December 2003
A "rare winter tour" for UP?s "Challenger"Union Pacific is sending "Challenger" No. 3985 on a "rare winter tour" to Houston, where it will be on display during Super Bowl XXXVIII activities. During a nine-state, 3,500-mile journey, the 60-year-old locomotive also will be on display at Kansas City, St. Louis, Pine Bluff, Ark., and North Little Rock. "The tour will celebrate railroad history," said UP. "Houston is steeped in railroad history, and having the world?s largest operating steam locomotive on display there seemed a natural fit."
More Bombardier locomotives for ItalyTrenitalia (Italian Railways) has awarded Bombardier Transportation a $131 million contract for an additional 48 medium power electric locomotives, type P160 DCP, for regional passenger services. Capable of speeds up to 100 mph, the new locomotives will be like 240 ordered in three previous contracts starting in 1996. Production will take place at Bombardier?s plant in Vado Ligure, Italy, with propulsion and electric equipment supplied from Bombardier?s facility in Trapaga, Spain.
Timber-bridge safety questioned in CanadaThe Transportation Safety Board of Canada has not completed its investigation of a fatal CN derailment last May, but on Dec. 22 it issued two "Stand-Alone" recommendations "in the interests of maintaining the safety of the traveling public and railway workers alike." TSB asked that CN "verify the condition of their timber bridges and ensure their continued safety with effective inspection and maintenance programs," and that "Transport Canada incorporate in its compliance reviews a comparison of railway working procedures and practices with railway inspection and maintenance records."
Two CN crewmen died in the fiery derailment of two locomotives and five cars loaded with lumber when a bridge collapsed near McBride, B.C., on May 14.
In announcing its interim recommendations, STB said: "Examination of the wreckage, post-accident interviews, and a review of inspection and maintenance documentation have revealed the presence of a number of shortcomings in CN?s inspection and maintenance practices for timber bridges and with Transport Canada?s compliance reviews. The ability of these systems to address latent deficiencies, such as the ones identified in this occurrence, are of particular concern."
Cleveland ready to build bus rapid transitA little more than one-third of the Greater Cleveland Regional Transit Authority?s $151.l million 2004 capital budget is designated for construction of a bus rapid transit line in the Euclid Corridor. The BRT line, which is scheduled to go into service in late 2006, will operate in a center median busway beginning at Public Square in downtown Cleveland, switching to curbside operation at University Circle. It will connect the region?s two biggest employment centers. RTA?s 34-mile heavy- and light-rail system will get $25.3 million for capital projects, including elimination of the Kingsbury Tunnels and an ongoing station-improvement program.
GWI buying three Georgia-Pacific roadsGenesee & Wyoming has agreed to pay Georgia-Pacific Corp. $55.6 million for three railroads that serve Georgia-Pacific facilities: the 15-mile Chattahoochee Industrial Railroad which operates between Hilton and Saffold, Ga., connecting with Norfolk Southern and CSX Transportation; plus the Arkansas, Louisiana & Mississippi and the Fordyce & Princeton, which together operate 109 miles of contiguous track between Monroe, La., and Fordyce, Ark., connecting with Union Pacific and Kansas City Southern. The transaction includes a 20-year agreement for continued provision of service to the Georgia-Pacific plants. For the 12-month period ended Sept. 30, 2003, the three railroads had combined revenues of $18 million, of which Georgia-Pacific accounted for approximately 90%.
CPR plans 90-day test of Green GoatCanadian Pacific Railway is leasing a RailPower Technologies Green Goat? hybrid locomotive for 90 days of testing starting in February. The tests will begin in Moose Jaw, Sask., and will be completed at Coquitlam near Vancouver, B.C. "This trial will provide CPR the opportunity to assess the Green Goat in our own demanding operations and consider how it might fit with our fleet of approximately 260 active yard locomotives," said CPR Senior Vice President of Operations Neal Foot. RailPower President and CEO Jim Maier said the test "is a great opportunity to demonstrate the benefits of the Green Goat in strenuous applications in all kinds of winter conditions."
