January 2004
For Union Pacific Railroad, a new presidentIke Evans, president of Union Pacific Railroad, has been named vice chairman of Union Pacific Corp. and Union Pacific Railroad. James R. Young, Union Pacific executive vice president and chief financial officer, has replaced Evans as president of the railroad. Young’s replacement as EVP and CFO is Robert M. Knight, Jr., currently senior vice president-finance. Evans and Young will join UP Chairman and CEO Richard K. Davidson in the newly-created Office of the Chairman.
DART celebrates 20th anniversaryFor 20 days in February, Dallas Area Rapid Transit will host a series of special customer celebrations in honor of its 20-year service anniversary. To thank DART light rail, bus, and Trinity Railway Express riders and high occupancy vehicle lane (HOV) users, DART is offering a contest with a Colorado ski vacation as the grand prize and 20% discounts from area merchants participating in DART’s "Destination Deals" program. DART will keep customers posted on these events and more through its Website (www.dart.org) and onboard newsletter, Rider Insider.
North Texans approved the establishment of the regional transit agency on Aug. 13, 1983, and on Jan. 1, 1984, DART assumed operations of the Dallas Transit System. DART Rail was launched in 1996, and since then, more than $1.3 billion in private funding has been invested in mixed-used, transit-oriented development along the 44-mile system.
Today, DART serves 13 cities, covering 700 square miles with a fleet of more than 1,000 trains, buses, and paratransit vehicles, and offers a 31-mile HOV-lane network. Each weekday, more than 300,000 passenger trips are made on DART’s system.
Claims reserves, peso devaluation impact KCS financialsKansas City Southern’s financial results for fourth-quarter and full-year 2003 were affected by "the necessity of taking a substantial charge in the fourth quarter related to claims reserves" as well as devaluation of the Mexican peso against the U.S. dollar, according to KCS Chairman, President, and CEO Mike Haverty. "KCS Railway is no different from some of the other North American Class I railroads that have recently adjusted claims reserves to protect themselves from the realities of the tort litigation environment in the U.S. in which we operate. We made the hard but correct decision to increase our claims reserves by $13.5 million, after-tax, in the fourth quarter of 2003." Claims reserves for the year were $21.1 million.
KCS reported net income of $11.2 million for 2003, compared to $57.2 million for 2002. Operating revenues increased $15.1 million (2.7%) to $581.3 million. KCSR 2003 revenues increased by 2.8% to $575.3 million, compared to $559.6 million in 2002. Grupo TFM revenues declined 1.9% and earnings declined 75%, from $45.8 million in 2002 to $11.3 million in 2003, "primarily due to the impact of the devaluation of the Mexican peso against the U.S. dollar."
For fourth-quarter 2003, KCS reported a net loss of $6.2 million, compared to net income of $20.4 million for the same 2002 period. Consolidated fourth-quarter revenue rose to $148.5 million, a 3% increase over fourth-quarter 2002. KCS reported an operating loss of $6.8 million in the fourth quarter, compared to operating income of $13.9 million in the same 2002 period, "partially attributed to favorable insurance settlements during fourth-quarter 2002 and higher fuel expense at KCSR." KCSR fourth-quarter revenues increased by 3%, to $147.0 million, compared with $142.7 million for 2002. Grupo TFM posted a 72% decline in equity earnings to $5.1 million in fourth-quarter 2003, compared to $18.2 million in 2002.
KCS said it "remains committed to its efforts to complete the pending NAFTA Rail transaction." Currently, the dispute between KCS and Grupo TMM involving the validity of the acquisition contract is in binding arbitration governed by Delaware law under the auspices of the American Arbitration Association. Recently, there have been developments concerning TFM's Value Added Tax (VAT) refund claim with the Mexican government. On Jan. 19, 2004, the Mexican Treasury (a branch of the Mexican Finance Ministry) delivered to TFM a VAT refund certificate in the amount of over $2.1 billion pesos, the same amount as the refund originally claimed by TFM in 1997. The next day, another branch of the Mexican Finance Ministry, the Tax Administration Service (SAT) delivered to TFM preliminary results of its audit of TFM's 1997 tax returns. "SAT has preliminarily concluded that the documentation used by TFM to support the VAT receivable and depreciation shown on its 1997 tax return did not meet the requirements of applicable law," said KCS. "As a result of its preliminary findings, the SAT has administratively attached the VAT refund certificate delivered to TFM. TFM has 20 business days to supply the requested documentation to SAT, and it has other remedies available to it under Mexican law to protect its rights. We expect TFM to respond to the SAT's preliminary audit conclusions and to take all other legal actions necessary to protect the rights of its shareholders."
RailPower establishes U.S.-based subsidiaryRailPower Technologies Corp. (RTC)--Canadian manufacturer of Green Kid and Green Goat® hybrid yard locomotives--has formed a subsidiary, RailPower Corp., based in Erie, Pa.
Registered in the State of Washington, the subsidiary is the "next logical step" for RTC as it builds its U.S. "commercialization program," according to Jim Maier, president and CEO of the company.
RailPower Corp. will be headed up by General Manager Bill Hackett. Maier and Alain Voisin, chief financial officer of RTC, will serve as officers. Voisin will take on the additional roles of director, vice president, and secretary of RailPower. Frank Donnelly, chief technology officer of RTC, also will serve as a director.
CN’s operating ratio still the lowestFor fourth-quarter and full-year 2003, CN’s operating ratio remained the lowest among Class I railroads. CN posted a record operating ratio of 66.1% for the quarter, 2.2 points better than the year-earlier adjusted operating ratio, as operating expenses declined by 31% to C$1.0 billion. CN’s 2003 operating ratio was 69.8%, up slightly compared to 2002’s adjusted operating ratio of 69.4%.
CN’s fourth-quarter net income was C$224 million (including a deferred income tax expense of C$79 million as a result of the enactment of higher corporate tax rates in Ontario), compared to net income of C$22 million in the year-ago period (which included after-tax charges of C$252 million related to provisions for U.S. personal injury claims and workforce reductions). Excluding those items, adjusted net income rose 11%. Fourth-quarter revenues were C$1.51 billion, a 2% decline. Operating income for the fourth quarter was $512 million, compared with C$89 million for the year-earlier period.
For full-year 2003, CN’s net income was C$1.01 billion, compared with net income of C$800 million in 2002. 2003 adjusted net income was C$1.05 billion, compared with adjusted net income of C$1.05 billion in 2002. 2003 operating income was C$1.78 billion, compared with C$1.47 billion a year earlier. 2003 revenues declined 4% to C$5.88 billion, but operating expenses dropped 12%, to $4.12 billion.
