Late Breaking Rail Industry News
| May 9, 2008 |
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The Florida Republican, often critical of Amtrak's fiscal and operating performance, notes that Amtrak’s Northeast Corridor (NEC) Acela service averages just 83 mph, and sets the "true high speed rail" average at 120 mph. Mica notes France's new AGV service averages 200 mph, while the "slowest Japanese Bullet train has an average speed of 125 mph."
The congressman is sponsoring H.R. 6004, based in large measure on an earlier proposal introduced last March by Mica (H.R. 5644), which would authorize the Secretary of Transportation to solicit proposals for massive upgrading and/or overhaul of the NEC, with a goal of two-hour service between New York and Washington, D.C. (Portions of this proposal have been incorporated into H.R. 6003.)
Under H.R. 6004, any NEC overhaul, in turn, would serve as a pilot project for other potential high speed rail routes elsewhere in the U.S. The bill outlines several expected benefits, including not just reduced travel times but also economic development, reduced air pollution, and reduced pressure on regional airspace in the Northeast.
"Amtrak, the state, and private entities would be able to participate in any of these proposals or even submit its own proposals," a statement from Mica’s office said. "We are hoping to attract some level of private investment to this initiative."
| May 9, 2008 |
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The $14 billion, five-year reauthorization includes about $1.34 billion per year for Amtrak's capital needs, along with $606 million per year for operations. Amtrak's fiscal year 2008 capital budget was $565 million.
The resolution also includes several provisions for advancing high speed rail development (or what some observers categorized as "higher speed" incremental rail approaches). Two such provisions include: the soliciting of proposals by the U.S. Department of Transportation to significantly upgrade and overhaul Amtrak's existing Northeast Corridor (NEC); and proposals for two-hour express service between New York and Washington through less-dramatic improvements to existing NEC infrastructure, such as catenary, signaling, and/or additional high speed turnouts.
In addition, about $345 million per year would be provided to states and/or Amtrak to finance facilities and infrastructure improvements, as well as passenger equipment, for projects improving speeds to 110 mph. States would have to provide at least 20% of a project's cost.
The bill also would establish a pilot program permitting freight railroads to partner with potential new passenger rail providers, and provide more than $400 million per year in matching funds that states could apply for to advance passenger rail improvements.
Notably absent is any mention of penalizing freight railroads for Amtrak's on-time performance problems. U.S. Sen. Frank R. Lautenberg, D-N.J., recently said the cost borne by Amtrak for such problems was as high as $111.4 million, citing a study conducted by USDOT's inspector general per Lautenberg’s request. The senator last October sponsored a bill empowering the Surface Transportation Board to investigate Amtrak delays and fine freight railroads held responsible.
| May 9, 2008 |
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The AAR reported 1,668,255 freight carloads originated in April, up 0.9% from April 2007. Intermodal originated traffic for the month of 1,117,511 units slipped 2.1% from the year-ago period.
Seven of the 19 major commodity categories tracked saw U.S. carload increases in April 2008 compared to April 2007, AAR said. Commodities showing carload gains in April 2008 included coal (up 5.3%), grain (up 20.6%), and chemicals (up 2.9%). Among decliners were motor vehicles and equipment (down 19.5%), coke (down 1 35.7%), and crushed stone, sand, and gravel (down 6.0%).
"The Bureau of Economic Analysis recently reported preliminary first quarter 2008 GDP growth was 0.6%. That's pretty low, of course, but it actually exceeded what some economists were predicting," said AAR Senior Vice President John Gray. "The fact that rail carload traffic was up in April is another indication that our economic situation, while still difficult, might not be as dire as some had thought."
Canadian traffic patterns were somewhat the opposite. Canadian rail carload traffic in April was down 6.2% versus April 2007; commodities showing carload declines included motor vehicles and equipment (down 21.7%) and lumber and wood products (down 30.9%). But Canadian intermodal traffic was up 3.5% in April compared with the year-ago month.
Carloads carried on Kansas City Southern dé Mexico were down 1.5% in April, while intermodal units increased 20.4%.
For just the week ended May 3, the AAR noted U.S freight carloading originations increased 2.1% over the corresponding week in 2007. Intermodal volume declined 3.7% during the week ended Mary 3 versus the comparable week a year ago. Total volume of 34.8 billion ton-miles was up 3.6% over the comparable week a year ago.
For Canadian railroads during the week ended May 3, carload freight declined 11.9% compared to a year ago, while intermodal rose 3.5%.
Kansas City Southern dé Mexico's performance during the week ended May 3 included a decline of 9.4% in carload freight, but an increases of 6.3% in intermodal traffic originated.
| May 8, 2008 |
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"Moving 8.5 million people per day without automobiles saves an enormous amount of carbon from entering the atmosphere," said MTA Executive Director Elliot G. Sander. "But it does result in some carbon emissions. We hope that by voluntarily reporting our emissions to The Climate Registry, we will better understand our environmental impact and therefore work more effectively at reducing it. We also hope that this initiative will contribute to the public's understanding of the role that mass transit plays in reducing carbon emissions."
New York State's Commission on Sustainability and the MTA last month issued a series of interim recommendations on ways the MTA could reduce its carbon emissions; MTA says its membership in The Climate Registry results from those recommendations.
MTA has agreed to measure, independently verify, and publicly report its greenhouse gas emissions on an annual basis using the Climate Registry General Reporting Protocol, which it says is based on the internationally recognized greenhouse gas measurement standards of the World Resources Institute and World Business Council on Sustainability.
| May 8, 2008 |
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Council members said the library's exclusion from the free zone, while courthouses and the state's capitol building were included, made little sense. "It seems ridiculous that it's not [free]," one city counselman said.
UTA says enforcement of an expanded free zone could be problematic and costly, since it would encompass part of the University TRAX line after it branches away from the north-south line to Sandy. But UTA also acknowledges that the introduction of electronic payment cards later this year could address some of the problems arising.
| May 8, 2008 |
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Chosen as possible routes are: a 3.5-mile line to the University District from Westlake Center, extending the South Lake Union line northeast via Eastlake Avenue East, the University Bridge, Northeast Campus Parkway and up University Way to Northeast 50th Street; a 4-mile line through downtown on First Avenue, connecting the King Street Station area and extending north to Seattle Center; a 4.4-mile line from Westlake Center to Fremont and Ballard, extending along the west side of Lake Union, across the Fremont Bridge and up Leary Way Northwest to 22nd Avenue Northwest and Northwest Market Street; and a 2.8-mile line from Pioneer Square to First Hill and Capitol Hill, extending up South Jackson Street from Fifth Avenue east to Boren Avenue and Broadway, as far north as East Aloha Street.