Enter Railway Age's 2004 Short Line/Regional awards competitionRailway Age is now accepting entries for its annual Short Line/Regional Railroad of the Year awards. The 2004 winners will be honored with articles describing their achievements in the April 2004 issue of Railway Age. The awards also carry specially-designed plaques.
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. 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 deadline for entries to be received in New York is Friday, Feb. 20, 2004. Railway Age works with the winners to publicize the awards in online and national media.
RSI announces 2004 College Scholarship Program The Railway Supply Institute is offering $3,000 scholarships to the four most qualified students whose parent, stepparent, grandparent, or guardian is an employee of an RSI member company or an individual member of one of the Coordinated Mechanical Associations sponsored by RSI. All applicants must be enrolled as full-time students in a four- or five-year Bachelor’s degree program and expect to achieve at least sophomore status by the beginning of the 2004 fall term. (Post-graduate work is not covered under this program.) Winners of 2003 scholarships are ineligible. For more information, contact the RSI at: 29W140 Butterfield Road, Suite 103-A, Warrenville, IL 60555; Phone: (630) 393-0106; Fax: (630) 393-0108; E-mail: rsupplya@aol.com.
Nortrak to acquire Meridian Rail Track Products Corp.Next month, VAE Nortrak North America, Inc. (Nortrak) will acquire substantially all of the assets of Meridian Rail Track Products Corp. (MRTPC), including all factories, machinery, equipment, and business and intellectual property. According to Nortrak, the company will be able to "offer more new products, improve delivery capability, and advance its market competitiveness." It will continue its current operations and gain new plants in Pueblo, Colo., Newton, Kans., and Chicago Heights, Ill. At the close of the transaction, MRTPC will exit the special trackwork business. Meridian Rail LLC, as well as its subsidiaries and affiliates including Meridian Rail Services Corp., will continue their operations. (Meridian Rail Corp recently concluded a $40 million financing agreement with Congress Financial Corp.)
Synagro Technologies receives high-capacity intermodal cars from Johnstown AmericaJohnstown America completed delivery this month of 50 articulated bulk container cars to Houston, Tex.-based Synagro Technologies, Inc. The cars will be used by Synagro’s rail-haul subsidiary, Environmental Protection and Improvement Co., to transport containers loaded with biosolids and other solid waste materials. The 90-foot-long ABC cars have a lightweight, skeleton design, and can haul 20-foot-long containers, weighing up to 59,000 pounds. Alternatively, the cars can carry two standard 40-foot-long ISO containers, or for maximum payload service, containers can be double-stacked on each end of the car and loaded single level at the two intermediate positions nearest the articulated truck. This six-container load fills a maximum capacity of 354,000 pounds.
FRA tells communities how to ban train whistlesThe Federal Railroad Administration published an "Interim Final Rule" on Dec. 18 that allows communities to silence train horns at approximately 150,000 railroad grade crossings under important safety guidelines.
"Under the rule, local governments will have the opportunity to establish quiet zones in certain areas where there is a low risk of collision, or to make specific upgrades meant to lessen the risk where the hazards are greater," the FRA announcement said. Upgrade options include four-quadrant crossing gates blocking both lines of traffic in both directions or an approved median divider to prevent drivers from going around lowered gates; the temporary closure of a closing; or a one-way street with gates and lights. An automated horn system may be installed at a crossing as a substitute for the train horn.
The final rule will take effect on Dec. 18, 2004, but communities with existing train whistle bans will have five years to implement the requirements.
A crossing whistle requirement, except under specified conditions, was part of the federal Railroad Safety Authorization Act of 1994.
The Association of American railroads commended the FRA on the new rule and seized the occasion to call for more federal aid in not only installing but in maintaining crossing devices. Said AAR President Edward R. Hamberger: "Implementation of this rule will make it even more critical to substantially increase the funding of the Section 130 program as proposed in H.R. 3550, TEA-LU, and allowing maintenance of crossing devices to be considered an eligible expense."
MARTA announces layoffs, cut-backsThe Metropolitan Atlanta Rapid Transit Authority announced today the elimination of 100 positions (effective Jan. 5, 2004), the institution of two-week, non-paid furloughs, and the expansion of employee contributions to health care benefits. General Manager/CEO Nathaniel P. Ford, Sr., cited declines in ridership and revenue in the past several months as reasons for the cut-backs, which will save MARTA an estimated $6.6 million in FY 2004, ending June 30.
