Late Breaking Rail Industry News
| February 10, 2009 |
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NJT has issued requests for proposals, according to Executive Director Richard Sarles, who observed, "Certain areas [of the NJT rail network] need quick acceleration" provided by EMU equipment, such as on stretches of right-of-way with short intervals between stations. NJT's 230 Arrow III cars were last rebuilt beginning in the late 1980s.
Sarles said any EMU order would be funded through the state Transportation Trust Fund.
Not clear at this point is whether the order will include diesel units, with the "D" units allowing train consists to travel in both electrified and diesel rail territory; two major NJT routes, the North Jersey Coast Line and Boonton/Montclair Line, are electrified only in part, requiring NJT to operate both electric and diesel consists.
| February 10, 2009 |
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Minus those acquisitions, GWI's same-railroad traffic in January 2009 fell 9.4% compared with the year-ago period. The company said the decline was largely due to falloff in pulp & paper, metals, and lumber & forest products traffic.
| February 10, 2009 |
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Metro-North's East-of-Hudson rail operations claimed on-time performance of 97.5%, the fourth year on-time performance has logged 97.5% or greater. Metro-North's West-of-Hudson on-time performance was 96.9% on the Pascack Valley Line and 94.7% on the Port Jervis Line, both of which traverse through New Jersey to points in Rockland and Orange counties in New York.
"We are very proud that Metro-North's performance continues to reflect the MTA's core commitment to provide high quality customer service," said MTA Executive Director Elliot G. Sander.
"The consistent level of fine service that Metro-North employees provide is even more telling when you consider that the number of employees has remained virtually constant since Metro-North's inception in 1983 while the number of trains operated has increased by 31%,” said Metro-North President Howard Permut. "In addition, the additional train service has been met with rail ridership that has almost doubled since 1983."
But Permut acknowledged that Metro-North ridership may slip in 2009 if economic conditions continue to slump, affecting Wall Street and the financial sector, and possibly forcing the railroad to cut service and raise fares.
"We were projecting much smaller growth even before some of the real economic calamities of November and December," Permut said. "We knew things were slowing down, but they weren't falling off the cliff like now."
| February 10, 2009 |
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Riverso joined STV in April 2005 as senior vice president of STV Construction Inc. He was promoted to STV executive vice president in 2006, and was named chief operating officer of STV Construction Inc. The company says that under his leadership, STV's Construction Management practice doubled in size.
Riverso also serves as the chair to STV's Operating Committee, which provides oversight and assistance to the firm's operations, outside consultants, and strategic planning efforts.
"In his years with STV, Milo has proven to be a true leader who fits our culture," said Chairman and CEO Dominick Servedio, in a statement. "His industry knowledge is substantial, gained through more than two decades of nationwide design and construction management experience."
Prior to joining STV, Riverso served in executive management positions at a number of construction management firms. He also was president and chief executive officer of the New York City School Construction Authority.
| February 10, 2009 |
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The 20 additional units, to be built at MotivePower's facility in Boise, Idaho, will be delivered beginning late this year. Wabtec says the locomotives will contain components produced by Wabtec and its other subsidiaries, including braking equipment, relays, contactors, air compressors, brake shoes, and radiators.
"This order is a nice addition to our backlog and reflects our leading role in the commuter locomotive market," said Wabtec President and CEO Albert J. Neupaver in a statement.
| February 10, 2009 |
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The Foothill Extension will reach from the Gold Line's current eastern terminus in East Pasadena through the cities of Arcadia, Monrovia, Duarte, and Irwindale, terminating in Azusa. The project is scheduled for completion in 2013, assuming it receives funding in 2010.
"The Foothill Extension is the only rail project in Los Angeles County that is ready to go, and the board's selection of a program manager indicates how close we are to getting construction boots on the ground," said Metro Gold Line Chief Executive Officer Habib Balian, who was authorized to negotiate the terms of the contract with Hill International.
As program manager, Hill International will oversee implementation of a design/build contract including design, construction, quality assurance/quality control, safety, community involvement, business impact, environmental mitigations, maintenance of traffic oversight, and related issues. Hill's primary subconsultant on the project is Jacobs Engineering Group, Inc.
"I am honored to be part of the Foothill Extension, having been part of Phase 1 of the project," said John K. Skoury, Hill International vice president and program manager. "The Phase 2A extension is even more exciting to me personally and the Hill team is ready to help our client deliver this ambitious project."
| February 9, 2009 |
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"2008 was one of the most challenging years retailers have seen, and all indications are that 2009 won’t be any better," said NRF Vice President Jonathan Gold. "Unfortunately, cargo volumes at the ports reflects retailers' anticipated sales, and NRF expects that sales will get worse before they get better. Retailers are only going to import what they can sell."
Ports covered by Port Tracker are Los Angeles/Long Beach, Oakland, Seattle, and Tacoma on the West Coast; New York/New Jersey, Hampton Roads, Charleston, and Savannah on the East Coast; and Houston on the Gulf Coast. All are currently rated "low" for congestion.
| February 9, 2009 |
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Keyte began working with RFTrax in July 2008, and has extensive experience in sales, marketing, R&D, and strategic acquisitions. He will relocate to the company's Sugar Land headquarters from its Austion, Tex., offices.
"We are pleased to have an executive with Keyte's experience and credentials joining our team," RFTrax Chairman of the Board Walter Pharris.