CN yesterday announced a three-for-two split of its outstanding shares of common stock, as well as a 17% increase in its quarterly cash dividend. The three-for-two split will take the form of a stock dividend. Shareholders will receive one-half additional common share of CN for each common share held. The dividend will be payable on Feb. 27, 2004, to shareholders of record at the close of business on Feb. 23, 2004. In addition, a quarterly cash dividend of C$0.195 per common share post-split will be paid on March 29, 2004, to shareholders of record at the close of business on March 8, 2004.
For Norfolk Southern, mixed resultsNorfolk Southern posted record operating revenues for fourth-quarter and full-year 2003, but special charges for a voluntary separation program and write-down of certain telecommunications assets contributed to reduced net income for the quarter and a higher 2003 operating ratio.
NS reported fourth-quarter net income of $52 million, including a $66 million after-tax charge for voluntary separation and a $53 million after-tax charge for the telecommunications assets. Excluding these items, fourth-quarter net income would have been $171 million, compared with net income of $129 million in the year-ago period. Fourth-quarter revenues were $1.68 billion, up 6% over 2002. Operating expenses $1.5 billion, a 12% increase, primarily as the result of the voluntary separation program. The operating ratio for the quarter increased to 86.6%, compared with 81.8% in fourth-quarter 2002. Without the special charge, the fourth-quarter ratio would have been 80.3%.
For 2003, NS reported net income of $535 million, which included $124 million in accounting changes and the two fourth quarter after-tax charges. Excluding these items, net income for the year would have been $530 million. Operating revenues rose to $6.5 billion, 3% higher than 2002. Operating expenses were $5.4 billion, an increase of 6%, again reflecting the charge for the fourth-quarter voluntary separation program. The operating ratio increased to 83.5%, compared to 2002’s 81.5%. Without the cost of the voluntary separation program, the ratio for the year would have been 81.9%.
Portec completes IPOPortec Rail Products, Inc., which began trading on the NASDAQ Jan. 23 under the symbol PRPX, has completed the sale of two million shares of common stock. The sale netted $17.3 million; part of the proceeds will be used to pay off debt. In its initial public offering, Portec priced its shares at $10. Portec President and CEO John S. Cooper said the additional capital "will position us to pursue our overall growth objectives, which may include acquisitions of companies that will provide us with greater market share in our existing product lines or by acquiring companies with complementary product lines."
Ferromex joins Interline Settlement SystemFerrocarril Mexicano, S.A. De C.V. has joined the North American Interline Settlement System (ISS) to process freight interchanged with U.S. and Canadian carriers and is no longer re-billing rail shipments at the U.S./Mexican border. The railroad has deployed RMI’s RailConnect Revenue Management Services (RMS) to settle freight charges for both northbound and southbound shipments that cross the border.
RMI describes RMS as "a simple, turnkey solution for ISS processing, including automatic rate and division calculation, freight billing, EDI communication with the ISS Central System, trial balance and cash management." All data center support, including disaster recovery, is managed through RMI’s dual data centers in Atlanta. RMI has been processing Ferromex car-hire settlements for the past four years.
"We are excited to be involved in the ISS process with our railroad partners in the U.S. and Canada," said Ferromex Vice President-Commercial Planning and Tariffs Manuel Alonso. "ISS provides important efficiency improvements over the old process of re-billing all shipments at the border."
Utilized by railroads throughout the North America, ISS is a full-function revenue management system certified by the Association of American Railroads for processing. It provides complex rating logic, EDI management, multiple security levels, work queue assignments, industry reference files, revenue protection, and additional functionality. About 70 railroads use RMS for their ISS functions.
BNSF, CPR report improved earningsBurlington Northern and Santa Fe, Canadian Pacific, and CSX reported fourth-quarter traffic and earnings on Jan. 27. BNSF, with both revenues and expenses up by 8%--to $2.46 billion and $2.02 billion, respectively--reported operating income of $477 million, compared with $436 million in the 2002 period. This pared BNSF’s operating ratio to 80.6% from 80.8% a year earlier. The railroad said revenue growth was driven by strong volumes in its Consumer Products, Industrial Products, and Agricultural businesses.
Canadian Pacific, posting strong gains in bulk commodities, reported record freight revenues of C$903.6 million in fourth-quarter 2003, up from C$887.2 million a year earlier. But operating income dropped to C$226 million from C$238 million, and CPR’s operating ratio rose to 76.6% from 75%. This was because an increase in the value of the Canadian dollar vs. the U.S. dollar reduced revenues at a faster rate than it cut expenses. Excluding the effect of currency exchange, CPR said its operating income would have increased by C$12 million.
CSX Corp. Chairman and CEO Michael J. Ward said "positive trends were offset by continued high operational costs" in the company’s rail and intermodal units. Revenue grew to $1.90 billion from $1.82 billion in the 2002 period. But operating income dropped to $251 million, before a restructuring charge, from $281 million a year ago. CSX did not immediately report its operating ratio.
RailAmerica extends Michigan holdingsRailAmerica announced Jan. 26 that it had completed the purchase of the Central Michigan Railway for $25.3 million. The acquisition adds about 100 miles to the more than 400 miles of short lines RailAmerica already operates in Michigan. The Central Michigan serves the Saginaw Bay area and interchanges traffic with Canadian National, CSX Transportation, and several short lines. It generated revenues of $11 million in 2003.
FTA appointed Lower Manhattan liaisonBernard Cohen assumed his duties as director of the Federal Transit Administration's Lower Manhattan Recovery Office on Jan. 26. In December, Transportation Secretary Norman Y. Mineta announced a $2.85 billion "down payment" on a commitment to restore or replace transit facilities hit by the 9/11 terrorist attacks. FTA Administrator Jennifer L. Dorn said Cohen’s 20 years of experience in the transit industry and "his proven track record with complex missions will serve the FTA well as we continue to fulfill the President's commitment to help New York City come back and come back strong." She noted that Cohen has held senior management positions at the New York MTA, the Massachusetts Bay Transportation Authority, and the Southeastern Pennsylvania Transportation Authority.
Little pleads guilty to labor racketeeringFormer United Transportation Union President Charles Little, who was indicted last year on labor racketeering charges, entered a plea of guilty in a federal court in Houston on Jan. 23. An Associated Press report said Little acknowledged that "while president from 1995 to 2001, he and other union officials at his request took cash payments and other things of value from attorneys doing business with the union." Current UTU President Byron Boyd, one of three others who were indicted, responded to the Little plea by reissuing his own response to the charges last year, in which he said he would prove his innocence and would have no further comments while the case was pending. Boyd and a special assistant, John Rookard, are scheduled to go to trial on March 22. Ralph Dennis, the union's former director of insurance, pleaded guilty last October.
