December 2004
Railway Age’s 2005 Short Line/Regional Railroad of the Year competition deadline: Jan. 26, 2005Railway Age is now accepting entries for its annual Short Line/Regional Railroad of the Year awards. The 2005 winners will be honored with articles describing their achievements in the March 2005 issue of Railway Age and will be awarded specially designed plaques at the American Short Line and Regional Railroad Association Annual Convention in April 2005.
Short line and regional carriers are invited to submit entries describing what they deem to be outstanding achievement in one or a combination of areas. These include, but are not limited to, turnaround situations; consistent excellence; innovation in operations or maintenance; marketing; customer service; enhanced productivity; community relations; safety improvement; and ingenuity in dealing with the unexpected.
Each of the more than 600 smaller roads in Mexico, the U.S., and Canada is eligible for an award and may nominate itself. Size is not important. In the past, awards have gone to carriers ranging from 20 miles to nearly 2,000 miles. In some years, separate awards are given for regional and short line carriers.
Entries should be submitted to: Marybeth Luczak, Executive Editor, Railway Age, 345 Hudson Street, 12th Floor, New York, N.Y., 100l4. E-mail: mluczak@sbpub.com. Fax: (212) 633-1863. Entries should contain the name, position, and contact information of the nominator and an approximately 500-word description of the achievement(s) of the nominated railroad.
Entry forms are not essential, but may be obtained from Luczak by fax or e-mail. The entry deadline is Wednesday, Jan. 26, 2005.
Railway Age works with the winners to publicize the awards in online and national media.
Kalikow warns of capital program cutsNew York Metropolitan Transportation Authority Chairman Peter S. Kalikow says he is willing to derail two of the agency’s ambitious capital expansion projects if the state does not come up with $17 billion to support those projects.
At stake are the $16.2 billion Second Avenue Subway—a project that has been on the drawing boards for about 60 years—and the $6.3 billion East Side Access project, which would bring Long Island Rail Road commuter trains into Grand Central Terminal, a facility now solely used by Metro-North. The MTA has projected a $16 billion gap in its $27.7 billion 2005-2009 capital plan. Kalikow says if the state is unable or unwilling to close that gap through tax and fee increases, the available funds must be used to pay for state-of-good-repair infrastructure and equipment projects. Otherwise, the MTA’s massive subway, commuter rail, and bus systems will start to deteriorate, as basic maintenance is scaled back.
In a press conference, Kalikow recalled the late 1970s and early 1980s, when the system was in deplorable condition. State lawmakers, persuaded by then-MTA Chairman Richard Ravitch, approved billions in capital funds that eventually led to the system’s resurgence.
The business, real estate, and motor vehicle, and fuel tax increases Kalikow is recommending would bring in a project $850 million a year, sufficient to cover debt service that would be incurred as a result of issuing bonds to make up the capital fund shortfall. The New York State legislature would have to approve such increases, which New York Gov. George Pataki (who appointed Kalikow) has steadfastly been opposed to.
Johnstown America now FreightCar AmericaIn a move designed "to better reflect its business of manufacturing railroad freight cars," Johnstown America has changed its name to FreightCar America. The change took effect on Dec. 17.
FreightCar America, headquartered in Chicago, has manufacturing facilities in Johnstown, Pa., and Danville, Ill.
Monro quits FRAActing Federal Railroad Administrator Betty Monro has retired effective Dec. 31 in the midst of two investigations being conducted by Transportation Department Inspector General Kenneth M. Meade. Monro, in a message to her staff, said that she had initially planned to retire following the November elections but decided to remain due to unspecified "intervening challenges." She said that she now believes she "can move forward with my personal plans."
One of Meade’s reports involves, in addition to certain regulatory matters, an investigation into Monro’s close friendship with Union Pacific chief lobbyist Mary E. McAuliffe. According to a statement issued by Monro, Meade’s conclusions "support the fact that I have never allowed the relationship to influence my professional actions" toward UP. The IG’s report has not been released publicly.
The other IG investigation, the results of which are expected to be released in stages, involve FRA’s oversight of grade crossing safety. Fatalities resulting from highway/rail grade crossing collisions have increased about 19% in the first nine months of 2004, compared to the prior-year period.
Greenbrier signs new sourcing agreement with ChinaGreenbrier Companies and China’s Zhuzhou Rolling Stock Works have entered into a long-term agreement under which Greenbrier "will source Chinese manufactured parts and components" for its carbuilding operations in North America and Europe.
