January 2009

The "3181 Inaugural Extra," ceremonially delivering President-Elect Obama to Washington for his inaugural Jan. 20, will begin its run from New York-Penn Station Saturday, Jan. 17, at 5:40 a.m., heading toward Washington as most area weekend rail travelers make their way toward New York. The president-elect will board the train at Philadelphia, with Vice President-Elect Joe Biden scheduled to board at his "home" station stop in Wilmington, Del.

The extra's consist will include Georgia 300, manufactured by the Pullman Co. in 1930 and converted to a business car in 1954. The car has been used in numerous presidential campaign tours.

Meanwhile, Amtrak has said it will add train service on the Northeast Corridor Jan. 20 between Washington and Boston, in part to facilitate those making a day trip to the nation's capitol to witness the inauguration ceremonies.

January 16, 2009
Freight carload traffic begins 2009 in decline

U.S. freight carload traffic for the first full week of 2009 (ending Jan. 10) was off 17.7% from the comparable period a year ago, the Association of American Railroads (AAR) reports. Eastern railroads saw traffic fall 23.7%; those in the West fell a less precipitous 13.4%. Volume of 28.8 billion ton-miles was down 16.3% from the comparable week in 2008.

U.S. intermodal declined 14.3%, with container volume down 9.8% and trailer volume down 31.4%.

Canadian railroad carload volume fell 26.8% for the week compared with last year’s period, while intermodal traffic fell 13.7%.

Mexico’s two major railroads saw carload traffic decline 20.3%,while intermodal volume also fell, down 24.3%.

Combined North American rail volume of all three nations for the first week of 2009, totaling 14 reporting U.S., Canadian, and Mexican railroads, was down 19.5% from the comparable week in 2008. Combined North American intermodal volume fell 14.4%.

January 16, 2009
Amtrak responds to press photographers' complaint

In a letter dated Jan. 12, Amtrak legal counsel David Domzalski "denies any allegation that is acted in an unconstitutional manner" toward members of the National Press Photographers Association. The letter is in response to a NPPA letter Jan. 9 noting complaints from its membership over Amtak security policy related to photography.

Addressing NPPA General Counsel Mickey H. Osterreicher, Domzalski notes Amtrak allows photography in space open to the public, and limits on-board photography to situations where such activity does not interfere with crew operations. But "Amtrak does prohibit photography in areas restricted to the public, such as rights-of-ways and posted no trespassing areas. It is also limited on train platforms to ticketed passengers who may do so briefly prior to boarding or departing from a train," the letter says.

"With regard to media photography, Amtrak does request contact and coordination ... in order to assure appropriate access and to provide notice to Amtrak employees of the authorized presence of the photographer," Domszalski says.

Amtrak police follow specific guidelines for passengers, patrons, and the general public in public places, but the guidelines "state that Amtrak police can investigate activity of photographers that is reported or observed to be suspicious in nature," Domszalski says.

Citing one specific incident in New York's Penn Station involving the arrest of a photographer, Domszalski states that "the matter involves an incident of trespassing after receiving direct communication to leave an area as opposed to an arrest being made because of photography."

NPPA has charged that in some cases, photographers were threatened with arrest when failing to follow commands by Amtrak officers to delete images.

January 16, 2009
Purple Line, as LRT, gets planning board endorsement

The Montgomery County, Md., Planning Board has endorsed light rail for the proposed 16-mile Purple Line, choosing it over Bus Rapid Transit options and marking the county's first significant endorsement of a mode for the route in the project’s two-decade-plus history.

Neighboring Prince George's County, east of Montgomery, long has supported the light rail option, which would link suburbs in the two Maryland counties and also act as a circumferential link to the Washington, D.C. Metrorail system at four locations.

The Planning Board voted 4-1 to approve LRT, sending the measure to the County Council, which is expected to cast its own vote Jan. 27.

"We are extremely pleased with the vote," said James W. Clarke, a former Sierra Club transportation expert who is allied with Purple Line Now, a group comprised of labor, developer, environmental, and rail advocate interests.

The board also supported a staff proposal to put the light rail system at street level in Silver Spring, but members agreed that further study could be useful. Silver Spring residents have sought alternatives, including tunnel construction, in order to reduce traffic congestion they claim LRT would exacerbate.

Similarly, some residents in Chevy Chase, Md., have fought against efforts to route LRT along the surface of the Purple Line, saying the route's current use as a hiking trail should take priority, and such use is not compatible with LRT running alongside.

January 16, 2009
Virginia Beach commits funds for NS right-of-way

Belatedly moving after a decade, the City Council of Virginia Beach, Va. has agreed to seek acquisition of 10.6 miles of railroad right-of-way, currently owned by Norfolk Southern Corp., for possible light rail transit use.

Virginia Beach plans to commit $10 million of its own money, matching it with $10 million from state and other sources. Light rail transit isn't an explicit or automatic reason for the purchase, since Virginia Beach has yet to revisit its rejection of the mode in the 1990s. But
council members apparently agree that the city should own right-of-way regardless light rail's prospects.

"We need to control it," said Vice Mayor Louis Jones of the right-of-way. "It's a corridor right in the middle of Virginia Beach."

The rail line runs from Newtown Road to Birdneck Road near the city's oceanfront area. The route abuts current construction of The Tide light rail in neighboring Norfolk, Va., planned to run between Newtown Road and Eastern Virginia Medical Center.

Norfolk Southern spokesman Robin Chapman says the Class I railroad will discuss a sale of the route, and in 2008 appraised the route's value at $50 million. "That was done at the height of real estate values, and property values have declined since then," Chapman said. "We are nevertheless insistent on getting fair market value for it."

Norfolk Councilman W. Randy Wright, a light rail advocate, lauded Virginia Beach for its decision. "It's another indication that Virginia Beach is serious about extending The Tide to Virginia Beach," Wright said.

January 15, 2009
BNSF touts express international container service

Seeking to improve travel time as a way to counteract the struggles of the international intermodal container market segment, BNSF announced Thursday it is offering an express service linking the ports of Seattle and Tacoma, Wash., with its Logistiics Park-Chicago intermodal site and also in Memphis.

