dynamic addition to our existing family of companies and allows us to service our current customer base with a broader product offering while entering new and exciting markets," said A. Stucki Co. President Bill Kiefer. "This acquisition is well-suited for the long-term goals of our organization, building upon our continued success and being aligned with the company’s strategic growth initiatives. As a further value-add, the addition of Alco will benefit customers by serving as another distribution location of dependable, reliable A. Stucki products."
| September 17, 2008 |
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Evergreen, Colo.-based GrandLuxe ceased operating private-car operations last month. The company's equipment will be available for viewing in Napa Valley, Calif., later this month. Interested parties also can visit www.luxuryrailcars.com; qualified buyers can contact Libra Securities Managing Director Frank Sena at 212-332-4150 for additional information.
| September 17, 2008 |
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PATCO and its parent, the Delaware River Port Authority, seek to replace the existing closed circuit television system and add an emergency communication system. DRPA says its main concern was to improve the safety and security of its passengers.
"TAC's solution for DRPA and PATCO is flexible and includes options for managing, expanding and maintaining the system to meet future demands and the evolving needs of the Authority," said Sam Belbina, vice president of Systems Integration East, TAC. "TAC will install a state-of-the-art IP video and intercom system that will reside on the existing DRPA network, saving the agency thousands of dollars because installing new fiber cabling is not necessary."
Carrolton, Texas-based TAC will place both new cameras and emergency telephones at 13 rail stations and cameras in the tunnels between the rail stations. TAC is also installing new cameras on the Ben Franklin Bridge, which all PATCO trains use to cross the Delaware River to and from Philadelphia.
Approximately 250 Pelco cameras will observe conditions and activities along line. The emergency communications system with 98 telephones will enable transit users to contact DRPA authorities in case of an emergency along the line.
DRPA and PATCO will monitor the system from a central command center and backup centers. An uninterruptible power supply will offer backup power in the event of a power failure and keep the system operating.
| September 17, 2008 |
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NS said in a Securities and Exchange Commission filing that its pact with BLET includes wage increases of roughly 3.2% per year from 2009 through 2014. Eligible engineers also get a $1,200 signing bonus Dec. 1 and a $3,500 bonus Jan. 1, 2009. NS says the agreement also improves the union's retirement plan and increases incentive pay for weekends and holidays.
(The United Transportation Union says it is challenging certain provisions of the contract, which would give BLET crews the right to operate remote-control locomotives outside of yard limits, where UTU now has that right. UT noted that the contract would authorize the operation of trains with one-person crews and, if and when technology permits, no crews at all.)
In a statement, BLET General Chairman Ray Wallace said, "The BLET has enjoyed a strong partnership with Norfolk Southern over the years. This agreement ensures that Norfolk Southern's success will continue to be financially beneficial to our members."
For its part, NS Vice President-Labor Relations Harold Mobley said, "Reaching a long-term agreement that links engineer compensation to our corporate goals will allow all of us to continue to focus on the railroad's safety, operating efficiency, and customer service."
| September 16, 2008 |
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The court decided not to block the hedge fund group--Children's Investment Fund and 3G Capital Partners--from voting their shares in a proxy fight, though the court did say that they had failed to properly disclose that they had formed a hedge fund group.
Two of the four dissident directors nominated by the hedge funds were seated earlier.
| September 16, 2008 |
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Because of damage suffered by both KCS and Union Pacific, KCS's cross-border Mexico service, which operates over certain UP trackage rights, has been curtailed since late last week but is expected to open in mid-week.
"The good news is that there is no major damage to our infrastructure and business will come back," said KCS President and Chief Operating Officer David Starling.
Union Pacific said in statement Monday it did not suffer "heavy structural damage," but downed power lines and trees wee blocking tracks from Houston to Arkansas and Louisiana.
UP said many customers found their facilities out of service "due to flooding, wind damage and lack of commercial power." UP Executive Vice President Jack Kaleski said, "As flooding recedes and service is restored, our operations employees will be working with customers on their plans to resume operations. As part of that recovery, they will be helping customers identify any railcars held at any of their facilities that were flooded in the storm and will need to be inspected for damage. Rail cars that are damaged will be placed in mechanical hold status until repairs can be made."
Like KCS, UP also had some good news: "Our railroad was in great shape prior to the storm," said Koraleski. "This momentum certainly helps in our efforts to restore service."
| September 16, 2008 |
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The value of the contract was not announced. Jacobs' officials estimated the overall construction value of the project at $1.3 billion, though at least one recent estimate issued from NJ Transit itself pegs the cost at $1.7 billion, based on the year of expenditure. The new bridge is scheduled to open in 2017, replacing the current 98-year-old swing bridge spanning the Hackensack River in the New Jersey Meadowlands, which has proven problematic to NJT and Amtrak operations on the Northeast Corridor.
The project replaces the existing bridge with two bridges on either side of the current structure, carrying a total of five tracks. The northernmost bridge will be a fixed bridge with a 50-foot mean high water clearance for marine traffic and will carry three tracks.
A second structure, south of the existing bridge, will contain a movable 400-foot-long center span with a 40-foot mean high water clearance and will carry two tracks. It will be possible to raise the center span 10 feet via a vertical hydraulic lift that will be utilized about 10 times a year to accommodate the largest marine vessels navigating the Hackensack.
In a statement, Jacobs Group Vice President Kevin J. McMahon said, "We look forward to continuing our long-lasting relationship with NJ Transit by providing the services needed to support its goals of providing improved services to its customers and of promoting the long-term economic development of the New York metropolitan region."
| September 16, 2008 |
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"This economic study highlights the need for greater investment in
transit," said Michael Roschlau, president of the Canadian Urban Transport Association, which represents the nation's public transit systems, their suppliers, government agencies, and pro-transit individuals and related organizations.
HDR Decision Economics Inc., a division of Omaha, Neb.-based HDR, Inc., conducted the study, which CUTA said follows a poll demonstrating "a surge in public support for transit in the wake of rising gasoline prices." CUTA and the Federation of Canadian Municipalities sponsored the poll, conducted by The Strategic Counsel.
"Transit providers welcome new riders, but without new funding, this kind of increased demand would overwhelm transit systems, many of which are already at or beyond capacity during peak hours," said CUTA Chairman Steve New in a statement. "Even in some smaller systems that have spare capacity, there are renewal and replacement needs that resulted from the lack of funding over the last 20 years."
| September 16, 2008 |
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Sound Transit also is adjusting some bus schedules to improve intermodal bus/rail connections. As one example, the ST Express Route 599 service will begin connecting the newly completed Lakewood Station with the Tacoma Dome Station, giving Lakewood, Wash., residents easy access to Sounder trains.
The service expansion comes prior to Sound Transit’s $17.9 billion expansion proposal, which voters will ponder Nov. 4. The plan would extend light rail south to Federal Way and bolster both regional bus service and Sounder rail service.
| September 16, 2008 |
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Based in Park Ridge, Ill., Standard Car Truck has annual sales of about $225 million and manufactures engineered components for locomotives and freight cars. Wabtec expects the transaction to be completed in the fourth quarter and to be accretive in the first year.
Wilmerding, Pa.-based Wabtec will finance the move with proceeds from a new, $500 million credit facility and has already received a commitment from a group of banks. Co-Lead Arrangers on the new credit facility, which includes a revolver and a term loan, are PNC Capital Markets LLC, JP Morgan Securities Inc., and RBS Greenwich Capital, Wabtec said in a statement.
