January 2005
Metrolink crash claims 11Eleven people are confirmed dead and nearly 200 were injured, many critically, in the chain-reaction crash early Wednesday morning, Jan. 26, of two Metrolink commuter trains and a Union Pacific maintenance-of-way train that occurred in Glendale, Calif., several miles north of downtown Los Angeles.
Inbound Metrolink train No. 100 struck a Jeep Cherokee that had been driven onto the tracks by a suicidal man who changed his mind at the last moment and abandoned his vehicle, which had become lodged on the tracks. The push/pull train, which was operating cab-car first, derailed, and plowed head-on into the unmanned UP m/w train, which was parked on a siding. The first and second cars of No. 100 jacknifed, striking the second car of passing outbound Metrolink train No. 901, which was operating locomotive-first. No. 901 then derailed.
The crash occurred on former Southern Pacific Railway trackage owned and dispatched by the Southern California Regional Rail Authority and used by Metrolink commuter trains, which are operated by Amtrak crews, and Union Pacific freight trains.
The driver of the Jeep Cherokee has been charged with 11 counts of murder.
New railcars for CTAThe Chicago Transit Authority plans to acquire more than 700 new rapid transit railcars over the next few years, and today issued an RFP that specifies such new-to-CTA features as a.c. propulsion with regenerative braking, security cameras, and aisle-facing seating. The RFP calls for a base order of 206 cars with options that could bring the total purchase to 706. Bids generated from the RFP are expected to be opened in mid-2005, with deliveries expected to begin in 2008.
The new cars will replace rolling stock acquired 30-35 years ago, such as the 2200-series Budd cars purchased 1969-70, and the 2400-series Boeing-Vertol cars purchased 1976-78. CTA’s most recent acquisition, 3200-series cars from Alstom purchased for the opening of the Orange Line and to replace older cars on the Brown and Yellow Lines, occurred in the 1990s.
In specifying a.c. propulsion, CTA cited other rail transit systems—New York, Washington, Atlanta, for example—that employ the technology. The agency also mentioned the energy and cost savings associated with regenerative braking, which returns traction power to the third rail rather than dissipating it as heat. As for aisle-facing seating, CTA also cited other users: "Urban railways in major cities such as New York, Boston, London, Paris, and Tokyo use aisle-facing seating to more comfortably accommodate a large volume of passengers. . . . CTA will be able to accommodate more customers per railcar and provide a more comfortable trip," without sacrificing seats.
CTA is using capital funding from the Federal Transit Administration Formula Funds-5309 and Illinois Department of Transportation to acquire the cars. Long-term funding, though, is problematic. Said CTA President Frank Kruesi: "With the loss of Illinois FIRST, the state’s capital funding program, CTA’s funding is shrinking both on the capital side as well as the operational side and we must carefully evaluate how to apply the limited funds that remain. Though planning a new railcar purchase may at first appear contradictory as we are faced with possible service cuts and layoffs, we cannot be short-sighted. . . . Improving our infrastructure is not a process to which we can commit and then abandon."
Ike Evans to retireUnion Pacific Corp. Vice Chairman and Director Ike Evans has announced his retirement effective Feb. 28. The 62-year-old Evans, who joined UP as president and chief operating officer of Union Pacific Railroad in 1998, says he has no work plans and intends to spend more time with his family.
Evans came to UP from Emerson Electric, where he was a senior vice president. Prior to that, he held executive positions at Blackstone Corp. and General Motors. A year ago, he was succeeded as UP Railroad’s president and COO by Jim Young.
L. B. Foster pockets its biggest contractUnion Pacific has awarded a long-term contract to L. B. Foster’s CXT subsidiary for prestressed concrete ties. Deliveries will extend through 2012. Foster said the contract is the largest in its history. To fulfill it, CXT will build a new plant in Tucson, Ariz., and expand and modernize an existing plant in Grand Island, Neb.
CPR reports year of "solid performance"Canadian Pacific hauled more traffic in 2004 than at any time in its history, but costs rose along with revenues. CPR posted a fractional improvement in its operating ratio for the year—79.8% vs. 80.1% in 2003. In the fourth quarter, the operating ratio edged up to 77.2% from 76.9% in the year-earlier quarter.
CPR recorded net income of C$413 million in 2004 compared with C$410 million in 2003. Excluding foreign exchange gains on long-term debt and other special items, income in 2004 rose 10% to C$361 million.
Announcing its financial results on Jan. 27, CPR called 2004 a year of "solid performance." "Our business model and franchise proved their power and value in 2004," said President and CEO Rob Ritchie. "A critical element of our business model was CPR’s unrelenting focus on increasing asset velocity and fluidity across the network. As a result, we began driving our productivity and efficiency indicators in the right direction at the same time as freight volumes took off. Greater fluidity has become our single most compelling objective."
Ritchie said CPR expects 6-8% revenue growth in 2005, with earnings growth in the 14-16% range.
In record year, NS slashes operating ratio"In practically every way, 2004 was a record year for Norfolk Southern," said NS Chairman and CEO David R. Goode as the railroad released fourth-quarter and full-year results.
Net income for the fourth quarter was $264 million, or 65 cents per share, beating the Thomson First Call estimate of 63 cents. For the year, NS posted net income of $923 million, including a third-quarter non-cash gain of $53 million from the Conrail corporate reorganization. Excluding that gain, net income would have been $870 million vs. $535 million in 2003.
NS’s operating ratio for the fourth quarter was 76.3%, four percentage points better than in the prior-year quarter, excluding a special charge. For all of 2004, the operating ratio was 76.7%, an improvement of 5.2 points.
On the day before releasing 2004 earnings, Norfolk Southern announced that it would take a charge of $30 million to $40 million in the first quarter of 2005 to cover costs related to a hazmat derailment in South Carolina.
CN’s 2004 operating ratio at historic lowCN President and CEO Hunter Harrison needed some superlatives to describe the railroad’s 2004 performance: "Our railroaders delivered the best quarterly and full-year operating ratio in history, along with record annual operating income, net income, and free cash flow."
CN’s fourth quarter operating ratio was 65.0%, a 1.1 point improvement over the fourth quarter of 2003. The full-year operating ratio of 66.9% was a 2.9 percentage-point improvement over the prior year.
Operating income for 2004 rose 22% to $C2.168 billion. Net income increased to $C$1.258 billion from $C 1.014 billion in 2003. Full-year free cash flow increased to $C1.025 billion from $C578 million in 2003. Harrison said 2004 results included revenues totaling $C145 million from two acquisitions, B. C. Rail and Great Lakes transportation.
