February 2008
MAX, Gresham create police precinct for LRT safetyAn eastside precinct of TriMet's Transit Police will open April 1 in Gresham, Ore., a suburb of nearby Portland and a municipality voicing continued concerns over crimes linked to MAX light rail transit. Ten officers eventually will be assigned to spend at least 70% of their time patrolling LRT trains and stations on MAX's original eastside line, between Gateway Station in Portland and Cleveland Avenue Station, the eastern terminus. Officers will be based in Gresham's police headquarters.
Gresham Mayor Shane Bemis ordered two of his city's officers to patrol MAX trains in Gresham in early November, just before a brutal beating at a Gresham rail station raised public concern over the safety on trains and at stations. Other incidents, combined with heightened political sensitivities, have pressured TriMet to assure the public that riding the trains is safe.
TriMet General Manager Fred Hansen praised the new precinct. "This dedicated precinct puts more officers on the system and allows deployment focused on problem areas," he said. "This is a new way to patrol our system, and we believe it will be an effective tool."
Creating the precinct will add five positions to the 36-member Transit Police Division. Five other officers will be transferred to the precinct from elsewhere in the division.
A comparable westside precinct will have five officers and is expected to open in mid-March.
The concept of utilizing local police officers to patrol local transit facilities is hardly a new one. Officers in Bayonne, N.J., routinely cover the southernmost portion of Hudson-Bergen Light Rail Transit lying within the city as part of their overall duties; officers check for validated tickets and can fine and/or arrest scofflaws.
AAR urges DHS to address chemicals transportChemical companies should pursue the manufacture of safe substitutes to reduce the danger of transporting existing chemicals, according to a release by the Association of American Railroads. AAR made the suggestion following a hearing Feb. 26 of the House Homeland Security Committee on the Chemical Facility Anti-Terrorism Act of 2008, legislation that would strengthen security requirements for chemical facilities.
AAR President and CEO Edward R. Hamberger, in a statement, said, "We can no longer continue to risk the lives of millions of Americans by using, transporting and storing highly toxic chemicals when there are safer alternatives commercially available. It is time for the nation's big chemical companies to stop making the dangerous chemicals that can be replaced by safer substitutes or new technologies currently in the marketplace.
"If chemical companies would take that step, the threat of a terrorist attack would be greatly reduced and America would be a safer place. Railroads would no longer be required by the federal government to transport some of the most highly toxic chemicals around the country. Millions of Americans who live in cities or towns near chemical plants or railroad tracks would be safer. Trucks filled with those toxic chemicals would no longer be on our roads and highways. And many manufacturing facilities and water treatment plants would no longer store large quantities of the very chemicals that make attractive targets for terrorists," Hamberger said.
Hamberger noted that Tuesday's hearing included information from a representative of a large groundwater treatment facilities outlining a project in Southern California that eliminates the need to handle, transport, and store large amounts of chlorine gas. Hamberger also said a recent report by the Center for American Progress found that as many as 25 water utilities that previously received chlorine gas by rail have switched to safer treatment options such as liquid bleach or ultraviolet light.
"It's time for the big chemical companies to do their part to help protect America. They should stop manufacturing dangerous chemicals when safer substitutes are available. And if they won't do it, Congress should do it for them in the Chemical Facility Anti-Terrorism Act of 2008," Hamberger said.
Augusta, Ga., evaluates streetcar ideaAdd Augusta, Ga., to the growing list of U.S. cities pondering the addition (or return) of local streetcar service. City leaders Wednesday evaluated a $140 million, 4-mile streetcar proposal advanced by Clemson University student Ben Skinner. The city's downtown development authority plans to visit cities planning similar projects in the coming weeks. Unlike some other similar proposals, the Augusta concept at present would seek federal funding assistance.
Rail volume up 2.1% in latest weekTraffic volume on U.S. railroads totaled 33.7 billion ton-miles in the week ended Feb. 23, up 2.1% from the corresponding week a year ago. Carload freight was up 1.1% to 324,868 cars, while intermodal volume dropped 3.0% to 225,088 trailers and containers, according to the Association of American Railroads' Weekly Railroad Traffic report.
Agricultural products notched a 12.6% gain over comparable year-ago loadings, providing the bulk of the increase. Carloads of coal also increased 4.8%. Declines were recorded in forest products, down 15.6%; nonmetallic minerals & products, down 6%; and other carloads, down 10%.
In Canada, carload traffic for the week was up 2.5% to 71,137 loads, and intermodal volume increased 10.9% to 46,161 units. Kansas City Southern de Mexico reported carload traffic for the week was down 6.7% to 5,475 cars, but intermodal traffic gained 14.9% to 3,665 containers or trailers.
Staten Island spurns MTA's linking LRT, congestion pricingStaten Island officials fear that New York's Metropolitan Transportation Authority (MTA) is using its $29.6 billion, five-year capital program, announced Wednesday, to link congestion pricing in Manhattan with light rail development in Staten Island; it's a link borough officials find tenuous, at best.
According to the Staten Island Advance, at the unveiling of the MTA plan Wednesday, MTA Chief Elliot Sander said, "If congestion pricing does not pass, it's highly unlikely, if not impossible, that we will see the North Shore Rail advance on Staten Island."
State Sen. Diane Savino, who represents Staten Island, was one of several skeptics. "I'm going to give them the benefit of the doubt and assume that they're sincere, but I really hope it's not a bait-and-switch," she said. "Don't put out your capital plan and tell me you're going to (have millions) for the North Shore Rail and then if congestion pricing doesn't pass, suddenly the money is going to disappear. I want to see a commitment independent of congestion pricing."
Staten Island recently persuaded MTA to link existing bus service between the borough and Manhattan with New Jersey Transit's Hudson-Bergen Light Rail Transit, which MTA buses previously had bypassed. The borough also conducted a study that projected strong ridership potential for light rail service extending across the Bayonne Bridge and serving the island's northern and western shores.
EJ&E tests NREC ultra-low emissions locomotiveThe Elgin, Joliet and Eastern Railway has completed a successful one-week operational test of a three-engine 2100 HP (3GS-21B) N-ViroMotive® GenSet locomotive at its switch yard in Gary, Inc., according to National Railway Equipment Co. The unit is EPA certified and CARB recognized as an ultra-low emitting GenSet locomotive, NREC says.
Gerry Carr, EJ&E's senior road foreman of engines, said, "We have the objectives of fuel conservation, protecting the environment and operational efficiency on our railroad. We performed an operational test of an NREC N-ViroMotive unit to see if it would meet our objectives. We were pleased with the result, as well as its significant power and outstanding tractive effort. Also during the test, we discovered that its operation is very user-friendly, and to our pleasant surprise, it is significantly quieter than any of our existing units."
NREC says the locomotives offer an 80%-plus reduction in nitrous oxide (NOx) and particulate matter emissions, 50%-to-65% improved tractive effort adhesion efficiency, and fuel savings of more than 50% in switching and road switching service, among other benefits.
NREC Vice President Marketing and Sales Jim Wurtz said, "These fuel-efficient road switcher locomotives have industrial engine NOx emission levels that are best in class worldwide. Already proven in service, N-ViroMotive locomotives are over five years ahead of anticipated EPA emissions regulations for new switching locomotives."
BNSF expands Pasco remote control derailsBNSF Railway has awarded a contract to RailComm to expand the existing wireless remote control derail system at Pasco Yard, Washington State. The system utilizes a workstation networked to an existing RailComm Domain Operations Controller (DOC®) server platform that will provide BNSF personnel the ability to control and/or monitor the entire derail system. Yard service tracks are safely and immediately protected by the remote control of the appropriate derail device with associated blue strobe light warning indication. DOC® software logs the name and trade of each person controlling the derail, along with the date and time of derail control activity. This “Lock-out/Tag-out” information is used to satisfy FRA reporting requirements and eliminates the need for a manual logging process.
MTA unveils $29.6 billion, five-year capital programNew York's Metropolitan Transportation Authority Wednesday released its proposed 2008-2013 Capital Plan, the latest in its series of five-year programs aimed at both bringing its transit network to a state of good repair and expanding the system's capabilities.
MTA ties the $29.554 billion plan to the New York State congestion pricing legislation, which mandated submission of an accelerated 2008-2013 plan by the end of March. MTA's current five-year capital plan runs through 2009. The MTA Board will consider approval of the updated capital program at its March meeting.
"This proposed Capital Program will ensure that our transportation network is both maintained and expanded to support the region’s economic growth," said Elliot G. Sander, MTA Executive Director and CEO. "A fully-funded Program is critical to encourage transit use, to improve our customers’ experience and to keep pace with global competitors like London and Shanghai, where billions are being invested in transit each year. We won’t be able to get there without a robust funding package that includes congestion pricing."
MTA says the "three-tiered" program includes the purchase of new rail cars and buses, rehabilitation of numerous stations, and upgrading shops and yards. It also continues funding of the first phase of Second Avenue Subway and completion of East Side Access, along with the Fulton Street Transit Center and the new South Ferry subway station.
The program also includes plans for the growth expected in the region by 2030 with $1.4 billion for communications-based train control on the Flushing and Queens Boulevard lines, $1 billion to begin a second phase of the Second Avenue Subway, $400 million toward bringing Metro-North trains into Penn Station, and $50 million to begin planning for new capacity throughout the region.
Canada: "A good news budget for transit"Canada's new federal budget "commits significant new support to invest in public transit infrastructure," the Canadian Urban Transit Association (CUTA) said in a statement Feb. 26. "The allocation of $C500 million in 2007-2008, dedicated to public transit, is a major boost to future access and mobility in Canadian communities," said CUTA President and CEO Michael Roschlau. "Extending the Gas Tax Fund as a permanent measure is an excellent response to the ongoing needs for municipal infrastructure investment. This is a good news budget for transit."
CUTA Chair Penny Williams noted that the budget does not address the need for "long-term, dedicated finding specifically for public transit. That will require the implementation of a well-coordinated National Transit Strategy."
Amtrak seeks 27% funding increaseAmtrak is requesting a 27% increase in federal funding, to $1.7 billion, for the next fiscal year, the passenger railroad's president and CEO, Alex Kummant, told a Congressional hearing Feb. 26. But at the same hearing, Federal Railroad Administrator Joseph Boardman contended that the Bush Administration's proposal to limit aid to Amtrak to $800 million, the same amount it unsuccessfully proposed last year, will encourage Amtrak "to continue to undertake meaningful reforms and control spending."
Amtrak's request includes funds to cover increased labor costs that would result from a recent tentative agreement with its unions, which still requires ratification. Rising fuel costs were also cited.