Chicago Plan gets big push from DOT’s MinetaU.S. Transportation Secretary Norman Y. Mineta says DOT is working with the office of Illinois Democratic Congressman William O. Lipinski "to develop a framework and a draft agenda for a future roundtable" on financing the $1.5 billion Chicago Plan. Officially known as CREATE (for Chicago Regional Environmental and Transportation Efficiency), the program contemplates a public/private partnership to restructure the movement of freight and passenger trains through the congested Chicago Terminal District.
In a letter to Congressman Lipinski dated Dec. 16, Mineta also said: "DOT is already helping bring CREATE to a successful implementation. First, we have created a DOT Chicago Intermodal Team to coordinate our CREATE support activities among the various DOT modes. Our Chicago Team includes headquarters and Chicago-area field representatives from the Federal Highway Administration, Federal Railroad Administration, Federal transit Administration, and my immediate office. Second, to facilitate communication and coordinate with project sponsors and within DOT, we plan to appoint a DOT single point-of-contact for the CREATE program. The DOT representative will be located in Chicago to provide effective communication and program guidance to project sponsors within stated and local transportation agencies and the private sector."
Jason Tai, Lipinski's liaison with DOT, told Railway Age on Jan. 26 that the Congressman is pushing to put funding for the Chicago Plan in the new omnibus transportation funding bill that will succeed TEA-21, which expires Feb. 29. Lipinski is the ranking Democrat on the
House Transportation Committee.
Sen. Tom Carper addresses RSI on ARRIVE-21 legislation Senator Tom Carper (D-Del.) told Railway Supply Institute meeting attendees last week that he was optimistic about the success of ARRIVE-21 (American Railroad Revitalization, Investment, and Enhancement Act; S. 1961). On this month’s congressional agenda, the bill would create a federal funding mechanism outside the appropriations process to fund rail infrastructure capital needs (both passenger and freight) through tax-credit bonds. It’s sponsored by Senator Ernest Hollings (D-S.C.), and co-sponsors include Carper, Senator Joe Biden (D-Del.), Senator Frank Lautenberg (D-N.J.), Senator James Jeffords (I-Vt.), Senator Susan Collins (R-Maine), and Senator Arlen Spector (R-Pa.).
As part of ARRIVE-21, a non-profit, public-private partnership--Rail Infrastructure Finance Corp.--would issue $30 billion in tax-credit bonds over six years. It would be authorized to award discretionary capital grants to the states and Amtrak for high speed rail and intercity passenger rail projects, and state formula grants for freight capital projects. (Eligible passenger and freight rail projects include planning environmental review, rail line rehabilitation, upgrades and development, safety and security projects, passenger equipment acquisition, station improvement, and intermodal facilities development.) The bill also will require a 20% non-federal match, with proceeds deposited in a bond repayment fund.
There’s hope that ARRIVE-21 will be added as a provision to the reauthorization of TEA-21, which is up for review at the end of next month.
"Rail, both passenger and freight, is capital intensive, and I’ve been pushing since I was an Amtrak board member for the infusion of money," Carper said during the RSI meeting on Jan. 21. "We have the opportunity with ARRIVE 21 for this capital side--to provide capital investment dollars for the railroads and Amtrak."
He urged RSI members to help push the bill forward. "Don’t let the perfect be the enemy of this bill," Carper said. "If the bill can be made better, encourage your colleagues to help find ways to strengthen it. Help us to identify potential co-sponsors."
A similar bill, American Rail Equity Act (AREA), also has been drafted. It was introduced last summer by Senator Kay Bailey Hutchison (R-Tex.), chairman of the commerce committee’s rail subcommittee. Co-sponsors include Senator Conrad Burns (R-Mont.), Senator Trent Lott (R-Miss.), and Senator Olympia Snowe (R-Maine). The bill would provide $60 billion in tax-credit bonds.
Bush speech gets no applause at APTAThe American Public Transportation Association found President Bush's state of the union speech "deeply disappointing" because it failed to include surface transportation among the administration's "top initiatives for 2004." APTA President Bill Millar said that reauthorizing and expanding TEA 21, which is set to expire Feb. 29, "ought to be one of the first legislative priorities this year." APTA and other interests are pushing for the $375 billion funding level proposed by the House Transportation and Infrastructure Committee.
Crossing, trespassing deaths still downIn the first 10 months of 2003, highway-rail crossing fatalities declined 11.8% to 268, and trespassing deaths dropped 8.6% to 426, compared with the corresponding period in 2002. New statistics posted on the Federal Railroad Administration’s website also show that while reportable train accidents rose 3.4% during the 2003 period, the employee casualty rate dropped 8.4%.
UP strengthens supplier-diversity programUnion Pacific says it spent $207 million in 2003 for railroad supplies and services provided by minority- and women-owned businesses. That was a 27% increase over supplier-diversity spending in 2002, and UP wants the trend to continue. "We embrace supplier diversity in a very serious way," said Bob Morgan, director of Supplier Diversity for UP. "We have full support from top management and continue to investigate new ways of engaging minority- and women-owned businesses across our supply chain. We are also now asking our other suppliers to tell us how they are including minority- and women-owned businesses in their supply chains." Started in 1982, UP’s supplier diversity program has tripled during the last six years. UP is active in the National Minority Supplier Development Council.
U.S. rail suppliers told: Iraq beckonsThe U.S. Trade & Development Agency says that $210 million in emergency spending approved for Iraqi Railways may benefit U.S. suppliers. USTD scheduled a Feb. 2 briefing in Arlington, Va., to outline Iraqi needs in track maintenance equipment, new and used rolling stock, intermodal equipment, and signaling/communications technology.
Business rebound continues at UPLast year ended on a high note for Union Pacific. The company’s railroad commodity revenue rose 6% to a fourth record of $2.8 billion. The strongest performers were intermodal and industrial products, up 13% and 9% respectively.
Said UP Chairman and CEO Dick Davidson: “We began to see a pickup in the economy toward the last half of the year—a trend I am happy to say is continuing.”
The sale of its Overnite trucking subsidiary pushed UP’s corporate net income to a fourth quarter record of $551 million, or $2.12 per diluted share. This includes 84 cents from Overnite’s sale as well as Overnite earnings in October.
From continuing operations, the corporation’s per-share earnings amounted to $1.28, compared with $1.38 in the year-earlier period. Davidson said rising fuel costs held earnings down.
Interline rate-making on the InternetObtaining interline rates has traditionally been a time-consuming, frustrating process for railroad customers. The originating railroad has to contact a connecting carrier by telephone or email to request a revenue requirement, "resulting in delays of days, even weeks, in getting an interline price quote to the customer," according to CN Executive Vice President-Sales and Marketing James Foote.