Initially, BNSF is offering one full train weekly from either Seattle or Tacoma to either Chicago or Memphis, on a schedule that matches an ocean carrier’s discharge/dray. BNSF plans to expand the service as shipper interest grows.

"This express service can cut down transit time by almost a full day, making it one of the fastest intermodal cargo services from the Pacific Northwest to Chicago and Memphis,” said Steve Branscum, BNSF group vice president, Consumer Products Marketing. "The new express service not only relies on the speed of the train and the route followed, but also the ability of the ports and the intermodal hubs to provide efficient and reliable service."

BNSF noted it is expanding capacity at its Memphis facility, including the addition of five of the largest wide-span cranes in North America.

January 15, 2009
NICTD taps Orca Railway Systems locomotive simulators

The Northern Indiana Commuter Transportation District (NICTD), operator of the South Shore Line between South Bend, Ind., and Chicago, has acquired two locomotive training simulators from Vancouver, British Columbia-based Orca Railway Systems.

The supplier says the simulators mimic the cab designs and train-handling characteristics of two particular types of NICTD multiple-unit cars. The two units will be installed in NICTD's Michigan City, Ind., Operations Control Center, to be used in initial induction training, for annual recertification testing, and for remedial training purposes.

January 15, 2009
OneRail Coalition unites rail freight, passenger interests

Anticipating a return to U.S. rail expansion under an Obama Administration, numerous rail industry groups Thursday announced their formation of the OneRail Coalition, which they claim "brings passenger and freight rail stakeholder together for the first time."

The coalition "will encourage public policies recognizing rail as a critical element of the national transportation system and an essential part of the future economic growth and environmental well-being of the nation," it said in a statement.

The initial membership list, providing a blend of freight, passenger, infrastructure, and environmental/energy interests, includes: the American Public Transit Association (APTA); Amtrak, the American Short Line & Regional Railroad Association (ASLRRA); the Association of American Railroads (AAR); Building America’s Future; the National Association of Railroad Passengers (NARP); the Natural Resources Defense Council (NRDC) ; the Railway Supply Institute (RSI); the States for Passenger Rail Coalition (SPRC) ; and the Surface Transportation Policy Partnership (STPP).

OneRail Coalition says its focus in uniting passenger and freight rail interests and goals is highlighted by the findings of the 2008 National Surface Transportation Policy and Revenue Study Commission. "The Commission’s findings were clear," says AAR President and CEO Ed Hamberger. "Increased investment in railroad infrastructure is essential to our continued mobility, economic competitiveness, and ability to create jobs, as well as to meeting the energy and climate challenges of the 21st century." (In September 2007, AAR identified $148 billion in freight rail infrastructure needs and a plan to fund such needs; in numerous public forums, AAR also has cited its belief that passenger rail capacity also requires expansion.)

The coalition's objectives include: expanding and strengthening the U.S. passenger rail network, including intercity and regional (commuter) services; enacting policies and programs to expand public/private partnership investment, and encourage private investment in rail freight capacity; and supporting state efforts to identify dedicated funding sources for intercity rail passenger improvements.

The group says its OneRail Principles are available for review at www.transact.org.

January 15, 2009
Photographers bid Amtrak stop harassment

In a letter to Amtrak, the National Press Photographers Association's general legal counsel has asked the national rail passenger carrier to "take immediate steps to remedy the railroad's unconstitutional treatment of law-abiding photographers."

NPPA says its action follows recent complaints from photographers who were told by Amtrak police officers that they were not permitted to take photographs of trains or stations. In some instances, NPPA says, photographers were threatened with arrest or arrested when they failed to follow officers' commands to delete images.

Though the issue of photographic access and intent has surfaced in recent years, it often has involved amateur photographers, including railfans. NPPA's action signals a challenge to Amtrak policy on photographers on more professional and/or more business-oriented grounds.

NPPA's letter, issued by general legal counsel Mickey H. Osterreicher to Amtrak police general counsel David Domzalski, asks Amtrak to inform its personnel that the act of taking pictures or video in itself is not unlawful, and that doing so provides "no basis for law enforcement or other transit personnel to take action against a photographer."

"As far as we can determine, there are no pertinent laws, rules, or regulations specifically prohibiting photography nor any Amtrak rules or regulations establishing a permit scheme," Osterreicher said. "Given that photography of public areas is protected by the First Amendment, we believe Amtrak's actions are plainly unconstitutional."

NPPA Executive Director Jim Straight said that Domzalski has not yet responded to the letter.

January 14, 2009
Passenger railcar backlog exceeds $5 billion

Passenger railcar builders entered 2009 with a backlog of 2,376 new cars valued at more than $5 billion on order from U.S. and Canadian passenger rail operators, according to Railway Age's annual survey. An additional 404 rebuilds on the backlog represent nearly $400 million in business for the manufacturers.

In 2008, Railway Age reports in its January issue, manufacturers delivered 596 new railcars valued at approximately $1.2 billion to U.S. and Canadian operators, down slightly from the 602 cars delivered in 2007. A total of 513 rebuilds costing around $500 million were also delivered in 2008.

By type, the new-car deliveries in 2008 included 227 regional/intercity units, 272 metro/rapid transit cars, and 97 light rail/streetcar units.

Manufacturers now supplying the North American market include Bombardier, Alstom, Siemens, Ansaldo/Breda, Nippon Sharyo, Kawasaki, CAF, and Kinkisharyo.

Railway Age Managing Editor Douglas John Bowen conducts the annual passenger railcar survey, which also covers orders likely to develop next year and in the following five years. The survey is based on data supplied directly to Railway Age by operating agencies.

In connection with new survey, Bowen commented: "Any current forecasts of transit business in the years just ahead will likely prove to be conservative in view of the incoming Obama Administration's pledge to put transit and other ready-to-go infrastructure projects near the top of the economic stimulus list." He noted that the American Public Transportation Association has proposed a list of transit projects valued at $47.8 million as candidates for stimulus funding during the next two years.