Founded in 1896, Standard Car Truck has about 550 employees in nine manufacturing facilities in Illinois, Ohio, and Pennsylvania; it also has offices in Malaysia, for low-cost sourcing from other manufacturers, and in Scotland, where its research and product development efforts are focused.
"Standard Car Truck has a world-class portfolio of products and will be a strong strategic fit for Wabtec," said Wabtec President and CEO Albert J. Neupaver. "The company will enable us to provide freight car customers with a broader, value-added package of truck components and
assemblies. With our combined knowledge of in-train braking forces and design capabilities, we will be uniquely qualified to advance stabilization technology for the industry. In addition, we see opportunities to build on Standard Car Truck’s existing aftermarket and international presence."
| September 15, 2008 |
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A grant for $100,000 went to the American Association of Suicidology to determine the prevalence of Post Traumatic Stress Disorder in locomotive crews involved in grade crossing accidents, and current and best practices for its treatment.
FRA announced the following other grants:
--$3.7 million to the New England Central Railroad for track and tunnel upgrades, with the railroad providing $710,000 in matching funds.
--$1.75 million to the Washington State DOT for a refrigerated railcar leasing program for perishables and rack upgrades to a City of Tacoma-owned rail operation.
--$1.5 million to the Portland & Western Railroad for track and bridge work, with the railroad adding $379,000 in matching funds.
--$245,000 to the Buffalo & Pittsburgh Railroad for bridge replacement.
--$250,000 to the National Research Council of Canada for ongoing cooperative research into wheel/rail interaction.
--$191,100 to the University of West Virginia for research into upgrading deteriorating wood ties with thermoplastic reinforcements.
--$286,650 to Marshall University in West Virginia for research in track flaw detection.
--$490,100 to the Illinois Commerce Commission for a grade crossing safety and enforcement study.
--Through the U.S. DOT's Maritime Administration, $150,000 in partnership with the Port of New Bedford to study cutting pollution through the use of shore-generated power while a ship is in port.
| September 15, 2008 |
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The first leg of this ABC News project, the GMA Whistle Stop Tour, is an historic one—the first time a television program has been broadcast live from a moving train. The technology is impressive: six specially equipped Amtrak Superliners with a staff of about 90—everything needed to produce segments for GMA, including two editing suites, and beam programming live via satellite to ABC News production studios in New York.
Amtrak's Beech Grove Shops rebuilt and customized an F40 “Cabbage”(cab/baggage) car into a rolling uplink station equipped with gyroscopic satellite dishes. ABC News Executive Producer-Special Programming and Development John Green has dubbed this one-of-a-kind piece of rolling stock a “Cabtenna.” Three chase helicopters provide aerial footage of the consist as it moves. Bringing up the markers: private cars Pennsylvania 120 and Warrior Ridge, owned by Bennett Levin's Juniata Terminal Company. Two Amtrak P42 Genesis locomotives provide the power. The project took about nine months to plan; the train took more than a week to equip.
The Whistle Stop Tour departed Worcester, Mass., early this morning and made a planned stop at Lenox/Stockbridge, Mass., on the Housatonic Railway, where Railway Age Editor William C. Vantuono joined the tour. On its five-day journey, the train will stop at Niagara Falls; Ashtabula, Ohio; and Harpers Ferry, W. Va., and a variety of intermediate locations before ending in Washington, D.C. this Friday. GMA hosts Diane Sawyer, Chris Cuomo, and Robin Roberts have been living on board and, according to Amtrak spokesman Cliff Black, “thoroughly enjoying the experience.”
At a stop Monday afternoon in Albany/Rennselaer, N.Y., to service the train, former Democratic presidential candidate Sen. Hillary Clinton came on board for an interview, which will be aired on Tuesday morning.
Look for a story in the October issue of Railway Age. Meanwhile, you can track the progress of Good Morning America's Whistle Stop Tour in real time via an uplink from PRR 120 provided by Lat-Lon. Go to www.lat-lon.tv. Also, see “Tales From the Train” video footage on GMA's website, http://abcnews.go.com/gma.
| September 15, 2008 |
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While cautioning per its custom that the cause of the crash could take months to determine, NTSB did suggest that Positive Train Control could have prevented the crash. PTC or a similar collision avoidance system would have slowed the Metrolink train, if not prevented the accident. NTSB also said it has advocated for such control systems to be put in place throughout the U.S.
NTSB said it could not confirm speculation that the Metrolink engineer had been text messaging with area railfans, in violation of company rules, noting a similar story surfaced following an accident in Boston that lacked veracity.
Metrolink officials, joined by Los Angeles Mayor Antonio Villaraigosa, sought to reassure system riders that passenger rail transport remained a safe travel option. "I want to dispel any fears about taking the train," Villaraigosa said. "Safety has to be our No. 1 concern. Taking the train is still the safest option for commuters."
South of Los Angeles, the North County Transit District assured San Diego-county area riders that it, too, had safety in mind. A press release Sunday, made available to NCTD's riders on COASTER and SPRINTER rail services, said in part, "As a follow up to the METROLINK accident, NCTD staff and our operating contractor are briefing COASTER operating crews on what happened in Los Angeles and are reinforcing our safety rules and practices as further safeguards to prevent such an incident from happening on the COASTER."
The Metrolink accident was the nation's deadliest rail passenger incident since Sept. 22, 1993, when Amtrak's Sunset Limited fell off a trestle damaged by a wayward towboat, plunging into a bayou near Mobile, Ala., killing 47.
Metrolink said Monday it would offer train service on the Ventura County Line only between Chatsworth and Los Angeles Union Station, but hoped to resume service on the entire line for the evening rush hour. Buses were used Monday morning to move customers between Chatsworth Station and both Moorpark and Simi Valley stations.
Union Pacific offered condolences to the victims and noted, "Our three Union Pacific crew members survived the crash with non life-threatening injuries," and noted the crew was familiar with local operations. UP added, "The accident took place on tracks that are owned, maintained and controlled (dispatched) by Metrolink."
| September 15, 2008 |
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London-to-Paris trip times would be under two hours under the Air France plan, which envisions trains operating up to 224 mph, a speed the airline claims is 38 mph faster than current Eurostar top speeds.
Eurostar has said that it welcomes competition on the route and that interest from air carriers "had been expected." A Eurostar spokesperson said, "This shows that airlines now realize that high-speed rail is increasingly the natural choice for business and leisure journeys across Europe." But Eurostar also noted that airline companies faced a learning curve in operating high speed passenger rail service.
| September 15, 2008 |
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The corridor itself consists of Malawi's railway and the Nacala port and railway in Mozambique, which was concessioned in stages, beginning with the creation of Central East African Railways (CEAR) in 1999 in Malawi and continuing with the concessioning of the Nacala Port and Railway in 2005.
“The sale of our economic interests to local investors represents a major development in the evolution of the Nacala Corridor," said RDC Chairman Henry Posner III. "Having restructured and stabilized a patchwork of publicly-owned assets, the foreign investors have at this point created most of the value that we were in a position to achieve. This has ranged from equity investment and the arrangement of third-party debt financing to the streamlining and integration of the management of the infrastructure involved. Full integration of the Nacala Corridor into the local private sector represents the next logical step."
| September 12, 2008 |
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In a decision served Aug. 26, the Surface Transportation Board set a purchase price of $3,308,000 for one 30.57-mile portion and an additional 9.20-mile portion of the railroad's South Exeter Branch. In a decision announced Sept. 10, the board announced that the county's board of supervisors had decided against the purchase.