Noting that both ridership and revenues increased last year, Kummant said Amtrak needs to continue to improve service and develop corridor lines, and to accomplish this "will continue to require a certain core level of operating assistance and capital investment from the federal government."
Ferromex joins the TTX owner familyTTX Co., which is jointly owned by North America's largest railroads and which has been providing railcar, information, and accounting services since 1955, now counts Ferrocarril Mexicano S.A. de C.V. (Ferromex), Mexico's largest railroad, as one of its owners. Ferromex becomes the first new owner of TTX in 43 years.
"This is an important step for TTX," said President and Chief Executive Officer Andrew F. Reardon. "With Ferromex, we will extend the benefits of TTX's time-tested business model to an important and growing participant in the North American rail marketplace. We are gratified to have Ferromex join the TTX family, and we look forward to a long and successful partnership between Ferromex and TTX's other railroad owners."
Ferromex Chief Commercial Officer Rogelio Velez noted that becoming a TTX owner "will help Ferromex ensure a reliable supply of railcars, maximize equipment efficiency through pooling, and deliver a considerable reduction in empty-car transportation costs."
Railinc passes critical auditFor the fourth consecutive year, Railinc’s systems, procedures, and controls for processing information and millions of confidential financial transactions—the Railroad Clearinghouse (RCH), the Interline Settlement System (ISS), the Rate EDI Network (REN), and the Liability Continuity System (LCS)—successfully completed a stringent audit, the Statement on Auditing Standards (SAS) 70 Type II examination.
The Type II audit includes detailed testing of the organization's internal controls. The audit included an extensive assessment of internal operational controls for the period Oct. 1, 2006 through Sept. 30, 2007. Additionally, security measures, network access and monitoring, systems development, change management, and customer service were also assessed.
The SAS 70 Type II report, which was established by the American Institute of Certified Public Accountants, “demonstrates that our controls have been suitably designed and have been placed in operation for securing and protecting data exchanges with our customers,” Railinc said.
CN says Amtrak presence secure on St. Charles Air LineIn a Feb. 14 letter to U.S. Sen. Dick Durban, D-Ill., CN President E. Hunter Harrison said Amtrak will be allowed to continue using CN's St. Charles Air Line route through Chicago indefinitely.
According to a report in the Salem Times-Commoner, Durbin expressed concern that CN's acquisition of the Elgin, Joliet & Eastern Railway would disrupt Amtrak service running from downstate Illinois to Chicago. But Harrison's letter says Amtrak can use the ex-Illinois Central Air Line until an acceptable alternate route is found.
"Amtrak has an operating agreement with CN through Jan. 31, 2010, and the Surface Transportation Board's approval of the EJ&E transaction would not affect Amtrak's continuing operation over the Air Line route under that agreement," the letter said.
Portec posts income, sales gainsPortec Rail Products, Inc. late Monday announced unaudited net income of $1.15 million, or 12 cents per basic and diluted share, for the fourth quarter of 2007, up 33% increase over unaudited net income of $864,000 or 9 cents per basic and diluted share, in the comparable 2006 quarter. Portec also said its net income of $6.1 million, or 64 cents per basic and diluted share for 2007, also was up 33% over unaudited net income of $4.6 million, or 48 cents per basic and diluted share, for 2006.
Net sales during the fourth quarter 2007 were $24.9 million, a 9% increase over sales of $22.9 million during the fourth quarter of 2006. Net sales for the year ended December 31, 2007 were $109.5 million, a 10% increase over sales of $99.2 million for the year ended December 31, 2006.
Revenue for the fourth quarter was $24.9 million, in line with Wall Street expectations.
Swiss city keeps fares for light rail, busesVoters in Geneva, Switzerland, Sunday turned down a proposal to operate free service to customers of the city's trams and buses. Farebox recovery at present is about 45%, generateing about $118 million annually; the remainder, about $143 million, is supplied by the state. Under the measure, taxpayers would have supplied the entire operating cost for the system. About 67% of those voting turned down the proposal.
Supporters argued that the initiative would spur environmental and social solutions to increased congestion in the city and canton, and called current fares "exorbitant." Opponents, spanning the political parties, questioned where the additional funds would come from to support the proposal.
BNSF selects RailComm for yard upgradeBNSF Railway has awarded a contract to RailComm for automation and wireless remote control of multiple switch locations at Murray Yard in East Kansas City, Mo. Switches will be controlled using RailComm’s Domain Operations Controller (DOC®) System, which will provide the operator with a graphical layout of the yard from which various field locations can be monitored and controlled .The DOC® System is expandable to include additional switch locations or other field devices. Complete logs of system status and operation are recorded for later review and any FRA reporting requirements. RailComm’s 2.4 GHz RADiANT™ data radios will provide a wireless communications network to link the office with the field locations.
NJ Transit expanding electric locomotive fleetNew Jersey Transit’s fleet of 29 ALP-46 electric locomotives will grow to as many as 89 units following a contract award to Bombardier Transportation for 27 more, plus options for an additional 33. The initial order of 27 units, designated ALP-46A, is worth $229 million.
The ALP-46A, which is designed specifically to haul NJT’s new, Bombardier-supplied Multilevel commuter rail coaches, will feature several technology upgrades, along with “improved acceleration and increased operating efficiency,” according to Bombardier. They will be equipped with MITRAC IGBT (insulated-gate bipolar transistor) propulsion and control and remote diagnostics systems, and will be capable of speeds up to 125 mph. The new locomotives will be built at Bombardier's manufacturing site in Kassel, Germany. Deliveries are scheduled to begin in late 2009.
The 7,100-hp ALP-46, which entered into service in 2002, is based on the German Class 101 electric locomotive and was originally designed by Adtranz, which Bombardier acquired in 2002. The ALP-46A procurement is one of several NJ Transit locomotive programs. The agency, the nation’s third largest, is also in the midst of a joint procurement with Montreal’s AMT for dual-power (a.c.-catenary/diesel-electric) locomotives and will also be performing an overhaul on 20 of its older ALP-44 electrics.
Ottawa advances second effort on rail transitCanada's capital city fumbled its plans to add passenger rail service in 2007, but Ottawa city officials moved Thursday to advance plans to add rail transit, specifically light rail. City planners shortly will officially endorse the use of light rail through a downtown subway tunnel. Options for using the tunnel including buses, or a mix of buses and LRT, reportedly have been discarded.
Ottawa Mayor Larry O'Brien said the city's new plan will incorporate sections of the old transit plan, based on diesel light rail transit (DLRT) technology, as well as recommendations from the Mayor's Task Force on Transportation. The mayor said the plan will provide a transit vision for the east, west, north and south ends of Ottawa.
Last November the City Council approved a $2 billion light rail transit plan, and directed city planners to study a downtown transit tunnel from LeBreton Flats to the University of Ottawa. New provincial assessment rules could result in construction on a downtown transit tunnel beginning as early as 2010.
Sound Transit adds $20 million to LRT airport stationSound Transit is preparing to authorize a $20 million cost increase on its light rail station at Seattle-Tacoma International Airport, making the total station cost $72 million. It also authorized an additional $2 million contingency fee. The agency board is expected to approve the increase by month's end.
Last March, Sound Transit rejected a sole bid of $95 million, offered by Mowat Construction, and moved to cut costs by simplfying station design; Mowat continued to proceed with trackwork and the main station shell.
Sound Transit chose not to call for new bids because that could take six months, delaying the December 2009 scheduled opening. It instead worked with Mowat on a station redesign because "we have a known quantity, and a contractor on site who is doing quality work," according to board member Fred Butler. In the redesign, several windows and steel beams have been removed from the roof.
"We had tough issues to work through, the redesign of the truss system, a redesign of glasswork," said Mowat President John Sandstrom. Also, a pedestrian bridge was moved into a different contract, under the Port of Seattle.
ARI: "Best financial performance ever"American Railcar Industries, Inc. (ARI) says it recorded its "best financial performance ever" in 2007, with revenue of $698.1 million vs. $646.1 million in 2006 and net earnings attributable to common shareholders of $37.3 million, up 7.6%.
Fourth-quarter 2007 revenue was $161.9 million, vs. $165.3 million for the same period in 2006; net earnings for the quarter increased 28.3% to $7.9 million. The company had an undelivered order backlog of 11,929 cars on Dec. 31.
"We are very pleased to have achieved strong results for both the quarter and the year in spite of the reduced demand and increased competition for hopper railcars," said ARI President and CEO James J. Unger. He said revenue and railcar shipments decreased in the fourth quarter of 2007 due primarily to a reduction in hope car shipments. The revenue decline on hopper cars was partially offset by an increase in tank car shipments.
Trinity posts record fourth-quarter earningsTrinity Industries shares were up as much as 6% in trading on the New York Stock Exchange following the company's announcement that it earned a record $78.5 million in last year’s fourth quarter, up 27% from the same period in 2006. Fourth-quarter 2007 revenue was $1.1 billion, also a record, compared with $835 million in the prior-year quarter. For the year 2007, Trinity reported record revenue of $3.8 billion, up from $3.2 billion in 2006, and net income of $293.1 million, compared with $230.1 million in the 2006 quarter.
Trinity said it shipped 6,740 railcars and received firm orders for approximately 7,310 cars in the fourth quarter. The TrinityRail® order backlog on Dec. 31 was $2.7 billion, or approximately 31,870 cars, compared to $2.9 billion, or 35,930 cars, on Dec. 31, 2006.
Wabtec expects 12% earnings growth in 2008Wabtec Corp. has reported record earnings for 2007 and expects 2008 earnings to exceed that record by 12%, despite an anticipated drop in freight car production.
Wabtec said it ended 2007 with an undelivered backlog of $1 billion in orders. Fourth-quarter 2007 sales increased 24% to a record $365 million, reflecting "strong growth in the Transit Group and continued execution of the company’s growth strategies."
On a comparable basis, earnings per share in the quarter increased 29%. For the full year 2007, Wabtec reported record sales of $1.36 billion, up 25% from 2006, and a 29% increase in per-share earnings.
"We posted these results even as demand softened in certain segments of the U.S freight rail market, as our diversified business model and global growth initiatives continued to drive our performance," said Albert J. Neupaver, Wabtec's president and CEO. "From a strategic perspective, we made progress by acquiring Ricon, which expanded product line of bus components; and advancing new technologies in the rail industry, including our Electronic Train Management System® and electronically controlled pneumatic braking products."