CN and CSX Transportation are attempting to improve the interline rate-making process by jointly developing an electronic means for customers to obtain instantaneous interline prices for carload shipments. "A+B Pricing" uses the Internet to give railroad account managers the ability to retrieve and combine the two railroads’ revenue requirements and quote interline prices in real time "for any origin, destination, and commodity on the two systems." Customers will be able to go to the originating railroad’s website and ask for a combined interline price. CN and CSXT say A+B Pricing is "a rail industry first."
"Immediate access to competitive interline pricing will make shipping via CN and CSXT easier and more accurate," says Foote. "This is another important step in making the railroads attractive to freight currently moving over North America’s highways." Adds CSXT Senior Vice President-Merchandise Service Group Clarence Gooden, "Interline moves comprise more than half of our business. A+B Pricing will dramatically improve response time, billing accuracy, and efficiency."
The two Class I’s expect to make A+B Pricing available to customers on their websites later this year and are also working with other Class I’s and short lines to expand coverage.
BNSF closes 2,000th grade crossingBurlington Northern and Santa Fe announced on Jan. 19 that it had closed 2,000 highway-rail grade crossings between January 2000 and December 2003, as part of the Class I’s grade crossing safety program. The closures represent 6% of BNSF’s nearly 30,000 at-grade crossings across its 32,500-mile rail network.
The railroad will continue to work with local communities and landowners in 2004 to identify redundant crossings. Plans call for another 400 closures.
"We commend BNSF’s long-term commitment to the tough work of closing highway-rail crossings," says Federal Railroad Administrator Allan Rutter. "These successful efforts positively demonstrate that crossing closure is a viable option, one deserving full consideration by all communities seeking to address highway-rail crossing safety."
From 2000 to 2003, grade crossing collisions on BNSF track declined 26%, decreasing from 568 collisions in 2000 to 422 in 2003. From 2002 to 2003, collisions fell 13 percent, according to FRA statistics.
"It’s clear that our grade crossing closure program has made a difference," says Greg Fox, BNSF’s vice president-engineering. "We want to thank the many state and local agencies, as well as landowners, who have assisted with this important safety initiative."
BNSF’s CIO named to "Premier 100" list of IT leadersIDG’s Computerworld has recognized Jeffrey J. Campbell, vice president-technology services and CIO of Burlington Northern and Santa Fe, as one of 2004's "Premier 100 IT Leaders." The award honors executives who show "exemplary technology leadership in resolving business problems."
"On behalf of the men and women of the BNSF Technology Services team, I'm pleased to accept this recognition of our group's commitment to applying technology to support BNSF's strategic initiatives," said Campbell. "This honor reflects the team's creativity, hard work, and dedication to understanding and meeting our customers' expectations."
IT executives from such corporations as J.P. Morgan Chase, Marriott International, American Express, Lockheed Martin, MetLife, and the U.S. Air Force were also included in the 2004 list.
The "leaders" were selected from nearly 600 nominees, who were measured against Computerworld's IT Leadership Index, "a set of characteristics that describes executives who guide the effective use of IT in their organizations," and evaluated by the editors and an external panel of former Premier 100 honorees.
APTA to push for TEA-21 reauthorization during Bush’s "State of the Union" addressThe American Public Transportation Association will kick-off a national television advertising campaign for TEA-21 reauthorization just prior to President George W. Bush’s "State of the Union" address this evening.
The ads, airing on CNN and Fox News, will "demonstrate how public transportation benefits individuals and communities," according to APTA. The theme is "When people thrive, communities thrive."
Print advertisements titled "How Would That Affect You" will also appear in Time, Newsweek, and other publications during the first week of February.
Through the American Transportation Mobility--led by the U.S. Chamber of Commerce--APTA is joining forces with transportation organizations to advocate for increased transportation funding in upcoming weeks.
"Passing a new transportation bill that increases public transportation funding should be a top priority for Congress," said William Millar, APTA president. "Public transportation strengthens America's communities by stimulating the economy and creating jobs. We are asking all Americans to call or write their federal representatives and let them know that America needs a fair and balanced transportation system that provides greater funding for public transportation."
RailAmerica sells Chilean rail stakeRailAmerica has entered into an agreement to sell its 55% interest in Chilean railroad Ferronor for $18.1 million to an affiliate of its Chilean partner, Andres Pirazzoli y Cia., Ltda. RailAmerica paid $6.8 million for its stake in the railroad to the Chilean government in February 1997.
The divestiture is part of RailAmerica’s “intentions to pursue a strategy to reduce debt and focus on growing our core North American rail business,” said Gary O. Marino, chairman, president, and CEO of RailAmerica, and will eliminate about $20 million of Ferronor debt from the small road operating company’s balance sheet.
RailAmerica is slated to receive cash payments totally $10.75 million on or before Feb. 5, 2004, and delivery of secured instruments totaling $7.4 million, which will bear interest and be payable over a 6-1/2-year period.
AREMA moves ahead under new governance structureThe American Railway Engineering and Maintenance of Way Association (AREMA) has announced the appointment of a new, eight-member Board of Governors "to lead the association into the future." AREMA President Robert L. Nash of Canadian Pacific Railway said the new board will have "the ultimate responsibility for the governance of the association, including financial and policy matters and strategic planning." In addition to the five corporate officers of AREMA, the board will have three new governors: Gregory Fox, vice president-engineering, Burlington Northern and Santa Fe; Thomas Schmidt, vice president-engineering, CSX Transportation; and David Hughes, chief engineer of Amtrak.
As part of the restructuring, AREMA’s board of directors will be reduced from 29 members to 20. Nash said it will concentrate on coordination and oversight of six Functional Groups and 30 Technical Committees—"a very important process that helps to ensure the quality of the major AREMA publications and conferences."
"It has now been six years since the merger that created AREMA," said Nash, "and, as AREMA has evolved, we saw a critical need to streamline some of the policy and planning functions and develop a system to enable the Technical Committee system to function more effectively."
While future governors will be elected through a nominating process, the first new governors were appointed by a special committee of past presidents in order to establish the new system without delay, said Nash.
Rail traffic down in first full week of 2004Rail carload traffic in the U.S. dropped 3.2% in the New Year’s first full week, compared with the same period a year ago. Volume measured in ton-miles was down 2.1%, though intermodal managed to post a 1.1% gain. The Association of American Railroads reported that ten carload commodity groups were up from last year, led by coke with a 36.1% gain and grain mill products, up 15.9%. Motor vehicles and equipment, off 27.4%, led the losers, followed by lumber and wood products, down 13.3% and coal, off 6.5%.
In Canada, carload volume was up 2.3% in the week ended Jan. 10, but intermodal traffic was down 3.1%.
Mexico’s TFM railroad reported a 12.9% decrease in carload traffic and a 28.4% drop in originated trailers and containers for the period.