Broken rail cited in CN hazmat derailmentThe National Transportation Safety Board announced Jan. 25 that its investigators had found that a CN hazmat derailment near Tamaroa, Ill., On Feb. 9, 2003, "occurred when a rail broke near an insulated joint where bond wires had been welded to the rail head. The exothermic welding procedure used by CN workers produced untempered martensite, a brittle structure in the steel that made the rail susceptible to fatigue cracking."
"The known muddy, soft ballast condition in the area of the insulated joint provided inadequate support for the track and increased the amount of rail flexing which, in turn, significantly increased stresses on the rail," NTSB added.
Twenty-two cars of a 108-car train traveling between Memphis and Chicago derailed. Nineteen were tank cars, several of which released vinyl chloride, methanol, phosphoric acid, hydrochloric acid, and formaldehyde. There were no deaths or injuries.
"Serious accidents like these point up the need for rigorous maintenance standards to ensure the safety of tracks over which hazardous materials are carried," said NTSB chairman Ellen Engleman Connors.
KCS’s NAFTA merger clears another barThe decision of the U.S. Department of Justice not to require further documentation in the case has further cleared the way for Kansas City Southern to bring the KCS Railway, the Texas Mexican Railway, and Mexico’s TFM railway under the common control of KCS. The final step to completing the "NAFTA Railway" transaction is KCS shareholder approval and the issuance of KCS shares to Grupo TMM (owner of a 51% voting interest in TFM) as part of an amended acquisition agreement announced in mid-December.
Phoenix LRT gets half-billion in fed funding U.S. DOT Secretary Norman Y. Mineta has announced a funding agreement providing $587.2 million toward construction of a $1.4 billion, 19.6-mile light rail system serving Metropolitan Phoenix, Ariz. Federal Transit Administrator Jennifer Dorn was in Phoenix Jan. 24 to sign the commitment for a 42% federal share of the cost.
In a statement, Mineta said the investment "is about more than a new rail system–it is about a new wave of development that will promote new housing, new retail, and new offices around the new line."
CSX improvement reflects higher ratesRate increases helped propel CSX to improved earnings in last year’s final quarter. Net earnings from continuing operations were $159 million, up 42% from the 2003 quarter. Surface transportation (rail and intermodal) operating income was $315 million, up 32%. The operating ratio was 85.0%, an improvement of 1.8 points. An 8.4% increase in revenue was produced by a 0.5% increase in volume and a 7.9% increase in revenue per carload.
CSX Chairman, President, and CEO Michael J. Ward commented: "In the fourth quarter, the rail network showed signs of improving fluidity as the company worked to fine-tune the new operating plan that was put in place in the third quarter. The leadership of CSX remains optimistic about the operating plan and the opportunity it holds for the company going forward."
BNSF announces record earnings—and a new nameBurlington Northern Santa Fe Corp. turned in a solid performance in fourth-quarter 2004, with record quarterly revenues of $2.92 billion, up 19% over the prior-year quarter; operating income of $668 million, up 40%; and an operating ratio of 77.1%, three and a half percentage points better than the 80.6% posted in the 2003 period. Per-share earnings in the fourth quarter amounted to 91 cents, easily beating the Thomson First Call analysts’ estimate of 78 cents.
BNSF Corp. also announced on Jan. 25 a new name for what has been known for 10 years as the Burlington Northern and Santa Fe Railway–it’s now BNSF Railway. The new name comes with a new logo that BNSF Chairman, President, and CEO Matt Rose said will be gradually phased in on locomotives and cars. The new design replaces the old cigar-band with block letters that appear to be surging forward.
Signal room fire cripples two NYC Transit linesWell over a half-million people who ride MTA New York City Transit’s A and C lines are being affected by severely curtailed service resulting from a signal room fire that occurred Jan. 23.
The fire in a tunnel north of the Chambers Street in lower Manhattan, started by a homeless person trying to keep warm, spread to the locked signal room when signal cables short-circuited and started an electrical fire. It destroyed roughly 600 vital relays and related circuitry that control the A and C lines. NYCT says that, for the foreseeable future, A trains are running on 18-minute headways instead of the normal six minutes. The C train has been taken out of service, replaced by the V train, but only in Brooklyn.
The affected relay-based equipment, which controls a fixed-block signal system using single-rail track circuits and electro-mechanical trip stops, is custom-built for NYC Transit. Its design dates back to 1932, when the A and C lines opened as part of the IND (Independent) subway. There are many more signal rooms like it throughout NYC Transit’s 722-mile network. In total, the subway’s signaling system employs more than 327,000 relays housed in 632 instrumentation rooms.
NYCT originally said it would take up to five years and millions of dollars to reassemble and test the equipment; that estimate has been reduced to six to nine months, as Signal Department personnel have been able to locate surplus relays from other locations.
There are only two signal suppliers in the world that provide replacement components for this antiquated yet reliable technology. Both are original suppliers to the New York subway system, which opened in October 1904: Pittsburgh-based Union Switch & Signal, and Rochester, N.Y.-based Alstom Signaling, originally General Railway Signal. Both regard NYCT’s components as "legacy technology."
NYC Transit is getting ready to roll out its first installation of CBTC (communications-based train control) on the L (Canarsie) line later this year. The Canarsie pilot, the technology for which is provided by Siemens and US&S, is the first phase of a multi-year CBTC program. CBTC is not expected to fully replace NYCT’s traditional—and obviously vulnerable and difficult to replace—proprietary, relay-based track circuit equipment for another 30 to 40 years. CBTC will be easier and less costly to maintain, officials say, partly because it employs non-proprietary, COTS (commercial off-the-shelf) equipment to some degree.
UP goal: Full service in the West by Feb. 28In a customer advisory dated Jan. 24, Union Pacific said it had started "ramping up West Coast operations" but warned that freight and passenger operations might not be fully restored for another five weeks.
"The Santa Barbara Subdivision will be restored in increments to full operations by performing maintenance from north to south along the line," said the advisory. "Maintenance crews will work approximately from 07:30 to 1:30 daily. Limited freight operations will occur at night. Commuter operations are expected to be restored in stages over a four week time frame as the track gangs work their way north. MetroLink will start up some operations on Jan. 24. Additional Surfliner commuter operations to Santa Barbara are expected to begin Feb. 8. Full operations are expected around Feb. 28."