Another potential purchaser, the Tulare Valley Railroad Co. had advised STB earlier that it was no longer interested.
A earlier order conditionally authorizing the abandonment has now gone into effect.
| September 12, 2008 |
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Paterson's linkage to the trans-Hudson tunnel project is curious, since current plans call for NJ Transit to serve a new underground train station on Manhattan's West Side north of 34th Street between Sixth Avenue and Eighth Avenue, separate from the Moynihan Station site, which lies west of Eighth Avenue between 31st and 33rd Street and sits above Amtrak's Northeast Corridor right-of-way.
The proposed Moynihan Station has been stymied for at least 10 years, due in part to maneuvering among rival real estate interests in Manhattan and, at times, involving the mayor's office and other political figures. Paterson said his deputy secretary for economic development and infrastructure will meet with all the public and private partners and issue "an assessment of these challenges and potential solutions."
“It is fitting that 100 years after the building of the first Penn Station, we assess our infrastructure priorities and establish clear conditions for the future of transportation in our State," said Paterson. "If we are to realize our full potential for growth in the 21st century, then we must look to increase our rail capacity. That is why today I have outlined the conditions that I believe must be met if we are to move forward with the Moynihan Station project. Moynihan must be more than a beautiful station; it must move more people more efficiently."
| September 12, 2008 |
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The effects of Hurricane Gustav at the beginning of the week and Tropical Storm Hanna later in the week were significant. The traffic picture for the year to date was brighter. Carload traffic was up 0.2% for the first 36 weeks of 2008, intermodal volume was down 2.9%, and ton-miles were up 1.3% from last year.
In Canada, carload traffic in the week ended Sept. 6 was down 2.9% from last year while inermodal volume was up 4. 4%. Cumulative carload volume for the first 36 weeks of 2008 was down 2.9% and intermodal traffic was up 4.0%.
Kansas City Southern de Mexico reported carload freight for the week ended Sept. 6 down 12.9%, with intermodal volume up 12.1%.
| September 12, 2008 |
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Plan backers are offering naming rights for up to 13 planned stations along route, at up to $3 million per stations, and 10 purchasers have committed to buying rights, including Wayne State University, whose board has committed $3 million over a 10-year period to sponsor the stop serving its site.
Among several obstacles remaining, any such rail operation would require creating a public-private nonprofit entity to own and run the system. Michigan's state legislature also would need to sanction the creation of such an organization, and no bill doing so has been reported on the legislature's agenda.
The LRT proposal is separate from, but could be complementary to, a a rail line from New Center to Ann Arbor being planned by the Southeast Michigan Council of Governments. Moreover, the private-sector effort could conflict with a separate plan for light rail being advanced by the Detroit Department of Transportation.
| September 12, 2008 |
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North Kansas City is the only other city besides Kansas City through which the proposed $835 million light rail starter route would run. The plan anticipates that federal funding sources would cover 50% of the cost. Cost for the two-mile stretch in North Kansas City is estimated at $81 million. The half-cent sales tax, which would be collected during a 25-year period, would generate more than $1.6 million annually, according to projections from the city's financial consultant.
North Kansas City's action follows years of varied and competing light rail proposals for Kansas City.
| September 11, 2008 |
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Over the next few years, NS will be concentrating on “improved services, pursuit of higher-value pricing, volume increase, exercising of cost discipline, and increased free cash flow,” and of course, safety, Squires said. For the nearer term, the railroad anticipates gains in metals and minerals, agriculture, coal, and domestic intermodal.
Earlier this week, NS confirmed that it has ordered 24 GE Evolution Series 4,400 hp AC (ES44AC) locomotives. Delivery will be completed as early as the end of next month. The order is a first for NS, which in the past has tapped GE Transportation to produce ES40DC (Evolution Series 4,000 hp DC traction) locomotives exclusively for NS. These locomotives will be used in coal service, Squires said.
| September 11, 2008 |
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What about coal, a major source of UP revenue? “Despite what we’ve heard at the political conventions with regard to the environment, coal will continue to be a major source of electrical generation, and a major source of our business growth,” Knight said.
Another growth area for UP is international trade, which is closely tied to the outsourcing of U.S. production and worldwide demand for U.S.-sourced agricultural products and industrial raw materials, Knight said.
Added to this are increasingly truck-competitive services, which include premium service offerings, a fuel cost advantage, and enhanced service reliability. As well, “there are tremendous pricing opportunities as we continue to renew our legacy contracts,” 80% of which have been re-priced since 2004, Knight said. Key will be the ability to move prices up to market levels and increase fuel cost recovery to 100% through surcharges.
UP, Knight said, is targeting an operating ratio in the low 70s by 2012, based on a compound annual growth rate of 6-8%—2-3% in volume growth and 5-6% in core pricing gains. UP’s capital budgets through this period will be about $3 billion annually.
UP volumes so far in the third quarter are down 3%, compared to the 2007 period. A steep drop in automotive traffic of 25% and a drop in intermodal traffic of 8% have been offset somewhat by an 8% gain in agricultural traffic and a 5% gain in energy, including coal. What Hurricane Ike, which today entered the Gulf of Mexico and is expected to reach the Texas coast by Sept. 13, will do to UP traffic remains to be seen.
| September 11, 2008 |
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All PHL locomotives now meet or exceed U.S. Environmental Protection Agency Tier 2 emissions standards. In addition to consuming less fuel, PM (particulate matter) and NOx (nitrogen oxide) emissions have been cut by at least 70% and 46%, respectively, according to PHL President Andrew Fox. PHL operated the last of its older non-lo- emission (pre-Tier 0) locomotives in May 2008.
The $30 million project began in May 2007. Costs were shared among PHL, the Ports of Los Angeles and Long Beach, and California’s Carl Moyer Program, which is administered by the South Coast Air Quality Management District.
PHL’s newest locomotive, No. 81, was delivered on Aug. 29. It is one of two NREC six-axle, 2,100-hp 3GS21C GenSet units. In addition, NREC built four 3GS21B four-axle GenSets for PHL. These units comply EPA Tier 3 requirements.
MotivePower built 16 locomotives for PHL. They include 14 MP20C six-axle and two MP20B four-axle units, and the first U.S. locomotives equipped with new 2,000-hp MTU-Detroit Diesel V4000 engines.
PHL’s new fleet is painted in the railroad’s black and silver livery.
| September 11, 2008 |
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Speaking at the Dahlman Rose & Co. Global Transportation Conference in New York, which was co-sponsored by Railway Age, Munoz also said indications were that long-term growth would be stronger than previously expected. At midday Thursday, the price of CSX stock was up 9.31%, and other railroads also performed strongly in a market that was generally down. Norfolk Southern was up 4.08%; Union Pacific, up 4.34%; and BNSF, up 2.98%.
CSX now expects full-year 2008 earnings per share between $3.65 and $3.75, an increase from previous guidance that targeted the upper end of the $3.40 to $3.60 range. Free cash flow before dividends of approximately $1 billion is expected this year. 2008 capital spending has been increased to approximately $1.75 billion. The capex estimate includes new gondola and hopper cars to meet demand for domestic and export Appalachian coal shipments—$60 million worth of railcars this year—as well as current estimates of costs associated with recent 2008 storms. In 2009, CSX expects to invest an additional $70 million in new coal cars.