American Railcar, Amtek eye Asian marketAmerican Railcar Industries, Inc. and Amtek Auto Ltd. have entered into a non-binding memorandum of understanding on one or more joint ventures to manufacture and supply railcars and their components in India and other southeast Asian countries. A Feb. 20 announcement said the companies expect to share, on a 50-50 basis, ownership and startup costs of a manufacturing facility. Assuming successful negotiations, they expect to begin construction of a railcar plant in India later this year, with production beginning in 2009.
Iceland ponders passenger rail, light rail linesTwelve members of Iceland's Parliament have co-sponsored a resolution urging the transportation minister to explore two rail projects to serve the nation's capital, Reykjavik. One rail service would link Keflavík International Airport and Reykjavik, while a light rail transit line would operate within the capital region, according to the Iceland Review.
Iceland has never amassed any significant rail infrastructure, passenger or freight, in its history. "Iceland is a virgin in train transport," said Stefan Hand, pilot and the chairman of the Iceland Train Association, a group of people campaigning for rail service.
The parliamentary resolution was submitted following a competition for the best idea on urban development in the Vatnsmyrin neighborhood in Reykjavik. Only two of the 136 entries submitted failed to recommend an airport-rail link.
CP lowers '08 earnings forecast due to agency moveCanadian Pacific has lowered its 2008 earnings per share forecast by 5 Canadian cents, to between C$4.65 and C$4.80, retroactive to Aug. 1, 2007. CP made the change following action by the Canadian Transportation Agency Tuesday to adjust rail revenue caps for the moverment of Western grain for the crop year 2007-2008.
CTA's action translates to a C$2.59 per-ton impact on CP's revenue, CP said. CP will appeal the decision, but also that the retroactive component of the adjustment could shave an additional 8 Canadian cents a share off the guidance.
Despite the "uncertain economic environment," CP said it expected to see revenue grow by four to six percent this year, and expenses to increase by #% to 5%. Capital investment is expected in the range of C$885 million to C$895 million in 2008, similar to 2007.
Northstar Commuter Rail awards station contractKnutson Construction Services will build four stations for Minnesota's 40-mile Northstar Commuter Rail project, according to Tim Yantos, executive director of both the Northstar Corridor Development Authority (NCDA) and the Anoka County Regional Rail Authority. Knutson was the low bidder at $15 million.
The four stations included in the contract are Big Lake, Elk River, Anoka and Coon Rapids (Riverdale). The entire project, estimated to cost $320 million, will serve Hennepin, Anoka and Sherburne counties, running from Big Lake to downtown Minneapolis. Construction will start as soon as possible in the spring, Yantos said.
$3 billion ethanol pipeline under studyTwo oil products pipeline companies are studying the feasibility of building a 1,700-mile, $3 billion pipeline that would move ethanol from Midwestern plants to northeastern markets more cheaply than rail, truck, or barge. The companies making the assessment are Magellan Midstream Partners and Buckeye Partners. They expect to make a decision by the end of this year. The proposed pipeline would take three to four years to construct.
Amtrak to field mobile security teamsTo the anti-terrorist measures that it already has in place, such as surveillance cameras and other state-of-the-art technology, Amtrak now plans to add mobile security teams that will patrol stations and conduct random baggage searches.
Amtrak plans to first implement the security teams on the Northeast Corridor between Washington and Boston, before expanding them to the rest of the country.
"Random baggage inspections have been found to be an effective security tool for detecting individuals who may pose threats," said Amtrak. "Since predictable security can be exploited, this random screening and patrols will be unpredictable and will appear at various times and stations."
Amtrak said the mobile teams may consist of specialized Amtrak police, K-9 units capable of sniffing out explosives, and other armed counter-terrorism special agents in tactical uniforms.
Similar programs are already in force in a number of major cities; Amtrak noted its procedures are modeled on measures being used in the New York City subways.
GE lands Kazakhstan railway contractGeneral Electric Co. and the Kazakh state railway, Tenir Zholy, expect to complete a new plant by mid-2008 for the manufacture of GE Evolution Series locomotives. The plant is reported to cost $125 million plus $600 million for production equipment. The venture will provide modern motive power to replace a Soviet-era locomotive fleet as Kazakhstan builds a modern rail corridor to speed commerce between Asia and Europe and to support its own booming oil economy.
Loram picks IFS material planning systemLoram Maintenance of Way Inc. has selected IFS Applications to replace its 19-year-old material requirements planning system. The IFS system eas chosen "because of its strong focus on engineer-to-order and its proven maintenance, repair, and overhaul solutions for fleets."
Loram said the shift will solve the problem of "running multiple legacy systems, including a clumsy Computerized Maintenance Management System that is difficult and expensive to maintain.
Stamford selects URS for streetcar studyStamford, Conn., has chosen engineering firm URS Corp. to conduct a $125,000 study of potential streetcar service. The study will begin shortly and is expected to conclude by this fall.
"They are going to identify whether this type of system will work for Stamford as a basic first step," said Joshua Lecar, Stamford's transportation planner.
Stamford officials have identified a 2.3-mile route that would run from Washington Boulevard and Atlantic Street in the city's South End and could include stops at Stamford station (served by Metro-North Railroad and Amtrak), Landmark Square, Ridgeway Shopping Center, and the Lord & Taylor store on High Ridge Road.
Officials in other Connecticut cities, including Bridgeport and New Haven, also have begun exploring streetcar and light rail as an option.
UP still struggling to clear mudslideUnion Pacific said in a Feb. 15 customer service update that it will take at least another four-to-six weeks to clear away mudslide debris that took out a section of its main line near Eugene, Ore., on Jan. 19. UP said heavy snowfall has hampered efforts to remove approximately 153,000 truckloads of downed trees, mud, and snow from the remote location. Northbound and southbound trains operating between Roseville, Calif., and Portland, Ore., continue to be rerouted, with delays of 24 to 48 hours for traffic moving in this corridor.
CSX reported ready to upgrade New York trackNew York Democratic Senator Charles Schumer reportedly has won a pledge from CSX Transportation for substantial track upgrades on railroad lines that Schumer has characterized as accident-prone. The railroad is said to be willing to spend nearly $30 million to lay new rail, $14.2 million to replace 238,000 crossties, $2.5 million to weld rail joints, and $1.4 million to surface track.
Schumer said he asked for a meeting with CSX Chairman and CEO Michael Ward after 13 CSX cars derailed in Madison County Jan. 23, the latest in a series of mishaps. "After years of fighting for CSX to invest in the company's crumbling tracks cross New York State, this funding is a slam-dunk for every community," said Schumer.
Freight rail funding gains ground in CaliforniaThe Sacramento Bee has given its editorial support to Gov. Arnold Schwarzenegger's plan to spend $170 million of Proposition 1B state bond money on freight railroad improvements.
Noting that the $20 billion transportation bond approved by voters last November included more than $2 billion to improve freight corridors, an editorial posted on the newspaper's website went on to say: "California can't improve goods movement without investing in private railroads. Moreover since the publicly owned passenger trains run on tracks owned by the private railroads, any bond-funded track improvements benefit the public as well as the private railroads.
"Transportation planners in Sacramento and Placer counties, the Bay Area, and the Central Valley have identified several rail projects that provide benefits for both private railroads and the public. They want bond funds from Proposition 1B to improve Union Pacific's rail corridor over the Donner Summit. Targeted improvement to tunnels through the Sierra would allow double-stacked trains to traverse the summit, cutting a day off the Feather River Canyon Route UP's double-stacked trains now use."
Rail volume up 2.5% in latest weekTraffic volume on U.S. railroads totaled 32.7 billion ton-miles in the week ended Feb. 9, up 2.5% from the corresponding week a year ago. Carload freight was up 1.2% to 316,031 cars, while intermodal volume declined 3.1% to 225,205 trailers and containers. Nine of the 19 carload commodity groups showed increases compared to last year, including farm products other than grain, up 34.8%; grain, up 30.1%; and metallic ores, up 15.8%. There were sharp declines in loadings of coke, off 36.4%; lumber and wood products, down 20.7%; and primary forest products, down 17.7%.
In Canada, carload traffic for the week was up 1.2% to 73,794 loads, and intermodal volume increased 2.4% to 46,204 units. Kansas City Southern de Mexico reported carload traffic for the week was down 9.5% to 9,618 cars, and intermodal traffic rose 7.0% to 4,318 containers or trailers.
CSX says TCI seeks to "undermine" its boardCSX Corp. has sent a letter to the Children's Investment Fund (TCI) asserting that the hedge fund’s recent criticism of CSX bylaw amendments "makes it clear that TCI's interest is not in good corporate governance, but in achieving effective control of the company notwithstanding its ownership of only 4% of the shares."
Taking note of TCI's proposal "to allow shareholders the right to request special meetings for the purpose of electing directors throughout the year," CSX in a letter dated Feb. 7 made these points, among others:
"CSX's recent bylaw amendments reflect the board’s commitment to high standards of corporate governance. These bylaw amendments enable 15% of shareholders to request special meetings, well below the 25-33% level in similar bylaw provisions recently implemented by a number of other companies.
"The CSX amendments strike the appropriate balance between giving a small minority of shareholders the ability to request special shareholder meetings and protecting the interests of all shareholders...TCI's criticism of the CSX bylaw amendments is both unwarranted and disingenuous. Under the guise of providing shareholders with a voice, TCI seeks to undermine the functioning of the CSX board in furtherance of TCI's own purpose. TCI wants the ability to initiate a perpetual 'recall' contest through special meetings as a tool to implement TCI's proposals, regardless of their merits."
In what has shaped up as a proxy fight for control of CSX, TCI has been critical of the railroad company's management, its capital expenditures, and its earning performance.
In its Feb. 7 letter to TCI, CSX pointed out that since 2004 the value of CSX stock has increased nearly 150%, "providing shareholders with a return better than the rest of the North American rail industry and 94% of all S&P 500 companies during the same period."
New Jersey senators assail Bush budgetNew Jersey Senators Frank Lautenberg and Robert Menendez, both Democrats and both members of the Senate budget committee, warn that federal funding cuts in President Bush's proposed budget for fiscal year 2009 would dangerously weaken rail, highway, and air transportation.
"The President's budget shortchanges Amtrak and weakens our entire transportation system," said Lautenberg. "We need resources do repair our crumbling roads and bridges, better manage air traffic, and expand transit and passenger rail, which travelers continue to use in record numbs." Both Lautenberg and Menendez have pledged to vigorously oppose the funding cuts in the budget committee.
New rule addresses “human factor” accidentsThe Federal Railroad Administration has adopted a new rule that it hopes will reduce "common mistakes that result in nearly half of all humn factor-caused train accidents."