Construction of any or all of the proposed lines would require some form of public/private partnership, Seattle city officials have said, following the approach used to construct the South Lake Union line.
| May 7, 2008 |
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ARINC Incorporated won a contract to design and deliver a Centralized Electrification and Traffic Control System for the National Railroad Passenger Corporation (Amtrak) Northeast Corridor Operations. The project is part of a major Amtrak infrastructure improvement program for the Northeast Corridor. The new system will provide Amtrak with a capability to improve the efficiency of their train operations and energy management on the Corridor.
The new CETC system will be based on ARINC's Advanced Information Management AIM® software platform, with a fully redundant architecture supporting multiple control centers and their associated emergency back-up centers. It will have the capability to operate the entire Northeast Corridor from any of several centers located throughout the Northeast, and will support train dispatching from Washington D.C. to Boston.
In addition to Amtrak trains, the system will be used to dispatch freight traffic from Norfolk Southern and CSX Transportation and commuter trains from Southeastern Pennsylvania Transportation Authority (SEPTA), Maryland Area Regional Commuter (MARC), New Jersey Transit and Virginia Railway Express (VRE).
ARINC has designed and built rail operations centers and SCADA systems on the corridor for MBTA, Long Island Rail Road, Metro North Railroad, New York City Transit, New Jersey Transit, Conrail, SEPTA, Maryland MTA and WMATA.
| May 7, 2008 |
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Viterra Inc. will reduce emissions and traffic delays at its Pacific grain terminal in Vancouver with the acquisition of an N-ViroMotive™ GenSet locomotive from National Railway Equipment Co. The acquisition is being partially funded through the Government of Canada’s Freight Technology Incentives Program, which is designed to reduce Greenhouse Gas and air pollutant emissions in the freight sector.
In a recent two-week operational test, the two-engine, 1,400-hp GenSet 4-axle unit demonstrated superior tractive effort, fuel and emissions savings compared to Pacific’s existing 1,200-hp switch engine.
“Though we knew this engine was a big fuel saver with extremely low emissions, we were astonished at its tractive effort,” says Bill Mooney, Viterra’s Director of Terminals. “While using only one of the NREC locomotive’s two GenSets (700 hp), we could pull 28 loaded grain cars at a time from the staging tracks over a railroad grade crossing to our elevators, versus only 12 cars when using our 1,200-hp unit. This means we can cut the number of times we block that very busy crossing by one-half to one-third."
Mooney added that during unloading operations, Pacific was able to handle 18 cars compared to six with its existing switcher, thereby further reducing traffic interruptions at another road crossing. Mooney noted that reducing the frequency of grade crossings is important to the entire Port of Vancouver since there is very heavy container truck and other traffic. While reducing the time required to unload a train, the N-ViroMotive locomotive also significantly reduced noise in the local area.
| May 7, 2008 |
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Faiveley Transport, a company controlled by Faiveley SA and Sagard, has entered into exclusive discussions to purchase 100 percent of Ellcon-National and its affiliates. The company points out that this acquisition will be a key step for Faiveley Transport to penetrate the North American market and the freight brakes’ business.
Ellcon-National, founded in 1910 and based in based in Greenville, S. C., produces a wide range of products for freight cars such as brakes and loading devices, together with equipment for passenger rail cars including stainless steel doors and windows, for intercity and light transit vehicles.
Faiveley Transport, based in Paris, France, notes that, if it completes this transaction, it will be in a strong position to continue developing worldwide sales from this product range. It will also enable Faiveley Transport to ensure ongoing competitive production thanks to Ellcon’s solid industrial experience and extensive presence in the U.S. domestic market.
The Faiveley Group is a global supplier of railway systems and services, with technical expertise in air conditioning, electro-mechanics, on-board electronics, braking systems and couplers, platform doors and gates and customer services.
| May 7, 2008 |
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Alan E. Calegari has become new president and Chief Executive Officer of Union Switch & Signal, the U.S.-controlled company of Ansaldo STS, effective May 1.
Calegari, who holds a Ph.D. in Arts and Sciences from Loyola University and a Master of Arts from Harvard University, comes from Dedicated Micros Inc., a subsidiary of AD Group, a U.K.-based company manufacturing security equipment, where he held the role of president and CEO Americas, responsible for the business in the U.S., Canada and Latin America.
Previously, Calegari was president and regional head of the Security Division of Siemens Building Technologies, director general of the FIAT Business Unit and program director for Europe and Asia of Johnson Controls Automotive Systems Group.
Emmanuel Vollet, who has covered the role over the past few months until the appointment of a new CEO, remains at the company as chairman of the board of Directors.
| May 7, 2008 |
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Stella-Jones Inc. first quarter sales reached $66.2 million, an increase of $4.2 million, or 6.8 percent over last year's first quarter sales of $61.9 million. The contribution from the Arlington, Wash., facility for the full period in 2008, versus only one month in 2007, accounted for essentially all of this gain. The appreciation of the Canadian dollar, Stella-Jones' reporting currency, reduced the value of U.S. dollar denominated sales by approximately $5.0 million when compared with the same period last year.
Railway tie sales posted a strong 31.4-percent increase to $32.3 million, reflecting continued solid industry demand and increased supply capability, following the expansion of the Bangor, Wis., facility with the addition, in May 2007, of a treating cylinder that increased plant capacity by over 50 percent.
Gross profit in the first three months of 2008 reached $13.7 million, or 20.6 percent of sales, compared with $15.9 million, or 25.7 percent of sales in the same period in 2007. Net earnings were $5.3 million, or $0.42 per share, fully diluted, in the first quarter ended March 31, 2008 compared with $6.1 million, or $0.48 per share, fully diluted, in the corresponding period in 2007.