The advisory said that in Nevada, the Caliente subdivision north of Las Vegas "began limited operations Jan. 24. We expect to operate about 60% of the normal train operations for the route during the first week of operations. It is anticipated that full operation will resume on Jan. 31."
In another announcement, UP said preliminary estimates indicated that damage resulting from the January floods and mudslides will approach or even exceed $200 million. The railroad has $50 million-deductible insurance.
Costs drive UP earnings down, operating ratio upDespite record revenues, Union Pacific Corp.’s income from continuing operations dropped to $604 million in 2004 from $1.1 billion in 2003. Chairman and CEO Dick Davidson said that high fuel prices and increased operating costs were principally responsible. A fourth-quarter charge of $14 million for unasserted asbestos claims also impacted earnings. UP reported fourth-quarter income of $79 million, including the asbestos charge, compared with $333 million in the last quarter of 2003.
The company’s operating ratio was 93.7% in the fourth quarter, up from 80.1% from the prior-year quarter. For the full year 2004, UP posted an operating ratio of 89.4%, compared with 81.5% in 2003.
"However, we continue to be encouraged by the unprecedented demand we have experienced in the past year," said Davidson. "In 2004, our operating revenue grew to a record $12.2 billion—a 6% increase over 2003 and our first year over the $12 billion mark. We believe this trend will continue as demand for transportation service exceeds the available supply, giving us the opportunity to improve returns and grow with our customers."
Ex-BNSF officer Lampe heads Chicago SouthShoreHenry Lampe, who worked 33 years for Burlington Northern and Santa Fe and predecessor Santa Fe Railway, has been named president of the Chicago SouthShore & South Bend (CSS). He succeeds H. Terry Hearst, who had served as president of CSS since it was formed in 1990 and retired at the end of 2004 with 49 years of railroad service. CSS is an Anacostia & Pacific Co. railroad that provides freight service between Chicago and South Bend, Ind.
Decentralizing, Bombardier shrinks corporate staffBombardier announced Jan. 20 that it is eliminating 60 corporate positions and decentralizing certain functions to its Bombardier Transportation and Bombardier Aerospace units. The immediate departure of Michael Denman, senior vice president-strategy, was also announced. His duties will be assumed by Richard Bradeen, who becomes senior vice president strategy and CASRA (central audit services and risk assessment).
The reorganization comes a little over a month after the resignation of Paul Tellier as corporate president and CEO, the elimination of that title, and the appointment of Laurent Beaudoin, formerly executive chairman, to head a new office of the president with CEO responsibilities.
STB reports continuing rise in employmentClass I railroad employment climbed to 158,607 in November 2004, a 3.02% increase over November 2003, according to the Surface Transportation Board. Transportation (train and engine) continued to be the fastest growing employee group, increasing 7.71% to 66,217. Maintenance of equipment and stores employment increased 1.67% to 28,990, and m/w and structures was up 0.22% to 33,583. Decreases were posted in three categories: transportation (other than train and engine), down 2.05% to 7,368; executives, officials, and staff assistants, down 1.10% to 8,942; and professional and administrative, down 2.04% to 13,507.
WMATA proposes $512 million FY06 capital budgetThe Washington Metropolitan Area Transit Authority released a proposed budget for FY06 on Jan. 18 calling for $512.2 million in capital improvements out of a total operating/capital budget of $1.56 billion. This compares with capital spending of $375.3 million approved for FY05 and capital outlays of $313.0 million in FY04.
Major proposed expenditures in FY06 are $219.2 million for the Metrorail car program, $213.7 million for infrastructure renewal, $26.6 billion for buses, and $38.5 billion for security. The security budget is four times that of FY05.
TXPF opens for businessThe Texas Pacifico Transportation Ltd. (TXPF) has restored service on the southern portion of the former South Orient rail line between San Angelo Jct. and Presidio, Texas. The line, which had been impassible since 1998, was jointly purchased in 2001 by the Texas Department of Transportation and Grupo Mexico (parent company of Ferromex and Texas Pacifico). Subsequently, Grupo Mexico signed a 40-year leased.
TXPF interchanges traffic in San Angelo Jct. with FWWR and BNSF. In addition, it connects with UP at Alpine, Texas, and interchanges with UP and KCS at Fort Worth/Alliance through the FWWR.
The railroad is currently offering promotional rates from Fort Worth to Presidio. For information contact Texas Pacifico Transportation at (817) 735-8878.
Amtrak opens Milwaukee Airport stationAmtrak officially opened its new passenger station at Milwaukee County’s General Mitchell International Airport on Jan. 18. The 1,600-square-foot facility, built at a cost of $6.8 million, is at the western edge of the airport along Canadian Pacific tracks. There’s a free shuttle bus between the station and the air terminal. Among other uses, the station will permit the Milwaukee airport to serve as a "third" airport for the Chicago area, a $20 train ride away. Amtrak Vice President Barbara J. Richardson, who was on hand for the opening ceremony, commented, "Our successful experience in the East with the Baltimore-Washington International Airport station demonstrates the great potential for the Milwaukee airport station."
Los Angeles protests loss of transportation fundsLos Angeles government and business leaders are urging the Sacramento to "stop using transportation funds to balance the state budget." Los Angeles Metro CEO Roger Snoble said the state over the last three years has diverted $5.5 billion in transportation funding, including $1.35 billion earmarked for Los Angeles County. These include Proposition 42 gas taxes and other funds. "The more than $300 million earmarked for LA County next year could be leveraged with other funds to get a head start on more than $5 billion in highway, bus, and rail projects," said Dan Beal, managing director for public policy of the Automobile Club of Southern California.
NJ Transit eyes big fare increaseNJ Transit unveiled a preliminary $1.42 billion FY 2006 budget on Jan. 19 that proposes fare increases averaging nearly 15% "to cover the cost of new and expanded services, as well as inflation, and spiraling fuel and security expenses." The proposal calls for a 13% increase in interstate rail and bus services, and a range of increases on intrastate subway, light rail, and bus fares. No increase is planned in intrastate monthly commuter passes. NJ Transit Executive Director George D. Warrington said higher fares are needed to close a projected $60 million budget gap.
Pataki budget disappoints NYC transit advocatesThe New York Metropolitan Transportation Authority, which operates two big commuter railroads as well as New York City’s subways and buses, drew up a $27 billion, five-year capital improvement plan last year. When Albany rejected it, MTA said it could get by with $17 billion program that would keep the system in state of good repair, putting on hold two costly expansion projects, the Second Avenue Subway and a Long Island Rail Road connection to Grand Central Terminal.