Long-term, through 2010, CSX expects compound annual growth in operating income of 15-20% over its 2008 base, compared to prior guidance of 13-15% over the 2007 base. Compound annual growth in EPS of 20-25% over the 2008 base is expected, compared to prior guidance of 18-21% over the 2007 base. CSX is aiming for an operating ratio in the high 60s by 2010, compared to its prior target of the low 70s.
“With our higher earnings momentum, CSX will continue to generate substantial free cash flow over the long-term,” said Munoz. “We remain committed to maximizing value for our shareholders through strategic investment, share repurchases and dividends while maintaining our investment grade profile.”
At the Dahlman Rose/Railway Age conference, Munoz said that “rail pricing is still in the early stages of recovery. There’s still a lot of room for pricing to go up, and these are not uncharted waters.” The industry has created a lot of value—$82 billion between 2004 and 2008—based on market capitalization of the “Big Six” Class I railroads. Munoz talked about CSX’s National Gateway program for intermodal improvements, which includes doublestack clearance projects and terminal expansion. Munoz also said that CSX “is hiring ahead of attrition” and “training new people very differently than we have done in the past” to accommodate growth.
| September 11, 2008 |
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Another strategic project is the $110 million on Victoria-Rosenberg line rehabilitation project in Texas, “which makes economic and financial sense, just on a cost avoidance basis.” This piece of railroad in southeastern Texas will considerably shorten transit time and reduce trackage rights fees paid to Union Pacific for moving trains between Mexico and the U.S. It’s expected to be open for service by the second quarter of 2009.
KCS has completed is locomotive fleet upgrade program. The average age of the fleet has fallen from 17.2 years to 10.9 years since 2006. The investment, Ottensmeyer said, has produced a rate of return of more than 20%
This year, KCS capita expenditures are expected to be about $525 million. Next year, KCS expects “another high capital year, followed by a return to a more normal range in the 17-20% area,” Ottensmeyer said. Revenue growth of 10-14% is expected over the next five years, driven by new business opportunities and pricing. KCS’s cross-border long haul business will be the top marketing priority, with 25-39% of growth based on pricing. The operating ratio is expected to drop into the low 70s, along with a doubling of EBITDA of 17-19%.
All of this makes KCS “the fastest growing North American railroad,” Ottensmeyer said.
| September 11, 2008 |
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On the productivity side, Noorigan highlighted several initiatives: rollout of “SmartYard,” a redesign of Memphis Yard, establishing a network of “super terminals,” a siding extension program to increase lengths from 6,000 to 10,000 feet, distributed power, work block productivity, and the company’s ongoing quest to acquire the Elgin, Joliet & Eastern.
The EJ&E transaction “would complete CN’s network, avoiding Chicago congestion and keeping traffic moving,” Noorigan said. He noted that those who may be negatively impacted by the expected increase in train traffic (mostly affluent suburbanites who may experience more delays at grade crossings) are a significantly smaller group than those who would benefit (urban Chicago dwellers). “The bottlenecks are real,” Noorigan said. If the deal doesn’t materialize, and the expected benefits in improved traffic flow and connectivity to the U.S. rail network are not realized, ”EPS should not be adversely affected,” he said.
Noorigan said CN is still targeting diluted EPS growth in the mid-single-digit range, vs. adjusted 2007 diluted EPS of $3.40.
| September 11, 2008 |
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Looking at BNSF’s four principal business groups, “We’re very bullish on PRB coal,” Hund said. Long term, export possibilities for PRB coal look good. Coal revenues grew 20.8% to $1.9 billion in the first half, based on a 1.5% growth in revenue units to 1.2 million. “New plants, eastern coal displacement, and mine mouth conversions will continue to add to growth, and pricing opportunities are expected to continue,” he said.
BNSF’s agricultural business has experienced even stronger growth than coal. First-half revenues grew 37.1% to $1.7 billion, based on a 12.1% growth in revenue units, to 546,000. “We have a balanced franchise in commodities and markets, and we’re increasing operating productivity,” Hund said. “Market-based pricing is capturing value, and we’re experiencing steady export growth.”
With softness in some sectors offset by growth in others, Industrial Products grew 10.5% to about $2 billion, based on an 0.5% increase in revenue units to 825,000. Among growth opportunities for this business segment are Canadian oil sands and municipal solid waste.
BNSF has a similar story to tell in Consumer Products, in which revenues grew 9% to about $3 billion, despite a drop in total units of 6.8% to 2.4 million. Domestic revenue units grew 2.6% to 1.04 million, helping to offset decreases in international units (–13.4% to 1.28 million) and automotive (–3.5% to 82,000). Though international intermodal growth has dropped off, driven largely by a consumer spending drops, longer term, “there will be better than average growth” of 5-7% from the Asia-Pacific Rim as traffic rebounds, Hund said.
Long term, said Hund, “we see continued freight revenue growth, both in price and volume. We’re targeting 100% fuel surcharge effectiveness (meaning the fuel cost recover ratio), a continuously improving operating ratio, and double-digit EPS growth.” Double-tracking of the Chicago-Los Angeles Transcon is expected to be completed by 2010. Responding to a question from Railway Age Editor William C. Vantuono about the 25% railroad investment tax credit, of which BNSF chief executive Matt Rose has been a strong proponent, Hund said that, although it’s hard to predict what the political climate will be like following the November election, “the good news is that congestion relief and the environment are bipartisan issues.”
| September 10, 2008 |
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"Volume is projected to total 15.5 million Twenty-Foot Equivalent units for the year, compared with 16.5 million in 2007," said the NRF. "The estimate is down from 15.8 million projected in August, which would have been a 4% decline from 2007. Cargo volume each month this year has been below the same month last year and is expected to continue to be below last year’s levels in each remaining month. Year over year increases previously expected in October and December are now longer anticipated." One TEU is one 20-foot container or its equivalent.
Jonathan Gold, NF vice president for supply chain and customs policy, commented: "Retailers are tightening up their inventories to reflect what they expect to be able to sell during the holiday season. We still expect to see an increased in sales this year, but the economy is clearly challenging and our industry is trying to hit the balance point between supply and demand as closely as they can."
| September 10, 2008 |
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Under the first contract, Arcadis is providing engineering services, as well as environmental compliance assessments for CSX Intermodal at 16 intermodal terminals in Illinois, Indiana, Massachusetts, New Jersey, South Carolina, Tennessee, and Virginia. The assessments include environmental permits, Spill Prevention Control and Countermeasures and Stormwater Pollution Prevention Plans; Arcadis will also review environmental management systems and sites periodically, while correcting environmental audit findings. The $300,000 contract runs through mid-March 2010.
"We are pleased to have Arcadis join our CSXI Environmental Management Program," said Hugh Perry, manager of environmental programs for CSXI, in a statement. Said Kenneth Richardson, Arcadis program manager for CSXI, "As CSXI gains momentum in the rapidly evolving freight industry, this contract places Arcadis in an excellent position to expand our services within this business sector."
Under the second contract, Arcadis will provide general engineering consultant services to CSX Transportation, ranging from program management and support to design, construction, engineering and inspection, and covering about 60 transportation and public projects. The contract runs through mid-May 2010.
