August 2008
Interfleet aids NJ Transit ALP-44 overhaulNew Jersey Transit has awarded Philadelphia-based Interfleet Technology, Inc. a $2 million contact to advise in the overhaul of 20 ALP-44 electric engines used by the railroad. Interfleet will provide engineering assistance for both ‘O’ and ‘E’ class ALP-44s during a two-year period, including four phases: concept and specification development, carbuilder procurement, design review, and manufacturing and testing oversight through to delivery of the overhauled locomotives. Interfleet's team will be led by Principal Consultant Jim Wiesinger.
Once NJ Transit awards a rebuild order to a car builder, Interfleet will provide design oversight and engineering assistance during contract procurement.
Nigel Davies, Interfleet vice president-Business Development, North America, said, "These locomotives are now in need of a mid-life overhaul as well as improvements in technology to ensure the fleet's continued reliability, maintainability, and availability. The overhauled locomotive will provide enhanced operational performance and reliability, as well as continued safety, and will contribute vitally to NJ Transit's growing fleet that is required to meet the demands of increasing ridership."
Station stop issue may delay Austin rail startupAustin, Tex.'s Capital Metro's passenger rail service, scheduled to debut late this year, may be delayed until March 2009, due to two of the line's nine station stops which won't be ready this year.
CapMetro's board of directors may hold a meeting in lae September to detemine whether the opening of the 32-mile diesel light railway will be postponed.
Stations at Howard Lane and Kramer Lane are behind schedule. The Howard Lane stop's construction has just begun, following a breakdown in negotiations with a landowner of the preferred station site, and objections by nearby residents to a second site nearby. The Kramer Lane station location also was moved, and its construction has yet to start.
"What I've always said was, let's open the service when its ready to go," said board member Brewster McCracken, also an Austin City Council
member
Capital Metro also still seeks final approval from the Federal Railroad Administration to begin service, mostly because of the FRA's expressed concerns over safety and its insistence on regulatory authority; FRA asserts that Austin's operation is "commuter rail" and not a "light railway," and has balked at a waiver sought by Cap Metro.
Bursa, Turkey, awards $138 million contract to BombardierBombardier Transportation Friday said it has landed contract to supply 30 Flexity Swift high-floor light rail vehicles to the Bursa Metropolitan Municipality, in Turkey. The contract is worth roughly $138 million, and includes the delivery of spare parts. Bombardier said it sees potential for a follow-on order for up to 28 additional vehicles.
The rail vehicles will be built at Bombardier's manufacturing facility in Bautzen, Germany, and delivery is expected to begin during the second half of 2010.
Birol Altan, chief country representative of Bombardier Transportation Turkey, said, "This new order re-establishes our role as the leading supplier of tram and light rail solutions in Turkey."
U.S. carload traffic slips in latest weekU.S. carload and intermodal freight unit movement declined again during the week ended August 21, vs. the comparable week in 2007, according to the Association of American Railroads. Carload freight slipped 0.6%, while intermodal declined more significantly, 3.1%, from last year. But total volume remained strong, totaling 35.1 billion ton-miles for the latest week, up 0.3%.
Metalic ores showed the strongest gain among commodities, up 47.9%, while waste & scrap materials rose 12.1%. Among decliners, coke fell 34.2%, motor vehicles and equipment remained in the doldrums, off 31.4%, and lumber and wood products dropped 21%.
Carload traffic on Canadian railroads fell 5.9% for the week from last year, though intermodal volume continued to show strength, up 4.7% compared with the year-ago week.
Carload freight on Kansas City Southern de Mexico declined 8.9% vs. the year-ago period, though intermodal volume rose 5.6%.
Virginia county to sue state over NS intermodal yardOfficials in Montgomery County, Va., plan to sue the state for planning and contributing financially to an intermodal yard in Elliston, Va. County officials say the plan violates the state constitution's prohibition on spending state money on private industry--in this case, Norfolk Southern, which seeks to establish the yard as part of its Heartland Corridor plan to expedite freight traffic flows.
Supervisor Gary Creed said Montgomery County is committed to spending up to $250,000 in legal fees to pursue the case. "The truth is, if Norfolk Southern was doing this with all their money, there's nothing in the world that would stop it," Creed said.
The state intends to commit $50.5 million for improving the site, of which $40 million is targeted for highway improvements. Opponents say that while the state constitution allows public funds to be applied to road building, it bans "any work of internal improvement" for the private sector.
The county's decision to file suit in closed session has generated its own controversy, but officials say consulting with attorneys in private about probable litigation is permissible under state Freedom of Information Act, and because the decision was a consensus that did not require appropriating funds. But some note taxpayers will end up paying for the county's litigation without having an opportunity to voice their opinion on the matter, even if those citizens are opposed to the intermodal yard itself.
Colo Railroad Builders adds track surfacing divisionGeneseo, Ill.-based Colo Railroad Builders, a provider of railroad construction and maintenance services to short line and regional railroads, is adding a Track Surfacing Division, according to General Manager Terry Benton.
"Colo traditionally had subcontracted surfacing which includes ballast distribution, regulating, and tamping," Benton said. "But railroads have increasingly been asking for support in keeping up with the surfacing requirements created by their increased traffic, and Colo needed to respond." Colo has acquired additional equipment to increase its capacity.
"We intend to become the railroads' 'go-to provider' of surfacing services, [and] you will definitely see this area of our business growing in the coming years," Benton said. The company is privately held by Iron Rail Group, LLC of Nashville, Tenn.
Canadian union protests Toronto's revamped bidding processCanadian Auto Workers President Buzz Hargrove Thursday criticized the Toronto Transit Commission for its decision to reopen the bidding process for 204 low-floor streetcars to serve Canada's largest city, saying the decision could threaten Canadian jobs.
"The TTC has taken the wrong step by reopening a bidding process that
threatens to move final assembly production of these streetcars to an overseas supplier that would have otherwise have been completed in Ontario," said Hargrove. "This work is of tremendous importance to both the Ontario and Canadian economy."
Hargrove noted that in 2007, the TTC established a minimum 25% Canadian-content threshold for publicly funded transit purchases, but CAW believes the threshold isn't high enough to ensure maximum benefits to Canada's economy.
Critics of TTC have suggested that the "Canadian content" requirement provides an unfair advantage to Montreal-based Bombardier Transportation. They point out that major competitors such as Paris-based Alstom and Siemens Transportation Systems of Erlangen, Germany, declined to respond to TTC's initial Request For Proposals, believing that the "hometown" manufacturer had the inside track.
TTC denies any charges of favoritism, but reopened the bidding process last month after stating that bids from both Bombardier and from Tram Power Ltd., a small British-based manufacturer, failed to meet the requested specifications. Bombardier has vigorously disputed TTC's contention, and says it will continue to remain active in bidding for the order.
TTC has urged Bombardier, Alstom, and Siemens--but apparently not Tram Power--to submit bids for the project, which could total up to C$3 billion.
CAW's Hargrove dismissed those doubting Bombardier's ability to meet such requirements, saying, "Our members are more than equipped to meet this project's standards in order to perform final assembly work at the Thunder Bay facility, and any technical requirements could have been worked out between city officials and the company."
Amtrak's Kummant: Acela is "out of capacity"Amtrak's Acela Express high speed Northeast Corridor trains have become so crowded, especially during peak travel periods, that the passenger railroad says it needs to add coaches to the trainsets, which thus far have been fixed at five coaches, a cafe car, and two power cars (one on each end of each consist).
"We're out of capacity," says Amtrak President Alex Kummant. While Acela's 32 daily departures are protected by 20 trainsets, including up to two spares, it would be inadvisable and difficult to break up the spares to add coaches to the other 18 sets. And there's no funds right now to pay Bombardier and Alstom to build additional Acela coaches.
Amtrak is looking at several funding mechanisms, among which are raising fares or imposing a surcharge on each ticket. The latter option, Amtrak says, is not under serious consideration.
University review affirms Cincinnati streetcar study findingsA six-page "Assessment of the Cincinnati Streetcar Study" released Wednesday by the University of Cincinnati's Center for the City program finds that the proposed four-mile starter line "may be considered successful if it is used extensively; encourages economic development; or contributes to urban vitality."
"It is our judgment that the HDR study is credible in its analysis of the costs and benefits of streetcars in Cincinnati and in its projections of the benefits of ridership and economic development," the assessment states.
The University was asked to conduct the assessment by the city, who responded to skeptics of the proposed $102 million, four-mile line, including Randal O'Toole of the Cato Institute, who charged the streetcar study, released by Omaha, Neb.-based HDR in 2007, was flawed.
In a press release accompanying the assessment, George Vredeveld, director of the Economics Center for Education & Research at UC and one of the assessment's authors, said UC "applied the smell test to the HDR study," by comparing the process and methodology of other studies to HDR's work. The UC center also compared the ridership estimates in the HDR study to actual rail ridership for the Memphis vintage trolley and Portland, Ore., streetcar system.
"We found that HDR was in the ballpark," Vredeveld stated, in its evaluation of both ridership and economic-development payoffs in the form of increased property values, business development, employment, and tax revenues along and close to the proposed Cincinnati streetcar line.
Harsco gets contract extension for landmark rail bridgeHarsco Corp. says it has been awarded a three-year, $20 million extension to its scaffolding services contract supporting final phases of repainting Scotland's Forth Rail Bridge, an infrastructure landmark.
The company has worked on the 1-1/2 mile bridge, which opened in 1890 spanning the Firth of Forth inlet on Scotland's east coast, under a multi-year program while nearly 200 trains cross the span daily.
"As this and other future projects continue to show, we see solid opportunities in the infrastructure and industrial maintenance sectors to seve our cstomers and sustain our momentum, notwithstanding the current moderation in the U.K. commercial construction sector," said Harso President Geoffrey D.H. Butler.
California governor signs high speed rail billCalifornia Gov. Arnold Schwarzenegger Tuesday signed Assembly Bill 3034, a revised version of the High-Speed Train Bond Act slated for a vote Nov. 4, modifying a previous pledge to reject all bills prior to passage of the state fiscal year 2009 budget, which began July 1.
In a letter sent late Monday to California state legislators, Schwarzenegger said he would sign the revised bill, advancing a $9.9 billion high speed rail bond issue that had language addressing taxpayer protection and cost controls added. The Assembly passed the revised measure earlier this month but withheld it due to the governor's pledge of a veto.
Quentin Kopp, chairman of the state's High Speed Rail Authority, said, "This November, Californians will now be able to vote on a high speed train system grounded in public/private financing and guided by local accountability with the guarantee of no new taxes to fund the system."
Besides high speed rail, the governor said he would accept bills involving a water bond, a plan to expand the California Lottery, and a budget reform plan to strengthen the state's rainy-day fund. "The governor believes Californians ought have the opportunity to vote on these four measures on the November ballot despite the fact that the Legislature is two months past their deadline in passing a budget," a spokesman said.
The high speed measure, if approved by the voters, would provide state seed money for a public/private partnership to implement an 800-mile, 220 mph service running from San Diego north to San Francisco, with a branch serving Sacramento, The first segment would run between Los Angeles and San Francisco. Total cost is projected to be $82 billion.
Toronto resumes streetcar procurement effortToronto Transit Commission staff will seek approval Wednesday from TTC commissioners to launch a multi-phase bid process with three railcar builders for an order of 204 low-floor streetcars.
TTC has previously signaled its eagerness to solicit bids from Alstom Transportation Inc., Siemens Canada Ltd., and Bombardier Transportation, perceived by some critics as the "hometown favorite." In preliminary discussions, each vendor has stated it could meet the technical requirements established in the original Request For Proposals.
The technical requirements for the upcoming order reportedly remain unchanged. TTC last month canceled its Request for Proposal process to purchase 204 new low-floor streetcars, saying the two bids it did receive, from Bombardier and British-based Tram Power Ltd., were non-compliant.
Under its procurement rules, TTC may contact any vendor, including those who responded to a Request for Expressions of Interest, a process undertaken before the original RFP was issued. TTC still hopes to have the C$1.25 billion order delivered during 2011 and 2012.
Both Paris-based Alstom Transport, with manufacturing facilities in Hornell, N.Y., and Siemens Transportation, which has manufacturing facilities in Sacramento, Calif., declined to pursue TTC's original RFP. Alstom cited deadline constraints, while Siemens suggested that the RFP was unfairly weighted to favor Bombardier.
Global Rail patents dark territory technologyThe U.S. Patent Office has granted a patent to Global Rail Systems, Inc. for its FAS-PAS™ (Fail-safe Audible Signal-Power Activated Switch) power control system. GRS said the patent specifically covers its method of controlling and indicating the position of an approaching train in unsignaled territory.