Felty was promoted to vice president as February began, and will oversee all aspects of sales, marketing, and new business development. Since joining RFTrax in 2005, Felty has held various positions in business development and sales management, and is credited with overseeing the launch of several new product lines including the launch of RFTrax locomotive monitoring platform and railcar monitoring platform.
"John has the leadership qualities and rail market knowledge the company needs at this time of challenge and opportunity" said Keyte.
| February 9, 2009 |
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The company says the product was introduced in in response to the Association of American Railroads Circular C-10899, which states that as of Jan. 1, 2009, shops are no longer required to provide detailed repair information to car owners. Owners that cannot utilize the information from the Railinc data exchange must pay a fee to the shops to get copies of their billing repair cards.
"Not all car owners have systems to read and audit 500-byte data exchange files, said Justin Gillam of ExpressYard. "We're just trying to provide a cheap and easy solution for companies to get their data exchange information and download it in a format they’ll be able to read."
Gillam added that "for the time being, we're going to allow people to use this product for free."
| February 6, 2009 |
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"January marks the third straight record monthly decline for U.S. railroad traffic, as the severe recession is now negatively affecting every major rail market," said AAR Senior Vice President John T. Gray. "Nevertheless, railroads are planning to maintain a strong level of reinvestment in 2009, as they have for the last several years. Actual investment levels will depend to some extent on how deep the recession goes and how long it lasts, but railroad know that the have to invest today to have the rail capacity America needs tomorrow."
The AAR reported that U.S. carload traffic in the first four weeks of 2009 fell 17.2% compared with the corresponding period of 2008; rail intermodal traffic was down 12.9%; and ton-mile volume declined 15.9%.
In the same period, Canadian carload traffic dropped 17.5% and intermodal volume was down 12,3%; Mexican carload originations were down 15.4% and intermodal originations were off 23.7%.
For just the week ended Jan. 31, U. S. carload volume was down 18.4% from the same week in 2008; intermodal was down 16.0%; and ton-miles were off 17.3%.
In Canada, carloads for the last week in January were down 6.5% from last year and intermodal was off 6.3%.
| February 6, 2009 |
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Biden's visit to the suburban, Md., station, was in support of the administration's $900 billion economic stimulus program. He was joined by Secretary of Transportation Ray LaHood, who said he will meet with state DOT chiefs on Feb. 11 to select a list of projects that can get moving fast.
LaHood made it clear that stimulus funding will not be limited to passenger rail. "There are critical projects all over the country that are waiving for funding," he said. "While we create jobs today, we are also laying the foundation for sustained economic growth and a better quality of life through passenger, freight, and high speed rail and transit systems that ease congestion on the road and in the air and through the airports."
| February 6, 2009 |
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“Twenty years ago today, J.B. Hunt Transport Services, Inc. and BNSF predecessor Atchison, Topeka and Santa Fe Railway Company loaded a Hunt trailer onto a railcar and ushered in the modern age of intermodal freight transport,” BNSF noted yesterday. “Today, intermodal is one of the most efficient, economical, and environmentally friendly ways to move goods. Twenty years ago, trucks and trains were more competitors than partners. All that changed in 1989 when Santa Fe and J.B. Hunt Transport came together in a move that would lead the industry in innovation.”
Haverty, then an executive with Santa Fe, conducted a demonstration in 1988 for J.B. Hunt, attaching an intermodal flat car to a Santa Fe business car on an inspection trip out of Chicago. Hunt, a hard-boiled, cigar-chomping trucking magnate, was impressed with the flat car’s ride quality. According to Haverty, Hunt extended his hand and said, “Let’s do a deal.”
Several months later, the joint effort started with 150 trailers and five railcars moving freight between Chicago and California. It grew quickly. “Today, BNSF and J.B. Hunt provide transportation solutions throughout North America,” said Steve Branscum, BNSF vice president, Consumer Products. “In 2008, more than 700,000 shipments were moved through this strategic transportation alliance. When the partnership started, no one could have imagined the effect it would have on the industry. Once thought of as experimental, intermodal today offers shippers innovative, efficient, and value-added services that allow them to effectively compete, both domestically and worldwide.”
J.B. Hunt died just a few years ago, and Mike Haverty went on to run the Kansas City Southern and create the “NAFTA Railway” by acquiring a major portion of Mexico’s national railway when it was privatized in 1997. The partnership they forged two decades ago continues to thrive. J.B. Hunt Transport Services, Inc. last year began shifting more freight to containers, running it cross-country on doublestack freight trains, further reinforcing the advantages of rail over long-haul trucking.
| February 6, 2009 |
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Declining volume numbers in November (10%), December (17%), and January (13.5%) "may be somewhat overinflated as many mines and manufacturing plants have temporarily shuttered operations over this period," Seidl said. "Although we are far from calling a turning point, we have started to hear about some of these operations coming back on line. The question we ask is, where is the true underlying demand? Although we would be loath to answer this question (we note that even the railroads themselves are steering clear of trying to provide an answer), we view these operations coming back on line as a glimmer of hope in an otherwise weak rail environment."
Seidl noted that Class I overall volumes "continue to remain extremely depressed on severe demand destruction and extended production curtailments, both mine and plants." However, service metrics have been strong. "Overall performance was solid as train speed, cars on line, and dwell time improved 11.0%, 2.3% and 2.8%, respectively" over the past two weeks.
| February 6, 2009 |
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"It now appears that carbuilders will survive primarily on backlogs this year," EPA said. "2010 will also be weak in terms of assemblies, but improvements in new orders throughout the year will lead to a pickup in future railcar deliveries."