"Loan" of California funds stirs protestCalifornia’s Mobility 21 Coalition, which represents both rail and highway interests, has adopted a resolution seeking the restoration of transportation funds diverted to other purposes to help ease the state’s financial crunch. "The governor’s 2003-04 mid-year reductions and 2004-05 proposed budget include about $2.1 billion in transportation reductions," said the group following a meeting at the Los Angeles MTA. "To date, $2.5 billion in transportation funds has already been loaned to the state General Fund."
The funds in question include Proposition 49 revenues. "When lawmakers transfer voter approved funds for a different purpose than what was originally promised, it makes it even harder to pass these ballot measures that invest in transportation," warned Los Angeles Chamber of Commerce CEO Rusty Hammer.
The coalition listed a number of projects that could be adversely affected, including L.A. MTA operations, Alameda Corridor East grade separations, and Metrolink system-wide improvements.
Maglev loses bid for major role in ChinaChina is reported to have decided at the highest level that its future in high speed ground transportation lies not with maglev but with conventional systems like Japan’s Shinkansen, France’s TGV, and Germany’s ICE trains. Premier Wen Jiabao is said to have participated in the decision to abandon a planned maglev line linking Beijing and Shanghai in favor of conventional high speed rail. The Associated Press, in a dispatch from Beijing on Jan. 16, said that "scrapping of the nine-year-old maglev project—two weeks after the country’s first maglev, a short stretch in Shanghai, began regular operation—represents a setback for the development of the technology in China, which many had seen as one of its key markets." The decision to go with conventional high speed rail development was said to be part of a sweeping railway modernization plan calling ultimately for eight high speed rail systems in the country.
UP switching 1,038 jobs from St. Louis to OmahaUnion Pacific Corp. had been expected to announce the move of around 700 accounting, finance, and customer service jobs from St. Louis to Omaha. But UP announced Jan. 13 that the number will actually be 1,038. That’s because the company also decided to move its wholly owned technology subsidiary, Transcentric, LLC, with an additional 300 positions, to its new corporate headquarters building in Omaha. Transcentric, which serves customers throughout North America, has been based in Richmond Heights, Mo., since its establishment in 1987.
UP Chairman and CEO Dick Davidson was joined by Gov. Mike Johanns and Omaha Mayor Mike Fahey in making the announcement at the Capitol building in Lincoln. Dickson called it "a banner day for the company." Governor Johanns said it wasn't a bad day for Omaha and Nebraska. He said the new jobs would bring with them a payroll of around $62 million, "and that payroll pays taxes."
Hybrid locomotives to enter service in TexasSeven RailPower Technologies Corp. hybrid locomotives have qualified for funding under the Texas Emissions Reduction Program (TERP). Once contracts are finalized, TERP will "significantly" subsidize the cost of six 1,000 h.p.-equivalent Green Kids and one 2,000 h.p.-equivalent Green Goat® for Railserve, an in-plant switching, track maintenance, and rail services provider. Railserve will use the locomotives at customer sites in Brazoria County, Tex.
"This will be our first confirmed major sale," said RailPower President and CEO Jim Maier in an announcement today. "The TERP funding jump starts the introduction of our emissions-reducing hybrid locomotives into what is one of the most polluted regions in the U.S., the Houston-Galveston area."
Railserve is anticipating that the initial contract paperwork will be completed by the end of February, according to Tim Benjamin, co-CEO and controller.
BNSF/Autolog Corp. offer new Car-Rail serviceThe more than 250,000 "Snowbirds" residing in Arizona during the winter and returning to the Midwest or Northeast in spring soon will have a new way to transport their vehicles between homes. Effective March 8, Car-Rail service will be available between the Phoenix/Tucson metropolitan areas and Chicago, Minneapolis/St. Paul, and New York City.
BNSF Logistics, LLC (a wholly owned subsidiary of Burlington Northern Santa Fe Corp.), privately owned vehicle carrier Autolog Corp., and Burlington Northern and Santa Fe Railway announced today that they will offer the service as part of a marketing and operations alliance. It will be managed by Autolog’s Car-Rail division and coordinated through BNSF Logistics’ CarsOnTrack program.
Instead of transporting personal vehicles between residences by driving them or hiring an independent trucking firm, which can cost in excess of $800 and take up to two weeks for delivery, consumers can chose Car-Rail, "a reliable, lower cost, safe, and timely method," says BNSF Logistics’ Director-Operations Robert Sutton.
Vehicles will be carried in fully enclosed auto-haulers from BNSF’s CarsOnTrack operation. The estimated transit time for vehicles moving from Phoenix/Tucson to the Midwest will be about seven to 10 days, at a cost starting at $450 for an average-size automobile.
Railroads receive "stable" Moody’s rating for 2004With cash flows improving but debt levels remaining high, the North American railroad industry has earned a "stable" rating from Moody’s. In its North American Railroad Outlook for 2004, released Jan. 13, Moody’s Investors Service said any rating changes during the year are likely to come about not through any industry-wide trend but from the actions of particular companies. "An issue for several railroads is that, once a sustainable level of free cash flow is attained, any excess cash flow after investment could be returned to shareholders via share repurchases or increased dividends rather than applied to debt reduction," said Moody’s Vice President/Senior Credit Officer Robert Jankowitz. "Uncertainty surrounding the financial policies of individual railroads is one factor constraining the upside in railroad ratings. Another important factor is the industry’s poor record in generating returns to cover the cost of capital."
Greenbrier shares rise on earnings reportThe price of Greenbrier shares rose to a 52-week high as the company reported strong earnings and a rising manufacturing backlog for the first quarter of its 2004 fiscal year. Earnings were $4.2 million compared with a profit of $3.3 million in the prior quarter and a net loss of $0.7 million in the first quarter of fiscal 2003.(Greenbrier’s fiscal year begins on Sept. 1.)
In its Jan. 13 announcement of results for the quarter that ended Nov. 30, Greenbrier said "higher production rates, improved margins, and operating efficiencies continue to drive results."
During the most recent quarter, revenues grew 16% to $112 million; new railcar deliveries in North America, including those from the company’s unconsolidated joint venture in Mexico, rose nearly 45% to 1,700 units. Greenbrier ended the quarter with a new railcar manufacturing backlog of 11,500 units valued at $620 million, compared with a backlog of 10,700 cars valued at $580 million on Aug. 31.
Greenbrier also announced that it had signed an undated letter of intent with a private equity group to recapitalize its European freight car operations.
The company’s president and CEO, William A. Furman, commented: "Our strong railcar and marine manufacturing backlog provides good financial visibility stretching well into fiscal 2005. The leasing and services segment is also benefiting from the market rebound. Our leased fleet of 12,000 owned railcars realized 95% ‘on lease’ utilization for the quarter, up from 92% at the end of the prior quarter. We intend to continue to add to our lease fleet during the year and to add other accretive investments."