"FAS-PAS provides railroads with a more-effective switch control system than traditional systems," said GRS CEO Tom Schlosser. "It also provides an efficient method to prevent accidents and injuries in dark territory."
The newly patented technology enables crews and dispatchers to line an approaching switch for the position desired and receive vital confirmation. This can be done either by the train crew through an existing radio network or by a central dispatch or control center.
Fare hikes, not cutbacks, chosen by SacramentoFaced with the choice of charging riders more or scaling back transit service, a choice confronting numerous U.S. transit agencies throughout the summer, Sacramento Regional Transit officials have decided to raise bus and light rail fares, possibly by October but more likely in January, instead of implementing service cutbacks.
The decision is being driven in part by the likely cuts in transit aid to be included in the upcoming state budget. RT officials said the shortfall to Sacramento could range from $3 million to $11 million.
"It looks like we are doing target practice in the dark with the state budget," one RT board member said.
But RT officials said they have been swayed by pleas from riders concerned about potential cutbacks to bus routes and frequencies, described by some as already skeletal. Another proposal to charge at least $1 to park at light rail stations has been rejected for now.
Texas county OKs $191 million for DLRT lineThe Denton County, Tex., Regional Transportation Council has approved $191 million to fully fund the county Transportation Authority's 21-mile diesel light rail transit (DLRT) route. The funding would allow final design and construction to commence early next year. The line would include five stations and link Denton with Carrollton, Tex., with transfer connectings to the Dallas Area Rapid Transit (DART) light rail system.,
Last year, Denton County Transportation Authority submitted a request for funding to the RTC as part of the Regional Toll Revenue Funding Initiative. A portion of that request was awarded in January to allow DCTA to proceed with procurement of rail vehicles.
"This project reflects DCTA's commitment to developing a balanced transportation network in Denton County and is an integral component of the region’s proposed 395-mile rail network," said Scott Neeley, DCTA executive vice president of rail development.
Revenue service is targeted to begin in December 2010.
CN, City of Joliet reach accord on EJ&E acquisitionCanadian National said Monday that it has reached an agreement with Joliet, Ill., regarding the railroad's proposed acquisition of the major portion of the Elgin, Joliet & Eastern Railway. CN said the agreement "resolves the outstanding concerns the City of Joliet has related to quiet zones, operations, and communications surrounding the transaction."
The agreement hinges on approval by the Surface Transportation Board to approve the proposed merger. Upon such approval, CN would fulfill its commitments to Joliet as outlined in the agreement within a three-year period. These terms include what CN describes as "significant investment in track improvements and roadway features along the route through Joliet."
CN said it continues to seek accord with other municipalities interested in the proposed merger. "As stated in STB's Draft Environmental Impact Statement, the Board has encouraged voluntary agreements between CN and communities," CN said.
"We believe this will be the first of many agreements between CN and the communities along the EJ&E line that are impacted by this transaction," stated Gordon T. Trafton, CN senior vice-president, Southern Region. "We have consistently been willing to work with and address the concerns of communities across the region. We believe this agreement with Joliet is evidence that these concerns can be mitigated."
Joe W. Kizzia, 1923-2008Joe W. Kizzia, former executive editor of Railway Age and ABA Banking Journal, died Aug. 23. He was 84.
Born in Nashville, Ark., on Sept. 7, 1923, Kizzia served in the U.S. Army from 1943 to 1945 and participated in the Normandy invasion. In 1949, he graduated from Northwestern University with a B.S. degree in journalism. While a student at Northwestern, he lived in the home of the railway historian, Dr. Richard K. Overton, and they became lifelong friends.
As Kizzia later wrote: “By the time my graduation approached, Overton knew I had served with the 744th Railway Operating Battalion in France and Belgium. He put me in touch with his friend James G. Lyne, editor of Railway Age in New York. I joined Railway Age’s Washington bureau in 1949.”
After five years as an associate editor in Washington, and a two-year stint in the magazine’s Chicago office as transportation and western editor, Kizzia came to New York in 1956 as executive editor. One of his first tasks was to mastermind the production of what was destined to be a landmark issue of this magazine. Dated Oct. 7, 1957, and called simply “Outrage,” it used compelling prose and stark graphics to describe the regulatory inequities that were pushing the railroads toward extinction as privately-managed properties.
“Outrage” and a series of follow-up stories on the general theme of railroad survival went into more than one million reprints. Their impact was credited with a giant assist in persuading Congress to enact a sequence of bills—beginning with the Transportation Act of 1958 and culminating in the Staggers Rail Act of 1980—that gradually loosened the railroads’ regulatory bonds and put them on the road to renaissance.
Kizzia left his position at Railway Age to take a year’s sabbatical traveling in Europe with his wife Peggy and their three children. After his return to Simmons-Boardman, he held a series of key editorial positions in the company. The most recent was that of executive editor of ABA Banking Journal, which Simmons-Boardman publishes for the American Bankers Association.
His wife, Peggy Toncray Kizzia, lives in Chatham, N.J.; their daughter, Carol, in Manhasset, N.Y;. their son, Tom, in Homer, Alaska; and their son, Michael, in Mooresville, N.C.—Luther S. Miller
Bridge Inspection Handbook available from AREMAThe American Railway Engineering and Maintenance of Way Association has published AREMA's first-ever Bridge Inspection Handbook, now available for distribution. The book contains information for use by bridge inspectors, maintenance-of-way managers, and others involved in decisions related to railroad bridge safety and management. It also provides direction and advice based on recognized engineering practices to assist railroads in meeting bridge inspection requirements.
The Federal Railroad Administration purchased and distributed one copy of the handbook, which was developed and produced solely by AREMA, to every railroad in the U.S. Distribution to short lines and regionals was a joint FRA/American Short Line & Regional Railroad Association project, with cooperation from AREMA.
Additional copies of the Bridge Inspection Handbook are available by accessing the AREMA website at www. arema.org, then clicking on "Online Store," or by contacting Rob Kulat at (202) 493-6024.
Amtrak employee to address Democratic conventionAmtrak employee Mike Fisher, of Beech Grove, Ind., will address the Democratic National Convention in Denver Monday, as one of 20 people invited by the party to speak at the gathering.
Presumptive Democratic presidential candidate Sen. Barack Obama, D-Ill., already has met Fisher when Obama campaigned in Indiana earlier in the year. "After meeting him and talking to him and seeing how down-to-earth he was with us and understanding, he just sold me 100%," Fisher said. Fisher received an invitation by phone from Obama campaign staff Aug. 17, followed by an official e-mail.
Amtrak spokesman Cliff Black says Fisher will appear as a citizen, and not as a representative of Amtrak.
Portland commits local funds to streetcar loopPortland, Ore.'s City Council has approved $6.3 million for design and engineering of a 3.3-mile, $147 million project to extend streetcar service, dubbed the Eastsde Streetcar Loop, across the Broadway Bridge to the Oregon Museum of Science and Industry. The council approved the measure despite -- or because of -- delays in the design process attributable to uncertain federal funding.
Portland's Office of Transportation justified the action by noting that each month of delay costs the city $500,000 due to construction contingency requirements that rise continually with inflation. But the city still expects a federal commitment in the future. "This is a risk well worth taking," said City Commissioner Dan Saltzman.
In June, an analysis by the Federal Transit Administration stated that the Loop's cost effectiveness failed to meet FTA funding requirements. Oregon congressional delegates are attempting to bypass the FTA process, and the project has been earmarked for $50 million in both the Bush Administration's proposed fiscal year 2009 budget and by the Senate Appropriations Committee.
"The feds just really haven't been supporting work around the country so there’s a pretty significant slowdown," said Mark Dorn, senior project manager with URS Corp., the engineering firm overseeing the project. "We’re hoping a new administration will pump money into transit."
"Congressional delegates have stepped up and I have strong conviction this will be funded," said Michael Powell, a board member of Portland Streetcar Inc. Portland "will break the dam the FTA has put up to block streetcar projects," Powell added.
UTA to end token use for TRAX, FrontRunnerUtah Transit Authority says a "high level of token fraud" has forced it to discontinue accepting tokens as payment, and UTA ticketing machines will cease vending tokens Sept. 1 for TRAX light rail and FrontRunner commuter rail services. UTA buses will still accept tokens, however.
UTA says counterfeit stand-ins, such as arcade tokens, were most severa at the 9000 South and 9400 South TRAX stations, where the token fraud was centered, and UTA first curtailed token use only at those locations. But the fraudlent practice moved to other stations in response.
"Discontinuing the use of tokens was a hard decision because UTA does not want to inconvenience its riders," said UTA Chief Operating Officer Jerry Benson. "But as a taxpayer funded organization and at a time when we are implementing fuel surcharges and asking our riders to pay more, it’s not appropriate for UTA to knowingly allow this fraud to continue."
On Sept. 1, passengers beginning their trips on TRAX or FrontRunner should either purchase an appropriate pass from a ticket vending machine or present a token to a UTA bus operator in exchange for a transfer ticket to board the train. TRAX and FrontRunner riders are encouraged to either use their existing tokens prior to Sept 1. UTA will exchange tokens for another transit fare of equal value through Sept. 30.
Oregon governor urges STB to permit short line purchaseOregon Gov. Ted Kulongoski has asked the Surface Transportation Board to let the Port of Coos Bay buy a Central Oregon & Pacific Railroad, declaring that its current disuse has caused "great economic uncertainty" for businesses in southwestern Oregon. The Port has offered to acquire the line for $9.8 million.
Kulongoski also urged the STB to reject the application CORP and parent RailAmerica to abandon the line except for a 25-mile segment. STB recently held a hearing on the matter within Oregon to seek additional comment. STB is expected to decide on the matter by year's end.
"RailAmerica must not be allowed to neglect a line, hold communities for ransom for repair and if they don't pay up, then overprice it and sell it for scrap. This is not fair," Kulongoski said.
Carload freight, intermodal slip, but volume climbsU.S. carload and intermodal freight unit movement continued to decline during the week ended August 16, vs. the comparable week in 2007, according to the Association of American Railroads. Carload freight slipped 0.8%, and intermodal declined 0.5% from last year.
However, total volume of 35.2 billion ton-miles rose 0.6%, driven by increases in coal and grain shipments.
Carload traffic on Canadian railroads fell 4.1% for the week from last year, though intermodal volume was up 2.6%.
Carload freight on Kansas City Southern de Mexico declined 12.1% vs. the year-ago period, though intermodal volume rose increased 7.2%.
Cost increases will prolong Sacramento LRT extension workA 4.3-mile extension of Sacramento's light rail network to Elk Grove, Calif., will open at least one year later than the projected 2011 target year, due to a 23% increase in anticipated construction costs. The projected cost is now $270 million, with half the amount provided by federal funding. Both changes were anticipated by a risk analysis conducted by the Federal Transit Administration.
The analysis says numerous challenges, including route alignment near freight rail operations, through existing neighborhoods, across waterways and a floodplain, and through habitats for endangered species, make cost containment problematic at best.
Sacramento Regional Transit project engineer Diane Nakano said the transit agency will seek to speed the building process to compensate, but acknowledged that "the devil's in the details." Construction is still expected to commence next year.
LRT vibrations won't shake St. Paul, study saysThe potential for property damage generated by light rail transit vibrations along St. Paul's planned Central Corridor route can be mitigated, a study for the Central Corridor LRT Project says. The study involved field testing in May, following Federal Transit Administration guidelines.
"Resilient track fasteners installed during construction can mitigate vibration impacts at all locations, except the university's Hasselmo Hall Nuclear Magnetic Resonance facility where a floating concrete slab would be required under the track," the Project says in its two-page August newsletter.
Mitigation measures also would protect four University of Minnesota research facilities, KSTP-TV, Minnesota Public Radio, and Central Presbyterian Church and the Church of St. Louis King of France in downtown St. Paul, the study said.
Critics of the 11-mile, $892 million light rail project have stressed the potential for serious infrastructure damage light rail vehicles and resultant vibration and noise could cause along the route. National Public Radio has highlighted the concerns over vibrations in recent months, using Minnesota Public Radio as one source.
For its part, officials of the Central Corridor LRT Project gave parishioners of the two historic St. Paul churches a tour of the nearby Hiawatha Line in Minneapolis earlier this month, a Project spokeswoman says. The Project is supported by the area's metropolitan transportation organization (MPO), the Metropolitan Council, which oversees the seven-county area surrounding the Twin Cities. The Metropolitan Council also oversees Minneapolis' Hiawatha Line, to which the Central Corridor will connect when it opens in 2014.