In a separate agreement signed in China in mid-December, the two companies pledged to "identify design and commercial collaboration opportunities to support the growing railcar supply sector in China and throughout the world."
Greenbrier said it has "several other active sourcing programs in China [which] have reduced manufacturing costs, while maintaining or improving quality and reliability."
KCS, TMM agree on new TFM acquisition priceUnder an amended agreement announced Dec. 15, Kansas City Southern will acquire Grupo TMM’s 51% voting interest in the Mexican railway TFM for $200 million in cash, $47 million in a two-year promissory note, and up to $110 million payable in cash and KCS stock upon resolution of a tax claim and certain legal considerations. The acquisition agreement still needs to be approved by KCS shareholders. TMM shareholders have already entered into a voting trust approving the transaction.
Tellier resigns as Bombardier chiefBombardier Corp. announced Dec. 13 that its president and CEO, Paul Tellier, had resigned and was leaving the company immediately, one year short of completing his three-year term. A company statement said the change was initiated by the board’s Human Resources and Compensation Committee, based on Tellier’s stated preference to leave the post when his contract expired.
The statement quoted Tellier as saying: "I understand the board’s concern that I would not be there for the long term to develop and execute strategies, and the need to reshape the management structure at this time. I leave with the satisfaction of having done what needed to be done as a first step before the corporation could focus on developing new avenues of value creation."
Executive Chairman Laurent Beaudoin now assumes the responsibility of CEO as chair of a new office of the president. Beaudoin said Tellier was hired "as an agent of change and he has delivered…We are parting ways on good terms."
Key Nebraska Republican joins UP staffUnion Pacific announced that it has hired Chris Peterson, former executive director of the Nebraska Republican Party, as director government affairs with responsibility for eight states – Arizona, Kansas, Missouri, New Mexico, Oklahoma, Oregon, Utah, and Washington. UP said Peterson, who worked for five years for Nebraska Gov. Mike Johanns, will not lobby in Nebraska.
UP creates El Paso Service UnitThe "growing importance" of its southwestern corridors has led Union Pacific to establish the new El Paso Service Unit. Tom Florence, formerly assistant vice president-premium operations, has been named superintendent-transportation at El Paso. The unit handles about 55 trains a day in east-west transcontinental traffic as well as traffic to or from Kansas City and the upper Midwest. Traffic is also handled between El Paso and Jaurez, Mexico.
Greenbrier buys Bombardier interest in Mexican ventureGreenbrier Companies will become the sole owner of a freight-car building operation in Mexico after buying out Bombardier’s interest in the joint venture for $10 million. Greenbrier and Bombardier formed Greenbrier-Concarril LLC in 1998 to manufacture freight cars at Bombardier’s plant in Sahagun, Mexico.
Greenbrier-Concarril will lease space at Sahagun for freight car production. Meanwhile, Bombardier will continue to build passenger rail cars and assemble locomotives at Sahagun. Bombardier is currently constructing 405 rubber-tired subway cars for the Mexico City Metro.
GATX acquires 100% of LLP’s locomotive fleetGATX Rail announced Dec. 9 that it has acquired the General Motors Electro-Motive Division’s 50% interest in Locomotive Leasing Partners (LLP) for an undisclosed consideration. This gives GATX Rail 100% ownership of LLP’s fleet of 486 locomotives. GATX and EMD combined their locomotive lease fleets into Locomotive Leasing Partners in 1995.
Car repair billing on the InternetAAR subsidiary Railinc has implemented phase one of its redesign of the AAR Car Repair Billing (CRB) System, which supports the monthly exchange of information to process payables and receivables. Users can now access the CRB System via the Internet to price and enter railcar repairs and create invoices. They can also participate in the CRB Data Exchange, a monthly exchange of repair bills maintained by Railinc for AAR.
The new CRB system includes an Internet-enabled Billing Repair Card module that allows small repair shops and short lines to report repairs, automatically price them against the AAR Price Master, and send the repair data directly into Railinc’s Data Exchange.
The redesign "improves the network efficiency of the rail industry by promoting more efficient business exchanges among railcar owners, freight car repair companies, and railroads," said Railinc Director-Business Systems Rick Hobb. "By enabling the CRB Billing Repair Card to be accessed over the Internet, repair shops and short lines will be able to accurately price their repairs and create invoices. Car owners benefit from an improved AAR Price Master, more accurate price matrices, and data exchanges that help eliminate paper invoices."