Subsequent to the end of the first quarter, on April 1, 2008, the company completed the acquisition of The Burke-Parsons-Bowlby Corporation, a producer of treated-wood products primarily for the railroad industry. BPB, which began operations in 1955, had sales of approximately US$100.0 million for the 12-month period ended December 31, 2007. This acquisition includes five treating plants located in DuBois, Pa.; Goshen, Va.; Spencer, W.Va.; and Stanton and Fulton, Ken. BPB further strengthens Stella-Jones' position in the North American railway tie market, establishing it as the second largest player, with an estimated market share of 25 percent.
| May 7, 2008 |
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RailAmerica, an operator of North American regional and short line railroads, named Clyde Preslar chief financial officer. Preslar assumes his current position with more than 25 years of experience in corporate finance, including 12 years experience as a CFO of publicly traded companies. Prior to joining RA, Preslar was the executive vice president and chief financial officer for Cott Corporation in Tampa, Fla. He also served as vice president and chief financial officer for Lance, Inc. in Charlotte, N.C. Preslar is an Elon College graduate and holds an MBA from Wake Forest University. He will be based in Jacksonville, Fla.
| May 7, 2008 |
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The Patrick Administration is launching a study to look at ways to expand rail freight transportation in Massachusetts, the local newspapers report. The study will include the first state rail plan in nearly two decades based on a review of all rail infrastructure and the relationship between freight and passenger rail on common lines.
Lt. Gov. Timothy Murray says the study is key to expanding commuter rail service while ensuring the efficient delivery of goods. He said the $1-million study will also put the state in a better position to obtain federal railroad funds. The study by the Executive Office of Transportation is expected to take 15 months to complete.
| May 6, 2008 |
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The new system will replace the current system that has been in operation for more than three decades. In addition, approximately 10,000 feet of track will be renewed along with the replacement of rail ties that will eliminate nearly 600 feet of existing slow zones and help to prevent future slow zones. The track work will require trains to be rerouted periodically from the Lake and Wabash stretches of elevated track to the Wells and Van Buren elevated tracks. Customers can expect these types of reroutes through Thanksgiving 2008. As weather permits in early 2009, crews will begin work on the Wells and Van Buren elevated tracks, requiring trains to be rerouted to the completed Lake and Wabash tracks. The project is scheduled to be completed in 2009.
A new signal and train control system will be installed at the Loop junctions of Van Buren/Wabash and Lake/Wells. These are two of the busiest junctions on CTA’s rail system. Approximately 115,000 customers travel through the junction at Lake/Wells on a typical weekday and 79,000 through the junction at Van Buren/Wabash. The new systems will help to improve the reliability of service by regulating train movement, speed and intervals at those junctions.
As part of the Loop project, the current signal system will be replaced with a modern automatic train control signal system. A portion of the bridge control system that operates the Lake and Wells Street bridges also will be upgraded.
| May 6, 2008 |
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"We commend Minister Cannon and his colleagues for helping us improve the environment in the communities we serve," said McQuade. "The Government of Canada's ecoFREIGHT program helps us test and prove innovative products sooner."
Canadian Pacific has ordered two high efficiency National Railway Equipment Company GenSet locomotives. Instead of one 2,100-horsepower diesel locomotive engine, they use three independent diesel engine GenSets to achieve the same amount of total horsepower. Overall, the technology aims to achieve significant fuel savings, ultra-low emissions and longer engine life.
Canadian Pacific's emissions per Revenue Ton Mile have decreased almost one quarter (24.1 percent) since 1990 while RTMs have increased 37.4 percent over the same period. Additionally, CP has equipped three-quarters of its existing locomotive fleet with automatic engine start/stop technology, which reduces emissions from idling locomotives.
| May 6, 2008 |
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BNSF is committed to helping local and state law enforcement work with drivers to change unsafe behavior at grade crossings. Some of these programs include:
- Operation Lifesaver - safety educational courses targeted for "high-risk" populations, including industrial truck drivers, school bus drivers and new drivers
- Officer on a Train - law enforcement professionals observe motorists’ and pedestrians’ behavior at railroad crossings, either watching from a locomotive cab or from the ground at the crossing
- Roll Call - a law enforcement program that reinforces prior training and the importance of enforcing grade crossing safety laws
"One way to address grade crossing safety is to reduce the number of at-grade crossings," says Lyn Hartley, director of public projects, Engineering. "So far this year, BNSF has worked closely with communities and private land owners to close more than 154 grade crossings. We’re ahead of plan, with a goal of 450 closures by the end of this year."
"The most important reason focus on grade crossing safety is to save lives," said Rick Flink, regional manager, Field Safety Support. "Although pedestrian and trespasser casualties were reduced to 29 so far this year from 32 in 2007, we will continue to focus on keeping people off of the right of way. Education and enforcement programs have led to the decrease we’ve seen so far, but we need to get these down to the lowest levels possible."
| May 6, 2008 |
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"Union Pacific Railroad stepped up with a smart next step to battle urban pollution: its commitment to developing and then operating cleaner, energy-efficient 'Genset' switching engines deserves recognition," said John Boesel, President and CEO of CALSTART.
Union Pacific Railroad’s Genset serves as successor to the first-generation diesel-battery hybrid switching locomotives, and can be a platform for future generations of hybrid switching locomotives incorporating energy storage technologies. Genset is expected to reduce emission of oxides of nitrogen and particulate matter by up to 80 percent and achieve a similar 16 percent reduction in fuel consumption. The company successfully deployed 160 engines in 2007.
"Union Pacific is committed to moving freight safely and more efficiently to reduce the environmental impact on the communities in which we operate," said Jim Young, chairman and CEO, Union Pacific. "We are honored to receive The Blue Sky Merit Award™ for work on the Genset locomotive and other environmental efforts which reflect our employees' vision and creativity in generating solutions that have a long-term positive impact on the transportation industry."
| May 6, 2008 |
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Japan is pursuing a program called Dual Mode Transport II in which, by utilizing the RoadRailer technology, the country would improve its freight structure and reduce pollution and green house gases. A national demonstration of the RoadRailer technology will take place in Japan this June.