The agency said the need for the regulation was indicated by an increase in such accidents in recent years, and was given new impetus by an accident at Graniteville, S.C., in January 2005. Nine people were killed when an improperly lined switch diverted a train from a main line track, causing it to collide with a parked train and rupture three tank cars which released a cloud of chlorine gas.
The new rule tackles "several commonplace errors that can lead to serious train accidents," said U.S. DOT Secretary Mary E. Peters. At present, she noted, these errors are generally errors are subject only to internal railroad standard operating procedures and are enforced through disciplinary procedures or other corrective action.
Under the new rule, certain violations may result in fines ranging from $7,500 to $16,000 for the railroad, and in some cases individuals may also be subject to liability.
FRA Administrator Joseph H. Boardman said the rule defines three levels of responsibility and accountability: railroad managers for implementing programs to test employee proficiency; supervisors for properly administering such tests; and employees for complying with the rules.
The new rule gives employees the right of challenge should they be instructed to act in a manner that they believed would violate the rules. The new regulation takes effect April 14.
CP train operating crews ratify contractCanadian Pacific train operating crews in Canada have ratified a new five-year contract, according to the Teamster Canada Rail Conference. The union said 59% of its 4,500 engineers, conductors, and trainmen voted in favor of a deal that includes wage and pension increases.
Last November an earlier deal was voted down by a narrow margin, prompting the union and CP to reopen negotiations.
The new contract is retroactive to the end of 2006, when the previous contract expired. The agreement covers only CP Rail's crews in Canada, CP workers in the United States are covered separately.
Amtrak, UTU reach accord on conductorsAmtrak and the United Transportation Union have reached a tentative agreement on wage increases for about 2,300 UTU conductors and assistant conductors, retroactive to Jan. 1, 2000, and extending through July 31, 2009.
Under the agreement, still to be ratified, Amtrak will retain about 400 assistant conductor positions it sought to eliminate as a cost-savings measure. A UTU statement said the agreement also provides for no work-rule givebacks.
UTU International Vice President Tony Iannone called the settlement "extraordinary in its achievement of protecting all jobs, not giving up any work rules and still gaining the full general wage increases and retroactive pay provisions negotiated by the other organizations."
St. Paul LRT planners reach accord on modificationPlanners of St. Paul, Minn.'s Central Corridor light rail project Wednesday said they had succeeded in reaching a compromise plan, estimated to cost $909 million, which would meet federal cost criteria.
The changes include elimination of an LRT tunnel requested by the University of Minnesota, which would have placed light rail underneath its East Bank campus. Additionally, some St. Paul neighborhoods seeking station stops in the initial building phase may have to wait until after the 11-mile route is established.
The proposal actually is one of several presented to the Central Corridor Management Committee, but reportedly is the only one that meets the cost-effectiveness index mandated by the Federal Transit Administration.
Earlier this week, leaders in St. Paul and Ramsey County agreed to a cost-cutting measure that would have the LRT line end in front of the city's Union Depot, with the possibility that it could be extended someday to the back of the station.
Both the management committee and the Metropolitan Council will vote on the line's scope Feb. 27. The Central Corridor route will link with the existing Hiawatha Line in Minneapolis, in operation since 2004.
CP signs pact with Consolidated FastfrateCanadian Pacific and Consolidated Fastfrate Wednesday announced a $500 million agreement that extends their existing contract for an additional 10 years. CP and CFF have a partnership that dates back to 1966.
"The strategic relationship we have with CP, which exists at every level of their organization, has been the foundation upon which we built our company," said Ron Tepper, president and CEO of CFF. "I am incredibly proud to sign an agreement of this magnitude. Our long-term partnership illustrates that two companies can co-operate to increase efficiencies and provide a better product to their customers."
The two companies have employed a national co-location program, where CFF has built its intermodal centers adjacent to CP intermodal terminals.
"Over the past forty years we have seen the incredible growth and development of the intermodal industry, from a minor mode of transportation to a multi-billion dollar global business," said Fred Green, CP's president and CEO. "This is an important business for CP, and CFF has been a strategic intermodal partner from the start. With this 10-year extension to our agreement, and continued strong global demand for our services, there are great growth opportunities for both CFF and CP."
New York-area airport-rail links see increased useThe Port Authority of New York & New Jersey, which oversees both John F. Kennedy and Newark Liberty international airports, says ridership on its two airport-rail links increased 13% in 2007.
The PA said more than 4.4 million riders used the Kennedy AirTrain link in 2007, up 12% from the year prior. Another 1.8 million used the AirTrain monorail to or from Newark, up 13.5% from 2006.
"We've experienced robust year-over-year growth in passenger traffic at Newark Liberty and JFK," said Anthony Coscia, chairman of the Port Authority board of commissioners. "Our AirTrain systems have played a critical role in accommodating that growth by providing a viable transportation option for travelers."
No breakdown was available for intra-airport ridership between terminals and other facilities, which is free at both airports, and fare-paying customers. Kennedy Airport customers pay $5 to connect with Long Island Rail Road service at Jamaica station, or at subway trains at Sutphin Boulevard in Jamaica or Howard Beach station. Newark Airport AirTrain users can connect with New Jersey Transit Northeast Corridor services.
Genesee & Wyoming earnings beat expectationsGenesee & Wyoming Inc. reported fourth-quarter revenue of $134.5 million, up 14.3%, or $16.8 million, from $117.7 million in the fourth quarter of 2006. Fourth-quarter net income was $13.9 million, compared with net income of $14.3 million in the fourth quarter of 2006. Diluted earnings per share (EPS) in the fourth quarter of 2007 were $0.38 with 35.9 million shares outstanding, compared with diluted earnings per share of $0.34 with 42.2 million shares outstanding in the fourth quarter of 2006.
The results were better than anticipated by Wall Street analysts.
GWI's income from continuing operations in the fourth quarter of 2007 was $14.5 million, or $0.40 per diluted share, compared with income from continuing operations of $15.7 million, or $0.37 per diluted share in the fourth quarter of 2006.
The company's liquidation of its hurricane-damaged operations in Mexico,which began on June 25, 2007, resulted in no remaining employees as of September 30. Results from GWI's Mexican operations for the three and twelve months ended December 31, 2007 and 2006, were included in results from discontinued operations.
GWI said its fourth-quarter 2007 results also included gains on the sale of assets of $0.8 million ($0.5 million after-tax, or $0.02 per share), compared with $2.8 million ($1.7 million after-tax, or $0.04 per share) in the fourth quarter of 2006. Changes in Canadian tax laws in the fourth quarter of 2007 generated a tax benefit of $0.6 million (or $0.02 per share). GWI's results for the fourth quarter of 2006 included a net tax benefit of $1.2 million (or $0.03 per share), primarily associated with regulations issued in late 2006 clarifying the calculation of the short line tax credit.
South Dakota Senate seeks accelerated DM&E hearingsIn a 20-13 vote, South Dakota's state Senate approved a measure intended to speed up state hearings on the Dakota, Minnesota & Eastern Railroad's application to acquire land by condemnation for its $6 billion project to access the Powder River Basin coal fields in Wyoming .DM&E wants to rebuild 600 miles of existing track across South Dakota and Minnesota and add 260 miles of new track around the southern end of thee Black Hills to reach the site.
State Sen. Tom Hansen said DM&E applied more than a year ago for state approval to use eminent domain to acquire land for a right of way from people who are unwilling to sell, but opponents have delayed any state hearing on the matter. "The time has come to let the process move forward," Hansen said. The measure still must be approved by the state House.
DM&E, acquired last fall by Canadian Pacific, already has negotiated deals to acquire land along the expansion route from some ranchers in southwestern South Dakota. But railroad officials said they need legal authority to use eminent domain to acquire land from those unwilling to sell.
South Dakota state law provides that a railroad can use eminent domain if it can show a project is a public use consistent with public necessity. A key element is whether a railroad can show it already has negotiated in good faith to acquire land without the use of eminent domain.
STB plans EIS for Alaska rail extensionThe Surface Transportation Board will prepare an Environmental Impact Statement (EIS) on the Alaska Railroad's proposed construction and operation of an extension of 30 to 45 miles to Port MacKenzie from its mainline between Wasilla and a point north of Willow. STB said "significant environmental impacts" could result from the proposal. The railroad plans to operate two trains a day, one in each direction. The EIS will analyze the potential impacts of the project, alternative routes, and a "no-action" alternative.
To determine the scope of the issues to be addressed, the STB has scheduled a series of six public meetings extending from March 3 to March 11 at points along the route as well as in Anchorage.
"The purpose of the project," said the STB in its EIS notice, "is to establish a railroad link between Port MacKenzie and the ARRC rail system, to provide port customers and shippers with rail transportation between the port and interior Alaska. The port is a deep water facility on the north side of Knik Arm, in upper Cook Inlet, located in south-central Alaska. The only surface mode of freight transport presently available to the port is trucking. Thee ARRC project would allow bulk materials, intermodal containers, and other freight to and from the port to also move by rail."
Arthur Lewis dies; helped start Amtrak, ConrailArthur Lewis, a former airline executive and corporate turnaround specialist who played key roles in the creation of Amtrak and Conrail during a sweeping restructuring of the rail industry in the 1970s, died Jan. 12 in Silver Spring, Md. He was 89. Lewis was appointed by President Nixon to incorporate Amtrak in 1970, and four years later was named by Nixon to head the U.S. Railway Association, which reorganized seven bankrupt railroads into Conrail. Lewis served as chairman of the Conrail board of incorporators from 1974 to 1977.
VIA Rail seeks bids on car upgradesVIA Rail is seeking bids for a four-year contract expected to be worth around $100 million for the upgrade of its 98 LRC cars, which are mainly in service between Québec City and Windsor. The cars will get new electrical air conditioning and heating systems and interiors.
This is the second phase of a C$692 million VIA Rail modernization program funded by the federal government. Phase One is a C$101 million contract to rebuild the passenger railroad's F-40 locomotive fleet. Global Railway Industries is performing the work at its Lachine plant. Another phase will invest around C$200 million in improving tracks, signaling, and other infrastructure. Remaining funds in the program will support VIA Rail operations while the modernization work is under way.
UP hiring "several thousand" new workers this yearWhile the industry's payroll is down slightly from last year, some railroads continue to hang out "help wanted" signs. One of them is Union Pacific, North America's largest rail carrier, which has just announced that it is hiring "several thousand new employees in 2008 at all levels, from train service and railroad track maintenance to management positions."