January 14, 2009
Acquisitions aid G&W December, fourth-quarter traffic

Genesee & Wyoming Inc. (GWI) Wednesday said December carloads gained 14.2% over the year-ago month, while its fourth-quarter traffic rose 17.2% compared with the comparable quarter in 2007. GWI railroads acquired during the past 12 months contributed 22% of the total carload traffic in December, and 21.7% of total carload traffic for the fourth quarter.

Minus the contribution from acquisitions, GWI’s same-railroad traffic in December fell 11.2% compared with the year-ago month, while same-railroad traffic for the fourth quarter declined 8.8% vs. the comparable period in 2007.

GWI acquired four railroads during 2008, including: The Maryland Midland Railway, which GWI started operating Jan. 1; CAGY Industries, Inc., which GWI started operating May 31; and the Georgia Southwestern Railroad and the Ohio Central Railroad System, both of which GWI purchased on Oct. 1.

January 14, 2009
Vancouver Island short line to continue operations

Short line Southern Railway of Vancouver Island, Ltd., will continue serving its namesake island in British Columbia under a three-year deal reached with the Island Corridor Foundation. The deal includes exploration of expanded freight operations and passenger rail services, but has disappointed some who sought a longer-term agreement.

Under the deal, British Columbia will conduct a C$500,000 study to weigh the benefits and pitfalls of upgrading the railroad’s existing infrastructure. "It's buying time," says Mary Ashley, co-chair of the Island Corridor Foundation. "We understand the province needs to do the study. Once the results of the study come through we're confident the viability will be proven." Previous estimates cite C$104 million in capital needs to return the railroad to a state of good repair.

"Disused track between Parksville and Port Alberni is quite overgrown now and it needs about $20.6 million to bring it up to a maintainable freight standard," says Doiron. "That money would come out of the request for $103.8 million from provincial and federal funding."

January 14, 2009
Metra: STAR line still viable

Metra still intends to pursue implementation of the STAR line as part of its plan to expand Chicagoland regional rail service, and Canadian National's intended acquisition of the Elgin, Joliet & Eastern Railway (EJ&E) may even aid the effort, according to Executive Director Phil Pagano. Metra is ready to negotiate with Canadian National, expected to complete acquisition of the EJ&E Jan. 23, to advance the plan.

CN initially voiced disinterest in sharing EJ&E right-of-way with Metra. But, Pagan says, "We've had conversations with CN--we intend to work with them to get this project accomplished." The Suburban Transit Access Route (STAR), envisioned initially as a 55-mile line estimated to cost $1.1 billion, would utilize the EJ&E for much of its length, providing suburb-to-suburb rail service and linking existing Metra radial lines.

Most likely Metra would seek trackage rights over the EJ&E, Pagano says. "Separate tracks could cause complications for us both," Pagano said, noting CN has agreed to Metra’s presence as a tenant. Metra had asked the Surface Transportation Board to include trackage rights as a precondition for the agency’s approval of any EJ&E acquisition. "Clearly, we would have liked to have seen formal language requiring CN to work with Metra on its use," Pagano said.

Metra already has collaborative agreements with BNSF and Union Pacific for much of its regional rail operations serving Chicagoland, and contributes to infrastructure improvements on the host railroads that benefit Metra and freight rail operations.

January 13, 2009
Ansaldo STS aiding CTA flood recovery effort

Ansaldo STS-Ansaldo STS USA continues to assist the Chicago Transit Authority in replacing 14 switch machines, along with an operations console, damaged by fire following flooding conditions at O'Hare International Airport last September.

Flood waters hitting CTA's third rail caused a short circuit and a small fire. CTA subsequently awarded a $2 million contract to ASTS USA for the repair effort.

As a workaround, ASTS USA personnel replaced the motors in the switch machines and train stops, and replaced all of the fire-damaged wiring cables and power supplies. ASTS says it restored full function in less than six weeks, two weeks ahead of schedule.

"It is the continued devotion of our engineering and technical staff to providing expedient customer service in emergencies such as this that identify who we are," said Dr. Alan E. Calegari, president and CEO of ASTS USA.

January 13, 2009
DOT hikes crashworthiness standards for tank cars

U.S. Transportation Secretary Mary E. Peters has issued a final rule
requiring poison-inhallation-hazard (PIH) tank cars to have better puncture resistance from a side impact, with a combination of thicker inner shells where the hazmat is held and/or thicker outer jackets depending on the specific hazmat being transported.

Additionally, each end of the tank car is to be protected with a full head shield where not already mandated by existing regulations and strengthened valves, top fittings, and nozzles used to load and unload the tank car are required to prevent a release in a rollover accident.

"Strengthening rail hazmat tank cars will reduce the risk of spills and increase public safety should a train accident occur," Peters said in a statement. The secretary noted that the final rule is focused on PIH materials like chlorine and anhydrous ammonia heavily used in water treatment, agricultural, and industrial applications.

The new rule also imposes a 50 mph maximum speed restriction on all loaded PIH tank cars and allows for an increase in the gross weight of the tank car to accommodate the enhanced safety measures. It also requires tank car owners to prioritize the retirement or replacement of older tank cars used in PIH service which were built prior to 1989 with non-normalized steel that may not adequately resist the development of fractures.

The final rule was issued by the DOT Pipeline and Hazardous Materials Safety Administration in close consultation with the Federal Railroad Administration following a broad and multi-faceted review of virtually all aspects of rail tank car safety. It applies to PIH tank cars built on or after March 16, 2009.

Peters said the new rule complements action take last June, when a new rail hazmat routing rule took effect requiring railroads to analyze and select the route with the fewest overall safety and security risks. The hazmat routing rule, combined with the hazmat tank car rule, provides enhanced protection for people living in both large cities and small towns, she said.

January 13, 2009
Greenbrier write-down cuts CSX earnings

In a preliminary earnings statement issued Monday, CSX said overall revenue for fourth-quarter 2008 is expected to be approximately $2.7 billion, up 4% from the fourth quarter of 2007. On a comparable basis with the prior year, earnings per share will be around 90 cents, up 6% from the fourth quarter of last year, though below the Wall Street consensus estimate of 98%. On the same basis, operating income is estimated to increase 16% to $692 million resulting in an operating ratio of around 74.1%.