For the contract with CSX Transportation, Arcadis said it will enlist as partners Kennedy/Jenks Consultants and Glenn Underwater Services.
| September 10, 2008 |
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switch and crossing rail grinding equipment from Germany's voestalpine BWG GmbH & Co. KG, a supplier of high-speed rail turnouts. Delivery is scheduled for the second half of 2009.
The order by Voestalpine will supplement the company's existing fleet of Harsco rail grinding equipment and will be used to precision grind complex switch and crossing rail surfaces throughout the German railway system.
Harrisburg, Pa.-based Harsco's rail grinders are used to remove rail surface defects and reshape rail profiles to maintain the correct wheel-to-rail contact interface and provide smoother travel at higher speeds.
| September 10, 2008 |
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The rule has been advanced at least in part following the death of a passenger in 2006 at the Long Island Rail Road's Woodside, N.Y., station. FRA at present does not require railroads to track or catalog such accidents. LIRR says it already has changed its reporting methods to better track such incidents. It will spend $46 million during the next four years to reduce gaps, including such measures as widening or shifting existing platforms.
FRA said other proposed changes include:
1. Requiring passenger railroads to identify whether a locomotive was pulling or pushing a train at the time of a reportable accident or incident, as well as report any rail passenger hurt or killed in a "gap" incident. (The locomotive aspect is an apparent response to the Jan. 6, 2005 accident in Los Angeles, in which a parked car caused a push-pull passenger train to derail and hit another train, killing 11);
2. Requiring railroads to notify the National Response Center of any highway-rail grade crossing fatality occurring within 24-hours of the incident and provide greater detail about grade crossing incidents such as whether a locomotive-mounted video recorder captured the event;
3. Requiring railroads to to report for the first time suicides and attempted suicides to help FRA better quantify such incidents and develop mitigation strategies; and
4. Requiring railroads to report all injuries and illnesses that appear or occur anywhere in the railroad-operating environment, regardless of cause, to prevent premature determinations that such conditions are not rail-related. Railroads that are comprised of multiple operating entities or subsidiaries would be permitted to provide consolidated accident or incident reporting in order to minimize potential reporting inaccuracies.
| September 10, 2008 |
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arrison said the legislation could affect CN retroactively, since it would require the Surface Transportation Board to reject the plan if any adverse impacts on safety or affected communities were determined that outweighed benefits.
Testifying before the House Transportation Committee on the bill, sponsored by Committee Chairman James Oberstar, D.-Minn., Harrison warned, "The deal could go dead on this, and we could spend $50 million or $75 million for nothing."
Many of the bill's 20 current co-sponsors are Illinois and Indiana lawmakers representing constituents who either live or travel in the Chicago suburbs that would be most affected by increased freight traffic on the EJ&E. CN seeks to purchase the line to circumvent congested track conditions in the Chicagoland area.
Also Tuesday, the Chicago Metropolitan Agency for Planning publicly released a draft letter to STB stating that CN should pledge $150 million for traffic mitigation and related issues caused by increased EJ&E use.
| September 10, 2008 |
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Among the recipients are Jill Chen, who is pursuing a Masters’ in Urban and Regional Planning at Virginia Polytechnic Institute. Chen earned a $5,000 Jack R. Gilstrap Scholarship; her sponsor is KFH Group. Bryan Hollaway, who is pursuing a Bachelor of Science in Civil Engineering Georgia Institute of Technology, was awarded a $4,500 Parsons Brinckerhoff-Jim Lammie Scholarship, sponsored by MARTA. A $4,500 Louis T. Klauder Scholarship sponsored by LTK Engineering Services went to Ike Sowden, who is pursuing a Mechanical Engineering degree at Rutgers University. Tammy Kramp, who is pursuing a Master of Science in Transportation Management from Mineta Transportation Institute, earned a $4,500 Dan Reichard, Jr. Scholarship sponsored by MTI. A $4,500 Dr. George M. Smerk Scholarship sponsored by BART went to Colin Hughes, who is studying for a Masters in City and Regional Planning at the College of Environmental Design, University of California-Berkeley. Christopher G. Gilhooley is the first recipient of a new, $4,500 Florida Public Transportation Association Scholarship sponsored by LYNX. He’s pursuing a Master of Science in Urban and Regional Planning from Florida State University.
APTF has awarded over 100 scholarships since its inception, Conley says. The foundation is currently working to endow the “Frank J. Lichtanski scholarship” in memory of Monterey-Salinas Transit’s long time General Manager and CEO, who died in 2005. The 20th Anniversary Scholarship Awards program and Gala Awards Reception will take place on Wednesday, Oct. 8 in San Diego during APTA’s Annual Meeting and Expo. Donations are tax-deductible. APTF will also be offering a “Vacation Package to Hawaii Giveaway.” For additional information, contact Yvette Conley AT (202) 496-4868 or yconley@apta.com. See also the APTF website.
| September 10, 2008 |
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The Downtown Development Authority of Fort Lauderdale (DDA) expects the double-tracked line would move 6,000 riders per day, compared with about 100 daily riders currently using a faux-trolley (bus) system in downtown Fort Lauderdale.
Last April, Fort Lauderdale city commissioners voted to contribute $10.5 million to construction costs. The state has budgeted an additional $37.5 million. The federal government would put in $75 million; the remaining $27 million would come from special assessments on downtown residents and businesses during a 30-year period.
Broward County would not contribute to the initial cost of the $150 million project, but would own and operate the line for 20 years and would assume annual operating costs, ranging up to $2.5 million.
| September 9, 2008 |
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CN has said it would ask the U.S. Court of Appeals in Washington to order the agency to rule on the sale if its request was denied. "We did reserve the right to challenge the decision in court," a CN official said Monday.
CN has sought a quick decision in part due to a Dec. 31 deadline for purchasing the EJ&E from its current owner, U.S. Steel. CN had asked STB to approve the purchase by Oct. 15, and settle environmental concerns at a later date. But STB says its review won't be concluded until Dec. 1 at the earliest.
"We do not believe that it would be consistent with [federal environmental law] or agency precedent to consider the proposed [acquisition] separately from our environmental review," STB said.
| September 9, 2008 |
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The order is a first for NS, which in the past has tapped GE Transportation to produce ES40DC (Evolution Series 4,000 hp DC traction) locomotives exclusively for NS. BNSF, Canadian National, and CSX have ordered both ES44AC and ES44DC versions of GE's Evolution Series.
The GE Transportation spokesman said Norfolk Southern's new AC units will "increase haulage capability by more than 30% compared to their DC counterparts."
| September 9, 2008 |
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Berkshire Hathaway recently filed with the Securities and Exchange Commission disclosing that it had doubled its stake in UP, from 4.45 million shares to 8.9 million shares.
The holding company's move into railroad stocks has been watched by the market for some time, and the company hasn't limited itself to just UP; it added to its holding of both UP and BNSF last year; Berkshire Hathaway owns 18% of BNSF shares. The company, per its custom, has declined to comment on its holdings.
| September 9, 2008 |
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Riders logged 2.8 billion trips on subways, buses, light rail transit and regional passenger rail, up from 2.7 billion trips in the second quarter of 2007.
APTA said the ridership surge has put pressure on numerous transit agencies struggling to increase capacity while simultaneously suffering strains on their budgets. That's due at least in part to the direct impact of rising fuel prices on transit fleets and, in some cases, reduced cash flow from fuel taxes dedicated to transit funding.