"We remain grateful for your support, your understanding, and your suggestions to help us with our cost improvement efforts," Ford told employees in a letter issued today. "As we indicated to you last month, despite our best efforts, the financial picture remains strained. Sales tax and passenger revenues remain low, while our health benefit costs are rising at an alarming rate." Ford also will take the furlough and has delayed any personal bonuses or raises.
He noted that while most of the cost savings are being borne by non-represented staff, discussions are under way with the Amalgamated Transit Union Local 732.
Among the non-represented employee cut-back details:
* The 100 layoffs, along with other "miscellaneous cost containment expenditures," will generate a savings of $4.6 million.
* Employees (except police officers with a rank of sergeant and below) will be required to take a two-week, non-paid furlough between Dec. 20, 2003, and June 11, 2004--an estimated savings of $1.4 million.
* There will be a police restructuring and redeployment to a four-day, 10-hour a day work week--a savings of $400,000.
* Employees will be required to contribute an additional $25 per month to their health care benefits--a savings of $200,000.
* Employee vacation buybacks will be extended until Dec. 30, 2003.
Under discussion with represented employees:
* Suspending MARTA contributions to the pension fund for at least one year.
* Paying overtime at time and a half only if employees work more than 40 hours a week.
* Eliminating wage increases that were to take effect July 1, 2004. (Non-represented employees did not receive raises in FY 2002 or 2003, and will not receive increases in 2004, "unless the financial picture improves.")
* Resuming negotiations on a paid time-off system.
* Increasing employee health care contributions.
MARTA also is "aggressively reviewing" its operation "to identify service enhancements and other efficiencies. Efforts to seek out additional revenue generators continue to include wrapping trains, video displays in buses and trains, concessions in stations, and paid parking."
Bombardier wins new German orderGermany’s Rhine-Main transport group has placed an order with Bombardier Transportation for 22 two-car, diesel-hydraulic ITINO™ commuter trainsets to be used on the Oldenwaldbahn regional rail line. The order is valued at C$113 million. The trains, capable of a maximum speed of 87 mph, will be assembled at Bombardier’s plant in Hennigsdorf, Germany. Features include a GPS-supported passenger information system and video surveillance.
National Rail Car expands and diversifiesCharles W. Wolcott, president and CEO of National Rail Car, Inc., on Dec. 17 announced a groundbreaking for additions and improvements to its car repair facility at Roscoe, Tex. He said the project is made possible with the assistance of Texas Capital Fund resources. Vice President and COO Albert J. Weldon said these resources "allow us to diversify our business activity, adding stability to what has been a cyclical industry." Established in 1982, NRC has diversified into maintaining over-the-road trailers and trucks, and providing trans-loading capacity for bulk commodities shipped by truck or rail.
Promised VIA Rail funding is frozenPrime Minister Paul Martin’s new Canadian government said Dec. 16 that it would freeze federal spending on all major capital projects in light of a "razor-thin" surplus and its intention to expand health-care benefits without deficit spending. Among projects affected by the freeze is the five-year, $692.5-million capital package promised to VIA Rail by the outgoing government of Jean Chretien in October.
Special charge will cut NS earningsA pre-tax charge of approximately $80 million recognizing the "impaired value of certain telecommunications assets" will reduce Norfolk Southern’s fourth-quarter net income by around $50 million or 13 cents a share. David R. Goode, the company’s chairman, president, and CEO, said the action results from "prevailing market conditions in the telecommunications industry as reflected by a recent valuation study." He added: "Norfolk Southern, through its T Cubed subsidiary, remains committed to its participation in the telecommunications industry, which allows us to leverage our assets to participate in the future development of telecommunications infrastructure." The assets of T Cubed (Thoroughbred Technology and Telecommunications) include 1,600 miles of fiber-optic infrastructure on NS’s eastern rail corridors. The company will report its fourth-quarter earnings at its quarterly meeting with financial analysts in New York City on Jan. 28.
