May 2004
Intermodal surge continues to smash recordsRail intermodal traffic in the U.S. reached a new weekly high of 218,206 trailers and containers in the week ended May 22—2.3% above the previous record, set four weeks earlier, and 14.4% ahead of the corresponding week last year. Carload freight was up 4.0% to 344,091 units compared with the 2003 week.
New from CSXT: More-precise shipment tracingCSX Transportation has added more functionality to ShipCSX, the railroad’s customer website. A new Event Notification tool provides customers shipment tracing information in greater detail and will electronically notify them of events affecting that shipment.
Customers can now specify the traffic flows they want to monitor (for example, cars coming into their facility or shipments sent to their customers) and select which events they wish to be notified about. Notifications are triggered and an e-mail is sent to customers when railcars are classified as bad ordered, constructively placed, placed at an industry, placed in a hold status, or reported as overloaded.
"In the past, customers’ efforts to trace their shipments required a phone call," said Steve Potter, assistant vice president-Customer Service. "Now they can use CSX’s online tools to quickly and easily receive the information they want through an e-mail. By tracking their shipments at every step in the transportation process, customers can more efficiently manage their rail business."
Event Notification is available to all registered ShipCSX customers.
CSXI restructures and simplifies its service networkCSX Intermodal announced that starting June 28 it will start a comprehensive program to simplify its service network and improve on-time performance. As part of the process, CSXI will designate some trains and terminals to handle container traffic only, and others to handle trailers. The container-only terminals include those at Charlotte, N.C.; Mobile, Ala.; Nashville, Tenn.; New Orleans, La.; Portsmouth, Va.; Buffalo, N.Y.; Philadelphia, Pa.; South Kearny, N.J.; Detroit, Mich.; Evansville, Ind.; and Atlanta, Ga. A major trailer-only terminal will be that at North Bergen, N.J. Mike Parrotta, assistant vice president-Parcel/Motor carrier, said the goal is "to have the new plan in place before the fall traffic peak."
CSXI will discontinue service in some lightly used secondary corridors. The company also said that account executives are reviewing changes with customers.
UP offers $65 million to settle class-action suitSubject to court approval, Union Pacific has agreed to pay $65 million to settle a class action lawsuit, involving more than 10,000 formal claims, related to a derailment on May 27, 2000, near Eunice, La. In a statement on May 25, UP said insurance would pay for the settlement and company earnings would not be affected.
CN goal: Operating ratio under 65%CN President and CEO Hunter Harrison says the railroad hopes to increase its earnings by 8% to 12% annually over the next five years and achieve an operating ratio below 65%. Speaking at CN’s annual Investors’ Conference in Montreal on May 25, Harrison said these goals assume continued economic growth, a drop in oil prices to the "more normal" level of $US30 a barrel, and trading of the Canadian dollars in the mid-US70 cents range.
MotivePower wins Amtrak order for switchers Wabtec Corp. subsidiary MotivePower announced that it will supply 10 MP15B switcher locomotives to Amtrak at a price of $12 million. The 1,500-hp work train units will have cooling systems supplied by another Wabtec subsidiary, Young Touchstone. Mark S. Warner, MotivePower’s vice president and general manager, commented: "This order fits well with our niche of supplying custom-engineered locomotives to transit and commuter rail authorities in North America, and it will help MotivePower meet its plan for this year."
NYCT and LIRR ridership rises, Metro-North lagsTwo of New York MTA’s three passenger rail operations posted ridership increases in March. NYC Transit’s subways carried 126.2 million riders, up from 121.0 million in March 2003. The Long Island Rail Road moved 7.0 million passengers in March 2004 compared with 6.7 million March 2003. Ridership on MTA’s other commuter line, Metro-North, dropped to 6.10 million from 6.20 million in March 2003.
For RailWorks, new blood and new capitalRailWorks, which does $450 million worth of business annually in the railroad and rail transit industries, announced May 25 that it is bringing in two top managers with corporate turnaround experience. Raymond E. List will become president and CEO, and Ken Campbell will be chief financial officer. Both are industry veterans who worked together in a successful effort to put Kaiser Engineers back on track in the late 1980s--List as president and CEO of Kaiser and Campbell as chief financial officer.
The announcement said ex-CFO Ken Bauer (a former president of the Long Island Rail Road) would now serve RailWorks as president of the National Transit Group. Ben D’Alessandro will continue as president of the New York City Transit group, and Bill Donley will remain president of the Track Products & Services Group.