"The irony is that just at a time when Americans need choice, need alternatives to higher-priced gasoline, 35% of transit systems are saying they may need to cut service," APTA President William W. Millar said.
APTA and others have lobbied for increased federal funding to boost public transportation; the House of Representatives in June approved a bill to make $1.7 billion available to transit agencies during the next two years. Today the Senate Banking Committee is scheduled to review options to improve transit to reduce reliance on imported oil.
On Monday, a spokesman for Senate Majority Leader Harry Reid, D., Nev., said a measure to identify $2 billion in grants and other funding for public transit may be included in legislation to be voted on next week.
For now, some operators, including New York's Metropolitan Transportation Authority, have resisted cutting service, opting instead to cover increased costs through raising fares or other measures. The Chicago Transit Authority Monday said that despite rising ridership, it would cut 80 jobs and make other efforts to trim costs.
| September 8, 2008 |
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"While Minnesota Steel would initially be the only customer using the line," said STB, "the ICRRA states that it hopes the construction of the proposed line would promote additional economic growth and attract new rail customers to locate along the line." The line will handle a projected 30,000 carloads of taconite pellets and steel slabs annually for the steel mill.
The application for the new Iron Range line was filed with the STB in March 2007. As a result of its subsequent environmental assessment, the STB attached mitigation conditions to its approval to comply with federal, state, and local regulations.
| September 8, 2008 |
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Declining gas-tax revenue triggered by rising fuel prices and a decrease in driving had prompted the administration to suggest tapping transit capital funding. But the call, voiced by Secretary of Transportation Mary Peters, was scorned by Democrats, along with some Republicans.
Meanwhile, business groups urged Peters and the administration to transfer money from the general fund. Peters last Friday called on Congress to seek the infusion of funds from the general treasury.
The House of Representatives already has approved such a measure, though Senate action has yet to occur.
| September 8, 2008 |
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CIT Rail leases roughly 115,000 railcars and 550 locomotives.
CIT Group has secured more than $11 billion in liquidity over the past five months, said Chairman and CEO Jeffrey Peek in a statement. "Our decision to retain CIT Rail further illustrates our enhanced liquidity position and confidence in our ability to service our commercial clients and debt obligations over the next year without accessing the unsecured debt markets," he said. "In addition, we will continue to review additional liquidity alternatives across all of our businesses."
| September 8, 2008 |
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RailComm's Operator Control Panel features an event recorder function, which will log all commands and indication state changes from each derail machine.
| September 5, 2008 |
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UP hopes to double its container-handling capacity at the facility by 2025 and at the same shrink its size to 177 acres from the current 233 and reduce emissions by 74%. The environmental review process could begin as early as this month, with a draft statement due by next March.
UP said it will work with Skytech Transportation Inc. and American Maglev Technology to explore the feasibility of a maglev container conveyance system. UP is also talking with Balqon Corp., which has developed a heavy-duty electric drayage truck, reportedly the first in this country. The U. S. Department of Transportation is expected to certify the truck for road service later this year.
| September 5, 2008 |
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The 110-mph trains are capable of over a line the bridges the Oresund Strait between Denmark and Sweden, despite differences in the signaling and power systems of the two countries. Duel systems are integrated into the cars.
Seventy-nine Contessa trains are already operating over the line, which opened in July 2000.
| September 5, 2008 |
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PATCO noted that dwell times between trains operating between midnight and 4:00 a.m. will increase from 40 minutes to 45 minutes, but attribute the change dot on going work on the Collingswood, N.J. viaduct.
| September 5, 2008 |
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"We're hearing more and more about people having to wait for the next bus or the next train," MBTA General Manager Daniel Grabauskas said. "If we can't offer you a seat, let alone a place to stand on a bus or a train, then we're going to lose those passengers."
The changes could strain MBTA's budget. The authority is operating out of its reserve accounts to keep its budget balanced and could enact a fare increase in 2010. Moreover, MBTA may consider eliminating some lesser-used routes; whether that includes rail or bus wasn't made clear.
Grabauskas said the 34.7 million trips taken in July represent the busiest month in at least a decade, though all counts before 2007 are considered less reliable because they were estimated. July was also the seventh month in a row of increased ridership on MBTA.
| September 4, 2008 |
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GrandLuxe service was provided on certain Amtrak long-distance trains, and in 2007 the two companies modified the ofering to provide a less expensive luxury experience of shorter duration, principally on the California Zephyr, running between Chicago and Emeryville, Calif. (outside San Francisco). Amtrak helped to market the modified service, GrandLuxe Ltd., but did not renew the partnership in 2008.
An Amtrak spokesman said that GrandLuxe's cessation could mean the loss of some signficant revenue for the national railroad passenger service.
| September 4, 2008 |
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For the month of August, U.S. carload freight slipped 0.5%, while intermodal declined 1.7%. For the first eight months of 2008, carloads were up 0.3% versus the comparable period in 2007; intermodal traffic declined 2.9% during the same period. Volume of 1.18 trillion ton-miles was up 1.4% from the comparable eight-month period in 2007.
Carload traffic on Canadian railroads fell 1.5% for the week from last year, though intermodal volume continued to grow, up 4.5% compared with the year-ago week. For the first eight months of 2008, Canadian carload traffic was down 4.0%, and intermodal units moved rose 4.1%, compared with the 2007 period.
Carload freight on Kansas City Southern de Mexico declined 24.1% for the week vs. a year ago, though intermodal volume rose 13.0. For the first eight months of the year, carload freight declined 9.3%, but intermodal gained 17.4%, compared with 2007 traffic.
| September 4, 2008 |
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In addition to CFO, McQuade will retain responsibility for business information services and the CPR's strategic sourcing group. Before joining CPR, she was chief information officer and senior vice president of finance at Norfolk Southern.
Brock Winter will return as CPR’s senior vice president-operations, once he has concluded a previously announced review of productivity and efficiency.
| September 4, 2008 |
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New orders in this year’s second quarter totaled $2.1 billion, compared to $1.3 billion a year ago. The biggest order was for 20 REGINA high speed trains (80 cars) for the Swedish State Railway. The order backlog reached $31.1 billion on July 31, 2008.
Since the end the second fiscal quarter, Bombardier Transportation has received two orders for dual-powered (diesel-electric/a.c. catenary electric) locomotives—28 valued at $262 million for New Jersey Transit and 20 valued at $223 million for Agence Metropolitaine de Transport of Montreal—plus a 14-year contract valued at $202 million from RENFE (Spanish National Railways) for the maintenance of 45 AVE S-130 high speed trains.
Bombardier Aerospace also reported a strong second quarter, with revenues rising to $2.5 billion from $2.2 billion last year and EBIT up by $105 million to $238 million.
Bombardier’s consolidated revenues in its second fiscal quarter totaled $4.9 billion, up from $4 billion last year; EBIT was $358 million, compared to EBIT of $213 million before the special item last year. Net income was $246 million, compared to a net loss of $71 million last year.
| September 4, 2008 |
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Seidl writes a regular financial column for Railway Age, which is co-sponsoring Dahlman Rose’s 1st Annual Global Transportation Conference in New York Sept. 10-11.
The New York-based investment bank said its initial rating of the rail industry is based on “improved pricing power due to reduced capacity and expected volume growth over the next 24 months.” Seidl believes that “rail pricing power is here to stay, post-2004 valuations are for real, and 2009 consensus estimates are too conservative.”