But CSX expects to report per-share earnings of only 63 cents due to a cash impairment charge of approximately 27 cents per share related to the write-down of its investment in the Greenbrier Resort in White Sulphur Springs, W.Va. These results also reflect a one-cent-per-share insurance gain in 2007.

CSX attributed the increase in revenue to "higher yields and fuel recovery, which are expected to offset the impact of significantly lower volumes."

CSX Chairman, President, and CEO Michael J. Ward commented: "Our team's commitment helped CSX weather the difficult economic environment, which continues to impact our business."

CSX said it is no longer providing long-term performance guidance, "given the current economic challenges, particularly the uncertainty facing U.S. manufacturing."

January 13, 2009
Michigan bill authorizes private-sector Detroit LRT effort

Michigan Gov. Jennifer Granholm has signed legislation authorizing private-sector interests in the Detroit metropolitan area to advance a 3.4-mile light rail proposal along Woodword Avenue in the Motor City.

The legislation allows the Detroit Regional Mass Transit Authority to create a tax increment finance authority to fund the route, dubbed The Regional Area Initial Link (TRAIL).

The private-sector plan is one of two being championed for the city; a second, similar plan has been sponsored by the Detroit Department of Transportation. Late last year, government representatives from Detroit, and from Macomb, Oakland and Wayne counties, agreed to seek consensus on light rail and larger regional rail plans involving the the three-county area, estimated to cost $10.5 billion.

The private-sector light rail proposal envisions operating funds to come from government sources, but proponets reportedly have raised roughly half of the estimated $100 million construction cost, doing so at least in part to expedite the plan's construction by avoiding the need for federal funding and the oversight process that comes with such funding.

"This line just got a big boost," said John Hertel, chief executive officer for the Detroit Regional Mass Transit Authority, regarding TRAIL. "This can be built in a matter of two years. No federal dollars."

January 13, 2009
More criticism for NJT's "deep, dead-end tunnel"

Passenger rail advocates north of New York City have added their objections to those of others criticizing New Jersey Transit for a new trans-Hudson River rail tunnel, calling NJT's proposal flawed and limiting.

At a conference entitled "The Need for Speed," held last week in New London, Conn., members of the National Corridors Initiative and the Sierra Club of Connecticut voiced concern that NJT's current plan, "originally designed to be provide access from New Jersey to Penn Station, then Grand Central Station [sic], permitting much increased Northeastern-Eastern Seaboard rail connectivity, has been changed by project leader New Jersey Transit into a deep, dead-end tunnel ending near 34th Street in Manhattan, and serving only New Jersey commuters," a statement says.

Noting the limitations this would place on future rail passenger improvements north of New York, NCI noted, "As reconfigured, and if approved by the U.S. DOT, this $10 billion project would cut out Amtrak capacity needs, and with imminent repairs to the existing two-tube Hudson River tunnels, halve rail service to New England on weekends, and perhaps weekdays as well, depending on the severity of growing maintenance requirements for the 100-year-old, existing Hudson tubes."

Cost estimates for the project continue to climb, with NJ Transit's latest estimate for its Access to the Region's Core Mass Transit Tunnel at $8.6 billion. That does not include $1.7 billion estimated for NJT's companion project to replace Portal Bridge, located on Amtrak's Northeast Corridor in the New Jersey Meadowlands.

Several rail advocacy groups in New York City and New Jersey, along with the National Association of Railroad Passengers (NARP), already are on record questioning the current tunnel plan. In a statement released Tuesday, NARP urged "the Obama Administration to exercise its constitutional obligation to advance interstate commerce" by requiring New Jersey Transit's Access to the Region's Core project to connect to New York's Penn Station."

NARP also encouraged supporting "through-running" capabilities between Long Island and New Jersey, "building on [New York] Gov. Paterson's September statement that 'we have to unify these systems and make them work together to create efficiency.'"

January 12, 2009
Renaissance or retreat? Industry faces crossroads

Battle lines have been deeply drawn for the showdown over railroad re-regulation. Those who believe railroads are an answer to the current economic crisis are confronting a rising chorus of voices from those who would cripple the industry and its ability to literally deliver the goods.

Railway Age editors believe it's a given that the battle will intensify on Capitol Hill hours after the Obama Administration assumes its place. Given the re-regulation fervor advanced prior to Inauguration Day, the debate will be highly charged, and the results could be swift--and both decisive and damaging to the railroad industry.

The irony could not be more glaring. Re-reg partisans seem determined to punish success, no matter how justly earned, in an attempt to turn back the clock to a past when regulation was a fact of railroad life—and railroads' death. A half-century ago, Railway Age protested such regulation by publishing "Outrage," detailing the misinformation and distortions hurled at the railroad industry and, thankfully, presaging partial deregulation many years later.

Led by the likes of the Association of American Railroads and its president, Ed Hamberger, the industry already is fighting back. But AAR's voice, no matter how reasoned and how persistent, isn't likely to carry the day by itself. Thus the imperative for Railway Age to do its part once more, and help frame for lawmakers, in blunt terms, the true weight of their collective decision: Renaissance or retreat?

"In 1957, we said, 'Putting the railroads in chains will place shocking limitations on America’s development,'" Railway Age Editor William C. Vantuono said. "Now, with the nation struggling to pull itself out of the worst economic crisis since the Great Depression, putting America's railroads back in chains will place shocking limitations on America’s recovery. If re-regulation legislation passes, capital investment will almost certainly be curtailed, and that will cripple the industry--key suppliers in particular. This is no time to resurrect the failed policies of the past."

Railway Age will address "Renaissance or Retreat?" in its February issue, in hopes of aiding those throughout the industry who already know what the industry has provided, and what role it must and should play, in advancing the nation’s economic recovery for the benefit of all.

Douglas John Bowen, Managing Editor, Railway Age

January 12, 2009
USTDA sets mission to Egypt and Morocco

The United States Trade and Development Agency (USTDA) says it is sending a railway sector Definitional Mission to Egypt and Morocco early next month, to work with local transport officials to develop concepts for projects such as technical assistance or feasibility studies for which USTDA will consider providing financial support.