GE power en route to ChinaIn October 2005, GE Transportation signed a $450 million contract with the Chinese Ministry of Railways (MOR) for 300 6,000-hp Evolution® Series CMLs (“China Mainline Locomotives”). The first of two fully assembled pilot locomotives, CML 50001, is on its way to Tianjin Port in Tianjin, China, and is expected to arrive on Aug. 30. After being transferred to the Tanggu Depot for inspection, CML 50001 will make its way to Beijing.
The CML series is configured a bit differently than GE’s North American Evolution Series locomotive. With a peak output of 6,250 hp, the locomotive produces about 40% more power (compared to 4,400 hp) and weighs 30% less than its western cousin. “The lighter weight design increases the eco-friendly properties of the locomotive,” GE says. “The Ecomagination-certified GEVO 16-cylinder engine generates 84% fewer emissions and increases fuel efficiency by 3-5%,” compared to a non-Evolution Series locomotive.
The balance of the CML order will be assembled in China at Qishuyan Locomotive and Rolling Stock Works (QSY) in Changzhou, using kits manufactured in Erie. Kits began shipping on May 18, 2008; delivery is expected to be completed by year-end 2009. QSY is to begin assembling locomotives in October, with all 300 CMLs delivered by June 2010. GE established three onsite teams in Changzhou, Chengdu, and Zhuzhou consisting of 20 local Chinese manufacturing and quality engineers to provide technical support for assembling the 298 kits.
“The MOR sought a product that would significantly improve hauling capability and running speed on China’s main lines, while at the same time reducing emissions to meet increasingly rigorous Chinese environmental requirements,” said GE Transportation China President Tim Schweikert. “The locomotive they will receive will meet and exceed those requirements.” He noted that GE is three months ahead of the original contract schedule.
MARC to acquire 13 VRE bilevel carsMaryland MARC's Board of Directors was scheduled Wednesday to approve the purchase of 13 bilevel cars from Virginia Railway Express for about $22 million. Maryland Metropolitan Transportation Authority Administrator Paul J. Wiedefeld said the VRE cars are similar to and compatible with MARC's own existing 50-car bilevel fleet; both VRE and MARC equipment was manufactured by Kawasaki Rail Car, Inc. The 13 VRE cars entered service in 1999 and 2000.
The 13 purchased cars will ply MARC's Penn Line, part of Amtrak's Northeast Corridor, linking Perryville, Md., Baltimore, and Washington, D.C. The new cars also will give MARC more breathing room for rehabilitation of its existing fleet.
MTA is still in negotiations with Amtrak about adding weekend runs on the Penn Line and with CSX about adding midday trains to the Camden Line. Both Amtrak and CSX have stated that capacity issues must be resolved.
Virginia throws support to proposed NS intermodal yardVirginia Transportation Secretary Pierce Homer Tuesday annnounced the commonwealth's support for a proposed Norfolk Southern intermodal yard in Elliston, Va., near Roanoke. Pierce described the decision as "a major announcement for the commonwealth and the greater Roanoke area and, frankly, for the entire United States of America."
Virginia will contribute at least $12.6 million of the overall $35.5 million cost of the yard and, in addition, will contribute another $15 million to build a new road, called the Ironto connector, linking the intermodal yard with Interstate 81.
The yard is part of NS's $249 million Heartland Corridor project, designed in part to improve running times and increase freight capacity, including double-stack container trains, between Norfolk, Va., and Columbus, Ohio. NS has actively sought public/private partnerships with the states traversed by the route, as well as for its Crescent Corridor, which would link Louisiana with the Northeast.
"This is indeed a bright day for the Roanoke Valley and Southwest Virginia," Rep. Bob Goodlatte, R.-Va., said at the announcement, adding, "The No. 1 benefit of this will be to the people of this region who will benefit from the creation" of almost 3,000 jobs.
Still opposed to the plan is the Montgomery County, which cites the impact on Elliston's rural nature and the increased truck traffic the yard will generate. The county's Board of Supervisors plans to meet next week to consider its next steps. "I don't know what they'll do, but the board will look at what their options are," said Montgomery County Administrator Clay Goodman.
BNSF reopens transload facility in Chicagoland marketBNSF Tuesday announced the reopening of a rail-served building materials transload facility at Eola, Ill., managed by Partners Warehouse, LLC, The Eola facility has received a complete track and maintenance overhaul to handle oversized materials such as lumber, steel, and other building products. Security upgrades have also been added to allow continuous operations 24 hours per day, seven days a week.
"This is the only yard of its type close to the growing housing market in the western Chicago suburbs and with immediate access to major North/South and East/West highways," said Vann Cunningham, BNSF assistant vice president, economic development. "Partners Warehouse's knowledge of the local market, combined with their experience working with lumber and other building products, makes them the perfect choice to run the Eola facility."
The facility contains more than 12.5 acres of covered and open storage, and includes trucking services via Partners Transportation Services.
Shore Line East station to receive second platformConnecticut's Department of Transportation seeks to expand the Branford Shore Line East station through a $25 million project that would add a second platform, enhancing reverse-commute service potential, by early 2011.
The state first must acquire four nearby properties and requisite permits, including a tidal wetlands permit, for the project, which also would include a pedestrian bridge and 316 additional parking spaces. Officials say the measure in part is in response to riding rail ridership triggered by higher automotive costs.
Shore Line East recently expanded its schedule by adding weekend trains on its route between Old Saybrook and New Haven, where it connects with Metro-North Railroad services to Grand Central Terminal in New York.
Hatch Mott MacDonald acquires Higgins AssociatesEngineering firm Hatch Mott MacDonald, has acquired Gilroy, Calif.-based Higgins Associates Civil Traffic Engineers, which specializes in traffic demand forecasting, capacity and operational analyses, speed study surveys, accident and safety analyses, parking demand and supply analyses, and traffic count programs.
Hatch Mott says the services provided by Higgins Associates, which will continue to work out of Gilroy, as part of Hatch Mott's Transportation Planning Department. Keith B. Higgins, former President of Higgins Associates, brings Hatch Mott MacDonald 31 years of engineering experience will work closely with Hatch Mott’s staff in Pleasanton, Calif., the company said.
"The acquisition of Higgins Associates aligns with our aggressive growth strategy," said Nicholas M. DeNichilo, president and CEO of Hatch Mott MacDonald. "Integrating the expertise of both firms increases our competitiveness throughout California and North America and positions us for even greater growth," he said.
Amsted Rail moving headquarters locationChicago-based Amstead Rail says effective Sept. 1, the company and its Griffin Wheel Co. subsidiary will move from their current Chicago offices at 200 West Monroe Street. Amsted's new Chicago location will be at 181 West Madison, Suite 3200, Chicago, 60602, (312) 346-3300. Griffin Wheel Co. will move from Chicago to 11100 West 91st Street, Suite 300, Overland Park, Kan. 66214, (913) 956-2400.
Amsted Rail President John Wories says the move "is being undertaken to reduce costs and align the organization to better serve our customers."
10East grows small-road portfolioSix short lines and regionals—Nebraska Central; Idaho Northern & Pacific; the Wichita, Tillman, & Jackson; New Orleans & Gulf Coast; Thunder Mountain Line; and Providence & Worcester—are now using 10East Corp.’s RailDOCS™ (Railway Daily Operations Control System) Preventive Maintenance Management System (PMMS) to support their signal system preventive maintenance and government compliance logistics requirements. They join Paducah & Louisville, Evansville Western; Appalachian & Ohio; Alaska Railroad, Alabama State Port Authority, and several others.
For EMD, a Chinese firstElectro-Motive Diesel’s first locomotive for China, an EMD-designed JT56ACe diesel-electric manufactured jointly with CNR Dalian Locomotive and Rolling Stock Co. (DLoco), left the factory in Dalian China, last month. The locomotive is China’s first 6,000-hp diesel-electric. DLoco and EMD will manufacture 300 JT56ACes for the Chinese Ministry of Railways (MoR).
“The JT56Ace was built with the needs of the Chinese market in mind,” EMD said. It is equipped with several EMD technologies, among which are dual isolated driver’s cabs, EMD’s type 265H 6,000-hp diesel engine, electronic fuel injection, a.c. traction, microcomputer control, and the ability to function in three-unit consists. Starting tractive effort is 69,700 pounds; continuous tractive effort is 65,000 pounds. The JT56ACe also includes EMD’s collision protection package, which EMD says “improves locomotive durability and driver safety.” With a 23.7-tons axle load, EMD says the JT56ACe “is the most powerful diesel-electric locomotive in the world at such a low axle load.” It can pull up to 4,900 tons at a maximum speed of 75 mph. Crew comfort was also taken into account with a microwave oven, air conditioning, refrigerator, and toilet.
EMD’s participation in the Chinese railway market began in 2001 with the licensing of radial truck technology. “With the localization of the JT56ACe, EMD looks forward to a long and fruitful relationship with the MoR, Chinese suppliers, and other Chinese customers,” EMD said.
In another international development, EMD said an updated Class 66 European locomotive is the first main line diesel-electric to achieve European Union TSI Noise Certification standard for noise reduction. The Class 66 locomotive achieved standards in the internal cab noise level under “Horn Blowing” and “Locomotive in Motion” conditions by utilizing noise dampening materials in the assembly process. It also achieved TSI Noise Certification for external noise levels while “Standing Idle,” “Start Off,” and “Pass By” modes through updated engineering and manufacturing methods and processes to reduce noise and vibration.
Lloyd's Register Netherlands B.V. conducted the TSI Noise Certification. Final certification was issued June 17, 2008 for both the internal and external TSI Noise standards, with testing managed by TUV Rheinland. TSI Noise certification is designed “to reduce long-term hearing loss of operators, enhance safety and communication in the rail yard, and reduce the amount of noise for communities located near rail lines,” EMD noted.
DOT Secretary fronts "reform plan" for transit fundingU.S. Secretary of Transportation Mary Peters Tuesday traveled to Houston to tout the Bush Administration's proposed Metropolitan Mobility Program, designed to reform and expedite the process of federal funding for transit projects, including Houston's plan to add five light rail lines.
"If plans to expand the light rail system are as good as local sponsors say, they will be easier to fund under our proposal than under the current broken federal system," Peters said.
The Metropolitan Mobility Program would give mayors and local officials a direct payment of federal funds and unprecedented flexibility to invest the federal dollars in their most pressing transportation needs, and would eliminate what DOT calls "controversial earmarks" advanced by political backers regardless of merit.
In Houston's case, under the proposed program, the city would receive one lump federal funding allocation with one prime criterion: passing a benefit-cost analysis.
DOT says the reform plan would also create a Metropolitan Innovation Fund that would reward cities willing to combine a mix of effective transit investments, dynamic pricing of highways, and new traffic technologies.
Peters' choice of Houston to advance the Administration's proposal is seen by some as ironic: Last year the city's Metropolitan Transportation Authority reversed an earlier decision to proceed primarily with Bus Rapid Transit routes, opting instead for five LRT lines. MTA has moved ahead on two of the five lines without federal funding, relying on local funds, mostly sales tax revenue.
Citizens in two Ontario cities choose LRT over BRTPublic hearings held this summer in Kitchener and Waterloo, Ontario, show a decided citizen preference for light rail transit (LRT) vs. Bus Rapid Transit (BRT). Residents of the two municipalities, in general, said LRT would attract higher ridership, be more aesthetically appealing, travel more quickly and quietly, be more environmentally friendly, and spur transit-oriented development.
BRT supporters did log their opinions at the hearings, however, arguing that bus service was cheaper and more flexible, and that LRT's ability to spur economic development was largely mythical.
Estimates for BRT are initially pegged at $112 million, and $306 million for LRT. But Regional Transportation Commissioner Thomas Schmidt said the public in general sees light rail "as something that people are going to use more than bus rapid transit."
Regional officials are to review public input and vote on a transit option in 2009, after a final proposal is crafted detailing c osts, route, ridership estimates and preferred mode. Kitchener and Waterloo, both southwest of Toronto, have eyed ongoing transit plans in Toronto and have considered piggybacking onto any pending LRT order made by the provincial capital as a cost-effective option.
Bombardier signs dual power locomotive contracts with NJT, AMTBombardier Transportation Monday said it has signed contracts with both New Jersey Transit and Montreal's Agence Metropolitaine de Transport (AMT) to produce dual power locomotives, providing diesel and a.c. propulsion.