OCTA finalizes new CenterLine light rail routeThe Orange County Transportation Authority (OCTA) is set to move forward with the more than $900 million CenterLine light rail system. On Jan. 12, the OCTA Board of Directors voted 9-2 to support a finalized 9.3-mile route, which connects the Depot at Santa Ana to the John Wayne Airport and now includes a new 0.8-mile spur to Santa Ana College.
The complete route will provide service to the depot and airport, South Coast Plaza shopping center and Orange County Performing Arts Center, Mater Dei High School, Santa Ana Civic Center, County Government Center and Courthouse, and Santa Ana Artists Village. The Depot at Santa Ana will offer a connection with Amtrak, Metrolink, and OCTA bus service.
Final approval of the route comes after many countywide open houses and public hearings as well as a Board vote last July to support an initial eight-mile operating segment. The CenterLine project, originally slated to be 28 miles long with service through Anaheim's entertainment district, has been downsized several times.
The CenterLine system will be 60% street level and 40% elevated, with a 1,100-foot underground segment in Costa Mesa, along the Avenue of the Arts. It will include 16 stations, a rail base, and seven new parking facilities (as well as joint use of an additional three existing facilities).
OCTA is currently drafting a final environmental impact report. Project construction could start as soon as 2006, with a completion date in 2009.
CSXT plans March maintenance blitzCSX Transportation says it will cram 15 weeks of normal maintenance into five days during a maintenance blitz between Montgomery, Ala., and New Orleans, March 15-19. More than 800 employees working round-the-clock shifts will replace or refurbish 75,000 ties, 18.5 miles of rail, and embankment shoulders on more than 54 miles of main line. The railroad says it’s putting plans in place to mitigate, as much as possible, service disruptions for its customers.
RSI, RSSI offer scholarshipsThe Railway Supply Institute and the Railway Systems Suppliers Inc. are offering college scholarships for the 2004-2005 academic year.
RSI will award scholarships of $3,000 to the four most qualified students whose parent, stepparent, grandparent, or guardian is an employee of an RSI member company or an individual member of one of the Coordinated Mechanical Associations sponsored by RSI. All applicants must be enrolled as full-time students in a four- or five-year Bachelor’s degree program and expect to achieve at least sophomore status by the beginning of the 2004 fall term. (Post-graduate work is not covered under this program.) Winners of 2003 scholarships are ineligible. Applications are due by March 15.
For details, contact the RSI at: 29W140 Butterfield Road, Suite 103-A, Warrenville, IL 60555; Phone: (630) 393-0106; Fax: (630) 393-0108; E-mail: rsupplya@aol.com.
RSSI will provide scholarships of $2,000 per year for up to four years to the dependent children or grandchildren of employees of RSSI member companies in good standing that have at least four consecutive years of membership. Students must have taken the Scholastic Aptitude Test and scored a minimum of 900; the American College Test and scored a minimum of 23; or the recognized Canadian test, with a minimum score to be determined. Before payment can be made, full-time enrollment in a two- or four-year accredited college program is required. In addition, a grade point average of at least 3.0 must be maintained to retain a scholarship. Completed applications must be submitted by May 1.
For details, contact the RSSI at: 9304 New LaGrange Road, Suite 200, Louisville, Ky. 40242; Phone: (502) 327-7774; Fax: (502) 327-0541; E-mail: rssi@rssi.org.
Wabtec "bullish" on 2004 prospectsWabtec Corp. announced today that it expects 2004 sales to reach $750 million--with increases of between 5% and 10% for both its freight and transit groups.
"With our original equipment markets expected to strengthen in 2004, a more favorable product mix, and our ongoing application of lean principles, we are bullish on Wabtec’s prospects for this year," said Gregory T.H. Davies, company president and CEO.
Wabtec has based its financial guidelines on 2004 rolling stock delivery assumptions: 36,000 freight cars (vs. about 31,000 in 2003) and 1,000 locomotives (vs. approximately 650 in 2003). The original equipment markets represent half of Wabtec’s total corporate sales.
The company anticipates that its aftermarket parts and services businesses--which represent the other half of corporate sales--will remain sluggish in 2004, "as railroads and transit authorities continue to minimize maintenance and repair expenses."
Wabtec estimates that 2004 earnings per diluted share will reach approximately 70 cents--a growth rate of about 30 percent over 2003.
"We’re pleased to forecast a substantial increase in earnings for the second consecutive year," said William E. Kassling, Wabtec chairman. "In addition, our goal is to continue to generate free cash flow in excess of net income. We expect to use this cash for debt reduction, accretive acquisitions, or other general corporate purposes."
While full earnings results for fourth quarter 2003 will be reported in February, Wabtec expects earnings per diluted share of between 13 cents and 16 cents from continuing operations and anticipates meeting its 2003 target of about $40 million for free cash from operations.
In related developments, Wabtec will no longer issue quarterly earnings guidance. Annual earnings guidance will be updated as necessary.
BNSF major maintenance blitz under way Today, Burlington Northern and Santa Fe began a $16.5 million, 16-day track maintenance blitz on 120 miles of line between Bakersfield and Fresno, Calif. More than 300 maintenance-of-way employees will work on track, rail, and bridge renewal projects, including replacement of 12 track miles of steel rail; installation of 38,250 wood crossties; and drainage improvements on 47,250 feet of track. The project also includes the installation of three new switches and upgrades to one bridge and 18 crossings.
"The maintenance blitz allows BNSF to perform a large volume of track upgrades in a compressed time which will improve ride quality for Amtrak and facilitate freight movement between Bakersfield and Fresno," said Steve Anderson, general director-line maintenance for the Class I.
Current plans call for opening the Bakersfield Subdivision for 14 hours a day to operate a limited number of trains on their regular routes. Daily slots also have been secured to operate trains on Union Pacific trackage during the blitz.
The affected communities between Bakersfield and Fresno will be Laton, Hanford, Corcoran, Wasco, and Shafter.
A growing role for rail in the Alameda CorridorThe Alameda Corridor Transportation Authority (ACTA) on Jan. 8 approved a seven-point plan that "will serve as a blueprint for the agency?s future roles in road, bridge, and rail improvement projects."
Rail-oriented parts of the plan include development of a pilot program for a shuttle-train operation, and assisting the Port of Los Angeles and a railroad in developing "a new, near-dock intermodal container transfer facility (ICTF) that would accept containers for the Alameda Corridor, rather than trucking the containers on the Long Beach (710) Freeway." ACTA will also "work with the ports in optimizing the use of existing on-dock rail facilities," and study the benefits of extended operating hours "at the cargo distribution system at the two ports and the regional distribution centers that serve them."