USTDA says the proposed projects should create mutual economic benefit for the host country and the U.S., including the opportunities for commercial cooperation and export linkages with U.S. firms.

"U.S. exporters of goods, services or technologies who are interested in entering these markets--or expanding their existing markets in these countries--are encouraged to contact the Definitional Mission contractor Seneca Group LLC to suggest project concepts that can be presented for consideration during the Mission," an agency representative said in a statement.

For more information, contact Richard Sherman, Seneca Group LLC, at 202-715-1248 or by email at sherman@seneca-llc.com.

January 12, 2009
Phoenix light rail ridership on target

Phoenix Metro officials say the new 20-mile light rail system, which debuted late last month, appears to be on target to meeting its first-year ridership projections.

Based on estimates, Metro believes its daily ridership for its first full week of revenue operation, Jan. 5-9, fell between 20,000 and 30,000. A more exact figure will follow, but Metro did a first-week estimate to obtain an early indication of ridership.

Projections were for an average 26,000 daily boardings per workday during 2009. Metro expects ridership to increase when Arizona State University students return to class later this month. Metro runs near ASU's Tempe and downtown Phoenix campuses.

January 9, 2009
Carload freight suffers in December, fourth quarter

U.S. carload freight dropped significantly during December and the overall fourth quarter in 2008, compared with comparable periods in 2007, the Association of American Railroads says.

For the fourth quarter of 2008, U.S. carload traffic declined 8.2%, while intermodal loadings fell 7.7%. In December, carloads dropped 14.2%, while intermodal fell a comparable 13.7% from the same month a year ago.

Canadian rail carload traffic fell 19.8% in December, and 12.3% for the fourth quarter, vs. comparable periods in 2007. Canadian intermodal traffic declined 13.4% in December, and 6.5% for the fourth quarter.

Carloads carried on Kansas City Southern de Mexico were down 21.1% in December, while intermodal traffic dropped 12.1% for the month.

In comparing monthly and quarterly figures for 2008 and 2007, AAR cautions, "Because 2008 had 53 reporting weeks and 2007 had 52, in order to provide a viable full-year comparison between the two, just the first 52 weeks of 2008 are being compared with the 52 weeks of 2007."

"It’s not surprising that U.S. rail traffic in December and the fourth quarter was down so much--we all know that the economy is in a world of hurt right now," said AAR Senior Vice President John T. Gray. "That said, railroads’ long term future remains bright. Railroads are the best value in transportation and they’re environmentally responsible. Moreover, the financial strength and staying power they’ve developed since the balanced regulation of the Staggers Act was instituted ensures that railroads will be here next week, next year, and 20 years and more from now. When the economy turns around--and it will--railroads will be ready and America will be well served."

January 9, 2009
Greenbrier reports loss as railcar business drops

The Greenbrier Cos. reported a loss of $3.3 million on revenue of $256.1 million in the fiscal quarter ended Nov. 30, compared to earnings of $2.6 million on revenue of $286.41 million in the prior-year quarter.

"The adverse impacts of weak railcar loadings, surplus railcars, and deferments of capital spending by our customers, along with resultant downward pricing pressures, affected all our business during the quarter," said William A. Furman, Greenbrier's president and CEO.

Furman also said that the "less cyclical parts of our business, including Refurbishment & Parts, Leasing & Services, and Marine Manufacturing, along with our European operations, have helped dampen the effects of the downturn."

Greenbrier delivered approximately 800 new railcars during the quarter, compared to 1,900 in the year-ago quarter. The new railcar manufacturing backlog on Nov. 30 was 15,900 units valued at $1.39 billion vs. 16,200 valued at $1.44 billion on Aug. 31, 2008. The company expects to deliver approximately 2,900 cars in fiscal 2009.

January 9, 2009
YRC workers take pay cut in return for stock

YRC Worldwide, Inc., the nation's largest trucking company, announced that its union workers have agreed to take 10% pay cut that will save the company up to $250 million a year. The workers also agreed to a suspension of cost of-living adjustments. In return, the Teamsters Union will receive a 15% stake in YRC.

Non-union employees will be required to take a pay reduction of at least 10% and possibly higher. In return they will receive options to acquire up to a 7% ownership stake.

YRC has been struggling with a difficult restructuring as well as declining business in a troubled economy.

YRC's chief executive officer, Bill Zollars, commented: "The amended connect will provide our company with significant cost reductions that will also have long-term benefits as the economy recovers."

January 9, 2009
CN/EJ&E rail merger foes strive to regroup

The Village of Bartlett, along with Will County, are following Barrington, Ill.'s lead by continuing to oppose Canadian National's acquisition of the Elgin, Joliet & Eastern Railway, despite approval granted by the Surface Transportation Board.

Representatives from the three Illinois entities met Friday, keeping alive the efforts of the opposition coalition, The Regional Answer to Canadian National (TRAC), as they sought to block the merger, now expected to occur Jan. 23. Bartlett officials said the village, acting on its own, would file a petition of stay with STB challenging the merger. Barrington filed a petition Jan. 12.

Barrington lies northwest of Chicago, Bartlett west of the Windy City, and Will County, including count capital Joliet, is located to the southwest.

TRAC members include Barrington and Barlett, as well as Aurora, West Chicago, Lake Zurich, Hawthorn Woods, Naperville, Plainfield, and Richton Park, all in Illinois.

January 8, 2009
Bombardier sees potential for "stimulus" business

Bloomberg News quotes Bombardier Transportation President Andre Navarri as saying that if the incoming Obama Administration provides economic stimulus funds for transit projects, "we could expect to grow our business in the United States."

Navarri told Bloomberg in an interview from Berlin, Germany, where Bombardier Transportation is headquartered, that the stimulus plan could result in orders from such passenger operators as Chicago, San Francisco, and New Jersey. He also said he found increased Congressional funding authorizations for Amtrak "very encouraging."