NJ Transit has ordered 26 of the units, which Bombardier values at $262 million, with an option for 63 additional locomotives. AMT's $223 million order involves 20 units, with options for 10 additional locomotives. NJ Transit's Board of Directors approved the deal last month (August RA, p. 18), while AMT officials held a press conference in Montreal Monday affirming its purchase.
Both NJT and AMT operations include a mix of catenary routes and non-electrified lines, prompting both to tap Bombardier's dual-powered locomotives for both diesel power and alternating current electric power from overhead sources. The new units, likely to be designated "ALP-45DP," are based in part on Bombardier's ALP-46 electric locomotive technology.
Locomotives for both contracts will be built at Bombardier manufacturing facilities in Germany and Poland. Delivery to both rail operators is scheduled to begin in 2011.
"We are proud to support NJ Transit and AMT in their continuing commitment to provide modern, efficient, environmentally-friendly passenger rail service," said Ake Wennberg, president of Bombardier Transportation's Locomotives and Equipment Division. "These two orders for new locomotives illustrate the confidence both agencies place in Bombardier and our products."
Work begins on second LRT tunnel in Pittsburgh Work begins this week on the second of two tunnels extending Pittburgh's light rail transit system from downtown underneath the Allegheny River to the city's North Shore. The machine completed the first tunnel on July 10, after six months of work, and has been repositioned for the return trip under the river.
The Port Authority of Allegheny County expect the second tunnel to take less time than the first one. The second 21-foot-diameter tunnel is expected to be finished before the end of the year. The 1.2-mile, $435 million extension is expected to open for revenue service in 2011.
Sacramento RTD selects contractor for South CorridorHouston-based Lockwood, Andrews & Newnam, Inc. has been chosen by the Sacramento Regional Transit District (RT) as prime consultant for extending a 4.3-mile light rail extension on the South Corridor, in southeastern Sacramento. The work involves extending double-track from the existing Meadow View station to Cosumnes River College, with four new stations, to link the southeastern neighborhoods of the California capital to downtown.
LAN will be responsible for overall management of the project, rail horizontal and vertical geometry plans, project controls, track and station grading and drainage, and agency coordination.
The project has an estimated construction cost of $226 million. Construction is expected to start in the last quarter of 2009, with revenue service anticipated to begin in 2011.
AAR publishes 13th annual Analysis of Class I RailroadsThe Association of American Railroads has published its 13th annual edition of the Analysis of Class I Railroads, compiled by AAR's Policy and Economics Department.
AAR notes the work presents comprehensive 2007 data for each of the seven Class I railroads that operated in the United States last year in an easy-to-use format. It contains more than 750 entries for each Class I railroad, plus information aggregated by Eastern and Western districts and for the United States as a whole. Data categories include financial results, employment, plant and equipment, traffic, fuel consumption, operating statistics, and rankings.
Copies of the analysis can be ordered through AAR's website, www.aar.org, and are available to the general public ($250 for printed copies and $225 for electronic versions). AAR members can obtain a printed copy for $100; an electronic version is available at no cost. A spreadsheet version is also available. A $6 handling charge applies to each order.
L.B. Foster touts safety record Pittsburgh-based L.B. Foster Co. said Monday it had logged one full year without a "lost time" accident throughout the entire company, during which it registered 1.7 million man-hours.
In a statement, President and CEO Stan Hasselbusch said, "We began to focus extensively on improving our safety record six years ago. In 2002, our injury rates were well above industry averages and this was completely unacceptable. It was recognized that major operating changes were necessary and a new corporate wide program was put into place to improve workplace safety. I am very happy to report that due to the efforts of all our employees a significant milestone in that program was reached on August 17. We reached one complete year without a lost time accident."
The improved safety record was notched even as the company expanded significantly in the past six years, said John Kasel, senior vice president, Manufacturing Operations. Since 2002, "We have reduced our Total Recordable Incidence rate by 85% and our [days away from work, restricted duty, or job transfer] incidence rate by 87%," he said.
Cyclonaire offers QuickQuote information accessCyclonaire Corp. has unveiled its Cyclonaire QuickQuote™ to expedite ordering, delivery, and information retrieval via its website at www.cyclonaire.com. Company sales representative will respond with a quote or other information and can process an order at that time. The company says its component list includes VibraPad™ Aeration Systems, CycloLift™ Railcar/Truck connectors, C&C Dust Reclaim Systems, Bulk Bag Unloaders, Bag Dump Stations, Surge Hoppers, Bin Vent/Dust Collectors, FlexFlite™ Screw Conveyors, CycloLevel™ Level Sensors, and Pinch Diverter Valves.
Visitors to the York, Neb.-based company's website can also order replacement parts and accessories for Cyclonaire’s pneumatic conveying systems as well as universal components. The directory simplifies finding replacement parts and maintenance items.
CN presses STB for conditional EJ&E decisionAsserting that regulatory delays "threaten termination of the transaction," Canadian National Friday petitioned the Surface Transportation Board to rule on the "transportation merits" of its application to purchase the Elgin, Joliet & Eastern Railway by Oct. 15. This would permit CN to close the transaction with the principal owner of EJ&E, United States Steel Corp., by Dec. 31, when a purchase agreement is scheduled to expire. (U.S. Steel has declined a request by CN for an extension of that deadline.)
In return, CN would agree not to divert any of its trains to EJ&E lines until STB has completed an extended environmental review of the contentious transaction.
CN said that if the board turns down its new petition, it will be "prepared to petition the U. S. Court of Appeals for the District of Columbia immediately thereafter to compel the STB to issue a final decision that would permit CN to close the transaction by Dec. 31, 2008."
CN announced Aug. 6 that it would seek "legal relief" on the issue but did not indicate what form it would take.
"CN’s petition requests that the STB decide by Sept. 15, 2008, whether it will modify its procedural schedule to provide for a final decision by Oct. 15, 2008, on the transportation merits of the proposed EJ&E acquisition," said CN in a statement. "Under law, that decision would be based on whether the board has found adverse competitive impacts that are both 'likely' and 'substantial.' CN is also asking the board, if it decides to approve the transaction in October, to condition its approval on preserving the environmental status quo until the board’s Section of environmental analysis (SEA) has completed its environmental review...
"CN contends that, so long as the environment is not affected by the transaction during the environmental review, the law requires the board to approve the transaction on its competitive merits. Once the STB's environmental review is completed, the board would be expected to issue a decision governing any change in he environmental status quo."
Buffett doubles Berkshire Hathaway’s UP stakeIn a quarterly filing with the Securities and Exchange Commission, Warren Buffett's Berkshire Hathaway holding company disclosed that it has doubled its stake in the Union Pacific, from 4.45 million to 8.9 million shares.
As usual, Buffett has not indicated why he chose to make this purchase at this time, but he has traditionally invested in solid Wall Street performers with long-term growth prospects. Buffett is also a heavy investor in BNSF; at last report, Berkshire Hathaway owned 18% of BNSF common shares.
SEPTA to apply $10 million to improved serviceThe Southeastern Pennsylvania Transportation Authority plans to apply $10 million to increase regional rail and bus frequencies, and add late-night rail service, saying it hopes address a ridership surge and to relieve overcrowding.
SEPTA General Manager Joe Casey said it is the largest expansion in public transportation service in SEPTA history, and comes after ridership has increased by about 38,000 riders. Casey credited Act 44, passed by the Pennsylvania Legislature last year, for the funding.
SEPTA expects to add 120 Silverline V electric multiple-unit railcars to its system in 2009, its first new railcar purchase in 40 years. It also has acquired from New Jersey Transit eight used Comet I railcars, built in the 1970s for use in northeastern New Jersey. The authority will add late-night weekend trains on its R5, R6, and R7 routes.
Denver delays real-time LRT info announcementsSoftware difficulties and the upcoming Democratic National Convention have prompted Denver's Regional Transportation District to delay additional testing of real-time information announcement system. The system was put in place two years ago but has yet to operate to the RTD's satisfaction.
"It's been real frustrating waiting so long," said Rick Clarke, RTD senior managaer for T-Rex. "It was a tough call to delay it a few more weeks, but I felt that I had to. But the next time, I'm fully expecting that it's going to work accurately." RTD says it is delaying $5 million in payment to General Electric Co. until the system's glitches are resolved.
Obama campaign gets transport labor's advice on AmtrakThe Transportation Trades Department of the AFL-CIO has prepared a two-page document, entitled "Transportation Labor's Priorities for Amtrak," to submit to Sen. Barack Obama (D-Ill.) as the presidential campaign heats up. It was unclear at press time if the document had been submitted formally to Obama campaign officials.
The document, a roundup of existing labor positions, reviews concerns on protecting recently achieved collective bargaining agreements with the passenger railroad, noting, "If Amtrak's [collective bargaining agreements] back-pay obligations are not included in a FY2009 appropriations bill that has been signed into law, an Obama Administration must push for and support the funding needed in completing a FY2009 appropriations bill that meets the rail carrier's back-pay obligations."
The paper also urges the candidate, as president, to "ensure that its first budget for Amtrak ends the cycle of underfunding the carrier" and urges future funding that at minimum matches the $1.43 billion authorized by the House of Representative this year (presumably for FY09).
"Furthermore, the [Obama] Administration must reject efforts to privatize Amtrak or sell off key routes such as the Northeast Corridor," the paper asserts, claiming, "Amtrak was born out of failing private passenger rail operations, and the recent British Rail privatization disaster provides ample evidence that passenger rail privatization is a failed model."
U.S. freight traffic slips slightly in latest weekU.S. carload and intermodal freight declined marginally during the week ended August 9, vs. the comparable week in 2007, according to the Association of American Railroads Carload freight slipped 0.1%, and intermodal declined 1.4% from last year. Total volume of 34.2 billion ton-miles equaled the 32nd week of 2007.
AAR said seven of 19 carload commodities were up from year-ago levels, including metallic ores, up 49.5%, metals, up 5.3%, and coal, up 5.1%. Leading the declining commodities were motor vehicles and equipment, off 29.6%, lumber and wood products, down 16.9%, and farm products other than grain, off 16.5%.
Carload traffic on Canadian railroads fell 4.7% for the week from last year, though intermodal volume was up 0.7%.
Carload freight on Kansas City Southern de Mexico declined 6.6% vs. the year-ago period, though intermodal volume rose 11.0%.
Key New York county backs rail yard for Patriot CorridorSaratoga County (N.Y.) officials plan to inform the U.S. Department of Transportation that they support the proposed "Patriot Corridor" joint venture planned by Norfolk Southern and Pan Am Railways, to be called Pan Am Southern, designed to increase freight rail traffic in nothern New York State and New England.
The supervisors' support includes the reactivation of the Mechanicville rail yard, owned by North Billerica, Mass.-based Pan Am Railways, which would be used as a transload facility for intermodal containers and for automobiles. NS plans to provide $40 million to rehabilitate the 80-acre facility as part of the plan.
"We’re looking to get this through so we can show support for the proposal,” said County Supervisor Tom Richardson. "It’s obviously going to be a great benefit to the city of Mechanicville and towns of Halfmoon and Stillwater."
The Surface Transportation Board is expected to render a decison on the joint venture in October. Saratoga County's resolution of support will be included as part of the public comment on the matter.
Short line to run steam trains to fund flood reliefIowa Interstate Railroad Ltd. says it will operate parent Railroad Development Corp.'s two QJ-type steam locomotives on Oct. 18 and 19 to aid The Salvation Army’s efforts to area communities impacted by June's flooding. A variety of rail-oriented events will be held, with Rock Island, Ill., acting as host and coordinator of the event.
On Saturday, Oct. 18, a double-headed freight train will leave Iowa City, Iowa, for Rock Island, with the objective of setting "a new record for steam-hauled revenue tonnage in the 21st century." Upon arrival at Rock Island, the locomotives will then be split to operate passenger excursion shuttles east to Silvis, Ill., and west to Walcott, Iowa. A private evening dinner trip will also occur for special guests, with catering to be provided by RDC "celebrity chefs." On Sunday, a one-way limited excursion train will operate from Rock Island to Iowa City, accompanying the QJs back to their home in Newton, Iowa.
Said RDC and Iowa Interstate Chairman Henry Posner III, "By October, the economic impact of the flooding experienced in June will have been long forgotten. Iowans don't like to complain, and it is their nature to deal with problems in a spirit of self-reliance, but in this case we would like to remind the greater community that there have been thousands of lives disrupted, and that they should not be forgotten."