CSXT builds consolidated training centerCSX Transportation has established an $8 million consolidated training center in Atlanta for would-be locomotive engineers and conductors, track and signal technicians, mechanics, and yard managers. Conductor training is to begin in January with other studies to be phased in by midyear.
CSXT said advantages of the consolidation include reduced time to complete training, as well as close proximity to ongoing railroad operations; and enhanced opportunities for students in one craft to get exposure to related disciplines. The center is located next to Tilford Yard. It will be visited by about 3,500 student-trainees annually.
Trespasser fatalities still high but droppingU.S. railroads reported 350 trespasser fatalities in the first nine months of 2004, down 5.7% from the corresponding period of 2003. Another 285 fatalities resulted from highway-rail grade crossing collisions in January-September 2004, an increase of 18.8% over the 2003 period. These and other year-to-date safety statistics were posted by the Federal Railroad Administration on its website Dec. 6.
Railroads reported a total of 10,172 accidents/incidents this year, down 4.2% from the year-earlier period. There were 2,300 train accidents this year, up 1.8%. These included 1,658 derailments, up 3.9%, and 187 collisions, an increase of 16.1%. There were 1,263 yard accidents this year, up 2.9% from a year earlier.
Stop and smell the roses—at your own riskTo deter trespassers, Union Pacific will use barberries and rugosa bushes—not barbed wire or chain-link fencing—along stretches of track in the greater Chicago area where Metra commuter and UP freight trains operate.
UP, working with the Illinois Commerce Commission, Metra, and BNSF, has purchased $6,500 worth of the prickly plants with federal funds due to expire at year-end. The 300 bushes will be planted in Highland Park and Lake Forest, Ill., along the UP North Line, where trespassing incidents near local high schools resulted in several fatalities this year. The dense, thorny bushes were selected for partly for their height, visual attractiveness, and ability to survive in difficult conditions (including the Chicago area’s harsh winters).
According to a report published in the Chicago Tribune, ICC rail safety specialist Chip Pew said the thorns on the plants are so sharp and dense that "you can feel it through your pants." Chicago Botanical Garden experts were consulted in the selection. The program will be supplemented by trespasser warning signs and high school outreach programs.
If the prickly-plant project is successful at preventing wayward pedestrians from perishing over the next 12 to 24 months, it will be expanded to other rail lines in the Chicago area.
CPR installs Canada’s first TADS systemCanadian Pacific announced that it has installed a Trackside Acoustic Detection System (TADS) around 47 miles east of Vancouver at a cost of US$450,000—"the first of its kind in Canada and only the ninth in the world."
The installation is in an area where CPR and CN share each other’s track in a directional running agreement. In a quid pro quo safety initiative, "CN will use CPR’s TADS unit in return for CPR’s use of a new CN image mapping device that takes digital images of wheels in passing trains and analyzes their condition," said the announcement.
TADS was developed by the Transportation Technology Center, Inc., a unit of the Association of American Railroads. By picking up early warning sounds from bearings before they begin to overheat, TADS detects defects well before the risk of bearing failure.
Portec completes Kelsan acquisitionPortec Rail Products, Inc., has completed its merger with Kelsan Technologies Corp. Kelsan, located in North Vancouver, B.C. Canada, with an office in the United Kingdom, is a developer of proprietary friction control solutions for the railway industry whose technology controls friction at the wheel/rail interface.
Loftus, a small-road leader and advocate, dies at 74William E. Loftus, 74, retired president of the American Short Line and Regional Railroad Association, died Dec. 1. He may be remembered best for fostering small-road growth and success and ensuring that the voice of this segment of the industry was heard.
He wrote in a 1991 Railway Age column that the challenges short line and regional railroads face stem from looking and acting "like the big carriers, but (not having) a fraction of their resources. Enormous cost pressures are in the marketplace--price competition with trucks, a steady stream of new regulatory requirements, and the technological and information changes sweeping the industry." Despite this, he continued, "A healthy, growing feeder line system is now part of the nation’s rail network. Our survival plan is to continue to provide feeder rail services at the lowest possible cost. So when we argue that ‘We’re different,’ it’s not a plea for special treatment or a hand out. It’s because we are."