The product of a public/private partnership that has been widely applauded, the Alameda Corridor opened in April 2002. It consolidated traffic from four rail lines into a 20-mile freight rail expressway between the ports of Long Beach and Los Angeles and rail yards near downtown Los Angeles.
FRA slated to morph into FRPAAn internal restructuring plan at the U.S. Department of Transportation calls for the Office of Pipeline Safety to be folded into the "structurally and operationally similar" Federal Railroad Administration, which would get a new name: the Federal Railroad and Pipeline Administration (FRPA).
This would be part of an overall plan to transform DOT?s Research and Special Programs Administration (RSPA) into a new agency called the Research and Innovative Technology Administration (RITA).
"Our proposal would for the first time create a central laboratory to help keep us at the forefront of new technologies, while also strengthening our important regulatory and operational responsibilities." These responsibilities now handled by RSPA would be transferred to other areas of the department.
RITA would get the Intelligent Transportation Systems Joint Program Office, now part of the Federal Highway Administration and all of the statistical and research functions of the Bureau of Transportation Statistics. Meanwhile, RSPA?s Office of Emergency Transportation and Management Center would move to the Office of Intelligence and Security, the Office of Hazardous Materials to the Office of the Assistant Secretary for Transportation Policy, and--as noted--the Office of Pipeline Safety to the FRA. While most of the restructuring can be accomplished administratively, certain changes will need specific legislation that will be submitted to Congress.
Canadian Pacific Railway CEO Rob Ritchie named 2004 Railroader of the Year by Railway AgeRailway Age has named Robert J. Ritchie, president and CEO of Canadian Pacific Railway, has been named 2004 Railroader of the Year by Railway Age.
"Canadian Pacific Railway is among the best-run of North America's largest freight railroads," said Railway Age Editor William C. Vantuono. "While 2003 wasn't a stellar year for the railway industry as a whole--costs rising faster than revenues, service glitches, an economy that only began to see signs of life late in the year--there were a few bright spots. One of the brightest was the performance of the Rob Ritchie-led CPR."
"We selected Rob Ritchie for several reasons," said Vantuono. "He led CPR through an uncertain period to higher productivity and profits and an operating ratio in the mid-70s. Under Ritchie's leadership, CPR was successfully spun off as a separate company from Canadian Pacific Ltd. in October 2001. Since then, share price has increased by more than 60%; CPR stock in late 2003 was trading at or near a 52-week high. Ritchie instituted a major locomotive transition to a.c. traction. Today, CPR has the highest percentage of a.c. locomotives in service of all North American Class I's and is now routinely moving trains that exceed 10,000 feet in length.
"Over the past five years, CPR has invested almost C$4 billion to improve its 14,000-route-mile system. Last year's capital investments exceeded C$700 million, an amount that compares favorably with that spent by some other Class I's with much larger physical plants. Ritchie also guided the railway through a successful shift from tonnage-based operations to fully scheduled operations. CPR's Integrated Operating Plan earned the Franz Edelman Award from INFORMS (Institute for Operations Research and Management), topping entries from such companies as UPS, Hewlett-Packard, and Menlo Worldwide." The railway's Integrated Operating Plan will continue to be fundamental to its overall business strategy.
Rob Ritchie is the 41st recipient of Railway Age's Railroader of the Year Award, which was started by Modern Railroads magazine in 1964 as the "Man of the Year" award. Railway Age acquired Modern Railroads in 1992 and has presented the award annually since then. Ritchie will be presented with the award, one of the most prestigious in the railroad industry, on March 23, 2004, at Chicago's Union League Club.
"I have always put a great deal of emphasis on a team approach to operating a railway," Ritchie said. "Everything that happens involves many people, whether it's planning the company's strategic direction, bidding for a shipper's business, maintaining the track, or moving the customer's goods. The accomplishments at CPR that have led to the Railroader of the Year award are the accomplishments of everyone on our railway. Teamwork is in our DNA and, because of it, everyone at CPR can and should share with me in the honor of receiving the Railroader of the Year award."
GATX Rail announces railcar acquisitionGATX Rail has announced its purchase and leaseback of 1,176 high-capacity, plastic pellet, covered hopper cars. The cars are deployed under a long-term lease arrangement to Houston, Tex.-based Equistar Chemicals, LP--a joint venture of Lyondell Chemical Co. and Millennium Chemicals, Inc.--which produces ethylene, propylene, polyethylene, ethylene oxide, ethylene glycol, specialty polymers, wire and cable resins, and polyolefin powders.
"This transaction is a great example of our focus on customer service," said David M. Edwards, president and CEO of GATX Rail. "We provided Equistar with a financing alternative that met their needs, while we capitalized on an opportunity to expand our fleet through the acquisition of quality rail assets."
FRA grants $233.6 million RRIF loan to DM&E/IC&EU.S. Transportation Secretary Norman Y. Mineta announced Jan. 7 that the Federal Railroad Administration has granted a $233.6 million loan to the Dakota, Minnesota & Eastern and its subsidiary, the Iowa, Chicago & Eastern. The loan is part of the Railroad Rehabilitation and Improvement Financing program. Among other things, it will finance improvements to existing mileage along a route planned by DM&E to serve Wyoming's Power River Basin coal mines. (Further funding will be required for new mileage.)
Asserting that regional railroads perform "a vital role in the American economy," the DOT said the loan will provide "enhanced access to international markets and expanded economic benefits for regional railroad customers in Iowa, Minnesota, and South Dakota." The 1,103-mile DM&E serves 130 companies. The IC&E serves approximately 750 companies along 1,403 miles of track.
Most of the 25-year RRIF loan, $194.2 million, will be used to refinance existing debt for rail line acquisition and track rehabilitation. About $24.4 million will be used to improve tracks between Wolsey, S.D., and Tracy, Minn.; $5.85 million to repair bridges between Wolsey and Springfield, Minn.; and $9.2 million to rehabilitate tracks between Owatonna, Minn., and Mason city, Iowa, and between the Iowa communities of Lawler and Calmar.
Refinancing existing debt on better terms will enhance cash flow and help provide for "an expanded program of infrastructure investment to address deferred maintenance and other capital improvements," said DOT.
Railway Age's 2004 Regional/Short Line awardsRailway Age is now accepting entries for its annual Short Line/Regional Railroad of the Year awards. The 2004 winners will be honored with articles describing their achievements in the April 2004 issue of Railway Age. The awards also carry specially-designed plaques.