UP said it expects 40% of its current workforce of around 50,000 to reach retirement age in the next five years. "While we don't expect all employees to take retirement the minute they are eligible, we do want to add new employees now so they will have the opportunity to learn and gain the expcerience4 needed to maintain the high standards set by our current employees," the railroad said in a statement.
The railroad suggested that workers with retail management backgrounds, many of whom have been impacted by the weakening national economy, possess skills transferable to the railroad business. These skills include setting work schedules, controlling inventory, helping customers, answering complaints, hiring, training and supervising employees, tracking sales, ordering products, handling payrolls, and supervising loss prevention programs.
UP noted it it was recognized as a quality employer last year by Fortune magazine, which named UP the most admired railroad in America; LATINA Style magazine, which picked UP as one of the best companies for Latina employees; G.I. Jobs magazine,which named UP as a Top Military Friendly Employer; and the National Business Group on Health, which honored UP for its commitment to promoting a healthy lifestyle for its employees.
Sacramento seeks LRT link to airportSacramento, Calif.'s Regional Transit District (RTD) is holding public hearings, and accepting comment, on a proposed $785 million, 13-mile light rail extension connecting the city's Amtrak station and Sacramento International Airport. RTD has released its environmental impact statement for the proposal. The plan coincides with another plan to expand the airport's capacity.
"This has become one of the most important transit projects in the metropolitan area," said RTD spokeswoman Rosemary Covington. Covington said that an airport link is a priority in polls among transit riders.
Pacer International Stacktrain volume risesPacer International, Inc. reports that for the year ended Dec. 28, revenue increased 4.3% to $1.9 billion. Intermodal volumes were up 6.3% for Pacer's Stacktrains and 4.3% for its Rail Brokerage operation. Operating income declined 20.1% to $94.5 million, and net income was down 20.5% to $54.3 million.
Pacer explained that this variance included several transactions that produced nonrecurring benefits in 2006, and a $6.0 million charged in 2007 for severance and facility exit activities and and $3.0 million bonus accrual. Fourth-quarter revenue rose 7.6% to $540.2 million and net income declined 4.2% to $20.6 million.
"We are generally pleased with our performance during 2007, given the difficult market conditions and our investment in repositioning our company for the future," said Mike Urenovich, chairman and CEO. "Our operating revenues remain strong and allowed us to repurchase $72.5 million of stock and pay $21.8 million of dividends in 2007. During the year we undertook a severance and facility exit program which reduced employment by 134 and we exited four facilities. We refinanced our long-term debt to enhance our liquidity, and we entered into a software license agreement for an enterprise suite of applications that when implemented will produce better information management, enhance our customer services and communications, and reduce costs."
Railway Age Shortline/Regional Railroad of the YearRailway 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.
"Short line and regional railroads adapt quickly, and we seek to recognize the attributes the best excel at," says Managing Editor Douglas John Bowen. "As in past years, such attributes 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."
Small roads in Mexico, the U.S., and Canada are eligible for an award (and railroads can even nominate themselves). Our 2008 winners will be awarded specially designed plaques at the American Short Line and Regional Railroad Association Annual Convention in San Antonio, Texas, May 4-6. Articles describing their achievements will appear in Railway Age's April 2008 issue, which will be distributed at the show. We’ll work with the winners to publicize the awards in online and national media.
"Award winners have ranged from large regionals to small short lines," says Bowen, "and we've recognized and honored carriers ranging from 20 miles to nearly 2,000 miles. In some years, separate awards have been given for regional and short line carriers."
Submit any entries to: Douglas John Bowen, Managing Editor, Railway Age, 345 Hudson Street, 12th Floor, New York, N.Y., 100l4. 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 Monday, Feb. 25, 2008, so please don't delay.
Rail operating employment down 5.3%Total employment on U.S. Class I railroads dropped 1.9% to 161,252 in December 2007 compared with December 2006. The sharpest numerical decline was in the category of transportation (train and engine) employees, which was down 5.23% to 66,056. The biggest percentage decline was in transportation (other than train and engine), down 5.35% to 6,835. The category of executives, officials, and staff assistants declined 0.25% to 10,123, and the professional and administrative division was down 0.44% to 13,784. Maintenance of way and structures employment increased 2.15% to 34,730, and maintenance of equipment and stores employment rose 0.64% to 30,724.
Ottawa seeks settlement with SiemensOttawa city officials reportedly seek to settle a C$280 million lawsuit filed against it by Siemens Transportation Systems following the city's cancellation of a C$1 billion diesel light-rail transit (DLRT) system. The city has contacted Siemens in hopes of reaching a settlement before parties go to court.
Siemens filed suit last June, claiming Ottawa knew it would breach its contract when it extended a project deadline in late 2006, then canceled the project. Siemens said "the city's extension of the closing date was unlawful and undertaken for an improper purpose."
Ottawa had held that it did not have a binding contract with Ottawa LRT Corp., a consortium including Siemens and PCL Constructors, to build the proposed 19-mile DLRT line.
MBTA orders 75 bi-level coaches from RotemThe Massachusetts Bay Transportation Authority has awarded a $190.2 million contract to Rotem USA Corp. of Philadelphia for 75 new bi-level commuter rail coaches to replace single level railcars that are nearing their useful life expectancy of 25 years. Deliveries will begin at the end of 2010 and are to be completed by 2012. The new cars will bring MBTA's bi-level fleet to 215 units.
MBTA General Manager Daniel A. Grabauskas said the cars will have more seating, improved accessibility, and on-board lavatories. They will be fully compliant with the Americans with Disabilities Act and will feature flip-back seats at designated wheelchair positions.
CSX Transportation launches carbon calculatorCSX Transportation Friday unveiled its "Carbon Calculator," an online tool for shippers to determine their best environmental choice of transportation options. The calculator calculates the carbon dioxide (CO2) emissions savings of specific rail shipments, providing comparative data among transportation choices.
"Rail is the most environmentally friendly and energy-efficient land transportation option," said Clarence Gooden, CSX executive vice president and chief commercial officer. "This tool enables our customers and others to better understand the difference they can make – on a shipment by shipment basis – by choosing rail."
The calculator can be accessed through the company’s website, www.csx.com.
U.S. total rail volume up 1.9% in JanuaryThe Association of American Railroads estimates total U.S. rail volume for January at 161.7 billion ton-miles, up 1.9% from January 2006. Carload traffic for January was up 0.9% to 1,566,721 loads, led by grain, up 16.6%; coal, up 1.9%; and chemicals, up5.1%. U.S. rail intermodal volume for January was down 3.4% to 1,068,740 containers and trailers.
"Preliminary GDT growth in the fourth quarter of 2007 was just 0.6%, matching the lowest quarterly figure in six years," said AAR Vice President Craig R. Rockey. "Since rail traffic is closely tied to economic growth, the economic slowdown is clearly negatively affecting rail traffic."
Canadian carload traffic in January declined 3.1% to 360,130 loads, while intermodal traffic increased 9.4% to 227,251 units. The loss of carload traffic was led by lumber and wood products, down 38.3%; motor vehicles and equipment, down 20.6%; and pulp and paper products, down 10.8%.
Kansas City Southern de Mexico carloads were down 0.3 in January to 49,179 loads, while intermodal volume increased 11.1% to 21,662 units.
For the week ended Feb. 2, U.S. carload traffic was up 0.9% from the corresponding week in 2007, intermodal traffic was down 0.3%, and ton-mile volume was up 2.2%. In Canada, carloads declined 10.7 in the week ended Feb. 2, and intermodal volume rose 3.6%.
Rail accidents decline 6.9% in CanadaThe Railway Association of Canada reports that rail-related accidents in Canada dropped 6.9% in 2007 to 1,282, and were down 7.8% from an annual average of 1,378 during the last five years. Accidents involving dangerous goods dropped from a five-year average of 210 to 182 in 1987. Accidents per million ton-miles dropped 4.5% to 13.78 last year, and were down 8.9% in 2007 from 15.1 on average during the last five years.
Fatalities were down to 86 last year from 95 in 2006, with no increase over the last five years. Serious injuries declined to 54 last year from 70 in 2006, compared with a five-year annual average of 79.
LIRR notches best ridership in 58 yearsMTA Long Island Rail Road Friday announced a "modern-day ridership record" of 86.1 million riders in 2007, up 4.9%, or 4 million passengers, from its 2006 total, and the highest annual ridership since 1949. LIRR also claimed a record modern-day on-time performance of 94%, adding that January 2008’s on-time performance was a record 96.3% of all trains.
More important may be the LIRR's ability to attract off-peak ridership, much as its sister organization Metro-North Railroad has done in recent years. "Non-commutation" ridership increased 6.3% in 2007, "reaching the highest level in LIRR history," the railroad said. The LIRR's traditional bread-and-butter "commuter market" ridership, defined as those traveling to and from work between 6:00 a.m. and 10:00 a.m. and between 4:00 p.m. and 8:00 p.m., rose 4% over 2006 levels.
"Both commutation and non-commutation markets experienced impressive growth benefiting from the railroad’s record on-time performance, higher gas prices, job growth in New York City, along with our compehensive marketing program and integrated advertising campaign for leisure travel," said LIRR President Helena Williams.
Nucor to acquire David J. Joseph Co.Nucor Corp., a manufacturer of steel products with operating facilities in the U.S. and Canada and a large consumer of scrap metal, intends to acquire the stock of SHV North America Corp., which owns 100% of The David J. Joseph Company. DJJ is one of the leading U.S. scrap companies, owns over 2,000 scrap-related railcars. DJJ will be a wholly owned subsidiary of Nucor and will maintain its headquarters in Cincinnati, Ohio. The transaction is worth approximately $1.44 billion.
DJJ was founded in 1885 and has been the broker of ferrous scrap to Nucor since 1969. Currently the company has five main businesses: Brokerage Services, Scrap Processing, Mill and Industrial Services, Rail Services, and Self Service Auto Parts. Nucor produces carbon and alloy steel products and is the nation’s largest recycler.
Andersons rail fleet grows 8% to 22,000 unitsAndersons, Inc. reports that in 2007 it grew its rail fleet by more than 8% to 22,000 freight cars and locomotives. The Andersons Rail Group posted revenue of $130 million last year, up from $113 million in 2006, but operating income remained level at around $19.5 million. Average railcar utilization for 2007 was 92.6%, compared with the 2006 average of 95.2%, although at year-end the utilization rate was 93.4%.
In last year's fourth quarter, the Rail Group earned $3.8 million in operating income on $28 million in revenue, compared with operating income of $3.4 million on revenue of $24 million in the 2006 quarter.