January 8, 2009
LIRR makes big-time, on-time news

The Long Island Rail Road operated 245,933 trains in 2008, and 95.14% of them were on-time--the best record achieved since LIRR began measuring the punctuality of North America's biggest commuter rail operation 30 years ago. It exceeded the previous record of 94.07% set in 2007.

Since 1979, LIR has recorded a train as being on time when reaching its destination within five minutes and 59 seconds of scheduled arrival. That year, the railroad's on-time performance was 83.42%.

January 8, 2009
LRT mode gains support for Maryland's Purple Line

Officials in Montgomery County, Md., say light rail transit is emerging as the stronger candidate to link Maryland's Washington, D.C. suburbs, as well as numerous Washington Metro stations. The support is solidifying despite the higher construction costs associated with the rail mode, officials say.

Some Maryland state officials also claim light rail would cost more to operate than a comparable "rapid bus system," a claim rail advocates nationwide have questioned. A state analysis also suggests travel time along the 16-mile route would be roughly equal regardless of mode--again, a claim disputed by others familiar with LRT and Bus Rapid Transit (BRT) operations.

Despite such findings showing equal performance, local officials acknowledge that public support for LRT is strong, and also say they're willing to spend more on light rail because of its superior potential to spur and shape economic development.

"I do think for long-term permanence and reliability, light rail sends a different message to everybody. It's just a step below Metro. ... I think we all agree on light rail. The question is: Can we get it done?" asked Montgomery County Council member Nancy Floreen, who chairs the council's transportation committee.

The Montgomery Planning Board is scheduled to become the county's first public body to officially make a choice when it votes Jan. 15 on which mode to recommend to the County Council. If it does so, it would be the first official decision of modal choice for the line in two decades of study and political maneuvering.

January 8, 2009
New Jersey office picks preferred PATCO route

New Jersey's Office of Smart Growth says it's recommending an existing rail right-of-way over two other alternatives to provide passenger rail service to Gloucester City and Glassboro, as part of a proposed PATCO extension linking the New Jersey locations to Philadelphia.

OSG chose the route because the rail right-of-way better serves existing municipal centers and avoids placing passenger rail within highway medians, easing the need for increased auto use to access such routes.

"OSG's recommendations are advisory only and focus on the relationship of the proposed routes to the goals and policies of the State Plan. Based upon input received from various interested parties, the recommendations of the report will be changing," cautioned Chris Donnelly, spokesman for the Department of Community Affairs, which includes the Office of Smart Growth.

John J. Matheussen, CEO of the Delaware River Port Authority, parent of PATCO (Port Authority Transit Corp.), said the decision would help the port authority pursue up to $3 billion in federal funding assistance.

Still unclear is whether DRPA, a bistate authority with eight directors each appointed by New Jersey and Pennsylvania, or New Jersey's Department of Transportation will oversee any PATCO extension. DRPA took little if any action in the mid-1990s when a PATCO extension was first proposed for Glassboro and other municipalities; NJDOT and New Jersey Transit eventually advanced the 34-mile RiverLINE, serving Philadelphia's more northern New Jersey suburbs, without federal or Pennsylvania funding.

OSG's selection of a specific route, dubbed NJ-3, also leaves unresolved the type of rail service to be deployed. One proposed option involves extending current PATCO rapid transit equipment, powered by third rail power, 20 miles into Gloucester County, at a cost of up to $2 billion; extensions later would push the line south into Salem County. A second option would extend the existing 34-mile RiverLINE diesel light rail transit (DLRT) service south, with a lower capital construction cost. Less officially, suggestions for dual-mode equipment, using third-rail and catenary power sources, have been advanced.

January 8, 2009
Railway Age Shortline/Regional Railroad of the Year

Railway Age is now accepting entries for its annual Short Line/Regional Railroad of the Year competition. Short lines and regionals—and there are more than 500 of them—are invited to submit entries describing outstanding achievement in one or a combination of areas.

"Recent events certainly have placed some extreme business pressures on short line and regional railroads, and we seek to recognize those who rose to meet the challenge," says Managing Editor Douglas John Bowen. "Short lines have shown adaptability and creativity in dealing with the unexpected and sometimes very unpleasant. But in good years or bad, they also excel at numerous tasks, including turnaround situations, consistent excellence, innovation in operations or maintenance, marketing, customer service, enhanced productivity, community relations, and safety improvement."

Small roads in Mexico, the U.S., and Canada are eligible for an award (and railroads can even nominate themselves). Our 2009 winners will be awarded specially designed plaques at the American Short Line and Regional Railroad Association Annual Convention in Las Vegas, Nev., Apr. 25-28. Articles describing their achievements 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, such as in 2008, separate awards have been given for regional and short line carriers."

Submit your entries to: Douglas John Bowen, Managing Editor, Railway Age, 345 Hudson Street, 12th Floor, New York, N.Y., 100l4. E-mail: 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 e-mail. The entry deadline is Friday, Feb. 27, 2009, so please don’t delay.

January 7, 2009
Is re-reg threat driving rail stocks down?

The Dow Jones industrial average was down 3.2% in mid-afternoon trading Wednesday on more bad economic news, but a far sharper decline in railroad stocks was connected by the Associated Press with the introduction in Congress of new legislation to repeal the railroads' remaining antitrust exemptions.

Union Pacific shares were down 8.5%; Kansas City Southern, off 7.9%; CSX, down 5.7%; Norfolk Southern, down 5.2%; and BNSF, down 4.8%.

The AP quoted Wisconsin Democratic Congresswoman Tammy Baldwin, a co-sponsor of the legislation, as saying that it is needed "to end the railroad monopolies that are driving consumer prices up and service down."

The railroads contend that the legislation is part of a broad effort by a powerful minority of their customers—including corporations far bigger than the railroads—to re-regulate the railroad industry in order to reduce their shipping costs.

January 7, 2009
BNSF fast-tracks projects in Southwest

Between Jan. 8 and the end of March, seven BNSF Railway maintenance crews will complete three major track projects in the Southwest estimated to cost $30 million. A total of 250 BNSF employees and contract workers will replace approximately 150,000 crossties and almost 150 miles of rail on tree stretches of track: between Clovis and Jarales, N.M.; Baca, N.M., and Winslow, Ariz; and Crookton and Griffith, Ariz.