"Wabash National is pleased to be working with Japan's Shiga Transport," said President and CEO of Wabash National Dick Giromini. "This is a great opportunity for Wabash National to globally expand the benefits of RoadRailer technology, and enable Shiga Transport to provide Japan with this innovative technology as the country focuses on better utilizing its railroad infrastructure."
| May 6, 2008 |
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The winners of the Railway Age Short Line Railroad of the Year Award, Twin Cities & Western Railroad, and the Railway Age Regional Railroad of the Year, South Kansas & Oklahoma Railroad, were also honored at the meeting.
| May 5, 2008 |
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The unit leases 165,000 railroad cars and 120,000 trailers and containers. GE declined to comment on the report, the FT said.
GE's effort comes as CIT Group Inc., the commercial and consumer finance company, is also quietly seeking a buyer of its CIT Rail business, according to people familiar with the sale process, the newspaper said. CIT Rail owns and leases a fleet of more than 100,000 rail cars and 500 locomotives across North America.
| May 5, 2008 |
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"CSX's Board of Directors has driven extraordinary shareholder returns, financial and operational performance, and excellence in corporate governance and offers a compelling future outlook," said Michael J. Ward, CSX chairman, president and chief executive officer. "We look forward to meeting with CSX investors to discuss our track-record of success and concrete plans to continue to create value for all shareholders. We believe that the block of TCI group nominees, if elected, may seek to implement an agenda that would damage CSX's future success and returns to shareholders."
The CSX Board of Directors recommends that shareholders re-elect its experienced and highly qualified directors and support the Board's efforts to create additional value by promptly voting the WHITE proxy card by telephone, Internet or mail. CSX also strongly urges shareholders to disregard any blue proxy card sent by The Children's Investment Fund ("TCI") or other members of TCI's group, including 3G Capital Partners.
The investor presentation is available in the "Investor Presentation" section of the company's annual meeting website at 2008annualmeeting.csx.com or at the SEC's website at www.sec.gov.
| May 5, 2008 |
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The railway's new program has created problems for the Canadian Wheat Board and five small grain companies, the Canadian Transportation Agency said in an April 30 letter. But the agency said there was not enough evidence to show the shippers or farmers suffered irreparable harm from the program, which allows shippers to order cars to specific elevators up to 16 weeks in advance.
The shippers have been involved in a formal service complaint against CN. The Canadian Transportation Agency ruled in January that CN failed to provide adequate service to grain shippers last year, but said it is still evaluating the railway's service for the current year.
| May 5, 2008 |
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The jumbo hopper barge was freed about 63 hours after it became wedged against the BNSF Bridge at Burlington, Iowa. Line boats and towboats were used to free the barge and help push it upriver. There appeared to be damage to the barge's fiber lift covers and a hole at its base.
Damage to the bridge was minimal, and the track itself was not affected, said BNSF spokesman Steve Forsberg. Rail traffic had to be shut down for 35 hours after the barge strike, backing up more than 100 trains.
Amtrak rerouted a leg of its California Zephyr, which runs from Chicago to San Francisco. Freight trains were held until the bridge reopened.
The accident remains under investigation, the Coast Guard said.
| May 5, 2008 |
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Proximity to rail lines was a key factor in the decision of Danish firm Vestas Wind to locate an $80-million blade manufacturing plant that opened earlier this year in Windsor. And rail access also was a primary criterion in Dragon Wind's choice of Lamar as the site of its $15-million wind-turbine tower factory scheduled to open later this year.
Even without the promise of new business from the wind-energy industry, Colorado is a hub for the nation's two major rail haulers, Union Pacific and BNSF. They carry a combined workforce of 2,800 employees in Colorado, with a total payroll of more than $200 million. Their 2,300 miles of main line Colorado track handle 2.9 million carloads of freight a year. Central Denver is anchored by a main rail line and a series of railyards with dozens of spur tracks where incoming and outgoing trains sort their cars according to their ultimate destination.
"Rail is taking on surprising new turns," said Tom Clark, executive vice president of the Metro Denver Economic Development Corp. "Obviously, it has been a major player with coal and other products, but the advent of the wind industry has added a whole new element."
Clark said rail infrastructure in Colorado has become a key part of economic developers' recruitment efforts that target wind-energy manufacturers and other businesses.
Record high energy prices — especially for diesel that fuels locomotives — have hit railroads as hard as any other transportation sector. But rail's ability to handle trains with hundreds of cars gives it an efficiency advantage compared with tractor-trailer freight. Locomotive fuel efficiency has increased 80 percent since 1980, according to BNSF spokesman Steve Forsberg. On average, a train can carry a ton of freight for 423 miles on a gallon of fuel. The efficiency comes from running steel wheels on steel track — producing only one-tenth has much resistance as a rubber tire on pavement.
In addition to rail giants UP and BNSF that dominate Colorado's rail freight network, smaller short-haul lines such as investor Pat Broe's Great Western Railway help funnel business to the main lines. Vestas Wind's turbine blades — up to 144 feet long — are being carried via Great Western from the Windsor plant to main lines operated by BNSF and UP for eventual distribution to wind farms. On the other end of the distribution chain, Dragon Wind will use rail to receive shipments of steel plates that will be shaped into wind-turbine towers.
| May 2, 2008 |
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The ETCS ATLAS was designed at the Alstom sites at Charleroi in Belgium and Villeurbanne in France. Deutsche Bahn and Alstom staff will carry out the onboard installation and integration of the control systems at the operator’s workshops
ICE3 trains run on cross-border rail lines linking Frankfurt to Amsterdam, Brussels and Paris. They currently are equipped with nine different control systems. ATLAS technology initially will be installed alongside existing systems, which subsequently will be phased out.
"Alstom offers a simple and proven solution allowing ICE3 to circulate in four countries with a unique train control system. With this new ETCS order, Alstom confirms its position as leader in the field of train interoperability on the European network," said Roland Kientz, North Europe senior vice president for Alstom Transport.
| May 2, 2008 |
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The STB recently determined that the railroad cost of capital in 2006 was 9.4%, down from 12.5% in 2005. This means that several railroads appeared to have returns on investment exceeding the cost of capital, and were therefore "revenue adequate."
The AAR says the proposed new method of determining revenue adequacy would be more in tune with modern financial practice.
"Until now," the association pointed out, "the agency has used the depreciated book value of a railroad's assets to determine its capital investment base. As a result, railroads' revenue needs have been understated. Using replacement costs--instead of book value--to determine revenue adequacy should result in a more accurate estimate of the revenues railroads need to maintain the industry's capital-intensive network and expand rail infrastructure."