EPA noted that the recession caught up to carbuilders in the fourth quarter of 2008 as 4,259 cars were ordered, the lowest level since the first quarter of 2001. Add to that the cancellation of about 10,000 ethanol-related cars from backlogs. As a result of this, carbuilders are entering 2009 with backlogs of 31,921 cars, the lowest level since the first quarter of 2003. However, “in spite of the disappointing news of the fourth quarter, carbuilders registered assemblies of 59,954 rail cars and intermodal platforms last year, an impressive level from an historical perspective,” EPA said.
"Based on beginning-year backlogs and limited new demand, we expect railcar deliveries of 28,950 cars this year," EPA said. "While orders will begin to pick up next year, extremely low backlogs will serve to keep assemblies at 26,000 units in 2010."
EPA said 2010's pickup in orders will lead to an upturn in deliveries beginning in 2011 and extending through 2014: “Beginning in 2011, far stronger economic activities will provide support for certain railcar assemblies while an improvement in the financial environment and higher gasoline prices rejuvenate demand for ethanol and DDG cars. Replacement pressures and technological advances as well as legislative measures will also play a role in promoting the demand for a variety of railcars. Replacement pressures will be mounting among the boxcar, mid-sized and small-cube covered hopper, and multilevel flat car fleets. At the same time, good growth in customer markets will propel demand for centerbeams, high-cube covered hoppers, tank cars, intermodal equipment, and coal cars. Under these circumstances, we look for assemblies to rise to 38,500 cars and platforms in 2011, followed by annual increases each year to the level of 58,000 units in 2014.”
Like many other analysts, EPA took note that in spite of the recession, the Class I’s posted strong profit improvements during the fourth quarter of 2008 and are looking to the future: “While fully cognizant of the current recession and difficult economic times ahead, the railroads continue to maintain high levels of capital outlays to improve existing services and to be prepared for the eventual revival in commodity haulings. There can be little doubt that the railroads are indeed ‘looking beyond the valley’ as the major deterioration in last year’s haulings continues into 2009.”
| February 6, 2009 |
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The port faced a Feb. 18 deadline placed by the Surface Transportation Board to raise enough funds to acquire the line for current owner Central Oregon & Pacific (CORP), a subsidiary of RailAmerica. Failure to meet the deadline would allow CORP to abandon the route and sell parts for scrap. CORP shut down operations on the line in September 2007.
Last summer the port secured a $12.5 million line of credit, but the line expired last November.
The Economic and Community Development Commission approved two loans to the port, with money from its special public works fund. One is a short term-loan of $7.2 million, to be repaid within 24 months if and when the federal money comes in. State transportation officials already have $5.7 million of that money, although it still has to be reallocated from a bridge project. Another $1.5 million installment is expected from federal transportation officials by April.
The second loan is for 25 years and $5.4 million. Oregon agreed to a four-year period of deferred principal and interest payments, during which the interest rate will be 1 percent annually. After that, port officials can request a four-year extension of the deferred payments. If they don’t, the rate then climbs to 5%.
| February 5, 2009 |
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EMD of the U.S. and General Electric's India unit are candidates for a joint venture that will supply 1,000 diesel-electric units in the 4,500 hp to 6,000 hp range. Short-listed for the venture that will supply 800 12,000 hp electric locomotives are Alstom of France, Siemens of Germany, and Bombardier of Canada.
India's cabinet was reported this week to have authorized foreign companies to hold 74% of each of these venture, whose plans are to be built in the eastern state of Bahir at a cost of around $410 million. Indian Railways will hold the remaining stake.
| February 5, 2009 |
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After Rendell made the proposal in an address to the General Assembly Feb. 4, Norfolk Southern CEO Wick Moorman commented: "As part of our Crescent Corridor Project, over the next several years Norfolk Southern plans to spend tens of millions of dollars in Pennsylvania to build new intermodal facilities, and add track capacity, which will, in turn, create new jobs and economic development opportunities."
Norfolk Southern's Crescent Corridor is a 2,590-mile network extending from Pennsylvania to the Gulf Coast, along which more than $2 billion in projects have been identified to improve rail service and reduce highway congestion.
| February 5, 2009 |
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"We keep talking about the economy," said Volusia County Chairman Frank Bruno, who attended a news conference Wednesday in Tallahassee, the state capital, where supporters of Sunrail held a rally. “This will sure fire up our economy."
A measure to advance the project, being introduced into this year’s session of the state legislature, eliminates a controversial provision that would have shielded private contractors from legal liability if they caused accidents on rail line. Florida plans to contract with private companies to operate the system, and the change in plan has removed opposition by trial lawyers, who argued contractors should be held liable if they are at fault.
But other opponents of the project, who garnered enough support last year in the state legislature to stymie the proposal, still say that Sunrail is too costly and a "sweetheart deal" for CSX Transportation. Labor, including the state chapter of the AFL-CIO, opposes the deal for fear that non-union employees would be used to operate Sunrail service.
The state had agreed to pay CSX $615 million to purchase rights-of-way for the service, as well as $491 million to augment CSX freight and intermodal capacity in the state.
A poll conducted by Ayres McHenry & Associates Jan. 27-29 says more than 60% of 641 Florida residents surveyed oppose state funding for Sunrail, with nearly the same percentage saying the state legislature should oppose the deal without any attempts to modify it.