To permit the replacement of rail at the rate of one mile a day, the crews will use an array of cranes, welders, and ballast tampers, and track swill be closed to traffic periodically to permit the work to go forward.

BNSF says materials replaced will be reused or recycled in keeping with railroad’s environmental stewardship policies.

January 7, 2009
Commonwealth Railway activates Railcomm CTC office system

Commonwealth Railway, a 16.5-mile Class III short line based in Wilroy, Va., has placed RailComm's Centralized Traffic Control (CTC) office system into revenue service. RailComm's Domain Operations Controller (DOC®) office system is accessed through a web-enabled Software-as-a-Service (SaaS) delivery model. RailComm's SaaS offering provides a "pay-as-you-go" opportunity, eliminating capital equipment procurement constraints.

Commonwealth Railway is remotely dispatched by Genesee and Wyoming’s Portland & Western Railroad, based in Salem, Ore.

January 7, 2009
UP sets new coal-loading records once more

Union Pacific Wednesday said it had once more surpassed several all-time records for delivering coal out of Wyoming's Southern Powder River Basin (SPRB). Among other marks, during 2008 UP set an all-time record by loading 13,212 trains out of the basin, 332 more trains than 2006, the previous yearly record. UP also loaded 204.6 million tons of coal out of the SPRB during 2008, surpassing the previous total tonnage by 5%.

For the month of December, UP moved 1,118 trains out of the SPRB, or an average of 36.06 trains per day. UP's previous record for average trains per day was set 38.63, set in November 2007.

The Union Pacific/BNSF Joint Line numbers during December included a loading average of 68.35 trains a day, and 24,829 loaded trains for the full year for a 4.4% increase over 2007.

"Our investments in the Joint Line and throughout our coal network continue to pay dividends in terms of our coal train velocity and throughput," said Doug Glass, UP vice president and general manager–energy.

January 6, 2009
Train accidents down 27% in four years

U.S. railroads reported 2,001 train accidents in the first 10 months of 2008, down 11.1% from the same period in 2007 and a 27.3% decline from the 2,754 accidents reported in the corresponding period in 2005, according to the Federal Railroad Administration.

Collisions were down 2.4% from 2007 and 29.7% from 2005. Derailments declined 11.5% from 2007 and 11.4% from 2005; yard accidents were down 6.1% from 2007 and 28.1% from 2005.

Rail-highway crossing fatalities in the January-October 2008 period were down 17.7% from the prior year and 17.4% from 2005. Trespasser fatalities were up 5.6% from 2007 and up 4.5% from 2005.

January 6, 2009
Tri-Rail notches ridership record

South Florida Regional Transit Authority Monday said its Tri-Rail passenger service carried 4.3 million riders in 2008, the highest total in its 20-year history, up 22.9% from its 2007 total of 3.5 million riders.

"These statistics show that the trend of double-digit growth that we have experienced over the past three years is continuing," said SFRTA Executive Director Joe Giulietti in a statement. Tri-Rail officials say ridership has continued to grow even as fuel prices declined in the latter months of 2008.

January 6, 2009
Amtrak to purchase credit-card readers for conductors

Stressing that on-board ticket purchases comprise a small fraction of its customer revenue, Amtrak has announced it nonetheless plans to acquire 2,000 credit-card readers for conductors to use to sell tickets.

The readers will aid conductors handling customers boarding at locations without a ticket agent or ticket machines, Amtrak said. At present, conductors assisting such passengers must process credit card purchases manually and without online authorization.

Amtrak still will require most passengers to have a ticket before boarding a train. And onboard purchases will not be accepted for reservation-only trains, such as Acela service.

The national passenger rail carrier expects to award a contract for the card readers by the end of February, and expects the card readers to be introduced during the summer throughout the system. Spokesman Cliff Black says Amtrak eventually will equip its conductors with electronic scanners to read bar-coded boarding passes that passengers can print at home.

January 6, 2009
Texas DOT undoes proposed Trans-Texas Corridor

Addressing the Texas Transportation Forum at a meeting Tuesday in Austin, Texas Department of Transportation Executive Director Amadeo Saenz affirmed ongoing speculation that the state's proposed Trans-Texas Corridor initiative had been killed.

The corridor, a project initiated in 2002 by Gov. Rick Perry, was to incorporate 4,000 miles of toll roads, utility lines, and railroad rights-of-way in a superpath up to 1,200 feet wide. The Trans-Texas Corridor concept was opposed by various parties, including the Texas Farm Bureau, environmental organizations, and some rail passenger advocacy groups.

Saenz "told folks at the forum that the Trans-Texas Corridor, as it was originally envisioned, is no more," a TxDOT spokesperson said. "Instead, what we’ve got is a series of smaller projects."

January 6, 2009
Illinois municipality moves to block EJ&E takeover

Barrington, Ill., located northwest of Chicago, Monday filed two legal actions in a Washington, D.C. court, seeking to undo Surface Transportation Board approval of Canadian National's proposed $300 million acquisition of the Elgin, Joliet & Easter Railway.

Attorneys for Barrington say STB acted improperly in approving the acquisition, claiming STB based its decision on a flawed environmental review process. Barrington filed a legal petition asking STB to stay its decision, while it also seeks a review of the ruling by the U.S. Circuit Court of Appeals in Washington.

"We believe that the decision is premature and is shortsighted in examining serious concerns raised by thousand of residents, transportation experts and elected leaders," said Barrington Village President Karen Darch, who is also co-chair of The Regional Answer to Canadian National, a coalition of some Chicagoland municipalities still fighting CN's efforts.

STB's decision becomes effective Jan. 23, at which time CN is expected to complete its purchase of the EJ&E from current owner U.S. Steel Corp. CN has reached agreement with numerous towns in both Illinois and Indiana concerning environmental mitigation, and also with Amtrak concerning ongoing passenger rail access.