NYMTA sees two years of surplusesLooking at the sunny side of the street, the Metropolitan Transportation Authority of New York says it expects surpluses of $367 million this year and $47 million in 2004--provided fare revenues rise 5% in a resurgent economy, and provided also that the city and state come through with increased aid. One-time revenue sources such as real estate sales will also help in the short run. Because of rising debt service, retirement, and health program costs, deficits are projected for the following three years, rising to around $1.5 billion in 2007. The agency’s total operating budget for 2004, adopted Dec. 15, is $7.1 billion.
Dec. 17 opening set for AirTrain JFKThe Port Authority of New York and New Jersey has picked Dec. 17--the 100th anniversary of powered flight--as the opening day for service on the $1.9 billion AirTrain JFK light rail system. From 2 p.m. until midnight, rides will be free. Revenue service starts on Dec. 18. The system links JFK with the Long Island Rail Road at Jamaica as well as with New York City’s subways at Jamaica and Howard’s Beach. It also serves each terminal at the airport. The originally scheduled opening a year ago was delayed after a fatal accident during testing.
DOT IG raises questions on roadway investmentA review by the U.S. DOT Inspector General’s Office concludes that Class I railroad track maintenance has been generally good, with a couple of possible exceptions. The IG’s report, dated Dec. 10, says: "We found overall levels of roadway investment by Class I freight railroads have increased steadily since 1980. We also found the rate of crosstie and rail replacements for the four major Class I railroads we reviewed to be consistent with FRA’s safety standards. However, we identified certain situations that the FRA should monitor. For example, the long-term rate of CSXT ballast replacement was significantly lower than that of the other three Class I freight railroads in our review, which could impact track stability, and over time, track quality. In addition, while the 20-year trend does not indicate a problem, replacement of crossties and rail by some railroads has declined in recent years and should be monitored."
The IG’s Office said the Federal Railroad Administration’s verbal comments on the report, received Dec. 9, indicated the agency "was in agreement with our recommendations [and] has begun efforts to review CSXT ballast practices and monitor railroad R-1 reports to identify potential problems in roadway investment."
Phoenix calls it the Metro, and calls in SimonettaThe Central Phoenix-East Valley Light Rail line is now in final design and scheduled to begin construction next spring. It’s down for $13 million in the FY 2004 federal budget. Now it has an official name. Mayor Skip Rimsza, following a "Name the Train" contest, announced on Dec. 10 that the line would be called "Valley Metro Rail." (Not "some cute little acronym," in the words of contest winner Ben Bethel.) At a news conference, the mayor also introduced the light rail CEO, Richard Simonetta, who knows all about Metros: He once headed the Metropolitan Atlanta Rapid Transit Authority.
PANY/NJ will fund Meadowlands rail link The Port Authority of New York and New Jersey has adopted a $1.8 billion capital program that includes $150 million for a rail link to the New Jersey Meadowlands sports and entertainment complex. The planned link would be an NJ Transit commuter rail extension, though there is support among transportation planners for a light rail connection from NJT’s Hudson-Bergen LRT system. The idea for a rail line to Meadowlands sports venues has been around for two or three decades, but environmental issues as well as costs have stood in the way. Now, a rail alignment paralleling existing highways is said to address the need to protect adjoining wetlands. The next step is for NJ transit to fold the Meadowlands link into its own capital budget.
Chicago Plan gains regional supportThe $1.5 billion Chicago Plan, otherwise known as the CREATE (Chicago Region and Environmental Transportation Efficiency) program, which is designed to improve capacity and traffic flows for freight and passenger movements in the nation’s busiest, most-congested rail hub, has gained the support of several Chicago-area civic groups, businesses, and planning and trade organizations. These include the Chicagoland Chamber of Commerce, Consulting Engineers Council of Illinois, Illinois Chamber of Commerce, Illinois Road and Transportation Builders Association, Metropolis 2020, Metropolitan Mayors Caucus, Metropolitan Planning Council, Midwest High Speed Rail Coalition, Union League Club, United Transportation Union-Illinois Legislative Board, and World Business Chicago.