The "realignment and senior management additions were made in conjunction with successful efforts to recapitalize the company and with the help of its principal shareholder, Matlin-Patterson Global Opportunities Partners," said the announcement. "The recapitalization eliminated $64 million of debt, postponed for two years interest on $81 million of debt, and added a new working capital facility of up to $30 million."
Jeb Bush accused of playing Chicken LittleFlorida Gov. Jeb Bush is now using e-mail to urge voters to overturn their mandate for a high speed rail system partly financed by the state. Bush’s e-mail message warns that building the first phase, Tampa-Orlando, would cost $17 billion and deprive the state treasury of $500 million a year–equal to dismissing 13,000 public school teachers, depriving 13,000 needy citizens of medical aid, or releasing 25,000 state prison inmates.
Florida State Transportation Association President Keith Rupp called it "one of the most remarkable pieces of political scare tactics since Chicken Little." He contended that the project would cost only $2.6 billion and that the state’s contribution would be limited to no more than $75 million a year.
Harsco wins contracts in India and MauritaniaHarsco Track Technologies (HTT) will supply track maintenance equipment worth nearly $20 million to railways in India and Mauritania. Indian Railways ordered four track renewal trains to augment three already in operation. For Mauritania’s mining company SNIM, HTT will build a rail grinding machine for use on a 435 mile line linking inland coal mines with the Atlantic coast. Harsco said this marks its first sale of mechanized rail grinding equipment in the African market.
College of Aeronautics honors Don Phillips Former Washington Post aviation (and railroad) reporter Don Phillips has been awarded the honorary degree of Doctor of Science by the College of Aeronautics, Flushing, N.Y. Similarly honored were National Aeronautics and Space Administrator Sean O’Keefe and McGraw-Hill Aviation Week Group Executive Vice President and Publisher Kenneth E. Gazzola. At the Post, Phillips became one of the most highly regarded railroad writers in North America. He left that newspaper in December and now works for the Paris-based International Herald-Tribune, which is owned by the New York Times.
FBI and SEPTA police see no threat in device found in rail yard The disclosure that an infrared sensor had been found on May 5 beside a SEPTA commuter rail storage track in Philadelphia set off speculation that it may have been placed there to trigger an explosive device. But a joint statement by the FBI and SEPTA police on May 21 played down the significance of the discovery.
The statement identified the device as a commercial motion sensor and added: "The investigation, to date, shows no indication of any threat to the security of the SEPTA rail system. At this time, there is no indication that this device has any nexus to terrorism. However, due to current security awareness, the incident is being thoroughly investigated and all law enforcement agencies have been advised."
It was noted that the device was found along Storage Track #11 in Powellton Yard – "a considerable distance from operating passenger trains and the 30th Street Station."
Meanwhile, the stopping, search, and 40-minute delay of two Washington-bound Acela trains on May 20 also appeared to be the result of heightened security sensitivity as reports circulated that suicide bombers might be deployed in the U.S.
Wabtec president/CEO steps downCiting health reasons, Wabtec Corp. president and CEO Gregory T. H. Davies will leave the company. He joined Wabtec in 1998 as president and COO, and was elected to the board of directors in 1999. In 2001, he was named CEO, succeeding William E. Kassling, who had held that position for nearly 11 years and has since served as chairman. Davies was diagnosed with a malignant brain tumor two months ago.
“I’m very grateful for the support and encouragement I’ve received from everyone within and connected to Wabtec during these past few weeks,” Davies said.
Kassling, who will take over the company’s president and CEO roles, praised Davies’ contributions. He noted that Davies led Wabtec “successfully through the toughest rail supply market in 20 years, and took many actions to position Wabtec for growth. Under his leadership, the company broadened and strengthened its commitment to lean manufacturing, initiated processes for corporate strategic planning and product development, and reduced its debt to the lowest level since going public. The management structure he built gives us a solid foundation for the future. . . .”
Transportation facilities to get “smart” Soon, all transportation employees may be flashing Transportation Worker Identification Credential (TWIC) cards for unescorted access to secure areas of railroad, seaport, airport, pipeline, trucking, and mass transit facilities. The Transportation Security Administration has issued a RFP for a seven-month test of TWIC smart cards with biometrics (such as a fingerprint) that will positively link an individual to his credentials, increasing the speed and efficiency of identity verification. TSA anticipates that 200,000 workers will participate in testing in Philadelphia; Wilmington, Del.; the ports of Los Angeles and Long Beach, Calif.; and 14 major port facilities in Florida.