Instead, George E. Pataki in the state budget that he proposed on Jan. 18 offered MTA $15.2 billion over the next five years for state-of-good repair spending. He also put in the budget proposals for an additional $4 billion for expansion investment, without saying where the money would come from. The reaction among New York transit advocates was disappointment and anger.
"Even normally circumspect business leaders expressed reservations about the plan, saying that the figures did not add up to the sum that the governor had promised," reported The New York Times.
CN, BNSF will speed-up interchangeCN and Burlington Northern and Santa Fe have reached a new routing agreement that will result in major changes in traffic flows:
* Traffic from Canadian prairies will be consolidated at the Noyes, Minn. interchange when moving to the western U.S. and at the Superior, Wis., interchange when moving to the central U.S. and Texas.
* Traffic moving to and from the south central U.S. will be interchanged at Memphis and New Orleans, avoiding congestion at Chicago.
"This will create a more seamless service for the customers and generate new capacity for the railroads," said James Foote, CN’s executive vice president-marketing and sales.
According to BNSF’s executive vice president and chief marketing officer, John Lanigan, routing protocol is part of an effort "to streamline the interchange process with all of our service partners."
The changes will be phased in over the next three months.
New-car orders top 70,000 in 2004Railroads and private fleet owners placed orders in 2004 for 70,626 new freight cars, up sharply from the 47,249 cars ordered in 2003 and the 17,714 orders placed in 2002.
Last year saw new-car deliveries climb to 46,971, compared to 32,184 in 2003 and 17,714 in 2003. The backlog of cars on order and undelivered was 58,677 on Dec. 31, 2004, up from 33,967 on Dec. 31, 2003.
Cars in greatest demand in 2004 were covered hoppers with 20,040 ordered, followed by intermodal units (15,625), tank cars (12,350), open–top hoppers (9,398), gondolas (5,368), non-intermodal flat cars (4,895), and boxcars (2, 950).
The demand for new cars began to taper off in the fourth quarter of 2004, dropping to 12,244 from 20,315 in the third quarter and 19,770 in the second quarter.
Railway Age’s 2005 Short Line/Regional Railroad of the Year competition deadline: Jan. 26, 2005Railway Age is now accepting entries for its annual Short Line/Regional Railroad of the Year awards. The 2005 winners will be honored with articles describing their achievements in the March 2005 issue of Railway Age and will be awarded specially designed plaques at the American Short Line and Regional Railroad Association Annual Convention in April 2005.
Short line and regional carriers are invited to submit entries describing what they deem to be outstanding achievement in one or a combination of areas. These include, but are not limited to, turnaround situations; consistent excellence; innovation in operations or maintenance; marketing; customer service; enhanced productivity; community relations; safety improvement; and ingenuity in dealing with the unexpected.
Each of the more than 600 smaller roads in Mexico, the U.S., and Canada is eligible for an award and may nominate itself. Size is not important. In the past, awards have gone to carriers ranging from 20 miles to nearly 2,000 miles. In some years, separate awards are given for regional and short line carriers.
Entries should be submitted to: Marybeth Luczak, Executive Editor, Railway Age, 345 Hudson Street, 12th Floor, New York, N.Y., 100l4. E-mail: mluczak@sbpub.com. Fax: (212) 633-1863. Entries should contain the name, position, and contact information of the nominator and an approximately 500-word description of the achievement(s) of the nominated railroad.
Entry forms are not essential, but may be obtained from Luczak by fax or e-mail. The entry deadline is Wednesday, Jan. 26, 2005.
Railway Age works with the winners to publicize the awards in online and national media.
NCDOT closes 100th crossingThe North Carolina Department of Transportation permanently closed its 100th public highway-rail grade crossing at the end of 2004. The agency started the "Sealed Corridor" crossing improvement project in 1992 to increase motorist, rail passenger, and train crew safety statewide. In the last year, NCDOT has closed 14 crossing and improved 163 others with crossing signals, gates, or other technology.
UP struggles to reopen storm-tossed trackUnion Pacific said Jan. 18 that it expects to restore partial service on its storm-disrupted California "Coast Line" and a desert canyon line in Nevada as early as Jan. 24. These are the last of five lines that were shut down by a savage winter storm earlier this month.
UP Chairman and CEO Dick Davidson said an embargo on traffic into California and Southern Nevada remains in place to control traffic into the region. "We have been working closely with our customers to assure that critical chemical, grain, and coal shipments into the affected areas are being handled," said Davidson. Outbound trains are working off the backlog of delayed traffic.
The "Coast Line" fell victim to torrential rain and heavy surf that triggered washouts and sinkholes and left a mudpack over a 139-mile stretch of track between Guadalupe and Moorpark, Calif. A force of 150 workers and 40 pieces of earth-moving equipment was deployed daylight-to-dark to undo the damage.
In Nevada, UP mobilized 200 personnel and 60 pieces of heavy equipment to work around the clock to repair damage over an 80-nile stretch in a remote canyon south of Caliente. A new bridge is being built to replace one that was buried under six feet of mud and rock. Seven work trains have been hauling rock to fill the washouts from both ends of the canyon.
UP crews repaired other damaged rail links in Southern California last week.
"More than 200 Union Pacific employees have volunteered to temporarily shift to various locations in the West to help move trains detouring around the flooded sections, said Davidson. "This really speaks to the ‘can-do’ attitude of our railroaders."
AREMA, RSI, RSSI offer scholarshipsThe American Railway Engineering & Maintenance of Way Association (AREMA) Educational Foundation, the Railway Supply Institute (RSI), and the Railway Systems Suppliers, Inc. (RSSI), are offering college scholarships for the 2005-2006 academic year.
Several $1,000 AREMA scholarships are available to full-time students enrolled in four- or five-year bachelor’s degree programs in engineering or engineering technology. Applicants must have a strong interest in railway engineering. To be eligible, students must have completed one college quarter or semester at minimum, and hold at least a 2.00 GPA.
AREMA also will award two specialized scholarships: a $5,000 Freeman Scholarship for a Carnegie Mellon University student pursuing an electrical engineering degree, and a $2,000 Michael W. and Jean D. Franke Family Foundation Scholarship for a civil engineering student at the University of Illinois at Urbana-Champagne.
Applications must be submitted by March 4. All applicants will be notified of their award status by April 29.
For details, contact AREMA at: 8201 Corporate Drive, Suite 1125, Landover, MD 20785; Tel.: (301) 459-3200; Fax: (301) 459-8077; Website: www.arema.org.