The Chicago Plan is a public/private partnership of the Illinois Department of Transportation, the Chicago Department of Transportation, and the Association of American Railroads on behalf of Metra commuter rail and the six Class I’s (NS, CSXT, BNSF, UP, CPR, CN) that operate through the Chicago region. It will include numerous improvements to both railroad infrastructure and the local road system in the greater Chicago metropolitan area, including grade separation of six railroad-railroad crossings via construction of flyovers to eliminate train interference and associated delay, primarily between passenger and freight trains; grade separation of 25 highway-rail grade crossings; and additional rail connections, crossovers, trackage, and other improvements to expedite passenger and freight train movements in the five rail corridors traversing the greater Chicago region.
The freight railroads have committed a combined $212 million to the Chicago Plan; Metra has pledged $20 million. Aside from $10 million for preliminary engineering, the local/regional government share is not clear at this point. The amount will depend mainly upon what the federal government is willing to fund. Rep. William O. Lipinski (D.-Ill.) is spearheading efforts in Congress on behalf of the Plan.
NS budgets $810 million for 2004 capital spendingNorfolk Southern Corp. announced Dec. 9 that it plans to invest $810 million in capital improvements in 2004 for its railroad and other subsidiaries. Spending in 2003 was just under $800 million. The new budget includes $258 million for equipment and $517 million for roadway projects.
The biggest item in the equipment budget is the purchase of 100 new six-axle locomotives. Equipment plans also include upgrading existing locomotives, rebuilding 390 multi-level auto racks, and purchase of 212 bi-level racks at the end of their lease. About $42 million will go for projects related to computers, systems, and information technology.
The roadway budget includes $384 million for rail, crosstie, ballast, and bridge programs; $29 million for communications, signal, and electrical projects; $19 million for m/w equipment; and $16 million for environmental improvements and public improvements such as grade crossing separations and crossing signal upgrades.
Business and industrial development initiatives are allotted $64 million. They include roadway and equipment spending for increased track capacity and access to coal receivers, bulk transfer facilities, and vehicle production and distribution facilities; investments in intermodal terminals and equipment, and additional investment in Triple Crown Services and TransWorks subsidiaries.
BLE members approve merger with TeamstersOn Jan. 1, 2004, the Brotherhood of Locomotive Engineers will become the Brotherhood of Locomotive Engineers and Trainmen, a division of the International Brotherhood of Teamsters Rail Conference. The merger of the BLE and the Teamsters won overwhelming approval from the railroad unions' members in an election whose results were certified on Dec. 5 by the American Arbitration Association. In the U.S., the vote was 81% for, 19% against, with 47% of eligible members voting. In Canada, the vote was 62.4% in favor of the merger and 37.6% against, with 56% of eligible members voting.
Teamsters General President James M. Hoffa hailed the merger as "a partnership to strengthen our ability to represent workers across the transportation spectrum." Said BLE International President Don M. Hahs: "Our members will soon see the benefits of belonging to the largest, most powerful, and politically influential transportation union in North America."
The BLE leadership’s decision to seek affiliation with the Teamsters followed unsuccessful efforts of BLE and its rival, the United Transportation Union, to unite in forming a single operating craft.
CN, BC Rail seek tourist train operatorsFeb. 9, 2004, is the deadline for interested parties to submit formal proposals to operate tourist trains over BC Rail’s network between North Vancouver and Prince George in British Columbia and on CN’s line linking Prince Rupert, Prince George, and Jasper in Alberta. CN and BC Rail set Dec. 16 as the deadline for expressions of interest. For C$l billion, the Province of British Columbia on Nov. 25 awarded CN a 60-year lease to operate and maintain BC Rail, though the government retains ownership of the infrastructure. A pledge to seek third-party operators for new tourist trains was part of CN’s winning bid.
GETS will become GE Rail Effective Jan. 1, the General Electric Co. is combining GE Transportation Systems, its locomotive business in Erie, Pa., and GE Aircraft Engines, based in Evendale, Ohio, into a new unit known as GE Transportation. The restructuring is part of a reorganization affecting all of GE’s operations. It’s designed "to make us more efficient and more understandable to our customers," according to a spokesman. GETS will now be known as GE Rail and will continue to be headed by President and CEO Charlene Begley. Dave Calhoun, who heads GE Aircraft Engines and who was in charge of the Erie locomotive operation in 1995-1997, will head the new, merged unit.