But a Florida Department of Transportation spokesman says FDOT and rail allies also have conducted a survey "which shows different results." Hill Research Consultants last October surveyed 502 respondents showing "strong support among the citizenry ... proceeding with development of a commuter rail in Central Florida."
| February 4, 2009 |
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The trial is linked to a federal court injunction issued in December 2007 halting implementation of a proposed merger between the UTU and the Sheet Metal Workers' International Association, which was to create the International Association of Sheet Metal, Air, Rail and Transportation (SMART) Workers.
A request by the four vice presidents to halt or delay the internal trial was rejected Feb. 2 by Federal judge John R. Adams, United States District Court, Northern District of Ohio, Eastern Division.
"The UTU Constitution, Article 24, provides that the union has the abiity to conduct hearings regarding charges preferred against an international officer for failure to perform the duties and responsibilities of his office," Judge Adams noted, adding that the court should not "operate to prevent both a resolution on the merits and a more th orough development of the issues at stake."
UTU International vice presidents on trial include John Babler, Vice Baffoni, J.R. "Jim" Cumby, and Tony Iannone. Two former International vice presidents who retired Feb. 2, Roy Boling and John Fitzgerald, also are on trial. Charges against UTU National Legislative Director James "Brokenrail" Brunkenhoefer, recently deceased, "have been dismissed," according to court documents.
| February 4, 2009 |
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The troubled locomotive builder, whose U.S. subsidiary is Railpower Hybrid Technologies Corp., announced the departure of Jose Mathieu as its president and the appointment of Richard Laliberte, formerly vice president engineering, quality assurance, and product service, as its chief restructuring officer. Also departing is Hilaire Boudreau, vice president, human resources, project management, and information technologies.
Railpower announced Jan. 28 that it was reducing its workforce by 37% to 84 employees and could not guarantee its ability to continue as a going concern.
In Canada, the company filed for court protection under the Companies’ Creditors Arrangement Act. A simultaneous Chapter 15 bankruptcy filing was made with the United States Bankruptcy court for the Western district of Pennsylvania.
"Railpower's normal day-to-day operations are expected to continue without interruption," said the Wednesday announcement. "Railpower remains focused on serving and supporting its customers during the restructuring process."
| February 4, 2009 |
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The partners noted that Tenneco has been awarded a development contract for locomotive projects, which they said positions Tenneco to become a long-term strategic supplier of diesel aftertreatment solutions to GE Transportation, a subsidiary of Fairfield, Conn.-based General Electric Co.
The partners will collaborate on developing and producing GE's Hydrocarbon-Selective Catalytic Reduction catalyst technology (HC-SCR), designed to reduce nitrogen oxide emissions as effectively as urea-based SCR systems. The two will market to rail, “on-road,” marine, and stationary power customers.
"We're pleased to partner with GE Transportation on this exciting advanced-technology initiative and look forward to developing cutting-edge diesel aftertreatment systems for their locomotives and other applications," said Tenneco Chairman and CEO Gregg Sherrill. "We're also very excited about the opportunity this creates for Tenneco to diversify our SCR aftertreatment technology offerings and capabilities and expand our emission control business into new market segments."
"GE Transportation has been developing this game changing technology at its Global Research Center based on the request of our customers," said Vice President of Engineering Steve Gray. "Our partnership with Tenneco will position both companies to serve present and future customers worldwide."
| February 4, 2009 |
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The approved plan honors a settlement reached with the Conservation Law Foundation. The state seeks to commence construction in 2012, opening the extension for service in 2014, depending in part on the availability of federal funding.
The state chose the longer and more expensive option of two proposals; the other railway expansion proposal would have terminated at Tufts University in Medford. Both proposals emerged from a settlement stemming from a lawsuit filed in 1990 by the Conservation Law Foundation, which charged that the state advanced the "Big Dig" highway project in Boston at the expense of public transit funding.
"We had some concerns as to whether the state was going to follow through on their commitment," said Carrie Russell, CLF's staff attorney. "I'm so thrilled that they have listened to the community and honored their commitment by moving forward on what is really a great project that will benefit so many."
Massachusetts officials a year ago estimated the project's cost at $600 million; the five-mile extension is expected to generate 8,900 new weekday riders.
| February 4, 2009 |
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DOT Secretary Ray LaHood Wednesday said the TIGER team will be co-chaired by Lana Hurdle, deputy assistant secretary for budget and programs, and Joe Szabat, deputy assistant secretary for transportation policy.
The TIGER team will prioritize highway, bridge, transit, rail, aviation, and intermodal spending, and is also charged with developing reporting standards to track the money spent and ensure accountability, LaHood said.
"We created the TIGER team to make sure that DOT's portion of recovery funding goes out to states and localities as quickly as possible in order to immediately create jobs and strengthen our economy and transportation systems," LaHood said in a statement.
| February 3, 2009 |
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The American Recovery and Reinvestment Act of 2009, which the House passed Jan. 28, originally contained $9 billion for transit, but a last-minute amendment providing an additional $3 billion, proposed by Rep. Jerry Nadler (D-N.Y.) and others, was adopted by voice vote.
The House also adopted an amendment offered by Infrastructure Committee Chairman James Oberstar (D-Minn.) requiring 50% of stimulus finding to be obligated within 90 days. The House Appropriations Committee had proposed 180 days.