“This technology will not only improve security by keeping known terrorists away from vulnerable areas,” said David M. Stone, TSA’s acting administrator, “but it also enhances the flow of commerce and protects individual privacy.”
According to TSA, a threat assessment will ensure that known terrorists are not issued TWIC cards or able to gain access to secure areas; numerous advanced credentialing technologies will safeguard against the use of fraudulent credentials; communications technologies tied to the program will allow TSA to interface with other federal, state, and local agencies. In addition, TSA will send out targeted “threat alerts” to key facilities and shift resources based on intelligence data or changes in the threat level.
RFP issued for East Side Access tunnelsThe New York Metropolitan Transportation Authority has issued a request for proposals for tunneling work in Manhattan for the Long Island Rail Road East Side Access Project, which will bring LIRR trains into a new concourse in Grand Central Terminal. The estimated $100 million project, which will be funded from the MTA’s 2000-2004 capital plan as well as federal funds, is expected to take 43 months to complete.
Contract CM009, "Manhattan Tunnels Excavation," involves excavating new tunnels from the existing rock face beneath East 63rd Street and Second Avenue to the planned end of the tunnels beneath Park Avenue at East 38th Street. The tunnels will be constructed using two TBMs (tunnel boring machines), in eight separate phases. MTA preliminary engineering sets the total excavated length at 31,000 linear feet (5.87 miles). Tunnel diameter is 21.5 feet, for an excavated rock volume of 412,000 cubic yards. Drilling and blasting methods are to be used to excavate starter tunnels, and assembly/reassembly chambers for the TBMs; these will have an excavated rock volume of 65,000 cubic yards. To ensure tunnel stability, initial rock support will be by reinforced "shotcrete" and rockbolts. The existing, 8,800-foot-long 63rd Street Tunnel will be used for access.
Bids are due by June 29.
Report deems remote control operations safe Remote control locomotive usage in and around rail yards offers "significant" safety benefits, according to the Federal Railroad Administration. Data from its interim report on RCL safety shows that from May 1, 2003, through Nov. 30, 2003, the RCL train accident rate was 13.5% lower than that of conventional switching operations during the same period and the employee injury rate was 57.1% lower. Among the report's other findings: Human error has been the cause of nearly all accidents or incidents involving RCL operations to date, and RCL technology malfunctions have resulted in virtually no accidents or incidents.
"This data shows that RCL technology has great potential to reduce train accidents and dramatically increase worker safety," said FRA Administrator Allan Rutter, adding that RCLs are currently restricted to rail switching operations. "The FRA does not believe the current state of RCL technology and the current level of RCL operator training are sufficient to support the use of RCLs for heavy-haul train operations on the general rail system," Rutter said.
The U.S. Senate Committee on Commerce, Science, and Transportation requested the report from FRA. A final version is slated to be completed within a year. According to FRA, it will contain "additional findings and recommendations regarding the adoption of best practices and possible legislative or regulatory action."
CN charged in fatal bridge collapseThe Attorney General of Canada has filed charges against CN in connection with a bridge collapse and derailment in British Columbia on May 14, 2003. Two crew members died in the accident. Transport Canada, which regulates railways, said CN was charged with violating the Railway Safety Act by failing to ensure that the bridge conformed to "sound engineering principles." CN was also charged with two violations of the Canada Labour Code for failing to protect "the safety and health" of workers. In announcing the action on May 11, Transport Canada said it was monitoring the ongoing investigation of the accident by the Transportation Safety Board.
NS, BNSF win Legg Mason "buy" ratingsLegg Mason, Inc., a financial services company with an award-winning research department, initiated coverage of three railroads on May 12. "Buy" ratings went to Norfolk Southern and Burlington Northern and Santa Fe. A "hold" rating went to CSX. Analyst John Larkin cited NS’s record of debt reduction, disciplined operations, and marketing initiatives as he established a 12-month target price of $28 per share. In setting a 12-month target of $39 for BNSF, Larkin took into a count that railroad’s improved debt position as well as projected growth driven by soaring intermodal bsuiness. Larkin said CSX is in a turnaround situation resulting from management restructuring, network optimization, and debt reduction. (At midday on May 13, NS shares were trading at $24.24 compared with 12-month high of $24.99. BNSF shares were quoted at $32.88 vs. a 12-month high of $33.49. CSX shares, at $31.29, were down from a 12-month high of $36.29.