Transit doesn’t escape Schwarzenegger axThe Los Angeles County Metropolitan Transportation Authority estimates that cuts proposed by Gov. Arnold Schwarzenegger would cost the county $240 million in transportation funding in the next two years. This would come on top of cuts made earlier this year by Gov. Gray Davis that could cost MTA more than $400 million by mid-2004. One result will be the diversion of $21 million from rail projects in their early planning stages to funding for a six-mile East Los Angeles light rail line that’s in advanced design and engineering and is awaiting a federal funding commitment.
Jeb Bush jabs again at high speed railFlorida Gov. Jeb Bush has mounted a new attack on the state’s plan to build a high speed rail system. In a letter to legislators on Dec. 4, he recited a long list of objections that he hopes will persuade voters to repeal a constitutional amendment they approved in 2000 mandating construction of the system. In October, the Florida High Speed Rail Authority awarded the high speed franchise to a Fluor-Bombardier consortium. It was widely noted at the time that the plan was suffering from the lack of funding commitments. Now, Governor Bush is saying that "unlikely major federal assistance, unreliable ridership, and the lack of real private sector risk assumption places the cost of this project squarely on the shoulders of Florida taxpayers." Tim Lynch, an economist hired by high speed rail advocates to study the project’s economic impact, agreed that the public would have to cover some initial costs –"just as they do with roads, airports, and port facilities. All transportation is subsidized."
KCSR joins Customs-Trade Partnership Against Terrorism programKansas City Southern Railway Co. announced today that it has become a certified member of the Customs-Trade Partnership Against Terrorism program, which is run by U.S. Customs and Border Protection of the Department of Homeland Security.
C-TPAT is a voluntary program, and its members are "committed to continuing efforts to secure supply chains against possible compromise, communicating those efforts to business partners, and maintaining a high level of compliance in other Customs-related areas," according to the railroad. Through this partnership effort, Customs "ensures the efficient release of goods and prompt resolution of any issues that might delay the supply chain."
"KCSR's membership in C-TPAT demonstrates a solid and ongoing commitment to being the premier rail carrier in the rapidly growing NAFTA trade corridor," said Gerald K. Davies, executive vice president and chief operating officer in a statement.
Dulles rail link runs into serious troubleAfter years of planning, a proposed 23-mile, $3.4 billion extension of Washington Metrorail to Dulles International Airport appears to have run into an unmovable object: the Town Council of Herndon in Fairfax County, Va. On Dec. 2, the council vetoed--by a convincing 6 to 0 vote--the creation of a special tax district that would have raised Fairfax County’s $540 million share of the project’s cost. The tax district would have imposed a 20% real estate tax on commercial properties along the extension’s route. Nearly $40 million is said to have been spent already on preliminary engineering. Supporters of the project include Virginia’s two U.S. Senators, Republicans John W. Warner and George Allen, and Gov. Mark R. Warner, a Democrat. In the wake of the Herndon veto, some local officials pronounced the project dead because there was no alternative financing plan. Others, while viewing it as a serious setback, said they weren’t giving up and would devise some way to keep the long-sought Dulles rail link alive.
DOT releases $2.85 billion for Manhattan transitThe U.S. Department of Transportation announced Dec. 3 that it was immediately releasing $2.85 billion to restore and improve rail transit facilities in lower Manhattan that were destroyed or damaged in the 9/11 terrorist attack. DOT Secretary Norman Y. Mineta said this was the "first down payment" on the federal government’s commitment to rebuild and reshape mass transit in the World Trade Center area. The Bush Administration has pledged a total of $4.55 billion for several MTA New York City Transit and PATH (Port Authority Trans Hudson) projects.
This is how the $2.85 billion will be distributed: $1.7 billion for a permanent World Trade Center PATH terminal; $750 million for the Fulton Street Transit Center, a multi-story underground complex serving 12 subway lines, with a pedestrian connection to the new PATH terminal; and $400 million for a new South Ferry subway terminal, which will replace the current single-track, five-car station with a three-track, 10-car, stub end, two-platform terminal.
Mineta announced release of the funds at the recently opened temporary PATH station, where he was joined by New York Governor George E. Pataki and New York City Mayor Michael R. Bloomberg.