Loftus took over ASLRRA leadership in 1990, and played a key role in its merger with the Regional Railroads of America in 1997. He also took part in the formation of the Rail Industry Agreement between small roads and Class I’s. In 1993, he handed over the reigns to Frank Turner, a former regional railroad president and CSX executive, and began work as a consultant with such clients as RailAmerica and JMA Railroad Supply.
Prior to joining ASLRRA, Loftus spent 23 years at the Federal Railroad Administration, ending his tenure as executive director. While at FRA, he participated in the formation of Amtrak; managed federal assistance programs for bankrupt railroads in the Northeast and Midwest in the years when Conrail was coming into being; and helped to develop and carry out programs to preserve service on rail lines scheduled for abandonment.
Loftus was a native of Cleveland, OH, and graduated from Kent State University with a degree in journalism. After serving with the U.S. Army Counter Intelligence Corps for several years, Loftus started his career as a newspaperman, radio news broadcaster, and United Press reporter before moving into public relations and legislative work in the labor relations field.
"Bill was a great friend to and great leader of the short line industry," said Richard Timmons, current ASLRRA president. "He worked tirelessly to improve our association as president and continued to be a passionate advocate of our cause."
Loftus is survived by his wife of 48 years, Marie (Mitzi), six children, and 16 grandchildren.
NS plans $938 million in capital improvements Norfolk southern announced Dec. 2 that it will spend $938 million in 2005 on equipment, roadway, and other projects "to improve service levels and handle business growth by increasing capacity, improving efficiency, and ensuring safety of operations." Equipment expenditures, budgeted at $225 million, include the purchase of 52 six-axle locomotives, the rebuilding of 300 multilevel auto racks, and the purchase of 317 bilevels at the end of their lease. Equipment spending also includes $44 million for projects related to computers, systems, and information technology.
NS will invest $671 million in roadway projects--$438 million for rail, crosstie, ballast, and bridge programs; $23 million for communications, signal, and electrical projects; $22 million for m/w equipment; and $14 million for environmental projects and public improvements involving grade crossings.
The railroad expects to spend $107 million on business development initiatives such as improved track capacity and access to customers, and improvements in intermodal facilities and equipment.
The $938 million planned for expenditures in 2005 compares with $810 million originally budgeted for 2004, though there are indications that improved business pushed actual spending this year close to $1 billion.
More Transcon double-tracking under wayBurlington Northern and Santa Fe has begun a double-tracking project on its high density, high speed, Chicago-Los Angeles Transcon that when completed in 2005 will bring the 2,214-mile route to more than 90% double-track.
Grading, bridge, and signal work for adding a second main track between Milan and Attica, Kan., in Harper and Sumner counties, is scheduled to begin this month and will continue throughout the winter. BNSF is installing an upgraded signal system along with the additional track. This will involve installation of new signals and control houses at new turnout and signal locations. The new second main track "will allow present train traffic to move through the area more expeditiously and leave room for future business growth," said BNSF.
Bombardier Transportation plans new workforce cutsBombardier Inc. disclosed Dec. 1 that its Transportation unit will reduce its net permanent workforce by an additional 2,200 employees, bringing total reductions by April 1, 2006, to 7,600, or 21% of the global workforce. This action reflects "lowered growth projections in the core European market for rolling stock."
A corporate earnings statement covering the quarter and the nine months ended Oct. 31 said Bombardier Transportation "continues to post positive results but the unit is not yet performing to market expectations despite productivity improvements."
The Transportation unit had revenues of $1.929 billion in the quarter, compared with $1.692 billion in the year-earlier quarter. Nine-months revenues increased to $5.465 billion from $5.018 billion.
Corporate revenues for this year’s quarter amounted to $3.634 billion, up from $3.483 billion. For nine months, revenues rose to $11.038 billion from $10.633 billion in the prior-year period. Consolidated net income was $10 million, which was recorded as "nil" per share. Analysts had forecast income of one cent per share. (All figures are in U.S. dollars.)
Alaska Railroad orders PTC system from US&SUnion Switch & Signal announced Dec.1 that it will provide the Alaska Railroad (ARR) with the first vital stand-alone positive train control system ever to be put in service. Up to now, PTC systems have been overlayed on existing signal systems. ARR territory currently is mostly unsignaled with train location determined by on-board GPS receivers.
US&S said its scope of work under the ARR contract includes delivery of a computer-aided dispatching (CAD) system, a safety server implemented using the MicroLok II vital logic controller, and an on-board computer based on the MicroCab platform.
The new system is scheduled to be commissioned in the first quarter of 2007.