Iowa Interstate President and CEO Dennis Miller said, "Although it has taken us some time to recover from our flood damage, we have not forgotten the many people who also suffered losses and were assisted by The Salvation Army. We hope these events will help to replenish their much needed funds in order to continue their valuable service to our communities. All proceeds from the events will be donated to The Salvation Army."
Growth initiatives cut Global earnings Net earnings of Global Railway Industries slipped to C$99,788 on revenue of C$14.6 million in this year's second quarter, compared with income of C$1.1 million and revenue of C$9.2 million in the same quarter last year.
"In Q2, management continued the transformation of Global as we continue to integrate the acquisition of CADRI [CAD Railway Industries Inc.], which doubles our size, and startup phase of our five-year C$101.5 million VIA Rail locomotive remanufacturing contract," said Global CEO Terry McManaman. "These initiatives, while on track, do have a negative short term impact on our earnings as we continue to invest management time and money in improving CADRI's processes, procedures, training, testing, and capital infrastructure to position the company for future growth."
McManaman said the second quarter also saw "some softening of track and signal sales at our G&B subsidiary," primarily due to soaring fuel prices that have caused railroads to "tighten their belts in all spending categories." In the long term, he said, railroads will be “seeking solutions to offset their increased fuel costs. This bodes extremely well for our locomotive remanufacturing business at CADRI. Once remanufactured, locomotives are 20% more fuel efficient and remanufacturing costs are about 60% of a new locomotive."
Amtrak July ridership sets single-month recordAmtrak Thursday trumpeted its continued ridership gains, noting its July patronage of 2,750,278 was the most for any single month in the company's beleaguered 37-year existence, and up 14% compared with its July 2007 ridership. Ticket revenue for July was $168 million, up 18.6% from the year-ago month.
Total ridership through July 31 for fiscal year 2008, which began Oct. 1, 2007, was 23.7 million, up from 21.3 million for the comparable FY07 10-month period. Ticket revenue for the fiscal year to date reached $1.4 billion, up 14.1% from the comparable FY07 period.
"Increasing fuel prices, highway congestion, airline issues and environmental awareness continue to make intercity passenger rail extremely relevant and popular," said Amtrak President and CEO Alex Kummant in a statement. "In addition, we continue to work on service improvements and better on-time performance, which draws more ridership and revenue each month."
Amtrak ridership and revenue gains were notched in the company's long-distance, short-distance, and Northeast Corridor operations.
Congress seeks to increase Amtrak funding, particularly capital funds, for fiscal year 2009 despite the threat of a presidential veto. House and Senate conference committee members still must resolve their differences: the House approved $1.43 billion for Amtrak, while the Senate seeks $1.55 billion.
Don’t stare at my private parts!If you’re a transportation employee undergoing return-to-duty or follow-up drug testing, the U.S. Department of Transportation wants to literally have someone watch you give a urine sample. The unions don’t like this new rule, and neither does at least one railroad.
The new rule, scheduled for an Aug. 25 implementation, adds two new sections—40.67(b) and 40(i)—to 40 CFR Part 40. It affects railroad, rail transit, and bus operator employees. Where return-to-duty or follow-up drug testing is performed on an employee, a same-sex observer is required to observe the sample-giving as follows: “Request the employee to raise his or her shirt, blouse, or dress/skirt, as appropriate, above the waist; and lower clothing and underpants to show you, by turning around, that they do not have a prosthetic device [that would presumably dispense substitute urine]. After you have determined that the employee does not have such a device, you may permit the employee to return clothing to its proper position for observed urination.” It gets better: “The observer then is required to watch the employee urinate into the collection container. Specifically, the observer must personally and directly watch the urine as it goes from the employee’s body into the collection container. If it is a multi-stall restroom, the observer must enter the stall with the employee.”
“What Peeping Tom at the DOT dreamed this one up?” commented one industry observer.
A court challenge is under way in Federal Appeals Court against what many feel is an invasion of privacy. The challenge has been mounted by BNSF Railway, the United Transportation Union, the Brotherhood of Locomotive Engineers and Trainmen, the Brotherhood of Maintenance of Way Employes Division, the American Train Dispatchers Association, the Brotherhood of Railroad Signalmen, the Transportation Communications International Union, the International Brotherhood of Electrical Workers, and the National Conference of Firemen and Oilers. “Because the rule requires disrobing by employees and direct observation of urine production, the District of Columbia Court Circuit Court is asked to consider whether the rule violates the Constitution’s Fourth Amendment protection against unreasonable searches.” UTU said in a statement. “The court also is asked to consider if the new rule violates the Omnibus Transportation Employee Testing Act of 1991, which requires the use of testing procedures that promote, to the maximum extent practicable, individual privacy in the collection of specimen samples.”
Added BNSF, the only railroad that’s a party to the court challenge, “We believe that our employees are entitled to be treated with dignity and respect at the workplace, and this new regulation is an intrusion on employees.”
According to the UTU, the Aug. 13 court challenge “leans heavily on a 1989 Supreme Court decision holding that ‘require[ing] employees to perform an excretory function traditionally shielded by great privacy, raise[s] concerns. . . .’ The Supreme Court held in that 1989 decision that there must be a prior reasonable cause before requiring an employee to remove clothing.”
Earlier this month, the UTU and 32 other AFL-CIO member unions petitioned DOT to reconsider the rule. The Association of American Railroads and the American Short Line and Regional Railroad Association also asked DOT to reconsider whether the rule is warranted, pointing to the fact that the railroad industry has one of the lowest rates of positive tests (less than 1%) for random drug screening. They asked for a delay until at least November for the rule to take effect. AAR and ASLRRA are not part of the court challenge.
According to the UTU, “an unnamed DOT source indicated the agency would ask, as early as Aug. 18, for public comment on the petitions. This likely would result in an agency delay of at least 30 days in implementation of the rule, allowing DOT to review public comments. There is no timetable for the federal appeals court to act on the petition for review.” UTU said the new rule “is vague on specifically what constitutes the requirement for additional direct observation of urine tests, and appears to give carriers wide latitude in ordering direct observation.”
New York MTA seeks $2.28 billion in FY09 federal aidThe New York Metropolitan Transportation Authority is seeking $2.28 billion as the federal share of planned Fiscal Year 2009 core capital improvements for New York City Transit and two commuter railroads--the Long Island and Metro-North-–as well as two bus operations. (Total capital spending in the core program is expected to be in the neighborhood of $3.3 billion, with the additional funding to cone from state, local, and other sources.)
The list of projects requiring federal funding for FY2009 was published on the MTA website in connection with a public hearing scheduled Aug. 13.
A total of $1.63 billion in federal funding is sought for New York City Transit projects: $843.1 million for railcars, $132.3 million for stations, $214.6 for main line track, $261.7 million for track structures, $127.8 for signals and communications, $31.4 million for power, $12.5 million for yards, and $4.0 million for depots.
For the Long Island Rail Road, the federal funding request adds up to $231.1 million, including $23.7 million for stations $53.1 million for track, $25.3 million for line structures, $100.8 million for signals and communications, and $28.2 million for power.
The $335.2 million requested for Metro-North includes $46.4 million for stations, $63.1 million for track and structures, $28 million for signals and communications, $48 million for power,$150 million for shops and yards, and $39.7 million for other purposes.
Also requested is $88.6 million for bus rolling stock and facilities.
L.B. Foster supplies concrete ties to coal lineL.B. Foster Co. announced that through a contract with Volkmann Railroad Builders, Inc., it will supply 87,000 CXT® concrete ties as well as clips, pads, and insulators for a 35-mile rail spur at a the Bull Mountain coal mine in central Montana. Production of the ties has already started at L.B. Foster's Spokane, Wash., plant and delivery will begin later this year.
"We have been working on supplying our concrete ties for the Bull Mountain project for the last couple of years," said Mark Hammons, national sales manager. "Given the demands that hauling coal in 286,000 pound cars will place on this spur, concrete ties were the right answer to build out the track.
Safety awareness program drives Seattle LRT testingSound Transit Thursday will begin testing light rail trains in Seattle's Rainier Valley, specifically on a five-mile portion of the 15.6-mile route sporting 18 intersections, 10 signaled pedestrian crossings, and three stations in the median. The agency will begin with a single car moving at fast walking speed, a spokesman said; by fall, several trains will ply the route, while by spring a fleet of trains will simulate regularly scheduled service.
The step-up procedure, is being driven, in part, by the need to familiarize local residents with railroad safety. Sound Transit also has bought billboard space, talked with school and community groups, and hung fluorescent warning signs at grade crossings. Safety brochures were produced in 12 languages to maximize community awareness.
NJT to add 50 cars to growing multilevel fleetNew Jersey Transit Wednesday approved the purchase of 50 additional multilevel railcars to help meet current and anticipated ridership demand. The option increases NJT's overall multilevel order to 329; 170 multilevels already have delivered by Bombardier Transportation.
Gov. Jon Corzine, in a statement, praised the multilevels as a "near-term solution" to capacity issues faced by the state, particularly concerning access on the Northeast Corridor to New York.
NJ Transit placed the first multilevels into service in December 2006.
"Exercising options in the contract with Bombardier Transportation to purchase additional vehicles was an easy decision given our ridership demands," said NJ Transit Executive Director Rich Sarles, who noted NJT "locked in the price back in 2002 for 13,000 more peak-period seats."
Delivery of the additional cars should be completed by the spring of 1010, NJ Transit said.
NJ Transit also announced an expanded joint-ticketing agreement with neighboring Southeastern Pennsylvania Transportation Authority (SEPTA), giving NJ Transit customers the ability to buy tickets (including round-trip tickets) to more than 125 "new" destinations in the SEPTA system.
NJ Transit has sold SEPTA tickets in the past, but only to three major Center-City Philadelphia destinations. SEPTA will continue selling NJ Transit tickets from those three locations--Suburban Station, Market Street East Station, and 30th Street Station--but Sarles said NJ Transit and SEPTA will explore expanding joint-ticketing options in the Keystone State.
Colorado study to weigh high(er) speed railColorado municipal, county, and state transportation officials, coalescing as the Rocky Mountain Rail Authority, will participate in a study to evaluate a "high speed passenger railway." Colorado's Department of Transportation will finance 80% of the $1.5 million study, with local sources supplying the remainder.
As envisioned by the authority, such a system, with Denver as the hub, could include a north-south route, roughly paralleling Interstate Highway 25, and an east-west route following I-70, along with potential spur routes.
Authority Chairman Harry Dale said the study will determine whether high speed rail is technically, financially, and economically feasible. The study is scheduled for completion in early 2009. Dale also said the authority would coordinate its study with other evaluations, including a DOT review of relocating freight rail traffic from the Front Range to the state's eastern plains region, potentially allowing passenger trains better access through more densely populated areas.
Transportation Economics and Management Systems Inc. of Frederick, Md., will prepare the report, which will help determine whether Colorado should apply for federal designation of the in-state route as the country's 11th high speed rail corridor, and thus eligible for federal funds. Notably, the study will evaluate train operations between 90 mph and 250 mph, and "technologies that could be implemented in the next five to 10 years," Dale said.
Wabtec appoints two senior executivesWabtec Corp. has appointed two veteran railway supply executives to head its transit and freight divisions.
Raymond T. Betler has joined Wabtec as a vice president, group executive, and corporate officer, with responsibility for the company’s transit business units. Charles F. Kovac has assumed responsibility for Wabtec’s freight business units, also as a vice president, group executive, and corporate officer.
Betler, 52, has 30 years of experience in the transportation industry, most recently as the president of Total Transit Systems for Bombardier Transportation. A Pittsburgh native, Betler has degrees in electrical engineering, administration/management science, and economics from Carnegie Mellon University. He joined the Westinghouse Transportation Division as a design engineer in 1979 and was named president of the unit, which became part of Bombardier Transportation, in 1994. In that position, he led a team that launched the London Underground concession project in 2003.
Kovac, 52, joined Wabtec as a group executive in 2007 and has helped to lead the integration of Ricon and the acquisition of POLI for the Transit Group. A native of Dayton, Ohio, Kovac has a degree in mechanical engineering from Colorado State University. Prior to joining Wabtec, he spent four years with AMETEK as vice president and general manager of its Global Household and Specialty Motors Division. Previously, he was with Woodward Governor for 12 years, most recently as vice president and general manager of its Industrial Controls Group.
“These appointments are important steps in the future growth and strategic expansion of Wabtec, as we continue to strengthen our management team,” said Wabtec President and CEO Albert J. Neupaver. “Ray and Chuck have successful executive track records, including significant international experience, strong leadership skills, and strategic know-how that will benefit Wabtec in the years ahead.”