RSI is offering four $3,000 scholarships to qualified dependents of the employees of RSI-member companies or Air Brake Association, Locomotive Maintenance Officers Association, International Association of Railway Operating Officers, and Mechanical Association Railcar Technical Services companies. Eligible students will be sophomores in September 2005 and currently enrolled in a four- or five-year program leading to a bachelor’s degree.
Applications are due by March 15. For more information and to download an application online, visit www.rsiweb.org. Return completed applications to: RSI, 29W 140 Butterfield Road, Suite 103-A, Warrenville, IL 60555, Attention: Executive Director.
RSSI will provide scholarships of $2,000 per year for up to four years to the dependent children or grandchildren of employees of RSSI member companies in good standing that have at least four consecutive years of membership. Before payment can be made, full-time enrollment in a two- or four-year accredited college program is required. Completed applications must be submitted by May 1.
For details, contact RSSI at: 9304 New LaGrange Road, Suite 200, Louisville, KY 40242; Tel.: (502) 327-7774; Fax: (502) 327-0541; E-mail: rssi@rssi.org.
NS, CSXT start military vehicles on journey to IraqIn November and December, Norfolk Southern and CSX Transportation, along with Star Intermodal, sent 1,200 carloads of wheeled and tracked vehicles and containers on their way to Coalition forces in Iraq via the Port of Savannah. As reported in the January issue of NS Newsbreak, the deployment included units of the U.S. Army’s Third Infantry Division based at Ft. Benning and Ft. Bennett, Ga., as well as other units located at Ft. Sill, Okla., Ft. Campbell, Ky., and Ft. Riley, Kan.
FedEx talks with France about using TGV trainsŻA,Żµ speed passenger trains are a hard sell in the U.S., how about high speed passenger/freight trains? That option is raised by a Reuters dispatch from Paris reporting that FedEx has talked with the Ministry of Finance and Ministry of Transport about creating a freight component of the 200-mph TGV system. It would involve extending a TGV track from a passenger terminal at Charles de Gaulle Airport to FedEx’s European hub at the airport, which handles over one thousand tons of package freight a day.
CN completes another labor agreementCN has signed a tentative labor agreement with the United Steelworkers of America, the union representing approximately 2,250 employees who maintain and repair CN’s track, bridges and structures in Canada. Details of the new agreement, which covers the period from Jan. 1, 2004, to Dec. 31, 2007, are being withheld pending ratification. In general, it provides for increased wages and improved benefits.
In recent labor negotiations in Canada, CN has renewed agreements with the section of the United Transportation Union representing brakemen and conductors on its Northern Quebec Territory, the Canadian Auto Workers, the Teamsters Canada Rail Conference/Rail Traffic Controllers, and the Canadian National Railways Police Association. CN is still negotiating in Canada with the national UTU body outside the Northern Quebec Territory, the Teamsters Canada Rail Conference representing locomotive engineers, and the International Brotherhood of Electrical Workers, whose members maintain and repair signals and communications equipment.
FreightCar America to open third plantFreightCar America (the former Johnstown America) is adding production capacity by leasing and reopening a freight car construction and repair shop from Norfolk Southern in Roanoke, Va. NS shut down the car portion of its Roanoke Shops (originally operated by NS predecessor Norfolk & Western) in 2000, retaining only the locomotive maintenance and repair portion. The Roanoke location will give FreightCar America three freight car production facilities. The other two are located in Johnstown, Pa., and Danville, Ill.
FreightCar America initially plans to build aluminum coal hoppers at Roanoke, with the first cars delivered in the second quarter. Production will be expanded later to include other freight car types made from steel and stainless steel as well as aluminum.
Key safety areas show negative trendsRailroad safety statistics for the first eight months of 2004 are now available, and they show a year-to-year drop of 4.7% in the total accident/incident count: from 11,839 in the 2003 period to 11,286 last year. But there were negative trends in some key areas.
Train accidents increased 4.5%, to 2,577, with collisions up 22.4% to 208 and derailments rising 7.5% to 1,858. Yard accidents increased 7.6% to 1,435.
Continuing a yearlong trend, grade crossing fatalities rose 13.6% to 310 in the January-October period last year.
In one important category, the trend was positive: 397 trespassing fatalities were recorded in the 2004 period, down 7.2% from 2003.
"Demand will continue to exceed capacity"Union Pacific posted an average train speed of 20.9 mph in the week ended Jan. 7, a sharp recovery from the year-long low of 18.8 mph recorded in the last week of 2004. But in a letter to customers on Jan. 11, UP’s executive vice president-sales and marketing, Jack Koraleski, warned that work remains to be done to ensure good service levels.
He said the Sunset route between Los Angeles and El Paso remains congested: "An additional 10 miles of double track west of El Paso will be put into service next week. Alternate routes, improved incident response times, uniform train speed, and increasing horsepower on trains are key steps that are under way to improve the velocity on the Sunset. A special operations team is coordinating the many projects that are now under way on this critical route."
"In early 2005," Koraleski added, "we must replace worn-out rail on part of the Sunset route and must reduce train counts to create maintenance windows. Once we complete this work, we are targeting 44 trains per day on this route and 30 trains per day on the South Central route between Los Angeles and Salt Lake City. This reduction will have an effect on some customers, and we will be meeting with them to discuss alternatives."
What can customers expect in the future? Koraleski had this to say: "We expect that the demand for movement of freight in this country will continue to exceed the capacity of the railroads and the highway system in some key corridors and many urban centers. While we are continuing to invest in our network to eliminate bottlenecks and improve throughput, the need for revenue to justify reinvestment in our infrastructure has led us to increase rates in a number of markets. We recognize that increasing our rates while our service is inadequate is very unpopular. However, our ability to respond to the unprecedented demands on our system is limited only by the need to ensure that the financial returns are adequate to support the required investment."
GM to sell Electro-Motive Division General Motors Corp. today announced an agreement to sell its Electro-Motive Division to an investor group led by Rye, N.Y-based Greenbriar Equity Group LLC and Berkshire Partners LLC of Boston. The deal is expected to close in first-quarter 2005, contingent upon completion of negotiations with the United Auto Workers Union and subsequent member ratification. Terms of the transaction were not officially disclosed but are reportedly under $500 million. GM is said to be retaining a financial interest in EMD.
The transaction covers substantially all EMD businesses, including North American and international locomotives; power, marine, and industrial products; the spare parts and parts rebuild business; and all worldwide EMD locomotive maintenance contracts. EMD’s LaGrange, Ill., and London, Ont., manufacturing facilities are included in the transaction. In recent years, EMD has produced 500-600 locomotives annually for the global railway market.