The continuing surge of interest in ethanol helped Andersons boost its corporate earnings last year. The Grain & Ethanol Group's 2007 operating income was $65.9 million, more than double the $28.0 million reported in 2006. Total revenue for the year was $1.5 billion. This included $407 million of grain and ethanol sales made by the group in accordance with origination and marketing agreements between the company and ethanol joint ventures.
Hub Group posts record earningsHub Group, a provider of intermodal, truck brokerage, and transportation logistics services, reported record fourth-quarter 2007 net income of $18.0 million, up 33% from the corresponding quarter of 2006. Revenue increased 4.7% to $444.5 million, with intermodal revenue up 2.4% to $314.4 million, truck brokerage revenue up 15.2% to $93.9 million, and logistics revenue up 0.5% to $37.2 million.
Vice Chairman and CEO David P. Yeager commented: "Given the current economic environment, we were pleased with our operating results. We grew in all of our service lines and achieved operating margin of 5.7% compared to 5.2% in the prior year."
NYC subway ridership at highest level since 1951New York city subways carried 1.56 billion riders in 2007, the highest number since 1951 and 4.2% or 60.1 million trips more than in 2006. Weekday subway ridership in 2007 averaged more than 5 million for the first time since 1952. In 2007, average weekend subway ridership was 5.1 million, up 6.3% or 304,000 trips from 2006 and the highest weekend ridership in 35 years. In the last five years, annual subway ridership increased 10.6%.
MTA New York City Transit’s total subway/buys ridership last year was 2.3 billion, highest since1969 and 2.7% or 60.1 million trips higher than in 2006.
"Helping fuel the growth in ridership," said the agency, "was a strong city economy, including record tourism and MetroCard discounts, specifically use of the 30-day MetroCard which had a 31.3% market share, the highest ever for the 30-day pass which was introduced in July 1998. The use of discounted unlimited ride and bonus MetroCards reached a record 85.8% in 2007 – 49.4% using unlimited ride passes and 36.4% using bonus pay-per-ride MetroCards. Taken together, MetroCard discounts yielded an average non-student subway and bus fare of $1.29." The base one-way fare is $2.00.
DART seeks design-build interest for two LRT projectsNotwithstanding recent budgetary difficulties and questions concerning capital construction of light rail, Dallas Area Rapid Transit will host a “Megamixer” at DART headquarters beginning 8:00 a.m., Feb. 11, to pursue such construction in an economical fashion.
Construction contractors and vendors are invited to learn about upcoming opportunities to provide design-build services for both the 9.3-mile Orange Line expansion, serving North Irving, Las Colinas, and Dallas-Fort Worth International Airport, and 4.75 miles of the Blue Line, extending the line from Downtown Garland Station to Downtown Rowlett Station.
DART notes this is its first design-build solicitation, and hopes to engage a private contractor for both architecture/engineering and construction services for both projects. DART intends to award one separate contract for each project, but says teams will not be precluded from competing separately for both.
DART expects a design-build approach "will expedite the overall project schedule through concurrent efforts on design and construction. This fast-tracking approach could also enable DART's contractor to identify, quantify and secure construction materials earlier in the process, potentially locking in the lowest available prices."
More details are available through DART's website, http://www.dart.org/procurement/vendorguidelegal.asp.
Michigan Tech launches undergraduate rail transportation programInterest in railroading careers among undergraduate and graduate students is gradually gaining momentum, and several U.S. colleges and universities are responding by setting up specialized programs in railway transportation. That’s good news for the railroad industry, which is faced with replacing a large number of experienced people who have been retiring and taking their institutional knowledge—acquired in most cases over a lifetime—with them.
Michigan Technological University, Houghton, Mich., offers one of the newest railroading-as-a-career curriculums. A new Rail Transportation Program has been established at the university’s transportation arm, Michigan Tech Transportation Institute (MTTI), by Research Assistant Professor Pasi Lautala.
Lautala, who earned his Ph.D. at Michigan Tech, has been named director of the new program. CSX Transportation is providing financial support, entering into an agreement with Michigan Tech that provides $33,000 in underwriting for 2008 and continuing support in following years. The university says negotiations with other railroads (among them Union Pacific) and several engineering consulting firms are under way.
Lautala came to Michigan Tech from Finland in 1996 to earn a master’s degree. The son of a locomotive engineer, he is described as “growing up in a culture that embraced rail transportation.” In 2004, Lautala established a five-week international summer exchange program in railway engineering called “Summer in Finland.” In the past four years, 62 students from six different disciplines have completed the program, a collaboration of Michigan Tech, Finland’s Tampere University of Technology, and the North American and Finnish railroad industries. In 2005, Michigan Tech students established a Railroad Engineering and Activities Club (REAC), which became the first student chapter of the American Railway Engineering and Maintenance-of-Way Association (AREMA). REAC now has more than 30 members. Past President Bill Sawin, who graduated from Michigan Tech in 2007 with a degree in civil engineering, is now a design engineer with Norfolk Southern.
Michigan Tech has made a three-year commitment to help fund the Rail Transportation Program, which offers three courses: Introduction to Railroad Engineering; Track Design and Construction; and Public Transit Planning and Engineering.
As the first Class I to support the program, CSX “recognizes the importance of rail engineering programs as the rail industry continues to flourish, providing unlimited opportunities for new engineers,” according to Manager-Professional Recruiting Lisa Weldon. Dr. Lautala says he wants to see the program grow into “a multidisciplinary certificate program in rail transportation.” He envisions a “Rail Transportation Enterprise or rail-related projects within [MTTI’s] current Enterprise Program, where a student-run company tackles real-world challenges with funding from the industry.” He also foresees “faculty research projects that cross departmental lines, internships and co-ops, and more support from the railroad industry.”
Railinc taps Time Warner Telecom for network boostCary, N.C.-based Railinc, supplier of real-time transportation data to the railroad industry, has signed a multi-year contract with Time Warner Telecom, Inc. to provide metro Ethernet, multi-site IP VPN, Ethernet Internet, and advanced voice services. The size of the contract was not disclosed.
Time Warner Telecom will install dual-entry connectivity to Railinc's headquarters building, providing the company with network connectivity to bolster system-wide integrity from natural or man-made disruptions. Railinc also will receive a 25 Mbps metro Ethernet connection between its Cary headquarters and its disaster recovery site in Raleigh, N.C.
The company also has contracted for a 10 Mbps IP VPN link at its headquarters to support Internet access, including extranet access to industry reference materials. A second 10 Mbps IP VPN link will link Railinc headquarters software engineers with hosted applications at the company's Pittsburgh data center.
"With these capabilities, in addition to adding deal SONET-based fibe entries into our headquarters facility, Railinc now has the ability to reroute network services in minutes as the need arises," said Railinc Network Services Manager Paul Gaglione in a statement. "Overall, we are getting three times the bandwidth and dual entry at our headquarters building for less than we were paying for our outdated legacy solutions."
New York is big winner in New Starts fundingTwo New York City megaprojects have been designated to receive $497 million of the $1.1 billion earmarked in the Bush Administration’s FY2009 budget for New Starts transit funding, nearly 44% of the total. MTA New York City Transit gets an infusion of $277.7 million in the proposed new budget for the Second Avenue Subway (Phase I), and MTA Long Island Rail Road’s extension of service to Grand Central Terminal (the East Side Access project) gets $219.3 million.
Two new rail starts are listed as pending full funding grant agreements (FFGA): Denver’s West Corridor LRT ($60 million recommended), and Seattle’s University Link LRT Extension ($100 million recommended).
Other FFGA projects include:
Los Angeles’ Metro Gold Line Eastside Extension ($74.6 million)
Denver’s Southeast Corridor LRT ($1 million)
Washington, D.C.'s Largo Metrorail Extension ($34.7 million)
Chicago’s Ravenswood Line Extension ($30.5 million)
Minneapolis’ Northstar Corridor Rail ($71.2 million)
Hudson County, N.J.'s HBLRT MOS-2 ($1.1 million)
Portland, Ore.’s South Corridor I-205 Portland Mall LRT ($81.6 million)
Pittsburgh's North Shore LRT Connector ($0.67 million)
Dallas' Northwest/Southeast LRT MOS ($88.0 million
Salt Lake City’s Weber County-SLC Commuter Rail ($81.6 million)
Norfolk, Va. LRT ($57.1 million)
Seattle's Central Link Initial Segment ($28.8 million).
Montreal to offer open tender for subway car orderThe Quebec provincial government announced Wednesday that a C$1.2 billion contract to supply 336 railcars to the Montreal subway system will go to open tender. The provincial announcement means France's Alstom will be allowed to bid against hometown company Bombardier, Inc., for the order.
Economic Development Minister Raymond Bachand said the province would not contest a January ruling by the Superior Court of Quebec that said Alstom had been unfairly excluded. "It's a tender offer that will be open to Alstom, that will be open to Bombardier, and may the best win," Bachand said, adding that Quebec hopes to select a company within a year.
Plant closing affects FreightCar America earningsFreightCar America, Inc. has reported fourth-quarter 2007 sales of $137.1 million and a net loss of $16.6 million, compared with sales of $330.8 million and a profit of $33.96 million in the corresponding quarter of 2006. The company said these results included pre-tax charges of $37.2 million, of which $30.8 million was related to the costs of closing its Johnstown, Pa., manufacturing plant.
For calendar year 2007, sales were $817.0 million and net income was $26.5 million vs. sales of $1.4 billion and net income of $128.7 million in 2006.
Orders for new railcars in fourth quarter 2007 totaled 2,074 units vs. 1,262 in the third quarter of 2007 and 2,190 in the forth quarter of 2006. The backlog of unfilled orders on Dec. 31, 2007, was 5,399 cars vs. 9,315 on Dec. 1, 2006, and 4,930 on Sept. 30, 2007.
"While the current North American railcar market has contracted, we believe the long-term fundamental trends of our industry remain strong," said Chris Ragot, president and CEO. He noted that the company recently entered into a venture to develop railcars for the Indian market. He said the joint venture of FreightCar America and Titagarh Wagon Ltd. expects to begin freight car production in India in 2009.
Schneider National names CSX, BNSF "Primary Rail Providers"Green Bay, Wis.-based Schneider National, Inc. Wednesday named CSX Intermodal and BNSF Railway as its primary rail providers, in an effort to simplify the trucking company's container/trailer pool operations and bolster intermodal service.