The AAR noted that a recent study by Cambridge Systematics found the industry needs to invest $148 billion in new infrastructure during the next three decades in order to meet the anticipated transportation needs of the national economy.
| May 2, 2008 |
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Richard J. Jarosinski, president and Chief Executive Officer, said, "We are pleased with our financial results for this period, despite our sales level being affected by a slower roll-out of new orders by our Canadian and United States Class I railroad customers. Challenging weather conditions in the current quarter also delayed the start-up of many of our customers' capital expenditure and track maintenance programs. Our earnings growth in the current quarter reflects lower administrative expenses, a better product mix, and lower interest expense."
At noon Friday, shares of Portec traded at $12.00, down 1%.
| May 2, 2008 |
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The Center for Community Action and Environmental Justice, a coalition of groups, made its request April 24; the board has 30 days to respond to the petition. A board spokeswoman said ARB is reviewing the petition, but stressed "there is no question that ARB cannot set emissions standards for locomotives."
At the board's most recent meeting April 24, Mike Barr, attorney for the Association of American Railroads, disputed the petition's assertions. "The MOU has produced reductions very quickly and effectively, far more than regulations could have done," he said.
Under a 2005 memorandum of understanding, freight railroads agreed to cut particulate matter emissions at railyards in California. The MOU required idling reduction devices on California-based locomotives within three years, a phase-out of non-essential locomotive idling, identifying and repairing locomotives that emitted excessive smoke, and increasing the use of ultra low-sulfur diesel fuel.
The environmental groups say the Air Resources Board's own 2007 and 2008 health risk assessments, conducted at railyards, show that the policy hasn't been effective, citing increased cancer risks at those locations.
| May 1, 2008 |
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Intermodal freight declined 4.4% from a year ago, to 224,365 trailers and containers. The Association of American Railroads estimated total volume at 34.7 billion ton-miles, up 1.8% from 2007.
In Canada, carload traffic in the latest week totaled 76,896 cars, down 6.2% from a year ago, and intermodal volume totaled 48,556 units, up 2.2%. Kansas City Southern de Mexico carload traffic fell 12.9% to 10,629 cars, but intermodal volume was up 23.9% to 5,345 units.
| May 1, 2008 |
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Trinity said the current backlog reflects the removal of 1,970 cars "due to uncertainty surrounding the bankruptcy of the customer that ordered them." These cars had been scheduled for delivery in 2009. In this year’s first quarter, TrinityRail shipped 6,010 cars and received firm orders for 4,080 cars.
A surge in business for its other groups--Energy Equipment, Inland Barge, and Constriction Products--permitted Trinity to report corporate earnings of $65.6 million for the first quarter, up $59.1 million in the corresponding 2007 period. The price of Trinity shares increased 12% in midafternoon trading Thursday.
| May 1, 2008 |
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President and CEO Chris Ragot said first-quarter results were significantly impacted by "decreasing volume levels and pricing pressure in our industry." He said the rising cost of manufacturing materials led the company to "selectively forward purchase materials to defray the price increases," affecting cash flows for the quarter.
"The current operating environment further validates our decision to optimize our manufacturing footprint and flexible process engineering techniques, as well as to increase our cost reduction efforts across all levels of our organization," said Ragot. "We remain confident that our strategy will prove successful over the long term as we continue to navigate through this difficult phase of our industry cycle."
He said FreightCar America received orders for 2,396 new cars in the first quarter of 2008, compared with 2,074 in the fourth quarter of 2007 and 768 in the first quarter of 2007. The backlog of unfilled orders was 6,785 units on March 31, 2008, compared with 5,399 on Dec. 31, 2007, and 5,007 on March 31, 2007.
| May 1, 2008 |
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Train accidents were down 10.1% to 388 in January-February this year, according to preliminary statistics posted April 30 on the Federal Railroad Administration’s website. The number of collisions increased 29.6% to 35, derailments declined 14.0% to 382, and yard accidents were down 8.5% to 204.
Track causes were blamed for 136 train accidents, down 15.5% from last year; human factors, 134, down 5.0%; equipment causes, 53, down 17.2%; signal causes, three, down 57.1%; and miscellaneous causes, 62, up 5.1%.
| May 1, 2008 |
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Parsons was one of three contractors bidding on the light rail line's second phase of development. Metro in May 2007 awarded a $77.3 million contract to Washington Group International for Phase I development work of the East End project.
| May 1, 2008 |
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State Senate Transportation Chairman Carey Baker April 30 moved to strip the issue from the state Senate's transportation bill due to concerns about liability and various amendments being attached to the measure. Later the same day, however, backers of the project said language might be restored when the bill goes to the state House; if the House approved the measure, the Senate would revisit the issue on a straight yes-or-no vote.
The political maneuvering affects not just the $641 million agreement with CSX but the state's overall transportation program, including a proposed rental-car surtax to pay for commuter rail in both central and south Florida, and a 25% increase in Florida's Turnpike tolls.
In a letter last week, Florida Chief Financial Officer Alex Sink encouraged legislators to review the state's agreement with CSX, recommending a revision of the clause mandating that any state-run commuter operation to pay for the cost of accidents involving commuter trains and passengers, even if CSX were at fault. The agreement in part calls for CSX to pay the state $10 million per year to use the commuter rail line up to 12 hours per day for its freight trains.
| May 1, 2008 |
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Interested parties must attend a May 19 pre-proposal meeting to qualify as bidders. Proposals will be accepted by the transit authority until June 30. Contractors can obtain more information through the authority's website, www.bjcta.org/index.php?id=166.
The proposed route would begin at the intermodal facility on Morris Avenue and wind through the city, passing cultural hotspots, such as the Birmingham Museum of Art and the Birmingham-Jefferson Convention Complex.
City and transit authority officials may travel to Milan, Italy, to view Peter Witt-style heritage streetcars in operation there; Birmingham is mulling use of such cars for its project.
| April 30, 2008 |
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A letter from CSX Chairman, President, and CEO Michael J. Ward dated April 30 accompanied the “definitive proxy materials” that went to CSX shareholders, and its opening paragraph stated the railroad’s strongest argument for maintaining things the way they are: “On April 15, 2008, your company extended its track record of outstanding performance, announcing record-breaking first-quarter earnings. CSX reported an increase of 63% in earnings per share over last year and affirmed industry-leading expectations for shareholder value creation.”