Berkshire Partners has a long history of railroad industry investment. It was a principal investor in Wisconsin Central Ltd., now part of CN, and WC’s Tranzrail and English, Welsh & Scottish operations in New Zealand and Britain, respectively. Tranzrail was sold recently to New Zealand investors; Berkshire still retains an interest in EW&S with CN. Not long after its start-up in the late 1990s, EW&S ordered 250 Class 66 freight locomotives from EMD and 25 Class 67 EMD-powered units from Alstom.
"Greenbriar and Berkshire Partners have a long-term commitment to creating value in the railroad industry that extends back to the 1980s," said Reginald Jones, a managing partner of Greenbriar. "EMD has outstanding products, employees, and a truly global franchise, and we believe the company’s prospects are bright."
"GM is pleased to have Greenbriar and Berkshire Partners acquiring the company," said William Happel, GM vice president and EMD general manager. "These groups have a long-established reputation for excellence as rail industry investors and financiers. As an independent company with access to the resources of the new owners, EMD will be well positioned to continue to service its customers and grow the business."
Greenbrier posts 29% earnings growthThe Greenbrier Companies saw earnings increase 29% during first-quarter 2005, which ended Nov. 30. Net income rose to $5.4 million, or $0.35 a share, from $4.2 million, or $0.28 per share, during the same period a year earlier. Revenue jumped 61% to $218 million from first-quarter 2004’s $135 million. Backlog and new orders in North America and Europe remain strong, according to Greenbrier. The new railcar backlog reached 10,300 units, worth $620 million, during this year’s first quarter, compared with the previous year’s 11,500 units, also valued at $620 million.
"Greenbrier enjoys a high market share in the principal products it builds, and industry forecasts for 2005 indicate another strong year for new railcar orders," William A. Furman, Greenbrier president and CEO, said in the earnings announcement on Jan. 10. "Our backlog also remains strong, and we continue to develop a strong pipeline of potential orders. The order cycle for doublestack railcars is expected to begin in spring and summer 2005, for fiscal 2006 production. Joint supply meetings are now under way with major customers."
Greenbrier says it is on pace to deliver nearly 13,000 railcars in fiscal 2005, exceeding last year’s record of 10,800 by about 20%.
Greenbrier’s goal to grow its core businesses and reduce costs through global sourcing efforts are progressing, according to Furman. In December, the company formed a partnership with Zhuzhou Rolling Stock Works, a Chinese railcar manufacturer, to expand sourcing of Chinese manufactured parts and components for its freight car products. Greenbrier also will work with Zhuzhou to "identify design and commercial collaboration opportunities" worldwide. While Gunderson-Concarril, the company’s Mexican joint venture with Bombardier, did not meet financial objectives during the first quarter, Furman expects improvements since Greenbrier acquired Bombardier’s 50% interest in December. "We remain confident that with Gunderson-Concarril now under Greenbrier’s control, we can more effectively manage the operations," he said. "We anticipate significantly improved financial performance in Mexico, particularly starting in the second half of fiscal 2005."
UP embargoes West Coast trafficIn the wake of the severe flooding and mudslides that have hit Southern California is the past few days, Union Pacific has embargoed a significant amount of intermodal traffic to the Midwest originating at the ports of Los Angeles and Long Beach. "The series of storms that hit this week is having significant impact on our operations to and from the Los Angeles Basin, through the Sierra Nevada and the rest of California, and we have issued an embargo for several locations as a result," said UP Executive Vice President-Marketing and Sales Jack Koraleski in a customer service advisory issued yesterday. "Washed out tracks, mud, and rockslides over the tracks, and flooding have closed five of our main routes in that area. There is also signal damage along some of these routes. Recovery will be slow and will depend on weather as crews work in very difficult conditions. Snowfall of over 14 feet in some passes has slowed mountain operations as we fight to remove record amounts of snow. Our employees in this region take great pride in their ability to keep our tracks open, but they have been sorely tested by these repeated challenges."
IPO planned for FreightCar AmericaFreightCar America, Inc., formerly known as Johnstown America, is going public. The company today filed a registration statement with the Securities and Exchange Commission for a proposed initial public offering of its common stock. The underwriters of the proposed offering are UBS Investment Bank, Jefferies & Company, Inc., and CIBC World Markets Corp. UBS Investment Bank will act as the sole book-running manager for the proposed offering.
The company said in its announcement that it anticipates the existing stockholders of FreightCar America to be entitled to sell a portion of their holdings in the offering, pro rata, if the underwriters exercise their over-allotment option to purchase additional shares. A copy of a prospectus can be obtained from UBS Investment Bank, Syndicate Desk, 299 Park Avenue, New York, NY 10171, when it becomes available.
LaTourette chairs Rail SubcommitteeSteve LaTourette, a Republican congressman from Ohio, has replaced retired Rep. Jack Quinn of New York as chair of the Railroad Subcommittee of the House Transportation and Infrastructure Committee in the 109th Congress. Rep. Don Young (R-Alaska), chairman of the 75-member committee (the largest in the House), appointed LaTourette along with five other subcommittee chairs: Rep. John Mica (R-Fla.), Aviation Subcommittee; Rep. Frank LoBiondo (R-N.J.), Coast Guard & Maritime Transportation Subcommittee; Rep. Bill Shuster (R-Pa.) Economic Development, Public Buildings & Emergency Management Subcommittee; Rep. Tom Petri (R-Wisc.), Highways, Transit & Pipelines Subcommittee; and Rep. John J. Duncan (R-Tenn.), Water Resources & Environment Subcommittee. Shuster (the son of the retired Budd Shuster, who chaired the T&I Committee for many years) and LaTourette are new to their posts. Young is serving his third term as chairman.
"Congressman LaTourette brings a tremendous amount of vision and experience to the role, and a commitment to the economic growth and development of our country," Association of American Railroads President and CEO ED Hamberger said in a statement. "With freight transportation expected to increase dramatically in the next decade, we look forward to working with Congressman LaTourette to prepare our nation’s transportation network for the challenges of today’s global marketplace."
FRA releases switch safety guidelines The Federal Railroad Administration today issued a safety advisory in response to recent derailments involving inadvertently misaligned switches.