L&I workers vote to join BLETThe Brotherhood of Locomotive Engineers and Trainmen says it achieved its ninth short line organizing victory in two years with a favorable vote on the 111-mile Louisville & Indiana. The eight other short lines are Portland & Western, New York & Atlantic, Great Western Railway of Colorado; St. Lawrence & Atlantic; Utah Railway; Iowa, Chicago & Eastern; Indiana Southern; and Texas-Mexican. The nine lines have brought 750 new members into the BLET.
CN closes Great Lakes Transportation dealCN has completed its acquisition of the rail and marine holdings of Great Lakes Transportation LLC from The Blackstone Group for $380 million, following regulatory approval. CN will now begin integration of two railroads and a rail switching company into its 17,500-mile North American system.
The railroads acquired are the 212-mile Duluth, Missabe & Iron Range, a Class II carrier of pelletized iron ore in Minnesota and Wisconsin; the Bessemer & Lake Erie, a Class II carrier of coal, iron ore, and limestone between the Lake Erie port of Conneaut, Ohio, and steel mills in the Pittsburgh area; and the Pittsburgh & Conneaut Dock Company, a Class III switching railroad that performs ship-to-rail and rail-to-ship bulk transfer operations for the B&LE at three docks at Conneaut.
CN also acquired Great Lakes Fleet, Inc., which operates eight Great Lakes vessels transporting bulk commodities, principally for the U.S. steel industry. Under a demise charter and vessel management agreement, Keystone Shipping Co. of Bala Cynwyd, Pa., will operate the ships.
Seven-year GO Transit expansion wins fundingFifteen months ago, the government of Canada announced a $C1 billion expansion program for the GO Transit commuter system. There was just one catch: the Province of Ontario and municipal governments would have to put up a share of the funding. Last month, the three levels of government agreed to a funding package of $C1.05 billion for rail and bus improvements over the next seven years. The federal and provincial governments will each chip in $C385 million, with local sources providing the remaining $C235 million.
In addition to substantial bus improvements, the program covers 12 separate construction projects affecting six of the system’s seven rail corridors. A total of 43 miles of third track will be laid in the Lakeshore East, Lakeshore West, and Georgetown corridors. Station and bridge improvements are also planned. More frequent and longer trains are expected to relieve the pressure on a system that planners say reached capacity several years ago.
Carload freight in U.S. at five-year highU.S. railroads carried 349,093 carloads of freight during the week ended May 1, up 4.4% from the corresponding week last year. It was the highest number since the 48th week of 1998, when carload volume totaled 349,399 units. U.S. railroad intermodal volume in the week ended May 1—210,892 trailers and containers—was up 6.8% from last year. The Association of American Railroads said total volume added up to around 31.8 billion ton-miles, 6.4% higher than in the same week a year ago.
Canadian railroads handled 72,972 units of carload freight in the week ended May 1, up 10.1% from last year, and 45,492 trailers and containers, an increase of 2.8%.
Mexico’s TFM railroad handled 8,606 originated carloads of freight, 8.2% higher than in the year earlier week, and 2,293 originated intermodal units, a decline of 14.7% from the 2003 week.
"Safest year in history" cited as NS takes 15th Harriman goldFor its employee safety record in 2003, a year the Association of American Railroads cited as the safest in industry history, Norfolk Southern won its 15th consecutive gold Harriman Award. NS took top honors in Group A, comprised of line-haul railroads whose employees worked 15 million employee-hours or more during the award year. AAR President and CEO Ed Hamberger said that last year’s industry-wide employee casualty rate was almost 10% lower than it was in 2002, when the previous record was set.
Harriman Awards are granted to railroads on the basis of the lowest casualty rates per 200,000 employee-hours worked. The formula takes into account the volume of work performed, as well as the number of fatalities, injuries, and occupational illnesses, as reported to the Federal Railroad Administration.
The silver award in Group A went to Burlington Northern and Santa Fe. Union Pacific took the bronze.