The proxy material of the challengers—the Children’s Investment Fund (TCI) and other members of its group, including 3G Capital Partners—took the form of a 79-page white paper that implicitly acknowledged the strides the company has made, but suggested that the company is riding a wave of prosperity that is carrying all railroads to higher profits, but is trailing most of its peers in key operating and financial measurements. The “white paper” also says CSX’s current board does not have enough rail operating experience, which the hedge funds’ proposed slate of directors would remedy; and it concludes with an attack on CSX’s capital improvement spending, which the challengers think is absorbing profits that should be going to shareholders.
CSX’s owners will decide at their meeting on June 25 whether they want to stay the course or change direction.
| April 30, 2008 |
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In March 2008, 348,997 people took Tri-Rail trains, up from 306,783 in 2007. On April 29, Tri-Rail carried 15,504 passengers, one of the highest ridership days on record and the ninth day in 2008 that ridership has exceeded 15,000.
SFRTA says its Employer Discount Program, which has more than 3,000 members, has contributed to the increase. Employees of companies who register for the free program can purchase a monthly ticket for unlimited rides for just $60 a month.
| April 30, 2008 |
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“After a strong fourth-quarter surge in orders last year, demand for railcar equipment moderated in this year’s opening quarter,” EPA said in a report issued yesterday. “Still, the 10,500 units ordered in the first quarter indicated that the railcar sector retains a degree of resiliency in the face of a rapidly deteriorating economy. Even with the evaporation of some prior orders from backlogs and with assemblies running at 14,200 cars and intermodal platforms in the first quarter, backlogs at the end of March amounted to 65,200 units, representing 4.6 quarters of deliveries at current production rates.”
EPA said that though its long-term carbuilding outlook is “extremely constructive,” it is “wary of the short term implications of our sagging economy.” This observation is largely based on cancellations of orders for 4,850 intermodal platforms, 1,250 tank cars, and 920 hi-cube covered hoppers in 2008’s first quarter. As well, EPA said it is closely monitoring reports of parked new DDG (distiller’s dried grain) cars and ethanol tank cars, but “the ongoing thrust to rapidly expand ethanol production should continue to stimulate demand for this equipment longer term.”
EPA said backlogs for coal cars and medium size covered hoppers “appear relatively solid, since demand for this equipment is not as economically sensitive as would be the case for most capital equipment. At the same time, we are noting a strong pickup in grain movements that could support medium sized covered hoppers this year and next.” Other car types—boxcar, mill gondola, non intermodal flat car, and small-cube covered hoppers—have low backlogs, and EPA said it “is not anticipating any meaningful level of assemblies for these cars either this year or next.”
Based on the first-quarter cancellations, EPA has lowered short-term railcar production estimates to 51,500 units (including intermodal equipment) for this year and 49,800 units in 2009. After 2009, “replacement pressures will be mounting among the boxcar, mid-sized and small-cube covered hopper, and multi-level flat car (autorack) fleets,” EPA said. “At the same time, good growth in customer markets will propel demand for centerbeam flats, high-cube covered hoppers, tank cars, intermodal equipment, and coal cars. More stringent regulations will also speed up the replacement of older cars carrying certain industrial chemicals, gases, and liquid fertilizers.”
Beginning in 2010, EPA is predicting an upsurge in coal cars, Class F flat cars, intermodal platforms, and boxcars. This should boost overall deliveries to 53,300 units in 2010 and 56,300 cars in 2011. Deliveries should then increase to 59,000 units in 2012 and 60,500 in 2013.
| April 30, 2008 |
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| April 30, 2008 |
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The high speed system is a turnkey project involving infrastructure (including seven stations), electrification, ERTMS Level 2 signaling and train control, and rolling stock and maintenance. Alstom’s share of the contract, which includes project management and engineering, rolling stock, and signaling and communications, is valued at around €1.1 billion. Alstom will manufacture the system’s eight 200-mph, 509-person-capacity TGV Duplex (bilevel)-type trainsets in France and perform final assembly at its Argentine facilities in La Plata (province of Buenos Aires) and Rio Tercero (province of Cordoba). Financing, which is expected to be finalized within the next few months, will be provided by the French bank Natixis.
Alstom’s project partners are Iecsa, Isolux Corsan, and Emepa. Iecsa will be responsible for civil engineering with Isolux Corsan, which will also supply electrification. Emepa, Alstom, and Iecsa will handle right-of-way construction, which will occur two phases, Buenos Aires-Rosario and Rosario-Cordoba. Construction is scheduled to take four years.
| April 30, 2008 |
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At the upgraded data center, all production and backup servers have been upgraded to the IBM POWER6™, which is capable of running Unix, Linux, IBM, or Windows operating systems on the same platform. The production system utilizes RAID 10 disk mirroring, making all customer data fully redundant. Data is mirrored to the disaster recovery data center, where all processing power, disk storage, and data communications capabilities are duplicated. The POWER6 is described as “a highly virus-resistant server that integrates a relational database, security, web services, networking, and storage management capabilities for maximum system security.”
The backup facility includes redundant POWER6 servers, a natural gas powered generator, and a 10MB wireless internet connection.
| April 30, 2008 |
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The GM Supplier of the Year award began in 1992. Award winners are selected by a global team of executives from purchasing, engineering, manufacturing, and logistics who base their decisions on supplier performance in quality, service, technology and price. This year, GM honored 97 suppliers; UP was the only railroad selected.
| April 29, 2008 |
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"The growth in annual per capita transportation spending between today’s levels, as reported in the near-term Transportation Improvement Programs, and the long-range plans is relatively modest: 24% per capita," said ULI in its analysis of the survey. "However, there is an enormous difference between highway plans--expected to grow at a modest 9%, and transit plans, which enjoy 52% expansion."
ULI said the seven regions with the most extensive transit systems and highest transit use "plan to increase transit spending by $6 billion annually to $16.5 billion, compared to a very modest increase in highway spending, from just under $9 billion to slightly over $9 billion." (This does not include Chicago, which does not publish the split between highways and transit.)