FRA outlines industry Risk Reduction ProgramFederal Railroad Administrator Joseph H. Boardman Tuesday said a risk-based approach to identify and correct safety issues is essential if the rail industry is to continue improving its admirable safety record. Addressing a rail safety meeting in Washington, Boardman said, "Fixing something after it breaks or writing rule violation notices is increasingly unlikely to result in significant additional gains in rail safety."
Boardman announced the Risk Reduction Program (RRP), which is aimed at supplementing current federal regulations, inspection requirements, and other compliance and enforcement activities.
Boardman said the FRA has sponsored several risk-reduction pilot projects and now is moving toward establishing the RRP as a formal agency safety program. In addition to input from rail management and labor, the FRA will be accepting public comment this fall on the RRP and how to make it most effective, he said. Comments can be submitted to the FRA through its website at www.fra.dot.gov/us/Content/2029.
The RRP will develop methods, processes, and technologies to address the contributing risk factors that result in train accidents and employee injuries. For example, a conventional approach to prevent train derailments is to search for and fix any broken joint bars that connect two sections of track. A risk-based strategy will focus on identifying the precursors that indicate a joint bar might break followed by proper preventive maintenance before it fails, Boardmans said.
Boardman said the RRP framework encourages voluntary participation of railroads and labor on projects that target specific risk categories such as confidential close call reporting systems, peer-to-peer accident prevention strategies, and fatigue risk management programs.
Orlando-area commuter rail gets FTA nod for final designThe Federal Transit Administration has given the go-ahead for Florida's Department of Transportation to begin final design for 31 miles of the Central Florida commuter rail project. The approval frees $30 million in federal funds for FDOT and other active parties to acquire land for train stations, relocate utilities, and other work envisioned for the firs phase of a planned 61-mile route serving locations in Volusia, Orange, Osceola, and Seminole counties, including the city of Orlando.
Still unresolved are legal liability issues between FDOT and CSX Transportation, which currently owns the route. FDOT plans to buy the right-of-way, then lease the route to CSX for freight operations. But the state Senate rejected a provision of the agreement between FDOT and CSX that would shield CSX from most liability for accidents along the route. The agreement allows either party to back out if liability legislation is not secured by June 30, 2009.
Rep. John Mica, R-Fla, a supporter of the project, stated, "We're pretty optimistic about moving forward. ... The alternative would be disastrous, because you would have to start the process basically all over again."
Federal funding would cover half of the project's first-phase projected costs, estimated at $357 million. State funds would cover 25%, with local governments combining to provide 25%. The initial 31 miles would run north from Orlando to DeBary, roughly paralleling Interstate Highway 4. The second phase would extend service from Orlando south to Poinciana.
LRT tempts Tampa Bay area, but route ideas differThe Tampa Bay Area Regional Transportation Authority is eager to establish Florida's first new light rail system in its jurisdiction, but local political interests are jockeying for position to ensure their immediate interests are served first.
Tampa Mayor Pam Iorio is promoting a plan, outlined by Hillsborough County, where LRT would link New Tampa with the city's downtown before running west to Westshore District and Tampa International Airport, ending at Linebaugh Avenue. "One community has to be first, and Hillsborough is very far along in its studies and checking off the boxes for regulatory approval," Iorio said.
But Hillsborough County is only one of seven counties participating in the Tampa Bay Area Regional Transportation Authority (TBARTA), which would oversee regional LRT operations, and representatives from Pinellas County, which includes the city of St. Petersburg, believe they should be served by any first-phase light rail. This proposal also would serve Tampa International Airport.
CN expands locomotive remote health monitoringCN is expanding its use of locomotive remote health monitoring by retrofitting all 35 of its GE Transportation Evolution Series (GEVO) locomotives delivered in 2006 with the Wi-Tracker™ system from Wi-Tronix®, LLC. With these 35 systems, Wi-Tracker™ will be deployed on the entire CN GEVO fleet of 90 locomotives. Since CN selected Wi-Tronix as its preferred remote monitoring provider in 2007, more than 180 Wi-Tracker™ systems have been applied on CN's EMD SD70M-2, GE ES44DC, and recently rebuilt GP38-2 locomotives. CN's system includes turnkey back-office hosting.
Wi-Tracker™ provides a full suite of tools and data, including statistics on utilization, engine shutdown, and duty cycle; fuel monitoring using geo-fencing; locomotive fault and exception-based alerting; and geo-mapping. "Wi-Tracker™ provides CN with the benefits of ready access to locomotive onboard data, increased asset utilization, fuel conservation monitoring, and improved fleet productivity," Wi-Tronix said. "CN will continue to use Wi-Tracker™ to maximize locomotive asset utilization and fuel savings, and will save time using Wi-DownloadER, which provides remote access to download locomotive onboard data from any locomotive, anytime, anywhere. Onboard Wireless Processing Units (Wi-PUs) are being applied across all parts of CN's locomotive fleet, from the newest models to those with over 40 years of service. It features seamless roaming between the U.S. and Canada using cellular and Wi-Fi communications."
Class I return on investment rises to 10.53%Class I railroads earned a 10.53% return on investment (ROI) in the 12 months ended June 30, up from 8.56% a year ago. Railway operating revenue totaled $58.1 billion vs. $50.7 billion in the 12 months ended June 30 2007, net railway operating income was $8.1 billion vs. $7.0 billion, and net income totaled $7.1 billion vs. $6.0 billion.
Among individual carriers, Soo Line led the ROI parade this year, with a return of 15.2%, followed by Norfolk Southern, 13.57%; Burlington Northern and Santa Fe, 9.82%; CN/Grand Trunk Corp., 9.68%; Union Pacific, 9.16%; Kansas City Southern, 8.32%; and CSX Transportation, 7.89%.
Time to reconsider electrification?Even though railroads are many more times fuel-efficient than trucks and have not been hurt as badly by soaring diesel fuel costs as their rubber-tired rivals (partly because they’re able to recover a portion of their costs through fuel surcharges), they’re looking at additional ways to lower their fuel bill.
One of these is electrification, which, aside from a small, captive mining operation in the West, hasn’t been employed by a freight railroad since the 1970s, when Conrail shelved its GGI and E44 electric locomotives and tore down what little remained of the catenary the Pennsylvania Railroad had built for its northeastern freight operations in the 1930s. The expense of building, operating, and maintaining catenary, combined with relatively cheap diesel fuel and more-or-less standardized diesel locomotives, provided the impetus for freight railroads to de-energize and tear down their wire.
Now, with diesel approaching $5.00 a gallon and the railroads tasked with meeting tightening environmental regulations, electrification is getting another look, but with an approach a bit different than that taken with the railroad electrification projects of the first half of the 20th century. There is a proposal to generate large quantities of electricity for public use with banks of wind turbines that would be built along the eastern slope of the Rocky Mountains, and transmit all that power to places where it’s needed most, like California. Instead of acquiring land and building thousands of miles of high-tension lines, why not piggyback on an existing right-of-way—specifically, a railroad right-of-way?
This is the scenario BNSF Railway is investigating. The railroad already leases its transcontinental rights-of-way to fiberoptic companies in exchange for some capacity for its own communications and data transmission needs. It stands to reason that, in exchange for access to discounted electric traction power for trains, BNSF could lease right-of-way space to an electric utility on, for example, the Transcon, tapping into the high-tension lines for 25kV or 50kV catenary to power electric or perhaps even dual-power locomotives. There would be technical and financial challenges—erecting catenary poles and wire and substations; doublestack clearances for overhead wire; bridges and tunnels; the higher cost of electric locomotives compared to diesel; the need for people and equipment to operate and maintain the power grid, for example—but if the economics of electric vs. diesel power can be altered (flipped, actually), electrification may make sense.
For railroads like BNSF, electrification is a long-term prospect. But with energy costs steadily rising for American consumers and the railroads demonstrating every day their superior fuel efficiency and environmental friendliness, electrification may one day prove a win-win situation for both.
—William C. Vantuono, Editor, Railway Age
GATX courts GE's railcar unit with $3 billion bidGATX Corp. is offering more than $3 billion to acquire General Electric Co.'s railcar leasing business, which reports value at about $2.8 billion. GATX appears determined to outflank other potential suitors such as investment banks and other financial investors in an effort to acquire GE Rail Services' railcars and intermodal assets, such as containers, trailers, and chassis.
Industry sources speculate that the timing of this report, released after the stock market closed Friday, Aug. 7, suggests that GATX may consider itself a leading bidder for these assets. But the company also may be seeking to push the GE, the potential seller, to accept its bid.
One reason for such a maneuver might be because GATX's offer of $3 billion to $3.5 billion "would be at the bottom half of the value range for the assets of GE Railcar Services," one source told Railway Age. The source notes that GE actually owns less than half of its reputed car fleet, "the balance being leased-in from other owners," making the value of any acquisition more difficult to ascertain.
Also complicating the bidding is an ongoing effort by CIT Group, Inc., to sell its railcar leasing unit.
In the final hour of trading Monday on the New York Stock Exchange, shares of GATX were up more than 1% at $46.97, shares of GE were up 1.3% at $30.02, and shares of CIT were up 4.3% at $9.55.
Domestic intermodal grows at highest rate in four yearsThe Intermodal Association of North America reports that during the second quarter of 2008, domestic intermodal volume grew at its highest rate since the second quarter of 2004. During the 2008 quarter, volume was 5.4% higher than in the comparable 2007 quarter, said IANA in its Intermodal Market Trends & Statistics report. IANA said it was the 11th straight quarter that domestic container volume posted year-over-year increases. Container volume grew 8.1% during the quarter, while trailer volume increased 1%.
Observers say one reason for the domestic intermodal increase the shift of loads from trucks to trains for the long haul to take advantage of rail’s greater fuel efficiency.
Overall intermodal volume, however, continued to decline. "Sluggish consumer spending and its effect on ISO container traffic pulled down international container volume5.9% over the same period in 2007," said IANA. "The optimistic view is that total intermodal volume is only down a recoverable 1.9% from last year and has half--a-year to retreat from negative territory as current economic woes hopefully dissipate."
(A recent New York Times story on how shipping costs are slowing globalization suggested another reason for the diminishing number of containers now being unloaded at West Coast ports. The Times quoted a recent study that said the cost of moving a container from Shanghai to the U.S. has risen to $8,000 from $3,000 early in the decade.)
Year to date, BNSF loads 50.2 PRB coal trains dailyIn this year's first seven months, BNSF loaded a total daily average of 50.2 trains with Powder River Basin coal, up 2% from the average of 49.2 trains a day in the same period last year. This was accomplished despite weather conditions in June that reduced trainloads to an average of 46.2 trains a day. In July the flow of loaded and empty trains recovered from the effects of flooding along the Mississippi and its tributaries, and July loadings of PRB coal averaged 50.3 a trains day, up 2.7% from the July 2007 daily average of 49 trains.
Governor's veto keeps Long Island intermodal option openNew York Gov. David A. Paterson has vetoed a bill intended to expand a wildlife preservation area in Brentwood, N.Y., in effect buying time for advocates of a proposed intermodal hub on Long Island.
Paterson said he believes environmental reviews should continue on the proposed Long Island Truck/Rail Intermodal facility, due to its potential to reduce truck traffic on the area's congested road network and, by extension, cut carbon emissions.
Opponents of the intermodal plan, including but not limited to environmentalists, seek to add the former site of Pilgrim State Hospital to the existing Oak Brush Plain State Preserve.
"Enacting this bill would ... forever block the only opportunity to build LITRIM at Pilgrim, a project that may have enormous benefits for the residents of Long Island in improving congestion and air quality," the governor said in a letter to state legislators.
Paterson questioned whether the Pilgrim site was valuable for preservation purposes, noting "significantly disturbed and degraded since it was used for industrial purposes." But he also cautioned, "Neither I nor [the New York State] DOT has made any determinations as to whether a LITRIM facility of any size is appropriate."
Rail intermodal service most likely would be provided by the New York & Atlantic Railway, based in Glendale, N.Y. which handles most freight rail operations on Long Island, utilizing trackage rights over the Long Island Rail Road.
Light rail sales tax on Kansas City ballotKansas City, Mo., residents will vote Nov. 4 on a proposal for a 3/8-cent sales tax increase to provide funding for a 14-mile starter light rail line. The proposal comes after nearly a year of debate over the length and location of any LRT route, which itself followed a rejection by the City Council of a voter-approved LRT referendum, which the council deemed unfeasible.