In Group B, line-haul railroads with 4 to 15 million employee-hours, Metra, Chicago’s commuter railroad, took the gold. Canadian Pacific Railway subsidiary Soo Line took the silver. Kansas City Southern won the bronze.
In Group C, line-haul railroads with fewer than 4 million employee-hours, Iowa Interstate Railroad—which had zero FRA reportable injuries in 2003—took the gold. The silver went to the Lake Superior & Ishpeming. Florida East Coast earned the bronze.
For Group S&T, switching and terminal companies, all winners railroads were repeats from last year. Terminal Railroad Association of St. Louis won the gold. Conrail Shared Assets took the silver. The Belt Railway of Chicago took the bronze.
Nine railroads received special certificates of commendation for continuous improvement in safety performance: BNSF, UP, Metra, Soo Line, New Jersey Transit, Long Island Rail Road, Lake Superior & Ishpeming, Alaska Railroad, and Texas Mexican Railway.
BNSF carman Dennis Robinson was named winner of the 2004 Harold F. Hammond Award for railroad safety. The award was established in 1986 to recognize an individual railroad employee who has demonstrated outstanding safety achievement during the preceding year. It is named for the late Harold F. Hammond, former president of the Transportation Association of America, who had served many years as chairman of the Harriman Awards selection committee.
Robinson, a 39-year railroad industry veteran, is a member of the Carmen's Division of the Transportation Communications Union. For the past 13 years, he has served as safety assistant for BNSF’s Mechanical-Car and Locomotive team at Newton, Dodge City, Hutchinson, and Wellington, Kans. Under his leadership, this team has worked without an FRA reportable injury for 14 years. Robinson, the facilitator for all safety programs, has helped develop and review job safety analyses before they are given to employees. He designed the Road Truck Manual used by employees who perform emergency roadwork outside a terminal. Materials he has developed, such as a quiz on "Occupying and Fouling Track and Emergency Roadwork," are used throughout the BNSF system. Robinson also helps train emergency responders in the Newton and Wichita areas in how to deal with railroad incidents.
Eight other railroaders received Certificates of Commendation: Metra bridge supervisor Jerry Bailey; Carlo Blanco, a UP sheet metal worker in Proviso, Ill.; William Gibbons, LIRR superintendent-transportation, Penn Station New York; Tim Gowdey, CSX Transportation carman in Sarnia, Ont.; David Haffner, an Amtrak mechanical superintendent in Chicago; Dennis Leonard, a CPR electrician in Cottage Grove, Minn.; Michael Patrick, an NS water service repairman in Decatur, Ill.; and David Roth, a Montana Rail Link locomotive engineer.
UTU to UP: Get management out of the driver’s seatThe United Transportation Union on May 6 asked a federal district court in Oakland, Calif., for an injunction prohibiting Union Pacific from using management employees from operating locomotives. UP said the use of "company officers, such as road foremen and trainmasters" to operate its diesels violates a 1985 UTU-UP agreement. That agreement requires that when selecting new applicants for engine service, "opportunity shall first be given to employees in train and yard service (conductors, brakemen, and yardmen)" on a seniority basis.
UTU told the court that on April 3, the railroad entered into an agreement with the Brotherhood of Locomotive Engineers and Trainmen "to permit railroad officers to fill locomotive engineer vacancies rather than promote eligible and qualified conductors, brakemen, and yardmen."
The union said UP "has historically sought to avoid the costs of having to promote conductors, brakemen, and yardmen to higher-paying engineer positions and to avoid training new employees to fill the vacant conductor, brakemen, and yardmen positions."
In recent months, UP has been operating with a severe shortage of crews and plans to hire 4,000 operating employees this year.
Trinity doubles car backlog, cuts lossAt the end of this year’s first quarter, the Rail Group of Trinity Industries had 17,000 freight cars on order, twice as many as at the same time last year. Rail Group sales in the first quarter increased to $260.9 million from $149.3 million in the year earlier period. But higher costs resulted in a loss of $3.6 million, compared with a loss of $10.3 million in the 2003 quarter.
Trinity’s Railcar Leasing and Management Services Group did better, posting revenues of $35.1 million compared with $28.5 million in the 2003 period, and earnings of $9.6 million compared with $8.6 million a year ago.