According to FRA, the National Transportation Safety Board has indicated that a misaligned switch may have been one of the factors resulting in a Norfolk Southern freight train derailment on Jan. 6 in Graniteville, S.C. The train was diverted from a main track onto a siding and into the path of parked locomotives. Three locomotives and 15 cars derailed--one of which ruptured and released its chlorine contents, causing nine deaths, one of which was a railroad employee, evacuation of some 5,400 local residents, and medical treatment of 234 people. In another incident on Jan. 8, a Burlington Northern and Santa Fe freight train was unexpectedly diverted onto an industrial track in Bieber, Calif., striking two loaded grain cars and derailing seven locomotives and 14 cars. Two railroad employees were injured. Initial damages to equipment and track are more than $970,000.
FRA's new safety advisory states that more documentation and communication is needed to strengthen procedures for monitoring track switching operations. "Railroads should document when a manually operated switch in non-signaled territory is changed from the main track to a siding and returned back to the normal position for main track movements," said FRA. "In addition, these actions should be communicated to all crewmembers and the train dispatcher."
FRA operating practices’ inspectors will "aggressively monitor" railroads’ adoption of the advisory to help determine if additional steps are needed.
"An improperly lined switch invites disaster and can be easily avoided," said FRA Acting Administrator Robert D. Jamison. "All railroads need to adopt the safety measures outlined in this advisory."
For more information, visit http://www.fra.dot.gov.
UTLX and Kelso Technologies form partnershipUnion Tank Car Co. and Vancouver-based Kelso Technologies have teamed up to jointly market and develop Kelso’s patented JS SRV line of pressure relief valves under a five-year contract. The agreement covers all aspects of valve development and manufacturing, as well as marketing, technical support, and service.
Union Tank Car will offer Kelso’s externally sprung safety valves as replacements on certain UTLX-owned railroad tank cars that are leased to bulk liquid shippers. The valves also will be available as original equipment on new cars built by UTLX Manufacturing, Inc.
McKenzie Valve and Machining Co., a UTLX affiliate, will have exclusive manufacturing rights for all Kelso JS SRV pressure relief valves--including Kelso’s existing JS75 SRV and other future valve designs--on sale in the U.S., Canada, and Mexico. In addition, McKenzie will partner with Kelso on valve development.
Kelso will be responsible for the marketing, sales, and technical support for after-sales valve service.
"Kelso JS SRV pressure relief valves are well-suited for both hazardous and non-hazardous product service and represent an alternative source of supply for quality safety relief devices," commented UTLX President Frank Lester. "These valves also will be a good choice for UTLX customers who ship products that require protective interior tank car coatings."
"Plenty of momentum" in 2005Railroad industry volume growth will continue at a healthy pace in 2005, according to MorganStanley transportation analyst Jim Valentine.
"Railroads enter 2005 with plenty of momentum," Valentine said in a series of reports released today. "Despite lapping significantly more difficult year-over-year comparisons during fourth-quarter 2004, railroad volume growth showed no signs of slowing as industry-wide volumes increased 5.9% year-over-year, which compares favorably to the 5.6% increase during 2004." He cited intermodal volumes, which were up 12.9% year-over-year, as "the biggest drivers to growth." Economically sensitive traffic grew 2.8%, a rate he considers "robust."
Surface (rail and truck) and air freight transportation valuations "are at or above historical levels," said Valentine. "The overall group will likely perform in line with the broader-based market over the next 6 to 12 months, or as long as cyclicals remain in favor with investors."
Valentine noted that railroads with the best service levels are experiencing significantly better volume growth than those with service problems. As such, he expects Norfolk Southern and Burlington Northern and Santa Fe’s growth to continue to exceed that of Union Pacific and CSX.
NS’s accident yesterday in South Carolina, which involved a chlorine release that killed seven and injured over 200, "will have a relatively minor impact on [the railroad’s] annual earnings," said Valentine. "Railroading is an outdoor sport that occasionally involves accidents. While no two railroad accidents are ever the same, the factors that create the largest costs usually involve fatalities or some type of evacuation due to hazardous material spills, both of which occurred in this accident. But even in these instances, the cost of the accidents are usually isolated and therefore do not result in any type of long-run problem for the carrier. Given that NS consistently has the highest safety record among major North American railroads, we're not concerned about this becoming a systemic problem."
As for the major Canadian railroads, Valentine is sticking with Canadian Pacific’s Overweight rating in anticipation of "significant upward revisions to 2005 earnings estimates, given CP’s unique exposure to export metallurgical coal." Most of CP’s shortfall in grain volumes during fourth-quarter 2004 will be recovered during the first half of this year, he said. Valentine downgraded CN’s rating from Overweight to Equal-weight, based on CN strong performance moving its stock toward "a level we consider a fair valuation." CN, though, as "the best-run railroad in North America," still has "positive fundamentals ahead."
Chlorine release involved in NS collisionAt least two and as many as five deaths and up to 200 injuries have resulted from the collision of a moving 42-car Norfolk Southern freight train hauling chlorine tank cars with a parked NS locomotive at Graniteville, S.C., about 11 miles east of Augusta, Ga., according to news reports. The National Transportation Safety Board and the Federal Railroad Administration are investigating the crash, which occurred at 2:39 a.m. this morning. One of the reported dead is the train’s engineer; the conductor is reported in critical condition. Both were said to have inhaled chlorine gas. No one was aboard the parked locomotive. Of the 200 reported injured, 46 were taken to hospitals and 13 are in critical condition.
OmniTRAX takes over BNSF branch networkOmniTRAX announced Jan. 6 that it has created a new subsidiary, Kettle Falls International Railway (KFR), to operate 160 miles of branch lines in Washington and British Columbia acquired through purchase and lease from Burlington Northern and Santa Fe.
The affected track extends from Chewelah, Wash., to Klamath Falls, B.C., Grand Forks, B.C., and San Poil, Wash. On-line customers include Teck Cominco, Pope and Talbot, Boise Cascade, Vaagen Bros., Stimson Timber, and Canpar.
KFR plans to construct a new interchange track at Chewelah and a locomotive maintenance facility at Kettle Falls.
The new venture is Denver-based OmniTRAX’s 14th rail operation in North America.
FRA administrator succession moves forwardPresident Bush has named Robert D. Jamison, deputy administrator of the Federal Railroad Administration, to the position of acting administrator. Jamison succeeds Betty Monro, who resigned as acting administrator effective Dec. 31. Jamison, a graduate of the University of Memphis, held executive positions with United Parcel Service and the American Red Cross prior to joining the FRA in May 2002.