City council members said their unanimous 12-0 vote to post the sales-tax measure fulfills a promise made last November after it overturned the original plan, which voters had approved in 2006. The $815 million starter route would run from the Northland to 63rd Street and Bruce R. Watkins Drive.
"This is going to have a positive impact on the city for generations, if voters approve this," said Councilman Russ Johnson, who led the ballot effort.
Carload freight up, intermodal down in JulyThe Association of American Railroads reported Thursday that U.S. railroads originated 1,606,877 carloads of freight in July, up 1.1% from July 2007. Intermodal freight was down 2.2% to 1,125,795 trailers and containers. Leading carload gains were coal, up 4.3%; grain, up 7.2%; and chemicals, up 4.1%. On the minus side were motor vehicles and equipment, down 22.2%; coke, down 1 29.7%; and lumber and wood products, down 17.15. For the first seven months of 2008, U. S. carload traffic was up 0.4%, intermodal was down 3.1%, and total volume, in ton-miles, was up 1.6%. In Canada, carload traffic was down 4.1% in July to 362,163 carloads, and intermodal traffic was up 4.2% to 248,147 trailers and containers. The Kansas City Southern de Mexico reported carload traffic down 3.1% to 1,615 carloads in July, and inermodal traffic up 2.6% to 23,716 units. For just the week ended Aug. 2, the AAR reported U.S.carload traffic down 0.3% from the corresponding week in 2007, intermodal volume down 3.0%, and ton-mile up 0.6%. In Canada, carloads in the latest week were down 1.7% and intermodal volume was up 6.4%.
NYMTA plans emergency station fundThe New York Metropolitan Transportation has amended its new capital program to provide for emergency work at MTA New York City Transit's 468 railway stations. Responding to a New York Transit Riders Council survey showing widespread rider discontent with the condition of subway stations, NYMTA issued a statement Aug. 6 that said: "We are changing the way that we rehabilitate stations. Instead of waiting until a station is due for a full rehabilitation to fix all of its problems, we have included a $71 million fund in our proposed Capital Plan Amendment to address specific problem areas incrementally."
This is one of two steps MTA is taking to improve conditions at stations that it said "have suffered over the years from insufficient funding."
"As part of our pilot Line General Manager Program on the 7 and L lines," said the agency, "we are analyzing the level of resources necessary to improve conditions and the most efficient way to get the job done. We appreciate the report's finding that the stations included in the pilot rank among the best in the survey, and we hope to extend this strategy to other lines in the system soon with internal resources."
American Railcar earnings slideAmerican Railcar Industries Inc. earned $6.2 million on revenues of $204.5 million in this year's second quarter, down from earnings of $11.0 million and revenues of $209.0 million in the comparable 2007 period.
"Revenues and railcar shipments decreased in the second quarter of 2008 compared to the same period in 2007," said the company, "primarily due to lower volumes and lower selling prices for many of our hopper railcars shipped in 2008, partially offset by increased tank railcar shipments." The company said it shipped 2,007 cars during the 2008 quarter vs. 2,868 in the same quarter last year. The backlog of undelivered cars was 8,219 on June 30.
In this year's first half, American Railcar had revenues of $385.5 million and net earnings of $16.4 million compared with revenues of $396.3 million and income of $24.5 million.
Andersons, Inc. grows rail equipment fleetThe Andersons, Inc. reported Wednesday that its fleet of railcars and locomotives is both bigger and busier than it was a year ago. The company's Rail Group now has 23,840 cars and locomotives, 5% more than it had 12 months ago. Their average utilization rate for the second quarter was 93.2% vs. 92.0% a year ago.
The Rail Group's operating income for the second quarter was $4.9 million on revenues of $43 million, compared with income of $6.9 million and $42 million of revenues for the corresponding 2007 period. The group had gross margin of $1.1 million from he sale of railcars and leases during this year's quarter, down from $4.1 million last year. However, gross profit from the leasing business was higher due to the larger fleet and higher utilization rate.
The Rail Group's operating income in this year's first half was $11.3 million on revenues of $78 million, compared with $9.9 million and revenues of $68 million in the first half of 2007.
The Andersons reported corporate net income of $45.6 million for the second quarter, a record, compared with income of $25.5 million in the same quarter last year. The biggest contributor was the company's Grain & Ethanol Group, which had record operating income of $20.0 million in the second quarter vs. $12.0 million in the same period last year.
Rail employment down in JuneEmployment on U.S. Class I railroads slipped to 163,416 in mid-June, down 1.98% from June 2007, according to statistics released Wednesday by the Surface Transportation Board. There were reductions in every employment category.
The transportation department led the decline, with transportation (other than train and engine) down 6.2% to 6,627, and transportation (train and engine) off 3.09% to 67,154. The number of executives, officials, and staff assistants dropped 1.01% to 10,049, professional and administrative employment was down 2.00% to 13,705, maintenance of way and structures was off 0.05% to 35,638, and maintenance of equipment and stores declined 1.06% to 30,243.
Among the seven class I carriers, Union Pacific had the highest number of employees in June-- 50,730--followed by BNSF, 40,601; CSX, 30,357; Norfolk Southern, 30,095; CN/GTW (including all CN U.S. operations), 6,013; Kansas City Southern, 2,997; and Soo, 2,623.
Railroads in June 2008 employed 26.8% of the number of workers they employed in the base year of 1967, when the total was 624,153.
CN seeks to force decision on EJ&E by Dec. 31CN announced Wednesday that it will seek "legal relief" to ensure a decision by Dec. 31 on its request to acquire the Elgin, Joliet & Eastern. "Relief will be required now that the Surface Transportation Board has declined CN's request for a fixed timetable that would complete the regulatory review by the end of the year, and the seller, United States Steel Corp., has informed CN that it will not extend the Stock Purchase Agreement (SPA) for the transaction beyond Dec. 31, 2008." CN did not specify the nature of the relief it will seek.
CN President and CEO E. Hunter Harrison said CN contacted U.S. Steel last week to request an extension of the deadline, without success. "U.S. Steel is prepared to cooperate with CN towards the goal of closing the transaction in 2008, but will not agree to extend the SPA," said Harrison.
Harrison said CN asked the Surface Transportation Board in May for time limits on the regulatory reviews that would ensure a decision consistent with the terms of CN's agreement with U.S. Steel.
"In response," said CN, "the STB established a 60-day timetable for interested parties to submit comments on he Draft Environmental Impact Statement. The STB's decision projected issuance of the e final EIS between Dec. 1, 2008, and Jan. 31,2009, with final decision on the transaction to be served as soon as possible thereafter, pursuant to Council on Environmental Quality regulations. As a result, the STB's final decision could be served during the Dec. 1, 2008 to March 2, 2009 time frame, with the STB's final decision becoming effective then or later. The STB also reserved the right to adjust this schedule as necessary."
CN and U.S. Steel announced an agreement on Sept. 26, 2007, under which CN would acquire most of EJ&E for $300 million. CN noted that the transaction would permit it to "reroute its trains along the EJ&E arc around the periphery of the Chicago area," reducing rail congestion in Chicago's inner core while "significantly improving" the flow of CN rail operations in the area.
Wabtec sets up shop in South AfricaWabtec Corp. said Wednesday it has established two joint ventures in South Africa to manufacture, supply, and service its broad products in the region.
The company said Andrae Nieuwoudt will serve as managing director of both joint ventures, Wabtec South Africa and FIP Brakes South Africa (FIPSA). Sibanye Brakes of South Africa is the minority partner in both ventures.
Wabtec South Africa will manufacture, assemble and service Wabtec products in the region, including locomotive and freight car braking equipment, draft gears, transit equipment and electronics. The unit will also provide installation of Wabtec's electronically controlled pneumatic (ECP) braking equipment on locomotives and freight cars for Transnet Freight Rail, the state-owned railway in South Africa.
FIPSA will manufacture friction products and provide customers with access to worldwide technological and research capabilities, through Wabtec's other friction operations in Europe, the U.S., India, and Australia.
"Wabtec has provided products—from brakes shoes to electronic braking—to the African market for many years," said Wabtec President and CEO Albert J. Neupaver. "By establishing a local presence in South Africa, we are making a commitment to expand our production and service
capabilities in this growing market. We believe customers will benefit from faster response time and direct access to all of Wabtec’s products and services."
The joint ventures, based in Johannesburg, meet South Africa's Broad-Based Black Economic Empowerment (B-BBEE) requirements.
CSX expands yard automationThe RailComm-supplied Shove Track control system at CSX’s Hamlet Yard in North Carolina will be upgraded with a RailComm DOC® (Domain Operations Controller) Yard Automation System. The PC-based control system will provide wireless remote control from the yard tower to all equipped switch locations.
The DOC® System features eNtrance and eXit (NX) routing and stacked route planning capability, providing the tower operator with complete control of all routes within the yard. RailComm Switch Position Indicator (SPI) units will be installed at each switch. These will flash when a route is lined over a switch, will be constantly lit when a route is not available, and will flash red when a switch is out of correspondence. A sensor is included to adjust LED brightness to accommodate day and night modes. RailComm’s 2.4 GHz RADiANT™ data radios will provide a wireless communications network to link the office with the field locations.
BNSF expanding mileage-based fuel surchargesIn 2006, BNSF Railway was the first railroad to establish a mileage-based fuel surcharge program “as the most direct and accurate method of reflecting the impact of fuel price changes on BNSF and its customers,” the railroad said when it announced an expansion of that program late today.
BNSF currently assesses mileage-based fuel surcharges for Agricultural Products and various Unit Train Coal customers and for certain other customers, mostly Industrial Products and other Coal customers. Shipments on which a mileage-based fuel surcharge is assessed include public regulated, non-contract, non-boxcar shipments for which rates have not been prescribed by the Surface Transportation Board. Mileage-based fuel surcharges will be expanded early next year on Agricultural Products, Coal, Industrial Products, and Automotive carload shipments, and will be instituted on intermodal traffic. Carload customers who do not currently pay a mileage-based fuel surcharge will be assessed beginning Jan. 15, 2009, with changes phased in as current pricing authorities expire. Intermodal customers will be assessed beginning Feb. 18, 2009.
BNSF assesses fuel surcharges at the HDF (Highway Diesel Fuel) price. The so-called “strike price” on carload shipments will increase from $1.25 per gallon to $2.50 per gallon, and pricing for carload shipments subject to the surcharge will be adjusted to reflect the new strike price. Tables reflecting the new strike price for automotive (conventional and articulated equipment), unit coal train, and all other carload shipments are available on the BNSF website. Tables for intermodal customers are under development; a customer advisory will be sent when these figures are posted on the BNSF website.
“As the first railroad to establish a mileage-based fuel surcharge program, BNSF is further developing the program based on our continual monitoring of fuel prices, fuel efficiency efforts, and input from our customers,” said BNSF Executive Vice President and Chief Marketing Officer John Lanigan. “Sales and marketing representatives will provide customers with additional details as they become available over the next few months.”
TRACS legislation aimed at CN/EJ&E transactionRep. James Oberstar (D-Minn.), chairman of the House Transportation and Infrastructure Committee and a champion of railroad re-regulation, has joined with Rep. Melissa L. Bean (D-Ill.) and 19 other members of Congress in introducing H.R. 6707, the “Taking Responsible Action for Community Safety” (TRACS) Act. The legislation, which is aimed squarely at killing the CN’s planned acquisition of the Elgin, Joliet & Eastern, “will ensure that the Surface Transportation Board has the legal authority and policy direction to deal with railroad mergers that have the potential to cause serious safety, environmental, and other quality of life problems for affected communities,” Oberstar said when he introduced the bill on July 31.
The CN/EJ&E transaction “has called attention to the need for enhancing the authority of the STB,” Oberstar said. “Communities affected by the merger have alleged serious impacts from the new operations planned for the merged carrier. This acquisition could adversely impact more than 40 communities along the EJ&E line, and result in rail traffic increases of 15 to 24 trains per day. The communities impacted by the proposed acquisition have raised significant concerns related to public safety, grade crossing safety, hazardous materials transportation safety, noise, and economic job loss. Under current law, the STB has very limited power to consider these concerns. The STB is now required to approve all mergers and consolidations between a Class I and a Class II railroad, unless the board finds that the merger is likely to cause a substantial lessening of competition, create a monopoly, or restrain trade in freight surface transportation in any region of the U.S.; and that the anticompetitive effects of the transaction outweigh the public interest in meeting significant transportation needs.”