BNSF will serve as the primary rail provider in the West, while CSXI will handle Schneider’s rail intermodal business in the eastern U.S. Schneider will maintain secondary relationships with the other Class I's to reach markets not served by BNSF and CSXI, the trucking company said. But the new agreements provide Schneider customers with preferential loading, capacity, and operational interfaces that will increase accessibility and efficiency of rail moves.
"Our goal remains consistent: to provide a door-to-door 'truck like' experience for our customers," said Bill Matheson, president of Schneider National Intermodal. "Establishing these rail relationships means we’re making it easier and more beneficial to our customers. We have made it a priority to take intermodal and make it simple for our customers. In the end, this is going to save our customers significant time and money while increasing reliability."
Along with J.B. Hunt Transport Services, Inc., Schneider National was among the vanguard of trucking companies willing to explore truck/rail intermodal opportunities two decades ago, as international trailer- and container-load traffic increased rapidly.
Judge extends UTU merger restraining orderA Federal District Court judge in Akron, Ohio, has extended the temporary restraining order on the proposed merger of the United Transportation Union and the Sheet Metal Workers International Association to create the Sheet Metal, Air, Rail and Transportation Workers Union (SMART).
Judge John R. Adams extended the TRO until 10 days after an April 25 hearing regarding a motion by former UTU International President Paul Thompson and other UTU International officers seeking immediate implementation of the merger.
Adams previously ruled that UTU members had not been provided sufficient information, in the form of a SMART constitution, on which to make an informed decision on the merger when they voted last year to approve it. The federal court action was initiated by a group of UTU members who successfully argued to the court that UTU members should have been provided, prior to the vote, a copy of the SMART constitution into which the UTU constitution was to be incorporated. The complaint was filed following allegations that UTU members were not made aware of conflicts between the two constitutions.
UTA adds 10 commuter locomotives Utah Transit Authority has awarded a contract to Wabtec Corp. subsidiary MotivePower for an additional 10 MPXpress® diesel-electric commuter locomotives, bringing the fleet to 21 units. The $31 million contract includes four years of maintenance services on all units. MotivePower will provide on-site labor and management at UTA’s Salt Lake City facility. It will develop work scopes for scheduled and unscheduled maintenance and manage material requirements. The 10-unit option is to be manufactured in Boise, Idaho, with delivery in 2010. UTA’s new commuter rail service operates between Salt Lake City and Ogden, Utah.
“The MPXpress® continues to be the locomotive of choice for commuter rail agencies in North America,” said Albert J. Neupaver, Wabtec’s president and CEO. “We’re also pleased to be selected to provide maintenance services for the units, which demonstrates another way for Wabtec to help customers improve their safety, efficiency, and productivity.”
Alstom’s new AGV will travel at 223.7 mphFrench President Nicolas Sarkozy attended a ceremony at La Rochelle today that marked the introduction of a new generation of Alstom high speed trains—the AGV, which will have a commercial speed of 223.7 mph, vs. 198.4 mph for the current TGVs.
“That we are here today is testimony to the courage of Alstom because during its worst period it decided not to sacrifice its research and development,” said Sakorzy. It was Sarkozy who as finance minister in 2004 helped mastermind a plan that rescued Alstom from troubled financial waters.
The Italian open access operator, NV, has ordered 25 of the new trains. Unlike the previous generations of TGVs, the new train uses distributed power, precluding the need for power cars at each end. It is equipped with ERTMS (European Rail Traffic Management System) train control, and sports a new aerodynamic design that has been compared to that of the Concorde SSTs.
APTA "outraged" by Bush transit budgetPresident Bush’s proposed transit budget for the 2009 fiscal year contained a bombshell for transit interests. The American Public Transportation Association promptly issued a statement saying it was “outraged that the Bush Administration’s request for FY 2009 would cut $202.1 million for public transportation and proposed to transfer an estimated $3.2 billion dedicated for public transportation to fund highway projects.”
The Administration's proposal of $10.1 billion, though higher than last year's $9.4 billion, is a cut from the $10.3 billion originally authorized in 2005 when SAFETEA-LU, the current multi-year transportation bill, was enacted.
“The tens of millions of people who depend on public transportation should not be treated as second class citizens compared to people who choose to drive cars,” declared APTA. “While it is important to fix the federal highway account in 2009, robbing Peter to pay Paul is not the way to go. Funding highways should not be done on the back of public transit riders.”
APTA said the Bush proposal would reduce the balance in the Mass Transit Account “to the point where, absent new funding, the federal transit program could not be funded in 2010 at even the current level. We urge the Congress to find a different solution to fixing the shortfall in the Highway Trust Fund, such as adopting the proposal already drafted by the Senate Finance Committee to adequately fund the highway program in FY 2009.”
APTA also said: “In addition to raiding the Mass Transit Account, the Bush Administration proposal to reduce public transportation funding of $10.3 billion by $202.1 million is wrong. The $10.1 billion the president proposes for public transportation does not come close to addressing current capital needs, let alone the costs of a growing public transit system that meets a growing demand for more public transportation.”
KCS sets operating income and revenue recordsDespite falling short of its revenue growth targets for 2007, Kansas City Southern’s fourth-quarter and full-year 2007 financials reflected record operating income and revenues as well as a lower operating ratio. Today’s announcement pushed KCS’s stock up 5% in a bear market.
KCS’s fourth-quarter revenues of $460.3 million were a 4.0% increase over the corresponding 2006 period and were primarily the result of a continued strong pricing environment as well as volume growth in some key commodity segments. Operating income for the fourth quarter was a record $108.7 million, compared with $88.2 million last year, a 23.2% increase. Operating expenses were $351.6 million, compared to $354.2 million, a decrease of 0.7%. The operating ratio was 76.4%, compared with 80.1% a year ago. Net income totaled $49.9 million, or $0.56 per diluted share—beating Wall Street estimates by $0.10—compared with $35.7 million, or $0.41 per diluted share in fourth quarter 2006, a 36.6% increase.
For the year, KCS posted record operating income of $362.4 million, a 19.1% increase, and record annual revenues of $1.74 billion, a 5.0% increase, which was short of projections KCS made in late 2006. The operating ratio dipped 2.5 percentage points, from 81.7% in 2006 to of 79.2% in 2007. For the year, diluted EPS were $1.57, a 45% improvement.
“While KCS’ 2007 revenue growth of 5% fell short of our projections going into the year, given the weakness in the U.S. economy, we were generally pleased by the year-over-year increase, and by the new business opportunities that developed during the year,” said KCS Chairman, President, and CEO Mike Haverty. “Chemicals, intermodal, and automotive were particularly strong in the fourth quarter and should remain so in 2008. We were also encouraged by meeting our target of achieving an operating ratio below 80% for the full year. While the uncertain economy will provide a challenge, KCS is confident that new business coming on line both in the U.S. and Mexico, and continued strong pricing, will allow for volume growth in most commodity areas and revenue growth across the board.”
Another going-out-of-business budget for AmtrakThe Bush Administration's $3.1 trillion fiscal 2009 budget proposal includes $900 million for Amtrak, the same amount it proposed for fiscal year 2008. The proposal outlines $300 million for operations, $500 million for capital expenses, including upgrades to the Northeast Corridor, and $100 million for grants to states to increase service between heavily traveled cities.
Congress last year granted $1.3 billion to Amtrak funding, citing the Administration's proposal as inadequate. Acknowledging Congress' action for the FY08 budget, the White House Office of Management and Budget says the administration's current proposal "represents a significant but necessary cut." OMB said the proposal "reflects that Amtrak has taken few steps to align its business with the traveling public's demand for inter-city rail service and that it consequently continues to hemorrhage taxpayer funds."
Ross Capon, executive director of the National Association of Railroad Passengers, said the proposal was "not surprising, given this administration's eight-year lack of vision for a balanced transportation network and most recent hostility to the recommendations of the National Surface Transportation Policy and Revenue Study Commission (NSTPRSC), a federal blue ribbon panel." Capon called on Congress to fund Amtrak more fully, a move many called likely.
“Unfortunately, the President and his Administration are once again attempting to privatize and eventually eliminate Amtrak rail service," said Sen. Dick Durbin (D-Ill.). "Year after year, these political games drive Amtrak to the brink of insolvency and Congress is forced to ride to the rescue.” Durbin said that Chicago "and 29 other communities in Illinois that serve over 3 million people would see a reduction or possible shutdown of Amtrak service. Amtrak trains in Illinois have seen phenomenal growth on the trains from Chicago to St. Louis, Quincy, and Carbondale. This past year, those three routes saw a greater increase in ridership than any other line in the Amtrak system. The Chicago-Quincy routes have seen 41.4% growth in ridership in the last year. The Chicago-St. Louis line saw a 55.8% increase in ridership. The Chicago-Carbondale routes have seen an outstanding boost of 67.4%. Therefore, it is vital that Amtrak receive the proper level of federal funding so that these trains can continue to operate."
Overall, transportation of all kinds would receive $68 billion in federal support from the FY09 budget, up slightly from the administration's FY08 proposal but at least $2 billion less than what was approved by Congress. Public transit, including rail transit, would get $10.1 billion—$202.1 million less than last year. The Bush Administration also wants to transfer an estimated $3.2 billion dedicated for public transportation to fund highway projects. Both proposals have outraged public transportation interests (see story, above).
Fed backing improves Seattle LRT tunnel prospectsThe Bush administration's fiscal year 2009 budget proposal has drawn criticism from numerous rail passenger advocates, but it pledges $100 million toward Sound Transit's light rail transit tunnel linking downtown Seattle and the University of Washington. Sound Transit has requested $750 million in federal funds for the three-mile, $1.8 billion project, set to open by 2016.
Local officials said the federal government's support of the project made a groundbreaking ceremony more likely by the end of the year. The Federal Transit Administration has backed the project, citing the route's high population density.
Siemens lands Denver LRT contractSiemens Transportation Systems, Inc. announced late Monday a $184 million contract with Denver's Regional Transportation District (RTD) to provide 55 SD160 light rail vehicles. Siemens will manufacture the vehicles at its Sacramento, Calif., facility, with delivery beginning in 2009 and completed by 2012.
"By ordering all the cars needed for FasTracks now, RTD benefits by saving costs through purchasing at today’s prices, and having a uniform fleet which will result in operational and maintenance savings," said RTD General Manager and CEO Cal Marsella.
STS, the U.S. unit of Siemens AG, said the order is the subsidiary's largest "And, it demonstrates our commitment to build quality products and deliver them on time to serve the public," said Oliver Hauck, STS president and CEO.