January 5, 2009
Freight traffic slumps in last week of 2008

Declining U.S. carload traffic in 2008's last week contributed to a corresponding falloff for the full year, according to the Association of American Railroads. For the week ending Dec. 27, carload freight plunged 21.8% compared with the comparable week in 2007. Intermodal volume declined 21.7%.

Those declines contributed to the full-year falloff in carloads, down 2.2%, and intermodal, off 4.2%, compared with 2007's 52-week total. Total volume in 2008 declined 1.2% from the previous year's total.

Canadian carload volume fell 25.7% for the week ending Dec. 27, while intermodal dropped 35.%%. Full-year Canadian carloads in 2008 fell 6.3% from 2007 levels; Canadian intermodal volume for 2008 defied the downward trends, notching a 1.4% gain over 2007 levels.

Kansas City Southern de Mexico reported carloads down 21.7%, and intermodal down 5.9%, for the week ending Dec. 27; the railroad's annual carloadings fell 7.9% compared with 2007 numbers, but its intermodal traffic gained 6.6% for the year compared with 2007.

Ferrocarril Mexicano SA de CV said carloads fell 24%, and intermodal declined 12.9%, for the week ending Dec. 27. For the full year of 2008, carloads gained 3.1%,and intermodal slipped 0.2%, compared with 2007 totals.

January 5, 2009
Steel industry lobbies for transit funds

The American steel industry is urging the incoming Obama Administration to invest up to $1 trillion over two years in public works that will require massive supplies of steel and help revive a mordant industry. Steel lobbyists also want to ensure that economic stimulus money is spent at home and not abroad. Steel production in the U.S. declined by around 50% in the last three months of 2008.

"What we are asking is that our government deal with the worst economic slowdown in our lifetime through a recovery program that has in every sense a 'buy America' clause," Daniel R. DeMico, chairman of the steel giant Bucor Corp., told The New York Times.

Public transit is a priority on most stimulus wish lists, including this one.

"If the president-elect really follows through, he'll fund a lot of mass transit projects," Wall Street deal maker Wilbur R. Ross, Jr., who put together the Arcelor Mittal USA steel conglomerate, told the Times. ""all the big cities have these projects ready to go."

January 5, 2009
Bombardier, Deutsche Bahn sign landmark agreement

The costliest order that Deutsche Bahn (German Rail) has ever awarded to a single supplier has gone to Bombardier in a framework agreement for 800 double-decker coaches valued at up to $2.1 billion.

Bombardier Transportation President Andre Navarri commented: "The new generation of double-deck coaches is an outstanding example of our continuous product innovation here at Bombardier Transportation. It is now possible to combine double-deck coaches with multiple-unit technology. This is the largest framework agreement for vehicles that DB has ever awarded to a single supplier."

Acknowledging that the investment comes in difficult times, DB CEO Hartmut Mehdorn stated: "Precisely because worldwide economic growth is being assessed so skeptically, we must have the courage to invest in the future."

January 5, 2009
Rail passenger advocate Pell dies at 90

Claiborne Pell, a Rhode Island Democrat who served in the U.S. Senate for 36 years and is credited with helping to usher in a whole new generation of modern passenger trains, died at his Newport, R.I., home on Jan. 1.

Pell is best known to the public at large as the creator of a 1973 program--"the Pell grants"--that has helped 54 million low-and moderate-income students attend college.

To rail partisans, he is known for giving a critical push to development of high speed train service in the Northeast Corridor.

Railway Age awarded Pell its first annual W. Graham Claytor Award for Distinguished Service to Ground Transportation in 1994. At a presentation ceremony in Washington, then-Publisher Robert G. Lewis commented that "the Northeast Corridor high speed [program] was only a dream until a dedicated group led by Sen. Pell got to work in the 1960s to promote the cause of high speed passenger rail in the Washington-New York-Boston corridor."

January 5, 2009
Toronto TTC taps STV, others, to manage system expansion

The Toronto Transit Commission Monday awarded contracts of C$125 million (US$105 million) to three corporate groups "to provide more rapid transit options throughout the city." Contracts were awarded to: STV, Inc.; Transit City Partners, a joint venture of AECOM Ltd., Parsons Brinckerhoff, and Giffels Associates Ltd./IBI Group; and 4Transit, a joint venture of Delcan Corp., Hatch Mott MacDonald Ltd., MMM Group Ltd., and McCormick Rankin Corp.

STV said its 10-year contract includes program management and project management for TTC's Transit City Light Rail Plan, which includes seven new LRT lines, "renewal" of Scarborough Rapid Transit, and four maintenance and storage facilities.

TTC's Transit City Department is expected to oversee projects valued at more than C$10 billion during the next decade. STV's role "will include providing the necessary managerial, professional, technical and administrative staffing for program management services as required by the TTC to plan, assess, direct, control, resolve, oversee and communicate the objectives of the Transit City Light Rail Plan," TTC said.

"We are delighted to be able to participate in the renewal of Toronto's transit infrastructure and the new Transit City program," said William F. Matts, executive vice president and chief operating officer of STV's Transportation and Infrastructure Division. "We realize the TTC has always been a transit leader, but the magnitude of what Toronto wants to achieve really is tremendous."

Matts said STV will open an office in Toronto and is looking to expand its work into additional Canadian provinces in the near future.

January 5, 2009
Watco Cos. consolidates mechanical services

As the New Year commenced, Pittsburg, Kan.-based Watco Cos. combined Millennium Rail, Inc. and Fitzgerald Railcar Services, Inc. into one unit, under its Watco Mechanical Services operation.

Watco acquired Millennium Rail in May 2007, followed by the purchase of Fitzgerald Railcar last June. The company says the acquisitions make Watco Mechanical Services the largest car repair company in the U.S., with 14 car repair shops, 18 mobile mechanical shops, and four locomotive shops in a 14-state territory. The consolidation will prompt no change in locations or management, the company says.

"We are extremely pleased to welcome into our Watco Family the people and families of the Millennium and Fitzgerald shops," said Dick Webb, Watco founder, in a statement. "This integration into Watco Mechanical Services should make things easier for our team, customers, vendors and other associates. We look forward to a long and mutually beneficial relationship with all involved."