The STB, Oberstar said, “has decided to significantly limit the types of conditions it will impose. Under its regulations, the STB will not impose conditions that may ‘undermine or defeat’ a transaction, even if those conditions are critical to ensuring the safety and health of communities.” H.R. 6707 “will enable the STB to thoroughly consider the public interest when evaluating a proposed railroad merger or consolidation which includes at least one Class I.”
H.R. 6707 requires the STB to consider the safety and environmental effects of a merger or consolidation on local communities, such as public safety, grade crossing safety, hazardous materials transportation safety, emergency response time, noise, and socioeconomic impacts. It also requires the STB to consider the effects of a transaction on intercity passenger and commuter rail. It prohibits the STB from approving or authorizing a merger or consolidation “if it finds that the transaction is inconsistent with the public interest because the transaction’s impacts on safety and on the affected communities outweigh the transaction’s transportation benefits,” Oberstar said.
States chase limited DOT grant program fundsThe Department of Transportation Tuesday announced that 22 states had submitted 25 proposals to improve intercity rail passenger service through a $30 million grant program initiated by the Bush Administration in fiscal year 2008.
In a statement, Secretary of Transportation Mary E. Peters said, "Our goal is to achieve long-term improvements in intercity passenger rail service by supporting state investments that get real results." Peters said DOT will review the proposals, and determine grant recipients in September, based on a proposal's ability to improve the reliability of intercity passenger rail, relieve highway congestion, and increase rail capacity.
Most of the grant applications seek to improve existing passenger rail routes, though some have advance planning initiatives to create new service. Each federal grant awarded will require a 50-50 funding match, Peters said.
In addition, the Federal Railroad Administration will evaluate each proposal for key program priorities such as inclusion of intercity passenger rail in state plans. Also, since some projects also will benefit the operations of private freight railroads on whose tracks passenger trains primarily run, a commitment by the host railroad to improve on-time performance will be a major
consideration, Peters said.
DOT's release noted that the administration sought $100 million for the program in FY08, and seeks the same amount for FY09, to "establish a long–term partnership between States and the Federal Government to support intercity passenger rail." An FRA spokesman notes that Congress reduced the funding amount available.
But Ross Capon, executive director of the National Association of Railroad Passengers, counters that blaming Congress for the reduction fails to consider "that the entire Amtrak system, state-supported trains and all, likely would have come to a halt if Congress had not found several hundred million dollars to add to the administration's 'shutdown' budget for Amtrak itself."
Use rail transit and save 50%!The Washington Metropolitan Area Transit Authority says taking the Metro rapid rail system costs half that of driving.
WMATA’s claim is based upon results obtained from its online Commuter Calculator, which is posted on the agency's home page, www.wmata.com. “Hundreds of commuters have discovered they can cut their travel costs in half by taking Metro instead of driving,” WMATA said. The Commuter Calculator was reinstated July 31. Since then, more than 1,800 travel comparisons have been made, with average savings of 49%, or $171 per person per month. Officials said the data “is anonymous, and the findings are not a scientific survey.”
The calculator collects and processes driving compared to transit costs. Visitors to the web page enter the number of miles driven during a commute, plus parking fees. The calculator tabulates the federal average vehicle cost per mile for gas, maintenance, depreciation, and insurance. It also tabulates Metrobus fare, Metrorail fare, parking, and driving costs. It assumes Metro fares are at rush-hour rates. Commuters whose schedules allow them to travel during off-peak times “would realize even greater savings,” WMATA notes.
Metrorail has seen record breaking ridership, with seven million more people—a total of 215,314,956 customers, a 3.6% increase—boarding trains in Fiscal Year 2008 compared to FY 2007, which ended in June. For the third consecutive year, more than 200 million people rode the Metrorail system during a fiscal year, and for the 12th consecutive year, ridership increased. The average weekday ridership in FY 2008 was 727,684—the second time the average weekday ridership topped 700,000. WMATA planners credit gas prices, development around Metro stations, and traffic congestion for the increase.
NS to preserve South Carolina forest propertyNorfolk Southern Corp. has agreed to preserve 12,488 acres of its Brosnan Forest property, northwest of Charleston, S.C., from development, obtaining a conservation easement from South Carolina in the process. NS will retain ownership rights, but the Lowcountry Open Land Trust, an environmental group, will oversee the acreage as part of its preservationist efforts.
NS spokesman Robin Chapman said the company will continue to harvest timber from an adjacent 1,900 acres through sustainable forestry practices, and will maintain its recreational facilities on the site as well.
Among various plant and animal species of value, Brosnan Forest is home to the rare red-cockaded woodpecker, and since 1999 NS, in partnership with the state, has aided a "safe harbor" program to protect the species. NS will remain active in that effort, Chapman said.
Brosnan Forest also lies near the 15,000-acre Francis Beidler Forest, owned and operated by the National Audubon Society. Both tracts are part of the Ashepoo, Combahee, and Edisto (ACE) Basin, described as one of the largest intact coastal ecosystems on the East Coast.
"The rural character, natural resources, habitat, beauty, and unique ecological character of the land will be preserved in perpetuity," said Chief Executive Officer Wick Moorman. "With our partners at the Lowcountry Open Land Trust, all of us at NS are proud to do our part in protecting the environment."
Said Gov. Mark Sanford, "This tract is incredibly significant from an ecological standpoint, both for the way it encompasses the headwaters of the ACE Basin and its proximity to Francis Beidler Forest. To that end, I would like to thank Norfolk Southern for this donation and give real credit to the Lowcountry Open Land Trust for working together over the past few years to make this happen."
VIT picks Railpower for new motive powerVirginia International Terminal, which operates four terminal facilities at the Port of Virginia, Hampton Roads, for the Virginia Port Authority, has acquired three Railpower Technologies Corp. low-emission switcher locomotives through a lease-purchase agreement. The three units—two four-axle, triple-genset RP20BD Eco-Motives and one four-axle GG20B Green Goat hybrid—will be leased for three years and then purchased by VIT.
Genesee & Wyoming buying Ohio CentralGenesee & Wyoming, Inc. (GWI) announced Monday that it has agreed to pay $219 million in cash for the nine short lines known as the Ohio Central Railroad (OCR) system. GWI said the agreement calls for payment off an additional $25 million upon the satisfaction of certain unspecified conditions. GWI also said the final price will be adjusted for working capital at the time of closing, which is expected to be in the fourth quarter.
OCR was founded in 1987 and is headquartered in Coshocton, Ohio. Its nine short lines operate over 445 miles of track in Ohio and Pennsylvania and own 64 locomotives. They handle around 140,000 carloads annually, primarily in the coal, steel, and solid waste industries. They interchange with CSX, Norfolk Southern, Wheeling & Lake Erie, R. J. Corman Railroad Co., and Ohi-Rail.
GWI expects its new lines to generate around $70 million of revenues and $20 million of operating income in 2009. They will have annual capital expenditures of around $6 million.
GWI also announced that it earned net income of $15.4 million in the second quarter of 2008, compared with $10.7 million in the same period last year. This was in line with analysts’ estimates. Second-quarter revenues increased 21.9% to $152.7 million from the year-earlier period. This included revenues from three acquisitions, the Maryland Midland, Rotterdam Rail Feeding, and CAGY Industries. Same-railroad revenues increased 10% in the quarter, primarily on pricing. The operating ratio declined to 80.6% in this year’s second quarter from 83% last year.
FreightCar America blames loss on high costsFreightCar America announced Monday that it had a net loss of $0.9 million or 8 cents per share in this year’s second quarter on sales of $141.3 million. In the second quarter of 2007, the company earned $11.5 million, or 93 cents per share, on sales of $195.4 million. Analysts had forecast a second-quarter profit of 27 cents, and the carbuilder’s stock was down 22.5% in morning trading on the New York Stock Exchange.
The company’s fixed-price contracts were held largely responsible for the loss, and since May FreightCar America has been quoting variable-cost contracts.
“The combination of a sharp increase in input costs, specifically steel and aluminum, and pricing pressures has reduced margins,” said President and CEO Chris Ragot. “We have worked diligently with our customers and suppliers to implement price adjustment and cost reduction initiatives. We have also continued to selectively forward-purchase materials to the extent possible to secure prices, and although this decision affected our cash flows for the quarter, we believe this is more than offset by our improved competitive positioning in the current environment.”
He said the company received orders for 1,426 new cars in the second quarter, compared with 2,396 in the first quarter of 2008 and 2,262 in the second quarter of last year. The backlog of unfilled orders was 4,917 cars on June 30, compared with 6,785 on March 30 and 5,589 on June 30, 2007.
For the six months ended June 30, FreightCar America recorded a net loss of $11.1 million on sales of $236.4 million vs. a profit of $34.4 million on sales of $517.8 million in the same period last year.
Jeremy Hill named COO at US&SJeremy S. Hill, a veteran signal engineer and sales and marketing executive at Union Switch & Signal, has been appointed Vice President and Chief Operating Officer. Hill’s overall responsibilities will include managing worldwide customer relationships throughout US&S’s Customer Operations Group for new business and project execution. He will also oversee the company’s global supply chain, manufacturing operations, product marketing, and product development. Hill’s appointment took effect July 7.
Hill has 29 years of experience at US&S, starting as a senior engineer. He has held director positions in quality assurance and marketing and sales as well as several vice president posts. In his most recent position as Vice President-Advanced Technology, he led US&S’s CBTC (Communications-Based Train Control) project on China’s Shin Yang Metro, and the Alaska Railroad’s CAS (Collision Avoidance System) Positive Train Control project. Hill is a graduate of Christchurch Technical Institute in Christchurch, New Zealand, with a degree in Electrical Engineering.
“Jeremy’s outstanding professional experience in project leadership, along with his acumen in product development and marketing, will strengthen our long-term plans and aggressive new market objectives,” said Dr. Alan E. Calegari, president and CEO of US&S.
Inspector says four dissidents were elected to CSX boardCSX announced Thursday that its designated election inspector, IVS Associates, had confirmed the election of four dissidents to the CSX board of directors, from a slate of five nominated by two hedge funds, Children’s Investment Fund (TCI) and 3G Capital Partners. But CSX said "the final outcome of the director election remains uncertain for two reasons, one involving a judicial appeal and the other involving questions in the vote count."
The new directors-apparent are Gilbert Lamphere, Lawrence Behring, Christopher Hohn, and Timothy O'Toole. CSX said the seats involving O'Toole and Hohn will be determined by the outcome of its appeal to a U.S. Circuit based on a district court’s ruling that permitted the hedge funds to vote all of their shares despite a finding that they had violated federal disclosure rules. The seat involving Hohn and CSX nominee Dr. Frank Royal is also the subject of controversy.
Crossing fatalities down 30%Deaths at highway-rail grade crossings continue to decline at a record rate. There were 93 crossing fatalities in this year's first five months compared with 133 in the same period last year, a 30.1% decrease, according to statistics posted Thursday on the Federal Railroad Administration website. Trespassing fatalities continued to rise, however, with 199 reported in January-May 2008, up 19.9% from 2007.
Preliminary reports from 694 large and small railroads showed a total of 4,875 accidents/incidents for the 2008 period, a decline of 9.6%. There were 989 train accidents, down 8.1%. Collisions increased 5.4% to 78, derailments were down 7.8% to 710, and yard accidents decreased 6.1% to 536. There were 10 employee fatalities, double then number reported last year.
Portec earnings up in second quarter, first halfPortec Rail Products, Inc. Friday said it notched record unaudited net income of $2.4 million, or 25 cents per share, for the quarter ended June 30, up 27% increase over the $1.9 million, or 20 cents per share, in the second quarter of 2007. Net sales for the second quarter 2008 totaled $30.2 million, a 4% increase over second-quarter 2007 net sales of $29.1 million.
The company's first-half financials also were strong. Net income for the six months ended June 30 was $3,7 million, 39 cents per share, a 21% increase over net income of $3.1 million, 32 cents per share, for the comparable six-month period in 2007. (Average basic and diluted shares outstanding were 9.6 million for both periods.) Net sales for the six months ended June 30 totaled $55.0 million, down slightly from the $56.6 million for the six months ended June 30, 2007.
Portec President and Chief Executive Officer Richard J. Jarosinski said, "We are pleased with our overall performance for the second quarter and first half of the year. Our second-quarter results were significantly and positively affected by sales and gross margin contributions from our friction management and load securement product lines. In particular, our divisions in Montreal, Canada, and Sheffield, England, had very strong friction management product demand this quarter, while sales of load securement products at our Shipping Systems Division for the second quarter rose by more than 70% due mostly to sales of the WinChock(TM) Uni-Level Vehicle Securement System."