FRA finds mixed views on remote controlFederal Railroad Administrator Allan Rutter says that in its ongoing monitoring of locomotive remote control operations, FRA has found "much to praise and several areas of concern that we have brought forward for action." In remarks prepared for the 22nd meeting of the Railroad Safety Advisory Committee in Washington on Dec. 2, Rutter noted that the Senate Commerce Committee had asked FRA to perform an audit on remote control operations, with initial findings in six months and a final report in 18 months.
"The scale and variety of these operations has grown to the point that a more formal review and report should be helpful to us in assessing the need for additional enforcement or regulatory actions," said Rutter. He encouraged railroads "to take a good look at their programs and consistency of implementation." He also said FRA was seeking input from affected labor organizations: "Recently we circulated to the United Transportation Union and the Brotherhood of Locomotive Engineers a simple, user-friendly form for railroad employees to notify us about accidents and incidents related to remote control operations."
Bombardier Transportation will close some plantsWhile Bombardier Transportation booked a healthy C$1.9 billion in new business in the quarter ended Oct. 31, it "did not deliver satisfactory margins," said Bombardier Inc. President and CEO Paul M. Tellier. "We are intensifying our focus on increasing profitability through cost reductions, footprint rationalization, and procurement synergies," said Tellier. This will mean the closing of some plants in Europe that operate at 30-40% of capacity and cutbacks at other plants.
Tellier said Bombardier Transportation remains a strong global leader, with a backlog of C$31 billion: "We are taking every step required to deliver on this strong backlog while improving operational effectiveness to improve profit margins. We will also further strengthen our ability to win bids at the right price so that each new order will contribute positively to overall results. I am definitely not satisfied with Bombardier Transportation’s results as they are."
Bombardier Transportation in its third quarter had earnings before taxes of C$77.7 million, or 3.4% of revenues totaling C$2.3 billion; Bombardier Aerospace earned C$172 million, 7.4% of revenues that also totaled C$2.3 billion.
Tellier assumed direct leadership of Bombardier Transportation when Pierre Lortie stepped down as president and COO on Nov. 25.
UP, Ferromex launch LA-Mexico intermodal service Union Pacific and Ferrocarril Mexicano (Ferromex) began offering a new all-rail, seven-day intermodal service between Los Angeles and the Mexican cities of Guadalajara and Mexico City yesterday. The railroads--which interchange over the El Paso/Ciudad Juárez gateway--provide seamless, ramp-to-ramp, TransBorder service. Shipments bypass customs at the border, and instead clear customs in Mexico.
Customers can choose EMP equipment in either 48-foot standard or 53-foot high-cube containers. They also can make reservations around-the-clock and track shipments within the United States and Mexico.
For northbound shipments, the service will be available six days a week, and southbound, five days a week. Traffic is expected to be mixed freight, including consumer items and manufactured goods.
UP anticipates that additional U.S. and Mexican cities along the route will be included in the near future.
EPA doesn’t see influx of foreign castingsIn its November 2003 quarterly report, "Outlook for Rail Cars," Economic Planning Associates says the shortage of domestic castings will constrain freight car construction into the first half of 2004. "Should domestic builders opt to go offshore for a portion of their castings requirements, railcar deliveries next year would be higher than our current projection [39,250]," said EPA. "However, we are assigning a low probability to the use of foreign castings, in anticipation that domestic capacity will gradually expand." EPS car production forecasts are essentially unchanged from its August forecast, calling for 30,150 deliveries in 2003 rising steadily to 58,000 in 2008.
Senior management changes at Norfolk SouthernFollowing completion of a voluntary separation program for non-agreement employees, Norfolk Southern on Dec. 1 put in place "a series of senior-level executive and organizational changes."
James A. Hixon, formerly senior vice president-Administration, is now senior vice president-Legal and Government Affairs. James A. Squires, formerly general counsel, was named vice president-Law, reporting to Hixon.
Tony L. Ingram, formerly vice president-Transportation Operations, was promoted to senior vice president-Transportation Network and Mechanical.
Mark D. Manion, formerly vice president-Transportation Services and Mechanical, was named senior vice president-Transportation Operations.