Each of the eight railroads are examined in detail in a 142-page Rail Sector Initiation report released today.
| September 4, 2008 |
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Tempe's marketing effort chartitably allows that "the cities of Phoenix and Mesa will also have parties along the line, creating a 20-mile celebration." But it adds, "Tempe is the only Arizona city to have a light rail system that runs from one city border to the other."
Tempe's pro-rail boosterism stands in stark contrast to neighboring Phoenix suburb Scottsdale, which continues to debate the utility of light rail transit.
| September 4, 2008 |
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Ogden would provide $290,000, or roughly 39% of the cost, derived from $231,250 funneled through federal funds channeled through the Utah Transit Authority and $58,750 from the city's fiscal year 2009 budget. Weber State University has been asked to contribute $140,000, and Intermountain Health Care, which is the parent company of McKay-Dee Hospital, has been solicited to add $30,000, according to Greg Scott, a transportation planner for the Wasatch Front Regional Council. UTA would also provide the remaining $290,000 needed for the study.
"We are very excited about the study, as are McKay-Dee Hospital and Weber State University," said UTA spokeswoman Carrie Bohnsack-Ware.
"The alternative analysis will determine how many streetcars we will need, where the stations will be and the area that we will cover."
Chris Dallin, a spokesman for McKay-Dee Hospital, said Tuesday that hospital officials are supportive of the study because it will likely lead to improved mass transit for patients, employees and their families.
The study could begin in November and would be concluded by next summer. Information from a 2005 study commissioned by the Wasatch Front Regional Council, UTA, the city, and Weber State University will also be incorporated into the new effort.
| September 4, 2008 |
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A four-mile loop could cost as much as $125 million to construct, and $2 million per year to operate, according to Parsons Brinckerhoff, which conducted a feasbility study. The construction cost is roughly three times higher than GDRTA officials originally had estimated.
But Mike Ervin, co-chair of the streetcar task force with GDRTA Executive Director Mark Donaghy, said the PB study has proven beneficial to the project. "One thing the consultant concluded is that the project as outlined is physically possible," Ervin said. "The next thing we have to explore is the financing to make it happen."
Dayton is one of only five U.S. cities, and the smallest of the five, that operates electric trolleybus service.
| September 3, 2008 |
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The decision is significant in part because 10 years ago Los Angeles County voters banned MTA from using sales tax money for subway construction. The ban remains in effect, but public sentiment on tunneling appears to be changing as auto congestion intensifies.
One of the proposed routes, identified as Alternative 1 but often called the Wilshire Line or "Subway to the Sea," would extend Los Angeles' Purple Line subway from Wilshire Center along Wilshire Boulevard to Santa Monica. A second option, Alternative 11, includes most of the Alternative 1 route but (traveling east) diverges from Wilshire Boulevard to serve Beverly Hills and West Hollywood, terminating at a proposed transfer station with the existing Red Line at Highland and Hollywood Boulevard.
Uncertainty remains along part of the Wilshire Boulevard route, with several route variants to be studied in or near both Westwood and Century City.
"We thought people would say they want a Wilshire Line or we want a Santa Monica [Boulevard] Line, said Jody Litvak, a spokesperson for the Metro Westside Extension Study. "We were surprised they wanted both."
The combined cost of both lines would be $9 billion. No funding has been identified for the projects, and current cost estimates appear to be above the targets sought by the Federal Transit Administration for any project involving federal capital support.
The Exposition light rail line, now under construction to Culver City, would also reach Santa Monica via a more southerly route (south of Interstate Highway 10) if it is extended in a second phase.
| September 3, 2008 |
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During that period, a daily average of 7-to-10 trains will continue to be rerouted through alternative gateways at Memphis, Tenn., Birmingham, Ala., and East St. Louis, Ill., CSX said. Due to the rerouting, "some customers may experience slightly longer transit times over these temporary routes."
Customers with questions can call the CSX Customer Service Center at 1-877-ShipCSX (1-877-744-7279), prompts #5 then #6.
CSX said isolated track damage between New Orleans and Pascagoula, Miss., and cleanup of downed trees and other debris, would be addressed within 48 hours. The company noted that, "while damage estimates are preliminary, they are not expected to be material to operating income in the current quarter."
| September 3, 2008 |
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In July Skoda said it would bid only if TTC removed its requirement for a 100% low-floor vehicle. However, last May Skoda signed a contract to provide 20 ForCity 100% low-floor streetcars, with an option for 32 additional vehicles, to Rigas Satiksme, the public transit operator serving Latvia's capital city, Riga. Skoda's ForCity low-floor design is in widespread use in Prague.
TTC officials have sought input from Montreal-based Bombardier Transportation, Paris-based Alstom, and Erlangen, Germany-based Siemens Transportation, following TTC's decision earlier this summer to revisit the bidding process.
Skoda Director of Sales for Canada Petr Vizdal said his company would ask TTC Wednesday to be included in the new process. "I found out at the end of last week that we were not among the list of potential bidders," he said.
| September 2, 2008 |
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NTSB's assertion that the accident was caused by an "inadequate rail inspection and maintenance program" is contrary to both the new and previously available evidence provided to the agency during its original investigation, NS says.
In a statement, NS said, "The immediate cause of the New Brighton accident was a rail fracture that occurred when an eastbound freight train passed over the track. As a result, 23 rail cars loaded with ethanol derailed, and many caught on fire. There were no injuries to the train crew or public. Norfolk Southern’s response to the derailment, including addressing the needs of nearby residents, was deemed appropriate by the NTSB.
"The main focus of the NTSB's investigation was an Aug. 1, 2006, ultrasonic rail inspection. The NTSB claims that one of the 24 ultrasonic signals was interrupted and, as a result, a defect in the rail was not discovered. The NTSB concludes that the rail defect would have been discovered if the ultrasonic signal had not been interrupted."
But NS says its rail inspection contractor "recently verified that the operator of the inspection vehicle, having observed a possible defect on an adjacent rail, immediately conducted a second ultrasonic test. This second test ensured that all 24 ultrasonic signals were being continuously sent. This data produced by the operator’s second test was provided to the NTSB after it announced its determination of probable cause at a public meeting held on May 13, 2008, but before the issuance of its July 25, 2008, Accident Report.
"The defect that ultimately led to the derailment was not detected by the ultrasonic test conducted nine weeks earlier, because despite the use of the best technology available the defect either did not exist or was too small to be detected," NS said.
“The NTSB's findings and recommendations should be based upon the complete facts," said NS Vice President-Engineering Tim Drake. "Based on the uncontroverted, scientifically-proven evidence Norfolk Southern has furnished, the NTSB lacks a factual basis to determine that our track and maintenance program is inadequate, and we urge the Board to correct its erroneous conclusions.
"We have provided irrefutable proof that the derailment was caused by a defect that could not have been detected by the advanced technologies used during the Aug. 1, 2006, track inspection," Drake said. "Norfolk Southern has the lowest track-related accident rate among Class I railroads, and even the NTSB has recognized that we inspect our track for internal defects more frequently than required by the Federal Railroad Administration."
NS said a copy of its Petition for Reconsideration and Modification will be provided upon request.
| September 2, 2008 |
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The route was used by Amtrak to help evacuate approximately 2,000 people from New Orleans and vicinity prior to landfall by Hurricane Gustav.