Jamison is reportedly not in line to become the next FRA Administrator. According to the Journal of Transportation Law, Logistics & Policy, a strong contender for the post is Richard J. Peltz, currently alternate federal co-chair of the Appalachian Regional Commission in Pennsylvania. From 1995 to 2002, he was deputy secretary for local and area transportation at the Pennsylvania Department of Transportation. The Senate will have to confirm Peltz, should he be nominated.
Train speeds deteriorate on UP and CSXTUnion Pacific and CSX Transportation reported significant drops in train velocity in December. Train speed was also down on Burlington Northern and Santa Fe, but it surged on Norfolk Southern.
Performance metrics posted on an AAR-hosted website on Jan. 5 showed the following average speeds for the four biggest U.S. railroads in the weeks ended Dec. 10, Dec. 17, Dec. 24, and Dec.31, in that order:
UP: 20.5 mph, 20.0 mph, 19.7 mph, 18.8 mph.
CSXT: 22.0 mph, 21.0 mph, 20.2 mph, 19.0 mph.
BNSF: 24.4 mph, 22.6 mph, 22.0 mph, 20.8 mph.
NS: 22.4 mph, 21.7 mph, 20.7 mph, 25.0 mph.
The loss of momentum by UP caused the investment firm of Bear Stearns to downgrade UP stock from a rating of "peer perform" to "underperform."
Albuquerque orders passenger locomotivesThe Mid-Region Council of Governments, Albuquerque, N.M., has awarded a $12.7 million contract to MotivePower Industries, a subsidiary of Wabtec Corp., for five MPXpress® MP36PH-3S diesel-electric commuter rail locomotives. The contract includes provisions for spare parts and training. The locomotives, similar to those supplied for Chicago’s Metra and San Francisco’s Caltrain commuter rail services, are scheduled to be delivered this year.
MBTA commuter rail project clears big hurdleIn a 120-page report, the U.S. Army Corps of Engineers has given its environmental approval to the Massachusetts Bay Area Transportation Authority’s planned restoration of commuter rail service in the Greenbush Corridor. This was the last major barrier standing in the way of the 18-mile, $479 million project. Critics have claimed the project would harm endangered species, wetlands, and historic districts. With only one relatively minor environmental issue still to be resolved, work will begin immediately on portions of the right-of-way in Braintree, Weymouth, and Hingham.
France awards $474 million contract to BombardierFrench National Railways (SNCF) has ordered an additional 100 high-capacity AGC trains from Bombardier for delivery starting in December 2007. The order is worth 350 million euros ($474 million). The total number of firm orders for the Autorail Grande Capacite trains is now 369. The orders so far are part of an agreement announced in September 2001 for the supply of 500 AGC trains to SNCF. The first train was delivered one year ago, and 30 are now in regional operation. Seating 160 to 200 passengers, depending on the model, the trains are capable of speeds up to 100 mph.
Passenger railcars: A multibillion-dollar marketNorth American passenger rail operators—intercity, commuter/regional, heavy rail, and light rail—are expanding and modernizing their railcar fleets at an average annual cost of around $2 billion a year.
Railway Age magazine’s exclusive annual survey shows that builders delivered 1,257 new or substantially rebuilt passenger railcars to customers in the U.S., Canada, and Mexico in 2004, and were working on an undelivered backlog of 2,749 going into 2005. In addition, purchasing agencies expect to order up to 1,748 cars in 2005.
At an estimated average cost of $1.5 million each, the units delivered in 2004 were valued at nearly $2 billion, and the backlog on Jan. 1, 2005, was worth over $4 billion. Over the five-year period 2000-2001, more than 7,000 cars were delivered.
The principal suppliers of cars for the North American market are Alstom of France, Bombardier of Canada, AnsaldoBreda of Italy, CAF of Spain, Siemens of Germany, and the Japanese contractors Kawasaki, Kinkisharyo, Kinkisharyo/Mitsui, and Nippon Sharyo.
Detailed results of the Railway Age survey, including projections for orders over the next five years, appear in the magazine’s January 2005 issue.
The survey was conducted by Marybeth Luczak, executive editor.
FRA: All rolling stock must have reflective materialThe Federal Railroad Administration has published a Final Rule in the Jan. 3, 2005 Federal Register requiring reflective materials to be installed on the sides of locomotives and freight cars as a safety measure to make trains more visible to motorists at highway/rail grade crossings. The Final Rule, Reflectorization of Rail Freight Rolling Stock, requires railroads to install yellow or white reflective materials on locomotives over a five-year period and on freight cars over a 10-year period. The reflective materials are to be installed on all newly constructed equipment, and on existing equipment during periodic maintenance or repair, unless alternate implementation plans have been developed that meet FRA requirements. The effective date of the Final Rule is March 4, 2005.
FRA in its announcement said that nearly 25% of all highway-rail grade crossing collisions "involve motor vehicles running into trains occupying grade crossings. The large size and dark color of trains in combination with poor lighting or limited visibility may contribute to motorists having difficulty detecting the train in their path. The reflective material will help reduce the number and severity of this type of accident by giving motorists an additional visual warning of the presence of a train."
A shift at the top at KCSTransportation consultant and former Union Pacific Executive Vice President-Operations Arthur L. Shoener has been appointed executive v ice president and chief operating officer of Kansas City Southern and president and CEO of Kansas City Southern Railway and Texas-Mexican Railway. Shoener will report directly to Michael R. Haverty, who remains chairman, president, and CEO of KCS and chairman of KCSR and is now also chairman of Tex-Mex. Jerry Heavin, formerly KCS’s senior vice president-operations, will assume the newly created position of SVP-International Engineering and will oversee infrastructure for all KCS rail holdings.
Shoener will be directly responsible for managing all of KCS’s U.S. rail holdings. Also, he is described as having "an important advisory role" in the oversight of TFM, S.A. de C.V., which will become a KCS subsidiary following completion of KCS’s acquisition of TFM, announced Dec. 15, 2004. Shoener will also be involved with the Panama Canal Railway Company, another KCS holding.
Shoener began his railroading career in 1968 as a management trainee at the Missouri Pacific. He subsequently held a variety of operations positions with the company and was serving as general manager of the eastern region in 1982 when UP acquired the MoPac. In 1991, he was named UP’s executive vice president-operations for the entire rail system. Shoener left UP in 1997 and established a transportation consulting firm with domestic and international clients.
KCS also announced the appointment of Owen M. Zidar as vice president-marketing. Zidar joins KCS from Pacer Global Logistics, where he served as regional vice president of sales. From 1980 to 2000, he was at Burlington and Northern Santa Fe, where he served in a variety of functions which coordinated marketing and transportation functions.