The survey was conducted for ULI last month by Hartgen Associates.
| April 29, 2008 |
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Members of the consortium include Alcatel Lucent, Atel Installationstechnik, Thales Rail Signaling, Alpine Bau, and Balfour Beatty Rail. The tunnel is scheduled to be ready for commercial operation in 2017.
| April 29, 2008 |
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The long-planned privatization of Germany's last major federally owned enterprise has stirred considerable controversy, with liberal members of the coalition fearing it will have adverse effects on service and workers.
| April 29, 2008 |
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BNSF's results also demonstrated the importance of recovering a major portion of increased fuel costs through fuel surcharges. BNSF paid $1.009 billion for diesel fuel in the first quarter, exceeding the $983 million that it paid employees in compensation and benefits. The fuel bill was $357 million higher than in the 2007 quarter. The increase in fuel surcharges was $280 million.
BNSF's first-quarter freight revenue increased $599 million, or 17%, to $4.14 billion. Agricultural volume growth contributed to the increase as well as the fuel surcharge.
"Looking forward, we continue to be optimistic about the long-term prospects for Bans and are poised to meet increased demand as the economy strengthens," said Rose.
In midday trading on the New York Stock Exchange Tuesday, BNSF stock was at a new 52-week high of $102.50.
| April 29, 2008 |
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CAGY, based in Columbus, Miss., currently owns the Columbus & Greenville Railway and the Luxapalila Valley Railroad (both also based in Columbus, Miss.), as well as the Chattooga & Chickamauga Railway, headquartered in Lafayette, Ga. The three properties employ 48 people, own and operate a fleet of 22 locomotives, own and lease more than 280 miles of track, and collectively expect to haul more than 26,000 carloads of freight traffic during the next 12 months.
In a statement, GWI Chief Executive Officer John C. Hellmann said, "With the support of local communities, customers and employees, CAGY has succeeded in revitalizing its rail infrastructure and substantially increasing rail traffic. The addition of CAGY to GWI will expand our already significant presence in the southeastern United States and further diversify our commodity base. We are pleased that Roger Bell, who has been the architect of CAGY's success as president and CEO, will continue to lead the rail operations as part of the GWI family of railroads."
| April 29, 2008 |
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GWI's first-quarter revenue grew 12.5% to $140.7 million from $125.1 million from a year ago. The company's operating ratio was 84.9% in the first quarter, compared with 81.3% in the first quarter of 2007.
Much like Class I railroads CP and CN, G&W cited record snowfalls and related weather problems in Canada for its first-quarter difficulties. GWI also noted that freezing and subsequent flooding of the Illinois River in Illinois hampered transloading of coal from rail to barge; the company "expects to recover a portion of the Illinois coal traffic in the second quarter of 2008," it said in a statement.
"Despite a tough start to the year and a weak North American economy, our outlook for the remainder of 2008 is positive. We expect to recover a portion of the lost winter shipments and we have new customers coming on-line in our Oregon, Southern and Rail Link Regions starting in the second quarter of 2008," said John C. Hellmann, the railroad's chief executive. "In addition, we expect a significant increase in our free cash flow over the remainder of 2008."
| April 29, 2008 |
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| April 28, 2008 |
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"I respectfully encourage you to limit the liability provisions and prevent future negotiations from happening under the cover of darkness," Sink wrote, adding that the state's Department of Transportation "has claimed they were successful during negotiations with CSX, but Floridians have been given a take-it-or-leave-it plan at the 11th hour."
FDOT and CSX signed the $641 million deal last year for a 61.5-mile commuter line between DeLand and Poinciana that would begin operating in 2010. Florida would buy the rail line, while CSX would devote funds to a new Winter Haven rail hub; as a tenant, CSX would pay the state $10 million per year to use the commuter rail line up to 12 hours per day for its freight trains.
Sink is the lone Democrat on the three-member Florida Cabinet. Her office oversees the state's risk management, payroll, and contracting.
| April 28, 2008 |
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The District of Columbia Office of Contracting and Procurement (OCP) has announced its search for a contractor to provide all labor, materials and equipment for the construction of the line and an operation and maintenance facility. An Invitation for Bid (IFB) was made available April 25. A pre-bid meeting is scheduled for May 8, 10:00 a.m., at the Edna Frazier Cromwell Community Room, 2nd Floor, Reeves Center, 2000 14th Street, NW, in Washington. More information is available at OCP's website, www.ocp.dc.gov/ocp/site/default.asp.
The Anacostia line extends from the Anacostia Metro Station to Bolling Airforce Base along Firth Sterling Avenue and South Capital Street. Four stations are planned; Anacostia Metro Station, Barry Farm, Naval Annex, and Bolling Air Force Base.
Other streetcar proposals in the D.C.-metro area, such as in Arlington, Va., are being advanced; all lie outside the city's capitol district, due in part to perceived restrictions, the exact nature of which have been debated, on overhead wires there.
| April 25, 2008 |
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Since CN and its subsidiary, Grand Trunk Corp., filed the application, the STB has been busy determining the scope of an Environmental Impact Study anxiously awaited by dozens of Chicago-area communities that fear a heavy increase in rail traffic.
In the application filed last Oct. 30, CN said it plans to build six new rail connections and approximately 19 miles of siding extensions and second main line track if it wins control of EJ&E, a Class II railroad that operates approximately 200 miles of track in northeastern Illinois and northwestern Indiana.
In its April 25 decision announcing availability of the Final Scope of Study for the EIS, the board said that during the scoping period it received a total of 1,347 comments from the approximately 2,600 individuals who attended 14 public scoping meetings in the Chicago area, plus 1,268 letters of comment, 219 oral comments on the Section of Environmental Analysis (SEA) information line, and 858 individual comments filed electronically on the STB's website.
Intense interest has been aroused by CN's plan to shift its trains to the E&E line from existing CN routes when approximately $100 million worth of capital improvements are completed, including new rail connections at the Illinois towns of Munger, Joliet, and Matteson, and the Indiana towns of Griffith, Ivanhoe, and Gary.
"In reviewing the proposed acquisition, the board will consider both the transportation merits of the proposed acquisition and the potential environmental impacts," said the STB. "Based on the information provided in the application, concerns raised regarding possible impacts of the proposed acquisition on communities, and consultations with SEA, the board decoded to prepare a full EIS. The EIS will include all of the environmental information necessary for the board to take the hard look at environmental consequences required by NEPA (the National Environmental Policy Act)."