While the fate of the stimulus bill in the Senate is far from certain, there is strong support for the kind of infrastructure investment that would generate jobs quickly.
| February 3, 2009 |
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In addition, a new DOC® workstation has been added to remotely control several additional power switches. RailComm's 2.4-GHz RADiANT™ data radios provide a wireless communications network to link the office with the field locations.
| February 3, 2009 |
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Net income available to common shareholders in the fourth quarter totaled $36.4 million, or 40 cents per diluted share, compared with $49.9 million, or 56 cents per diluted share, in fourth-quarter 2007, a 28.6% decrease in diluted earnings per share. But the 40 cents per share earnings handily beat Wall Street estimates of 32 cents per share.
For the full year 2008, KCS notched revenue of $1.85 billion, up 6.3% increase from 2007. Earnings per diluted share were $1.86, an 18.5% improvement over the prior year in spite of recording the foreign exchange loss for the fourth quarter. KCS's operating ratio for the year was 78.9%, an improvement from the 79.2% recorded in 2007.
In trading early Tuesday afternoon, shares of Kansas City Southern were up 50 cents at $19.01.
"KCS reported record revenues, operating income, and diluted earnings per share for full year 2008 despite depressed fourth quarter revenues resulting from the most severe economic conditions in recent history," said KCS Chairman and CEO Michael R. Haverty in a statement. "As soon as traffic volumes began to fall in the wake of two September hurricanes, KCS management reshaped its transportation service plan and took out costs throughout the entire company. As a result, despite volumes that weakened throughout the quarter, KCS achieved a fourth quarter operating ratio of 78.5%. For the full-year 2008, KCS' operating ratio was 78.9%, a 0.3 point improvement over 2007, and despite declining in the fourth quarter, 2008 annual revenues increased 6.3%."
| February 3, 2009 |
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Billionaire investor Warren Buffett, CEO of Berkshire Hathaway, has stated he believes freight railroads remain a good long-term investment.
Berkshire Hathaway's BNSF stock is held by National Indemnity Co., one of Berkshire's insurance subsidiaries.
In trading early Tuesday afternoon, shares of BNSF were up 2.25% at $66.90.
| February 2, 2009 |
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NJT's approved plan, touted as improving regional mobility, "would not meet the goals such a major project should achieve," according to an analysis co-authored by Ross Capon, president of the National Association of Railroad Passengers (NARP), and Vukan R. Vuchic, professor of transportation systems engineering and city planning at the University of Pennsylvania.
"At a cost of $9 billion, including $3 billion in federal funds and $3 billion from the Port Authority of New York and New Jersey, the tunnels would lead to six dead-end tracks in a new 34th Street terminal serving only New Jersey Transit trains," Capon and Vuchic state. "Without a connection to New York's Penn Station, the new tunnels could not be used by Amtrak trains headed to New England or to create new routes through the city.
"In this age of competition among the world's metropolitan areas for economic, social and cultural leadership, New York is far behind Paris, London, Tokyo and others in its rail accessibility. It has one station for intercity trains, while its peers have six to 12 stations," the authors add.
"Considering the high cost of the new tunnels, they should do more than add capacity for NJT trains to Manhattan," Capon and Vuchic state. "However, the approved plan would not meet the goals such a major project should achieve."
Besides NARP and New York area rail advocacy groups, the National Corridors Initiative has questioned NJ Transit's current trans-Hudson tunnel approach. The $8.6 billion project, half of a two-part project to expand Northeast Corridor capacity between Manhattan and Secaucus, N.J., could begin construction within a year.
| February 2, 2009 |
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Train accidents declined 10.2% to 2,182, with collisions down 1.6% to 180; derailments down 10.2% to 1,578 and yard accidents down 5.3% to 1,191.
Railroads reported 23 employee deaths in the 2008 period, compared with 16 in the prior year.
There were 271 highway-rail grade crossing fatalities in January-November 2008, down 11.3% from 2007. Trespasser fatalities increased 0.9% to 435.
| February 2, 2009 |
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"Short line and regional railroads adapt quickly, and given the current economic climate that's a major advantage," says Managing Editor Douglas John Bowen. "As in past years, we're looking for examples of flexibility including, but not limited to, turnaround situations, consistent excellence, innovation in operations or maintenance, marketing, customer service, enhanced productivity, community relations, safety improvement, and ingenuity in dealing with the unexpected."
Small roads in Mexico, the U.S., and Canada are eligible for an award (and railroads can even nominate themselves). The 2009 winner (or winners) will be awarded a specially designed plaque at the American Short Line and Regional Railroad Association Annual Convention in Las Vegas April 25-28. Coverage will appear in Railway Age's April 2009 issue, which will be distributed at the show. We'll work with the winners to publicize the awards in online and national media.
"Award winners have ranged from large regionals to small short lines," says Bowen, "and we've recognized and honored carriers ranging from 20 miles to nearly 2,000 miles. In some years, separate awards have been given for regional and short line carriers."
Submit any entries to: Douglas John Bowen, Managing Editor, Railway Age, 345 Hudson Street, 12th Floor, New York, N.Y., 100l4. Email: dbowen@sbpub.com. Fax: (212) 633-1863. Entries should contain the name, position, and contact information of the nominator and an approximately 500-word description of the achievement(s) of the nominated railroad. (Longer and short descriptions are admissible; 500 words is only a guideline.) Entry forms are not essential, but may be obtained from Bowen by fax or email. The entry deadline is Friday, Feb. 27, 2009, so please don't delay.
| February 2, 2009 |
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Bidders include: URS Washington Division; Herzog Contracting Corp., Bombardier Transportation; and Veolia Transportation.
"I’m encouraged that we have that kind of interest," said Michael Moore, interim director of Cincinnati’s Department of Transportation and Engineering. "I hope it means that we’ve got some good alternatives for a partner."