Trinity also has Inland Barge, Construction Products, and Industrial Products Groups. "We had year-over-year top line growth in all of our business segments except for our Inland Barge Group," said Trinity Chairman, President, and CEO Timothy R. Wallace. "Escalating steel costs are affecting margins primarily in our Rail and Inland Barge groups. We are beginning to see scrap surcharge price reductions and hope that trend continues. Our Railcar Leasing and Management Services Group increased revenues and operating profits as a result of expansion of our leased fleet and increased utilization year over year."
Pataki endorses $6 billion rail tunnelNew York Gov. George E. Pataki has announced his support for a $6 billion plan that would provide a one-seat, 36-minute train ride between Lower Manhattan and Kennedy Airport. A new tunnel under the East River is the centerpiece of the plan. It would also give around 100,000 daily Long Island Rail Road commuters’ direct access to the World Trade Center area.
Mayor Michael Bloomberg also supports the new-tunnel proposal. An alternative plan, which would route the new link through an existing NYC Transit tunnel, has aroused opposition among subway advocates although Pataki said it remains under consideration.
The plan that Pataki endorsed on May 5 would create the airport link by joining JFK Airtrain tracks, which now terminate at Jamaica in Queens, with subway terminals in Manhattan’s financial district. This would be accomplished by building a 1,500-foot elevated connector extending Airtrain to a point near the Long Island Rail Road’s Atlantic Terminal in Brooklyn, then tunneling under the East River.
Pataki said such a tunnel "will create the capacity to extend additional rail lines–such as the Second Avenue Subway and existing services such as the E train–across the East river from their endpoints in Lower Manhattan to Brooklyn and beyond."
Passenger rail security pilot under wayThe Transportation Security Administration has begun screening Amtrak and MARC commuter rail riders and their baggage at the New Carrollton, Md., train station on the Northeast Corridor. The goal of the $1 million TRIP (Transit and Rail Inspection Pilot) pilot project funded by the Department of Homeland Security is to determine the feasibility of screening technologies and their impact on passenger rail systems. Such impacts include customer wait times, screening effectiveness, cost, and impact on Amtrak and MARC operations.
Two technologies are being tested:
GE Infrastructure, a unit of General Electric Co., is providing an EntryScan3 walk-through explosives detector, which can screen passengers in a non-climate controlled environment such as an open-air rail station. The EntryScan3 is made by GE Ion Track, Inc., a subsidiary of GE Infrastructure Security. It’s described as having "a patented sample collection system that takes advantage of a natural airflow phenomenon called the ‘human convection plume.’ This eliminates the need for forced air from a fan, which would stir up contaminants, dirt, and dust, and enables cleaner sample acquisition for higher detection sensitivity. This design also requires fewer moving parts. EntryScan3 utilizes Ion Trap Mobility Spectrometer® technology, enabling its users to detect a wider range of contraband. It achieves this through a proprietary ion ‘trap’ that increases ionization efficiency, the main factor determining detection sensitivity. EntryScan3 is the only walk-through portal with versatile detection of both positive and negative ions, enabling the detection of the broadest spectrum of contraband in seconds."
The Security and Technology division of New York-based L-3 Communications is employing a modified version of detection technology in use at airports. L-3 adapted its L-3 MVT (multiview tomography) equipment, which is described as being capable of scanning up to 1,800 bags per hour, according to Allen Barber, general manager and senior vice president of L-3 Security and Detection Systems. "The MVT’s advanced technology, reliability, and unparalleled throughput rates have already been proven at some of the world’s most security-conscious international airports," said Barber. "For this important pilot program, L-3 is adapting explosive detection algorithms currently used in aviation and tailoring them to the unique characteristics of rail."
The TRIP pilot’s first phase will last 30 days, with a possible extension to 60 or 90 days. The station was chosen for its proximity to Washington, D.C., a location where TSA, Amtrak, and MARC have "resources that we can leverage" and because "it’s indicative of what we face nationwide since it’s an open-air station," a TSA spokesman said. Expanding screening to other locations will be determined once data from the pilot is studied.
BNSF ramps up for the grain seasonWhen last year's grain demand was bigger and came earlier than anticipated, Burlington Northern and Santa Fe's equipment capacity sold out at record levels. To head off a repeat in 2004, the Class I has invested in additional grain carrying capacity, reduced certain charges, simplified car ordering, and appointed an ombudsman to work directly with grain shippers.