STB said the EIS will examine "reasonable and feasible alternatives to the proposed acquisition" and "alternative locations or configuration for the new connections," as well as impacts on safety. Among numerous other considerations, the effect on Amtrak operations will be examined.
| April 25, 2008 |
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LIRR says it has committed $46 million on gap remediation, including options such as shifting or altering existing platforms.
"Customer safety remains our highest priority, and this latest effort, along with our ongoing 'Be Train Smart' public education campaign, will go a long way toward addressing the gap issue," LIRR spokesman Joe Calderone said.
LIRR's parent, the Metropolitan Transportation Authority, last Wednesday approved a $9.4 million contract with Bombardier Transportation to install plates on 836 M-7 electric trains by 2010.
LIRR also is awaiting formal approval from Amtrak to shave down certain sections of the platforms at New York's Pennsylvania Station, where both railroads and New Jersey Transit share facilities, to assure clearance of trains with the new plates.
| April 25, 2008 |
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FrontRunner is offering free rides to the public through April 30. After that, monthly passes will cost $145, with passes interchangeable with Utah Transit Authority express bus services. UTA is projecting about 5,900 daily riders initially, rising to 13,000 by 2020.
| April 25, 2008 |
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The funding is contingent upon accord with local and state transportation officials, and would be channeled through Los Angeles County. Board members of the county's Metropolitan Transportation Authority met Friday to consider adopting a memorandum of understanding with the U.S. Department of Transportation.
Under the plan, time-of-day pricing would be used for determining tolls; single-occupant vehicles likely would be allowed access for a premium price. The proposal also would use some of the federal funding for purchasing 60 "high-volume" buses that would use the new toll lanes, freeing up MTA funds identified for such a purchase to be used for creating the toll lanes instead.
"We feel it's important for the public to feel this and taste it," Tyler Duvall, acting undersecretary at the U.S. Department of Transportation, said earlier this month. "L.A. is a national interest area, and it's important in our view to get [congestion pricing] on the ground and demonstrated to everyone."
USDOT's role in the LA proposal is in keeping with a statement made by Secretary of Transportation Mary Peters April 7, the day New York City's congestion pricing plan was effectively turned down by the New York State legislature. "We will engage with many of the largest cities in the United States that have put forward ambitious traffic fighting plans to discuss how they could use this money to cut traffic, improve transit, and improve pollution," said Peters.
| April 24, 2008 |
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Intermodal freighter was down 3.2% from a year ago, to 224,112 trailers and containers. The Association of American Railroads estimated total volume at 34.9 billion ton-miles, up 3.9% from 2007.
In Canada, carload traffic in the latest week totaled 785,135 cars, down 5.0% from last year, and intermodal volume totaled 49,942 units, up 2.5%. Kansas City Southern de Mexico carload traffic increased 0.6% to 10,827 cars, while intermodal volume was up 11.7% to 5,219 units.
| April 24, 2008 |
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In a conference call with analysts, Chief Financial Officer Rob Knight said fuel costs "will be a challenge to earnings throughout the year." The average fuel price in the first quarter was $2.84 per gallon, including transportation and taxes, compared to $1.93 in 2007. Knight said UP has recently been paying around $3.40 per gallon for fuel, up from $2.30 one year ago.
In a prepared statement accompanying the earnings release, UP Chairman and CEO Jim Young commented: "Although we expect continued challenges from a soft economy and high diesel fuel prices in the second quarter and beyond, we’re confident about our future. Union Pacific's ongoing focus on yield, productivity, and service should result in a record 2008."
| April 24, 2008 |
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KCS revenue in the first quarter grew nearly 10% to $450.6 million, operating income increased 15% to $83.4 million, and the operating ratio, 81.5%, was nearly one point better than last year.
"We are encouraged by the year-over-year improvement in KCS's operating ratio, especially in the face of significantly higher fuel expenses and weather conditions which provided operating challenges throughout much of the first quarter," said Chairman and CEO Michael Haverty. "Tighter operating discipline contributed to our stronger operating performance, which was evidenced by improved trends in train velocity and terminal dwell time in the first quarter. In addition, the integration of approximately 180 new locomotives into our network fleet has resulted in significant improvement in locomotive availability over the last few months."
| April 24, 2008 |
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First-quarter revenue increased 15% to $289.2 million from $251.4 million in the prior-year period.
GATX shares were up 7.7% in Thursday afternoon trade following the company's report; analysts had expected earnings per share of 68 cents.
The company said its rail segment profitability was due to higher third-party asset sales, scrapping, and higher European earnings. These factors were partially offset by a continued rise in maintenance costs and overall slowing U.S. demand for rail cars.
| April 24, 2008 |
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Shares of the company fell sharply Thursday, and remained down more than 20% in early afternoon trade. Wall Street's negative reaction was attributed in part to an analyst's note that the company's order backlog declined 11% and its bookings fell 23%.
The company said its net income for the three-month period rose to $6.3 million, or 57 cents per share, from $3.1 million, or 29 cents per share in the comparable period. L.B. Foster credited increased billing margins, manufacturing cost improvements and lower warranty expenses for the results.
| April 24, 2008 |
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Income from operations increased 28% to $54 million, which Wabtec said was due to benefits from the company's Performance System and operating leverage from higher sales. Wabtec said its multiyear backlog as of March 31 was $1.1 billion, 11% higher than reported Dec. 31, 2007, even with the record sales quarter.
The company increased its 2008 earnings guidance to about $2.55 per diluted share, with revenue now expected to grow at a high-single-digit rate, despite an expected decline in the production of new freight cars in the U.S. for the second year in a row. Previous guidance was for earnings per diluted share of about $2.50 on mid-single-digit sales growth.
At midday Thursday, shares of Wabtec traded at $42.21, above the company's 52-week high of $41.99.
In a statement, Albert J. Neupaver, Wabtec’s president and chief executive officer, said, "Our strong start in 2008, with impressive growth in transit and our freight businesses performing well at a high level, gives us the confidence to increase our guidance for the year. Although we believe it's prudent to remain cautious about the potential impact of an economic slowdown in the U.S. and abroad, we are optimistic about our future growth opportunities as we continue to pursue our strategic initiatives aggressively."
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