The city has forwarded the streetcar project as a "ready to go" item on a list of projects compiled by the U.S. Conference of Mayors for infrastructure stimulus spending.
| February 2, 2009 |
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"Streamlined rail operations, along with reduced congestion resulting from the acquisition, are critically important to the Chicago region's economy and its continued role as one of America's most important transportation hubs," E. Hunter Harrison, CN's president and chief executive officer, said in a statement.
CN said it will post notices of any additional trains at EJ&E rail crossings beginning today, 30 days or better in advance of the move. It will also publish notices in newspapers. The company said it had not yet determined how many additional trains would be added starting March 4.
Despite completing the acquisition, opponents of the merger vow to contest CN's use of the route to expedite cross-continental rail freight moves. The Regional Answer to Canadian National, or TRAC, a coalition of suburban, argues that CN's acquisition is not final, because of a complaint it has filed with the U.S. Court of Appeals. "Obviously, Aurora and other communities are continuing their litigation," said Ryan McLaughlin, a spokesman for TRAC. "There is going to be a court process on this."
TRAC also notes that the Illinois Commerce Commission has filed a petition with the Surface Transportation Board, urging STB to reconsider its approval of the deal. STB granted approval last December. 23. ICC states that STB’s environmental impact study was not thorough enough to address traffic conflicts, safety issues, and other matters.
| January 30, 2009 |
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In January 2008, STB replaced its single-stage DCF model with a CAPM model. During the CAPM rulemaking process, “several parties urged the Board to use a multi-stage DCF model in conjunction with CAPM to obtain a more stable and precise estimate of the cost of equity,” STB said. “The record in that rulemaking, however, did not provide a suitable multi-stage DCF model for the Board to consider. In February 2008, the Board began to explore whether it could further improve its methodology for estimating the cost of equity by incorporating a multi-stage DCF model. Today's decision concludes this effort.”
STB uses the cost of capital figure in evaluating the adequacy of individual railroads' revenues each year. The figure is also used in maximum rate cases, feeder-line applications, rail line abandonments, trackage rights cases, rail-merger reviews, and more generally in STB's Uniform Rail Costing System. STB will use this new approach to estimate the railroad industry's 2008 cost of capital.
STB’s decision was issued in a proceeding entitled “Use of a Multi-Stage Discounted Cash Flow Model In Determining the Railroad Industry's Cost of Capital.” Ex Parte No. 664 (Sub-No. 1), is available for viewing and downloading at the STB website at www.stb.dot.gov under "E-Library," then under "Decisions & Notices," beneath the date "1/28/09."
| January 30, 2009 |
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Only the miscellaneous category of "all other carloads" showed a gain, up 4.1%; AAR's other 18 categories all showed declines.
Canadian railroads reported weekly volume declined 13.9% compared with the third week of last year, while intermodal fell 12.3%.
Mexico's two major railroads reported a modest carload volume decline of 0.2% compared with the third week of 2008. Mexican intermodal traffic was down 6.1%.
Combined North American rail volume for the three weeks of 2009 on 14 reporting U.S., Canadian, and Mexican railroads was down 17.3% from the first three weeks of 2008; intermodal was down 12.3% for the comparable period.
| January 30, 2009 |
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Originally funded with $700 in federal aid designated for rebuilding downtown Manhattan after terrorists destroyed the Wall Trade Center, the transit center project has been delayed by spiraling costs, and an acclaimed architectural design has been scaled down. The cost is now estimated at $1.4 billion.
Sander's comments on the size of the stimulus package expected by the MTA were made at a New York State Assembly hearing in lower Manhattan and reported by The New York Times on Jan. 30.
| January 30, 2009 |
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A roundtrip demonstration run to New York and back Friday followed the static morning tour of the service-specific equipment, offering two classes of service on board modified Bombardier multilevel cars. The return train made one intermediate stop, at Newark, N.J., which will be the sole intermediate station stop for the service.
Revenue service begins Feb. 6 and will operate on Friday, Saturday, and Sunday, with trains running from Atlantic City to New York's Penn Station along the Northeast Corridor to Frankfort Junction, Pa., where the consist will reverse access NJ Transit's Atlantic City Line. Trip time is carded at 2 hours, 40 minutes.
The ACES consists will include a diesel locomotive at one end and an electric engine on the other to minimize delays at Frankfort Junction. NJ Transit crews will staff the trains; Amtrak will provide ticketing and reservations. Compass Group is providing all food and beverage service. STV Inc. acted as the overall project manager.
| January 30, 2009 |
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The 14.7-mile, $166 million Westside Express Service (WES) runs north from Wilsonville to Beaverton, serving five stations, and connecting with existing MAX light rail service at Beaverton to offer access to downtown Portland.
TriMet will use four diesel multiple-unit (DMU) cars originally produced by now-bankrupt Colorado Railcar Manufacturing, LLC, with some light finishing work conducted by TriMet's own shop workers. The DMUs will operate over freight right-of-way on headways of 30 minutes during morning and evening rush hours.
WES, originally set to begin last September, was delayed several times due to problems with the DMU units production and delivery, with critics questioning TriMet's decision to provide bailout funds to the manufacturer until it could take delivery.
TriMet scheduled an inaugural run of WES today from 11:30 a.m. to 3:30 p.m. Pacific Time, with celebrations at each station along the route.
| January 29, 2009 |
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The “culture” issue is not a new one. Eby reminded CSXT that in a Nov. 17, 2007, letter to FRA, the railroad said it believed “one issue of intimidation is too many.”