BNSF will shift capacity from such guaranteed programs as Certificates of Transportation and SWAPS to increase tariff car availability by 11,000 cars during the June-December grain harvest. The cars will be ordered for placement within 10-day placement periods and the cancellation penalties will be waived if BNSF fails to apply cars in that period. This will help better match grain market logistics, according to BNSF. In addition, to make guaranteed capacity programs more attractive, BNSF has reduced customer prepayments and the penalties it pays for late delivery.
Under a $250 million-plus program, BNSF will add more locomotives, crews, and large-capacity covered hoppers in 2004. The Class I will take delivery of 1,500 new covered hoppers by fall and another 1,500 in early 2005.
BNSF also promoted Jonathan Long to ombudsman for North Dakota, Montana, and South Dakota, effective June 1. A 25-year BNSF veteran, Long will serve as a "single-point-of-contact" to address grain customer concerns and mediate differences. He served previously in the grain marketing department.
"We are confident that these investments and changes will help us to meet our customers’ expectations during this year’s harvest by providing the equipment capacity they need, when they need it," said Kevin Kaufman, BNSF group vice president-Agricultural Products.
Minneapolis LRT reschedules launchThe first operating segment of the Minneapolis-St. Paul Hiawatha light rail system will open for business on Saturday, June 26, between downtown Minneapolis and Fort Snelling. Service was scheduled to begin last month, but startup was delayed by a Twin Cities bus strike, which was recently settled.
Full service to the Minneapolis-St. Paul International Airport and the Mall of America in Bloomington will open in December as originally planned, according to Metro Transit, the operating agency of the Metropolitan Council transit agency
The June opening marks 50 years to the month that the last streetcar operated in the Minneapolis-St. Paul region. For the new service, certain buses on 30 Metro Transit routes will be diverted to LRT stations, and riders will complete their trips by rail.
NS, CSX: Conrail integration goals achievedAt a Surface Transportation Board hearing on May 3, the CEOs of Norfolk Southern and CSX declared the integration of Conrail into their systems to be a success. They also said a mandated five-year period of oversight by the STB should not be extended when it expires this year.
Norfolk Southern’s David Goode joined CSX’s Michael Ward in telling the board the merger has achieved its goals. Goode said "the transaction has created rigorous new rail-to-rail competition throughout the former Conrail territory." Ward called the merger a "success that strengthens transportation in the United States."
Five years of formal oversight by the STB, including periodic performance reports, began when NS and CSX began operating their respective portions of Conrail on June 1, 1999.
Another extension approved for TEA-21 reauthorizationCongress has agreed to extend TEA-21 legislation through June 30--the third short-term extension of the program's reauthorization since Sept. 30, 2003, its original expiration date. Efforts again failed to reconcile how much money should be allocated over the six-year term of the bill by the most recent deadline, April 30.
The Senate has passed a $318 billion bill, including $56.5 billion for public transportation, and the House has approved a $275 billion bill, with $51.5 billion in guaranteed funding for transit. But the White House has threatened to veto any bill exceeding $256 billion.
"It is regrettable that time has again run out and Congress has again failed to enact comprehensive long-term surface transportation legislation," said Bill Millar, president of the American Public Transportation Association, of the extension. "The need for increased investment in public transportation is overdue and overwhelming." It is "essential" that Congress enact a long-term bill at the Senate's funding level, Millar added, because "the U.S. Department of Transportation concluded that $124 billion is needed over the next six years in capital funding alone to maintain and improve America's public transportation systems."
Portland debuts new light rail extensionTri-Met's 5.8-mile, 10-station Interstate Metropolitan Area Express (MAX) Yellow Line has opened for revenue service under budget and ahead of schedule. On its May 1 debut, ridership on the new light rail extension surpassed 20,000. The line serves the communities of North and Northeast Portland between City Center and the Expo Center via Interstate Avenue. It connects to and from bus lines, MAX Red Line (Airport/City Center/Bearverton TC), and MAX Blue Line (Hillsboro/City Center/Gresham).
On April 29, the Federal Transit Administration awarded a $39.1 million grant to the new MAX line, bringing the project's total federal funding to $178.7 million. It funding covers new LRVs, a maintenance facility, traction power equipment, train control signals, civil and system final design, property acquisition, and program administration.
"The federal government is doing its part by making a significant investment in the Portland area to keep commuters and the economy moving," U.S. Secretary of Transportation Norman Y. Mineta said in a statement.