Short line and regional carriers are invited to submit entries describing what they deem to be outstanding achievement in one or a combination of areas. These include, but are not limited to, turnaround situations; consistent excellence; innovation in operations or maintenance; marketing; customer service; enhanced productivity; community relations; safety improvement; and ingenuity in dealing with the unexpected. Each of the more than 600 smaller roads in Mexico, the U.S., and Canada is eligible for an award and may nominate itself. Size is not important. In the past, awards have gone to carriers ranging from 20 miles to nearly 2,000 miles. In some years, separate awards are given for regional and short line carriers.
Entries should be submitted to: Marybeth Luczak, Executive Editor, Railway Age, 345 Hudson Street, 12th Floor, New York, N. Y., 100l4. E-mail: mluczak@sbpub.com. Fax: (212) 633-1863. Entries should contain the name, position, and contact information of the nominator and an approximately 500-word description of the achievement(s) of the nominated railroad.
Entry forms are not essential, but may be obtained from Luczak by fax or e-mail. The deadline for entries to be received in New York is Friday, Feb. 20, 2004. Railway Age works with the winners to publicize the awards in online and national media.
MARTA?s smart card project to proceedThe Metropolitan Atlanta Transit Authority can move forward with its $72.5 million fare-collection system contract awarded to Cubic Transportation Systems last October, according to a Fulton County, Georgia, court ruling announced today. A request by Thales e-Transactions for a permanent injunction against MARTA that would have required the transit authority to rebid the smart card-based system contract (worth as much as $104 million with options) was denied. Thales claimed that MARTA did not follow proper procedures during the contract award process. "The proposals were fairly evaluated," the judge noted.
While installation of the new system was originally scheduled for 2005, Cubic said that the "four-month legal challenge" will likely cause a delay. Cubic?s Nextfare? Central System and Tri-Reader? technology will replace MARTA?s existing magnetic ticketing and token-based system, and it will allow commuters to use one card to pay for rail, bus, and paratransit fares as well as park-and-ride fees.
MMA commemorates its first yearMontreal, Maine & Atlantic Railway celebrates its one-year operating anniversary today. During a reception at the short line?s offices in Hermon, Maine, there will be an unveiling of a MMA 1 boxcar painted in historic red, white, and blue colors, donning the phrase: "State of Maine Products." The car represents the railroad?s continued partnership with the state. (Former Bangor & Aroostook began the partnership in 1950.)
"It is a historic day for the MMA," said Bob Grinrod, president. "We have successfully waged an uphill battle in 2003 and want everyone to know that the MMA is here to stay. With the help of the State and our very dedicated workforce, we have weathered the storm and look forward to a brighter future."
Midland receives ISO 9000-2000 certificationISO 9000-2000 certification has been awarded to Midland Manufacturing Company, a manufacturer of top and bottom transfer valves, pressure relief valves, and level measurement devices for the railroad tank car, ISO storage container, and marine barge industries. Achieving this recognition is important, according to company President Neil Gambow, as it imposes "even stricter standards" than applicable Association of American Railroads requirements and is recognized in international markets. "We will be engaged in a continual process of measuring performance in all functional areas compared to our customers? expectations," Gambow said.
RSZ to operate freight and passenger rail in ZambiaRailway Systems of Zambia Limited (RSZ) has signed a 20-year concession agreement to provide rail freight transportation services on the former Zambia Railways Limited network. RSZ--a consortium led by New Limpopo Bridge Projects Investments Ltd., with the Spoornet division of Transnet as a major shareholder--also was granted a seven-year concession to operate rail passenger services between Livingstone and Kitwe. The transaction was part of the Zambia Railways Restructuring Project, sponsored by the World Bank.
RSZ estimates that it will pay $253 million to the Zambian government over the life of the concession, and invest $40 million over the next five years in infrastructure and rolling stock improvements.
Ottawa, Canada-based CPCS Transcom Limited acted as transaction advisor, assisting the Zambia Privatization Agency to successfully concession the Zambia Railways?s assets and operations.
BNSF posts track maintenance projects onlineBurlington Northern and Santa Fe announced Jan. 5 that customers may access the Class I?s track maintenance information via the Internet. Projects such as a Jan. 8-Jan. 23 major maintenance blitz on 120 miles of line between Bakersfield and Fresno, Calif., will be posted on railroad?s Website (www.bnsf.com).
"Providing accurate, timely information is part of our commitment to meeting our customers? expectations," said Greg Fox, vice president-engineering for BNSF. "This new tool will make it easier for customers to ?see? maintenance projects that might affect the routes on which their shipments move."
Using an interactive maintenance-of-way map, customers can click on any region to determine what maintenance projects (if any) are taking place at that location. Project dates and times of day, lists of possibly affected trains, and frequently updated estimates of potential delays will be included. The map will be updated weekly and only the current week will be displayed. (The map is available under "Planned Track Maintenance" at http://domino.bnsf.com/website/updates.nsf/ptm?ReadForm. It also may be accessed by selecting the "Media" section of the BNSF home page, and then selecting "Network Overviews" and finally "Planned Track Maintenance.")
Customers will continue to receive advisories concerning major maintenance projects, which also will be noted on the "Network Overview" page of the BNSF Website.
RDC acquires Iowa InterstateRailroad Development Corp.(RDC) has completed its purchase of Iowa Interstate Railroad (IAIS) and the assets of Heartland Rail Corp. Partners since 1991, RDC--a privately held railway management and investment firm--and Heartland jointly owned IAIS, which operated on Heartland-owned rail infrastructure between Bureau, Ill., and Council Bluffs, Iowa. As a result of the recent transaction, IAIS now owns Heartland?s assets and has become a wholly owned subsidiary of RDC.
"We are pleased to have completed this transaction, which is a testament to both the vision of Heartland?s founders and the broad-based support Heartland and IAIS have received since their creation in 1984," said Henry Posner III, chairman of RDC and IAIS.
Heartland was formed in 1984 to purchase the main line of the liquidated Rock Island Railroad. IAIS was established at the same time as a through route.
RDC President Robert A. Pietrandrea commented: "The IAIS management team has done an outstanding job over the years in bringing the railroad from a startup operation to the solid company it is today. Under RDC?s ownership, this same team will continue to guide the railroad into the future. They understand the transportation needs of the shippers and work closely with them to develop the pricing and service packages that helps to keep their products competitive."
British rail travel at 42-year highMore than one billion riders boarded British intercity and commuter trains in the year ended Sept. 30, 2003, the highest annual number since 1961, according to the Association of Train Operating Companies (ATOC). As reported by International Railway Journal, Railway Age?s sister magazine based in the U.K., ATOC also said that passenger-kilometers totaled 40.1 billion during the October-September 2003 period, the highest since 1947; and during the last seven years, ridership on the railway network increased more than 30% and passenger-kilometers were up nearly 40% since 1994-95, the last year before privatization. IRJ said the increase "is attributed to a mixture of greater prosperity, increased road congestion, and more frequent train services."