Kathryn B. McQuade, formerly senior vice president-Financial Planning, was named senior vice president-Finance. Marta R. Stewart, formerly assistant vice president-Corporate Accounting, is now vice president and controller, reporting to McQuade.
Charles W. Moorman, formerly senior vice president-Corporate Services and president of Thoroughbred Technology and Telecommunications Inc. (T-Cubed), was named senior vice president-Corporate Planning and Services, with responsibility for strategic planning, public relations, passenger rail relationships, the Eastern Carolina Business Unit, and T-Cubed.
Donald W. Seale, formerly vice president-Merchandise Marketing, was advanced to senior vice president-Marketing Services. Donald D. Smith, formerly president of NS Development, was named senior vice president-Energy and Properties, reporting to Seale.
Robert E. Martinez, formerly vice president-Marketing Services and International, was named vice president-Business Development.
IBM wins CPR outsourcing contractUnder an agreement announced Dec. 2 by Canadian Pacific Railway and IBM Canada, IBM will "operate and enhance the railway’s computing infrastructure." The outsourcing agreement is for seven years and is valued at around $200 million. Approximately 100 CPR employees will become IBM employees as the railway’s mainframe and data facilities in Calgary and Toronto migrate to IBM facilities in the two cities. The announcement noted that "about 2.5 trillion bytes of data move over CPR’s information systems every day--equivalent to about 2,500 copies of the 40-volume Encyclopedia Britannica."
"This contract gives CPR the benefit of a strategic partner whose core competencies include building, maintaining, and enhancing the computing infrastructure needed to make smart, cost-effective, and customer-focused decisions," said CPR President and CEO Rob Ritchie. "This supports our efforts to continue developing an industry-leading scheduled railway operation that creates sustainable value for our customers and our shareholders."
Bombardier/Elin EBG Traction build upon Austrian Federal Railways' orderConsortium partners Bombardier and Elin EBG Traction received an order from Austrian Federal Railways on November 27 for 60 four-car Talent trains, following an initial order of 51 trains in 2001. Both orders are valued at $C334 million, with Bombardier's share accounting for some $C248 million. The vehicles, which will be used in regional and commuter service, will be built at Bombardier's Aachen, Germany, site. Elin EBG Traction will supply part of the electrical equipment from Vienna, Austria. Delivery is expected between July 2005 and year-end 2006.
Alcatel awarded three contracts in SpainSpain's GIF (Gestor de Infraestructuras Ferroviarias) awarded Alcatel three contracts worth $215.2 million on Dec. 1. Alcatel will deploy the European standard ETCS (European Train Control System) for three new high speed rail line sections (Lerida-Barcelona, Segovia-Valladolid, and Madrid-Toledo) and equip two of those sections (Lerida-Barcelona and Segovia-Valladolid) with a fixed communication network. The supplier will provide interoperable Alcatel 6481 AlTrac/ETCS Level 2 and 6413 AlTrac/ETCS Level 1 products, which transmit train movement information via GSM-R radio; an electrical power supply system, including detection system and electronic axle counter systems for tunnels and viaducts; and technical buildings equipped with access control, fire detection, and CCTV systems for the three rail sections. For the Lerida-Barcelona extension and the Segovia-Valladolid section, Alcatel will handle the design, build, and installation of multi-services fixed communication networks, which carry and distribute voice, data, and video services to and from all sites, and allow full interoperability with the existing network. The contracts' overall value, including design, build, and maintenance through 2006, is $747.6 million.
FRA, UIC sign rail security agreement Federal Railroad Administrator Allan Rutter and International Union of Railways (UIC) Chief Executive Philippe Roumeguére signed a memorandum of understanding on rail transport security on November 18 in Paris. The agreement sets the framework for future cooperation initiatives focusing on, among other things, exchanges of information, technological research, and crisis management, including communications and dangerous goods carriage. The agreement is the culmination of work conducted jointly by the FRA and UIC in the wake of the 9/11 attacks. Following an initial international meeting held in May 2002 in Fukuoka, Japan, the two groups hosted a transport security seminar in New York in October 2003, highlighting the need for a global and multimodal security analysis addressing passenger and freight transport issues.