"We're awaiting word from FEMA as to when we can begin returning the evacuees. All of that hinges on the condition of the railroad infrastructure," said Amtrak spokesman Mark Magliari.
| September 2, 2008 |
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A total of 2,197 trains were loaded on the Joint Line in August, with 81 trains loaded on Aug. 16 and a monthly daily average of 70.87 trains loaded—in each case, an all-time record for a single month.
| September 2, 2008 |
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The biggest increase was in trespasser deaths, which rose 15.9% to 241. Fatalities at rail-highway crossings declined 20.5% to 128. There were 13 employee fatalities, compared with five in last year’s first half.
Total accidents and incidents in January-June 2008 declined 8.1% from the same period last year, to 5,947. Train accidents were down 6.4% to 1,205. The number of collisions increased 8.4% to 90, while derailments declined 8.9% to 876. Yard accidents were down 4.2% to 644.
Track causes were responsible for 422 train accidents in this year’s first half, down 7.5% from the 2008 period; equipment causes for 164, even with last year and signaling causes 21, up 23.5%. Human factors were blamed for 408 accidents, down 14.8%.
| September 2, 2008 |
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CN says it also plans to add track by building a run-through line that would allow trains to move faster through Joliet's East Side.
Joliet last week became the first of the EJ&E communities to sign an agreement with CN involving the proposed acquisition, putting that city at odds with many other municipalities which have expressed opposition to the purchase.
"Joliet would be the collection point for all the local business in the region," said Jim Kvedaras, senior manager for public affairs at CN operation in the United States. CN would move local switching operations from its Markham facility in Homewood, Ill., to Joliet.
| August 29, 2008 |
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Once NJ Transit awards a rebuild order to a car builder, Interfleet will provide design oversight and engineering assistance during contract procurement.
Nigel Davies, Interfleet vice president-Business Development, North America, said, "These locomotives are now in need of a mid-life overhaul as well as improvements in technology to ensure the fleet's continued reliability, maintainability, and availability. The overhauled locomotive will provide enhanced operational performance and reliability, as well as continued safety, and will contribute vitally to NJ Transit's growing fleet that is required to meet the demands of increasing ridership."
| August 29, 2008 |
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CapMetro's board of directors may hold a meeting in lae September to detemine whether the opening of the 32-mile diesel light railway will be postponed.
Stations at Howard Lane and Kramer Lane are behind schedule. The Howard Lane stop's construction has just begun, following a breakdown in negotiations with a landowner of the preferred station site, and objections by nearby residents to a second site nearby. The Kramer Lane station location also was moved, and its construction has yet to start.
"What I've always said was, let's open the service when its ready to go," said board member Brewster McCracken, also an Austin City Council
member
Capital Metro also still seeks final approval from the Federal Railroad Administration to begin service, mostly because of the FRA's expressed concerns over safety and its insistence on regulatory authority; FRA asserts that Austin's operation is "commuter rail" and not a "light railway," and has balked at a waiver sought by Cap Metro.
| August 29, 2008 |
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The rail vehicles will be built at Bombardier's manufacturing facility in Bautzen, Germany, and delivery is expected to begin during the second half of 2010.
Birol Altan, chief country representative of Bombardier Transportation Turkey, said, "This new order re-establishes our role as the leading supplier of tram and light rail solutions in Turkey."
| August 28, 2008 |
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Metalic ores showed the strongest gain among commodities, up 47.9%, while waste & scrap materials rose 12.1%. Among decliners, coke fell 34.2%, motor vehicles and equipment remained in the doldrums, off 31.4%, and lumber and wood products dropped 21%.
Carload traffic on Canadian railroads fell 5.9% for the week from last year, though intermodal volume continued to show strength, up 4.7% compared with the year-ago week.
Carload freight on Kansas City Southern de Mexico declined 8.9% vs. the year-ago period, though intermodal volume rose 5.6%.
| August 28, 2008 |
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Supervisor Gary Creed said Montgomery County is committed to spending up to $250,000 in legal fees to pursue the case. "The truth is, if Norfolk Southern was doing this with all their money, there's nothing in the world that would stop it," Creed said.
The state intends to commit $50.5 million for improving the site, of which $40 million is targeted for highway improvements. Opponents say that while the state constitution allows public funds to be applied to road building, it bans "any work of internal improvement" for the private sector.
The county's decision to file suit in closed session has generated its own controversy, but officials say consulting with attorneys in private about probable litigation is permissible under state Freedom of Information Act, and because the decision was a consensus that did not require appropriating funds. But some note taxpayers will end up paying for the county's litigation without having an opportunity to voice their opinion on the matter, even if those citizens are opposed to the intermodal yard itself.
| August 28, 2008 |
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"Colo traditionally had subcontracted surfacing which includes ballast distribution, regulating, and tamping," Benton said. "But railroads have increasingly been asking for support in keeping up with the surfacing requirements created by their increased traffic, and Colo needed to respond." Colo has acquired additional equipment to increase its capacity.
"We intend to become the railroads' 'go-to provider' of surfacing services, [and] you will definitely see this area of our business growing in the coming years," Benton said. The company is privately held by Iron Rail Group, LLC of Nashville, Tenn.
| August 28, 2008 |
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"The TTC has taken the wrong step by reopening a bidding process that
threatens to move final assembly production of these streetcars to an overseas supplier that would have otherwise have been completed in Ontario," said Hargrove. "This work is of tremendous importance to both the Ontario and Canadian economy."
Hargrove noted that in 2007, the TTC established a minimum 25% Canadian-content threshold for publicly funded transit purchases, but CAW believes the threshold isn't high enough to ensure maximum benefits to Canada's economy.
Critics of TTC have suggested that the "Canadian content" requirement provides an unfair advantage to Montreal-based Bombardier Transportation. They point out that major competitors such as Paris-based Alstom and Siemens Transportation Systems of Erlangen, Germany, declined to respond to TTC's initial Request For Proposals, believing that the "hometown" manufacturer had the inside track.
TTC denies any charges of favoritism, but reopened the bidding process last month after stating that bids from both Bombardier and from Tram Power Ltd., a small British-based manufacturer, failed to meet the requested specifications. Bombardier has vigorously disputed TTC's contention, and says it will continue to remain active in bidding for the order.
TTC has urged Bombardier, Alstom, and Siemens--but apparently not Tram Power--to submit bids for the project, which could total up to C$3 billion.
CAW's Hargrove dismissed those doubting Bombardier's ability to meet such requirements, saying, "Our members are more than equipped to meet this project's standards in order to perform final assembly work at the Thunder Bay facility, and any technical requirements could have been worked out between city officials and the company."
| August 27, 2008 |
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"We're out of capacity," says Amtrak President Alex Kummant. While Acela's 32 daily departures are protected by 20 trainsets, including up to two spares, it would be inadvisable and difficult to break up the spares to add coaches to the other 18 sets. And there's no funds right now to pay Bombardier and Alstom to build additional Acela coaches.
Amtrak is looking at several funding mechanisms, among which are raising fares or imposing a surcharge on each ticket. The latter option, Amtrak says, is not under serious consideration.
| August 27, 2008 |
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"It is our judgment that the HDR study is credible in its analysis of the costs and benefits of streetcars in Cincinnati and in its projections of the benefits of ridership and economic development," the assessment states.
The University was asked to conduct the assessment by the city, who responded to skeptics of the proposed $102 million, four-mile line, including Randal O'Toole of the Cato Institute, who charged the stree