The FRA did not put out a press release on its letter, but the United Transportation Union did. CSXT called it “an inflammatory news release” that “is flat-out wrong in every characterization of CSXT. The UTU leadership is using the letter as an opportunity for propaganda by posting a news release on its website. CSXT employees should be offended. In CSXT’s response to the FRA later this week, the company plans to demonstrate the consistent and significant efforts and progress that CSXT has made in addressing the FRA’s concerns.”
The UTU release said that CEO Ward “has been in denial that his officers and supervisors have created a system-wide chilling culture of harassment and intimidation intended to discourage injured CSXT employees from reporting on-duty injuries or from receiving proper medical treatment—and then retaliating against employees who reported injuries.”
The railroad’s response: “CSXT just recorded its safest year ever in employee safety, and in the other key measures of a safe railroad—train accidents and grade classing safety. It is disappointing that some UTU officials would rather score news headlines than safety gains. Here is a compelling example: The UTU release makes much of 10-year-old issues in framing CSXT’s culture and approach, but it completely fails to mention a groundbreaking peer intervention agreement that the UTU has just signed with CSXT.”
The agreement is an open letter to CSX employees from UTU International President M. B. Futhey, Jr. and CSX Executive Vice President and Chief Operating Officer Tony Ingram.
| January 29, 2009 |
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Funding will also be made available for fleet modernization, upgrading both locomotives and passenger cars, and for key VIA stations, including (from east to west) Belleville, Toronto, Hamilton, and Windsor, all in Ontario. Stations in Montreal and Vancouver also would be upgraded.
The federal government also would provide added support for remote passenger rail services not operated by VIA, including C$7.9 million for new capital projects of two First Nations railways: the Keewatin Railway Company in Manitoba, and Tshiuetin Rail Transportation in Quebec and Labrador.
| January 29, 2009 |
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An MTA spokesman says the platform gap ranges from four-hundredths of an inch to almost an inch too wide at some platform locations. MTA will replace the newly installed rubbing boards with a wider model, which will move the station's opening date back to early March.
The new station will replace the current South Ferry terminal, served by the No. 1 subway line, which has a curved platform that also is too short for existing consists, limiting passenger flows.
| January 29, 2009 |
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The 16-mile route will run from Bethesda to New Carrollton, Md., offering access to the University of Maryland's College Park, among other locations. LRT advocates say the route will help revitalize numerous suburban locations, including Langley Park and Riverdale Park.
"It represents a case study for how suburban areas are going to remake themselves for the 21st century," said Robert Puentes, a transportation specialist and senior fellow at the Brookings Institution. "It's not just the old notion of moving people from point A to point B, but about remaking those places."
Maryland Gov. Martin O'Malley is expected to submit a Purple Line project to the Federal Transit Administration for funding in the spring. The project is estimated to cost $1.2 billion.
| January 29, 2009 |
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The move also is seen as one way to force additional review of proposed freight train traffic increases on the Elgin, Joliet & Eastern Railway, which Canadian National is set to acquire following conditional approval by the Surface Transportation Board.
| January 28, 2009 |
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Norfolk Southern reported record fourth-quarter 2008 net income of $452 million, an increase of 13% compared with $399 million for fourth-quarter 2007. Diluted earnings per share were $1.21, up 19% compared with the $1.02 per diluted share earned in the prior-year quarter. For full-year 2008, net income was a record $1.7 billion, up 17%, compared with $1.5 billion in 2007. Diluted EPS for 2008 increased 23%, or 84 cents, to $4.52.
Operating revenues were a fourth-quarter record $2.5 billion, up 2% compared with the same period a year earlier, even though per-unit revenue improvements were “somewhat tempered” by an 8% decline in traffic volume, NS said. For 2008, railway operating revenues improved to a record $10.7 billion, up 13% compared with 2007, while volumes declined 3%. General merchandise revenues were $1.2 billion, down 10% compared with fourth-quarter 2007, primarily as the result of a 19% decline in traffic volume. For 2008, general merchandise revenues reached a record $5.5 billion, a 6% increase over 2007, despite an 8% decline in volume.
Coal revenues climbed 33% to $798 million, a fourth-quarter record, and increased 34% to a record $3.1 billion for the year, compared with 2007. Traffic volume rose 5% in the quarter and 4% for the year compared with 2007. Intermodal revenues were $480 million, down 3% compared with fourth-quarter 2007. For 2008, intermodal revenues were a record $2.1 billion, up 7% compared with last year. Intermodal volume decreased 5% in the quarter and 3% for 2008.
Operating expenses of $1.7 billion for the quarter were 4% lower compared with 2007, largely due to lower fuel costs. For 2008, operating expenses of $7.6 billion were 11% higher compared with 2007.
Operating income set records as well, climbing 19% to $813 million for the quarter and increasing 19% to $3.1 billion for the year, compared with the same periods of 2007. The fourth-quarter operating ratio reached a record 67.5%, a 4.5 percentage point improvement compared with the same period last year. For the year, the operating ratio improved by 1.5 percentage points to a record 71.1%.
“Norfolk Southern delivered strong financial results in the fourth quarter, despite economic conditions that reduced freight volumes,” said CEO Wick Moorman. “While it is unclear how long the downturn will last, long-term trends point to freight railroads as the preferred way to move goods and relieve highway congestion. We will continue to make investments in our company and, in 2009, plan to invest $1.4 billion in capital improvements to maintain the safety and quality of our franchise, improve operational efficiency and service, and support the business growth we expect in future years.”
| January 28, 2009 |
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The Massachusetts Bay Transportation authority has indefinitely shelved awarding a contract worth up to $280 million to acquire up to 56 new commuter rail locomotives (an initial order of 28, plus options for up to 28 more).