Last December STS won a $31 million contract from Hampton Roads Transit, Norfolk, Va., for nine S70 low-floor light rail vehicles.
Icahn suggests Greenbrier-American Railcar mergerCarl Icahn and affiliated interests, who control American Railcar Industries Inc., have informed Greenbrier Companies, Inc., that they may want to explore the possibility of a merger of the two railcar manufacturers. In a filing with the Securities and Exchange Commission, Icahn and affiliates said they believed Greenbrier stock was undervalued and had acquired 1.95 million shares, or about 9.5%, of the Lake Oswego, Ore.-based transportation equipment supplier. Icahn directly owns 53.7% of American Railcar stock and another 30% is owned by two Icahn affiliates. The filing with the SEC said Icahn had made no offer to Greenbrier.
Kuwait plans $11 billion rail investmentThe Kuwait Overland Transport Union has developed plans for an $11 billion rail network, currently under review by the national cabinet. Approval is anticipated by May. The plan calls for a 150-mile main line extending from Kuwait’s northern border with Iraq to its southern border with Saudi Arabia, estimated to cost $6.59 billion. The remainder the planned investment would create a four-line, 106-mile metro in Kuwait City, of which 35% would be underground. A 50-50 public-private partnership would finance the program.
NJT Morrisville facility on lineA new, fully enclosed, $113 million two-track service and inspection facility and yardmaster’s control tower building have opened at NJT’s Morrisville Yard in Morrisville, Pa., on the Northeast Corridor. The facility is 1,200 feet long. Each elevated inspection track accommodates a 12-car train and up to two electric locomotives. The facility is equipped with side access platforms, under-car pits, locomotive rooftop platforms, and depressed floors for maintenance accessibility. Servicing equipment includes monorail cranes, mobile gantry platforms, locomotive and cab car sanding systems, a wheel truing facility, and a mechanical shop. RailComm provided a DOC:SCADA™-based remote control Interlocked Service and Inspection Control system. It enables interlocking control of devices along the two inspection tracks. Remote control of catenary power, mobile gantries, facility doors, derails, alarms, etc., is provided through two touch-screen Human-Machine-Interface (HMI) panels. STV, Inc., designed the facility and provided construction-phase services.
UP still digging out in the NorthwestNearly three weeks after a mudslide took out 3,000 feet of Union Pacific’s main line between Klamath Falls and Eugene, Ore., the railroad is still struggling to remove more than 150,000 truckloads of debris and carloads of downed trees, and is two or three weeks away from restoring service, Executive Vice President Jack Koraleski has informed customers. Traffic is being rerouted, but customers with shipments in this corridor should expect 24- to 72-hour delays, said Koraleski.
He said the slide swept track, ties, and ballast halfway down the mountain, burying over half a mile of the main line in mud, snow, and toppled trees. “The challenge is enormous,” said Koraleski. “Imagine a debris field equivalent in volume to the size of a football field and the height of the Sears Tower.”
A road had to be constructed to allow equipment and workers to reach the remote site.
Rail fatalities down 5% in 11 months of 2007U.S. railroads reported 795 fatalities in the first 11 months of 2007, down 5% from the 837 deaths in the corresponding months of 2006. Deaths at highway-rail grade crossings declined 7.5% to 309, and trespassing fatalities also dropped 7.5%, to 446. There were eight fatalities in train accidents, compared with three in the 2006 period, and a total of 15 employee fatalities, compared with 16 in 2006.
Total accidents/incidents reported by 714 large and small railroads were down 7.5% to 11,451 in the first 11 months of last year. Train accidents declined 13.7% to 2,330; collisions were down 3.8% to 175; derailments dropped 14.4% to 1,696; and yard accidents declined 16.7% to 1,186.
Track causes were responsible for 810 train accidents, down 16.8% from the prior year; human factors for 885, down 7.4%; equipment causes for 287, down 8.9%; signal causes for 40, down 7.0%; and miscellaneous causes for 308, down 25.2%.
NYAB acquires Klasing hand brake product lineNew York Air Brake has acquired Klasing Hand Brake Co. of Joliet, Ill., a manufacturer of hand brakes for the railroad industry since 1913. The acquisition adds freight car hand brakes to NYAB’s expanding product line; Klasing supplies both lever-type and wheel-type hand brakes as well as related parts and accessories.
“Klasing products are specified by several railroads and are known for reliability and durable performance,” NYAB President J. Paul Morgan said. “Adding the Klasing hand brake product line to New York Air Brake’s product portfolio allows us to offer a more complete brake package to our customers. The products are the best in the industry and meet our goal of providing top quality, high performance products and systems to the railroads.”
L.B. Foster earnings soar on DM&E profitL.B. Foster Co. reports that its fourth-quarter 2007 earnings per diluted share from continuing operations came to $7.79 cents per share. This includes a pre-tax gain related to the sale of the company's investment in the Dakota, Minnesota & Eastern Railroad of $122.9 million. Excluding this gain, EPS from continuing operations was 81 cents, compared to 27 cents in the prior year's fourth quarter, a 200% increase. Net sales in the fourth quarter increased 3% to $114 million. Gross profit margin was 17.5%, up 410 basis points from the 2006 quarter, due primarily to increased billing margins and decreased unfavorable manufacturing variances.
"Tubular and Rail Products sales were strong and operating margins were improved over last year," said Stan Hasselbusch, president and CEO. "Constriction Product sales wee solid but below last year, due primarily to decreased piling sales. CSXT Concrete Tie sales increased considerably over the prior year quarter due to higher volumes a our Tucson tie facility and increased production at our Grand Island tie facility. Relay rail and Allegheny Rail Products sales were also strong."
BNSF Logistics acquires DFL and goes internationalBNSF Logistics, a wholly owned supply chain subsidiary of Burlington Northern Santa Fe Corp., has acquired DFL, an international freight management company that consists of Diversified Freight Logistics, Inc. and Royal Cargo Line, both based in Grapevine, Tex. DFL, which has revenue of around $40 million annually, will now operate as BNSF Logistics International.
"DFL’s operations-focused approach parallels our North American efforts and the company provides an excellent platform for forward growth," said Eric Wolfe, vice president and general manager of BNSF Logistics.
U.S. rail volume down in latest weekAfter two weeks of increases, total volume on U.S. railroads slipped to 32.4 billion ton-miles in the week ended Jan. 26, down 1.2% from the corresponding week last year. Carload freight dropped 2.3% to 313,037, and intermodal volume declined 2.3% to 313,037 trailers and containers. Carload traffic took its biggest hit in the East, which experienced severe winter storms, the Association of American Railroads noted. Cumulative volume for the first four weeks of 2008 totaled 1,246,630 carloads, up 0.9% from the previous year; 842,973 intermodal units, down 4.2%; and 128.5 billion ton-miles, up 1.8% from last year.
In Canada, carload traffic in he week ended Jan. 26 totaled 74,367 loads, down 1.1% from last year; intermodal volume added up to 47,072 units, up 7.2%. For the first four weeks of this year, Canadian carloads were down 1.1% to 291,487, and intermodal declined 11.0% to 181,896 trailers and containers.
Kansas City Southern de Mexico's carload traffic was up 2.0% to 11,155 loads in the week ended Jan. 26, and for this year’s first four weeks was up 0.8% to 38,630. Intermodal traffic in the latest week rose 10.0% to 5,040 trailers and containers, and for the first four weeks of 2008 was up 10.3% to 16,713 units.
Nashville and Eastern gets FRA loanThe Federal Railroad Administration announced that the Nashville and Eastern Railroad Corp. (NERC) is receiving a $4.6 million loan under the Railroad Rehabilitation and Improvement Financing (RRIF) program. NERC will use the loan to purchase 50 new triple hopper railcars and two rehabilitated locomotives.
The locomotives and 25 of the 50 rail cars will be used primarily to serve a major new customer, Lojac Minerals. The NERC will be transporting sand from Lojac's mine in Monterey, Tenn., to its concrete manufacturing facilities in Lebanon and Hermitage, both also in Tennessee. The remaining hopper cars will be used for other anticipated traffic increases.
WMATA seeks funds for 'urgent' repairsWashington, D.C.'s Metrorail system requires $150 million in capital funding quickly to maintain safe and reliable operation, according to General Manager John B. Catoe Jr. Priorities include a power system upgrade and repairs to track equipment and deteriorating station platforms, Catoe told the Washington Post.
"We've put together an 'immediate needs list' of things that we need to do right now," Catoe said. At present, no money is available; the Washington Area Metropolitan Transportation Authority soon will present its capital needs to its board of directors and review options for funding them. Catoe estimates the proposed capital program will exceed $3 billion.
British association seeks U.S. hostsThe Permanent Way Institute, a Britain-based association of railroad professionals in the mechanical, signaling, and engineering fields founded in 1884 and with members in 28 countries, is planning on sending a delegation to the Sept. 21-24 REMSA World Rail Expo 2008 and AREMA 2008 Annual Conference in Salt Lake City. PWI has contacted REMSA with a request for U.S. m/w suppliers and contractors who would be willing to host the visit.
“PWI wants to bring a group of senior engineers involved in track construction to visit the trade show and to go off-site to visit suppliers who have work in progress in Utah and surrounding states,” explains REMSA Executive Director Judi Meyerhoeffer. “The idea is to find several suppliers workingh in the area who would host PWI’s visit to their work sites and coordinate these visits with other participating suppliers.” PWI has also been in touch with AREMA about presenting at the Annual Conference.
The delegation plans to arrive several days in advance of the conference. Interested REMSA members are asked to contact Meyerhoeffer at (703), 241-8514; email meyerhoeffer@remsa.org.
LA maglev proposal pursued for freight and passengersThe Los Angeles City Council Wednesday gave initial approval to a joint-powers agreement with neighboring municipalities to pursue construction of a $26 billion maglev system, linking the ports of Los Angeles and Long Beach with Ontario Airport, via downtown Los Angeles.
The council favors Atlanta-based American Maglev Technology for the project, since the company reportedly has offered to pay for much if not most of the construction. AMT
"Our role will be to make sure all the rights-of-way are secured," City Councilman Greig Smith said. "All the costs are to be paid for by American Maglev and they said they can complete the first spur in three years from the ports to downtown."
Ontario Councilman Alan Wapner, and head of the Southern California Association of Government's Transportation Committee, cautioned, "It hasn't gone under any kind of scrutiny and we aren't sure how valid the proposal is." He added, "The advantage they have over other firms is they are offering to pay to build the system." Wapner noted AMT wanted to focus on freight transportation, but SCAG insisted that it include a passenger component.