There were two bidders on the procurement, Wabtec Corp. subsidiary MotivePower, and Spain’s Vossloh Espana S.A. Vossloh wanted to build two prototype locomotives outside of the U.S., and requested that MBTA apply to the Federal Transit Administration for a waiver of Buy America rules. MotivePower lobbied against the waiver, and in November won a decision from the FTA to exclude Vossloh from eligibility for federal funding. FTA said MBTA must comply with the Buy America Act because it is using 80% federal matching funds to acquire the locomotives.
“Given the current uncertainty of the MBTA’s future financial condition and the near-certainty of protracted and expensive litigation, the MBTA is canceling the procurement for new locomotives and will assess the possibility of re-advertising for bids over the next several months,” MBTA spokesman Joe Pesaturo said in a statement. The Massachusetts state legislature is currently considering a financial assistance package for MBTA and other state transportation agencies.
| January 27, 2009 |
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Metro-North and LIRR say they anticipate administrative and economic benefits including better pricing and volume discounts that may result in overall savings of 2-3%. To ensure that each railroad has enough parts available for scheduled and unscheduled maintenance needs, the agreement allows them to reallocate funds to support any changes. The dollar amounts allocated to individual agreements can be varied by 15% as long as the $256.7 million total is not exceeded. The agreement provides for off-site storage with just-in-time delivery requirements.
MTA says such long-term, joint agreements benefit the suppliers: The manufacturers are able to maintain their tooling and manufacturing capabilities necessary to produce the parts, which are not available from other sources. However, while this provides long-term security for them, it does not preclude the railroads from identifying and evaluating any alternative suppliers that may be available and deemed qualified.
The plan will be presented to the MTA Board for approval.
| January 27, 2009 |
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| January 27, 2009 |
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Total revenues in the fourth quarter increased to C$1.3 billion, operating expenses increased to C$995 million, and (excluding foreign exchange gains and losses on long-term debt and other specified items), diluted earnings per share decreased to C$1.15 from C$1.20. Net income declined 4% to C$178 million.
For full-year 2008, revenue increased 5% to C$4.9 billion; operating expenses increased 9% to C$3.9 billion; and income decreased 6% to C$632 million, excluding currency exchange fluctuations and special items.
CP announced that capital investment in 2009 is expected to be in the range of C$800 million to C$820 million, a reduction of approximately C$200 million when compared with the combined capital investment in 2008 of CP and the Dakota, Minnesota & Eastern. CP assumed control of DM&E at the end of October. For the first 10 months of 2008, DM&E was accounted for on an equity basis; the results for the final two months are consolidated on a line-by-line basis.
| January 26, 2009 |
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Should AMT make the purchase, the 4.5-mile Doney Spur may be included in any deal. AMT has studied possible use of the Doney Spur for light rail operations.
AMT has offered CN C$45 million (US$37 million)to buy the Deux-Montagnes line. The line is the AMT's most heavily used.
| January 26, 2009 |
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The port has less than a month to raise adequate funding; should it fail to do so, current parent RailAmerica can abandon 111 miles of line, selling the property. RailAmerica in turn is owned by private equity firm Fortress Group, Inc.
CORP discontinued freight service in September 2007.
| January 26, 2009 |
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Service will commence with seven trips inbound from Leander each weekday morning starting at 5:40, with the last inbound train departing at 8:40 a.m. Seven trips outbound from Austin begin at 3:45 p.m., with the last outbound train departing at 6:45 p.m.
Three reverse rush-hour trains will be scheduled for both morning and evening. No weekend service will be offered.
Capital Metro cautioned that it could adjust schedules after evaluating real-time practice runs on the line scheduled to begin Feb. 12.
Capital Metro had hoped to launch service by the end of last year, but squabbled with the Federal Railroad Administration over a waiver submitted to exempt the its rolling stock from temporal separation rules. Austin's six Stadler-Bussnag diesel units are similar to diesel light railway transit (DLRT) gear used elsewhere in the U.S., but FRA ruled that it would exercise jurisdiction over Capital Metro, classifying the latter as a "commuter" rail line and not a DLRT service.
| January 26, 2009 |
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LASI, in a statement, says it is "being modeled after successful public-private/non-profit partnerships in Portland and Seattle, cities that pioneered modern streetcar systems in the Western United States. LASI is a sole purpose non-profit, which will function as a fundraising and advocacy entity focused on advancing the Los Angeles streetcar effort." The group was created last August by Bringing Back Broadway, a not-for-profit land-use revitalization group.
"I'm excited to be a part of such a catalytic project in the continued resurgence of Downtown Los Angeles," Allen said. "We will work extremely hard to deliver this much-needed public transportation link to all the stakeholders and visitors of Downtown."
| January 26, 2009 |
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The engineering company told city legislators that while buses could provide comparable service, light rail transit would draw more riders and generate substantially more economic development opportunities.
The $141,000 study, commissioned by the city last August, evaluates a route stretching from Stamford's South End to namesake Metro-North train station and on to Bulls Head. to South End. URS provided city officials with an update.
The study, still ongoing, will provide an in-depth analysis of the economic benefit of the system and determine more precise cost estimates. News managed by NewsPro.
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