December 2006
Amtrak-union deal will protect call center jobsWith both sides making concessions, Amtrak and the Transportation Communications International Union have reached an agreement that will forestall an earlier-announced Amtrak plan to outsource work now performed by the railroad’s call center employees. One of the issues was initial pay scales for beginning workers. TCU President Robert Scardeletti said he was “gratified” that Amtrak President Alexander Kummant ”in one of his first important decisions chose to work with us to resolve this contentious issue.”
Rail traffic reaches new high for ninth year in a rowThe Association of American Railroads announced today that total U.S. rail volume reached 1.712 trillion ton-miles in the first 51 weeks of 2006, exceeding the 52-week record of 1.696 trillion set in 2005. It was the ninth consecutive annual record for the industry.
For the week ended Dec. 28, ton-mile volume was 34.8 billion, up 8.1% from the corresponding week in 2006. Carload volume was up 6.6% to 338,013 cars, and intermodal units carried were up 5.5% to 233,890.
In Canada, carloads for the week ended Dec. 23 totaled 73,098, down 0.8% from the prior-year week, and intermodal volume was 45,454 trailers or containers, up 6/7%.
Kansas City Southern de Mexico reported carload volume up 10.0% to 11,7678 in the week ended Dec. 23, and intermodal volume up 30.5% to 4,201 units.
Half-billion dollar Dutch order goes to BombardierBombardier Transportation announced that it has received a $569 million order for an additional 50 double-deck electric multiple units of the type VIRM for the Netherlands Railways. The railway system already operates a fleet of 378 similar cars. The new cars will be built at Bombardier's plants in Gorlitz and Aachen, Germany.
EPA certifies RailPower three-engine switcherRailPower Technologies Corp. announced that it has received EPA certification for its three-engine road switcher locomotive (model RP20-BD). The company said it is the first manufacturer to obtain certification for a three-engine genset locomotive. "Our three-engine configuration offers flexibility in power utilization which results in significant fuel savings and the highest emissions reduction in the industry," said RailPower President and CEO José Mathieu.
TTC orders 234 new rapid transit carsToronto Transit Commission has signed a $431 million contract with Bombardier Transportation for 234 new rapid transit cars. Because TTC has opted to purchase spares and additional equipment as part of the deal, the total contract is worth $473 million. Bombardier’s Thunder Bay, Ontario, facility will carry out the manufacturing and final assembly work. Delivery is slated to begin in 2009 and wrap up in 2011.
The “next-generation” cars will offer open gangways, allowing riders to walk freely from one end of the train to the other; an electronic information system, which includes automated audio station announcements and an “active” subway map providing travel direction, next-station, and train-door opening information; and new security features, including onboard cameras and a two-way intercom system connecting riders with the engineer.
TTC’s T1 cars, which have been in service since the mid 1990s, were also built by Bombardier.
Greenbrier cuts earnings forecastThe Greenbrier Companies announced today that it expects to report earnings of 10 cents to 13 cents a share for its first fiscal quarter, which ended Nov. 30. The consensus forecast of analysts has been 54 cents a share. Greenbrier also said it does not expect to meet previously announced earnings guidance for the year of $3.10 to $3.40 per share. At noon today, Greenbrier shares were trading at $25.60, down 16.6%.
“New railcar manufacturing margins and results for the quarter were adversely impacted by production difficulties and inefficiencies on the introduction of certain conventional railcar types,” said Greenbrier’s announcement. The quarterly results also include a loan-fee write-off of four cents a share and currency exchange losses of three cents a share.
Greenbrier plans to release its first quarter results on Jan. 9.
FCM donates $150,000 for rail manager educationTo help fund the development of a railroad manager education program, FCM Rail, Ltd., has pledged $150,000 to Michigan State University. The money will allow MSU to continue working with the Association of American Railroads, American Short Line and Regional Railroad Association, American Association of Railroad Superintendents, Federal Railroad Administration, National Transportation Safety Board, U.S. Department of Transportation, and other organizations to address the rail industry’s need for such a program.
The educational priorities for rail managers include basic supervisor training in rail operations and management skills, additional training associated with the computerization of rail operations, and training to address new technologies.
New York wins biggest-ever federal transit commitmentU.S. Transportation Secretary Mary Peters traveled to New York City Dec. 18 to sign a Full Funding Agreement pledging $2.6 billion in federal aid to help pay for the East Side Access project—“the largest-ever federal investment in a single transit project,” according to the DOT. The total cost of the project, which will allow Long Island Rail Road trains to serve Grand Central Terminal as well as Penn Station, is estimated at more than $6.3 billion.
DOT said Secretary Peters also gave the Metropolitan Transportation Authority of New York the go-ahead to commit up to $693 million toward construction of New York City Transit’s Second Avenue Subway. New York hopes eventually to win a $1.3 billion federal commitment toward the first, $3.8 billion phase of the subway.
APTA's Millar to speak at Railway Age security forumAmerican Public Transportation Association President William W. Millar will address Railway Age’s 2007 Railway Security Forum and Expo on Jan. 22, during a special security outlook session. Millar will be among the top security leaders discussing today's security challenges as well as how information sharing is improving, what funding is available for rail security efforts, and how railroads are ensuring that employees are up-to-date on training to handle emergencies. Also onboard is Kerry Thomas, Director-National Preparedness Programs for the Department of Homeland Security's Office of Grants & Training.
Millar, former Port Authority of Allegheny County chief, has headed up APTA since 1996. At the association, he has worked to increase transit security spending, launch an Emergency Response and Preparedness Program, and promote APTA as a Standards Development Organization, among other proactive measures. "We simply should not be waiting for another wakeup call like the terrorist bombings in London and Madrid or to find ourselves in a reactionary mode should terrorists strike again in our country," Millar has testified before Congress. Millar was recently awarded Railway Age's W. Graham Claytor, Jr. Award for Distinguished Service to Passenger Transporation.
Presented in cooperation with APTA, the Association of American Railroads, American Short Line and Regional Railroad Association, and Railway Supply Institute, the third-annual Railway Security Forum and Expo will tackle such issues as:
o How resilient is the rail industry?
o Are you prepared for an emergency?
o What have we learned from tragedy and handling major events?
o How can you tap into the security funds available?
o What are the latest developments in container security?
o Is security standardization in your future?
o What best practices can you use to secure vulnerable infrastructure and rolling stock?
o How can you protect tunnel operations?
o What passenger/baggage screening technologies really work?
o Is tracking and tracing technology the answer to managing hazmat security?
Among the other experts onboard to address these topics are Subash Ranjan Thakur, Adviser (Commercial), Railway Board, Indian Railways; Asa Hutchinson, former Under Secretary for Border and Transportation Security at the Department of Homeland Security (2003-2005) ; Michael P. DePallo, Director/General Manager, Port Authority Trans-Hudson Corp.; Mysore Nagaraja, President, MTA (New York) Capital Construction; Skip Elliott, Vice President-Public Safety and Environment, CSX Transportation; William Heileman, BNSF General Director, Police and Protection Solutions; August Greiner, Chief of Police, Morristown and Erie Railway, Inc.; Henry Ward, Director-Transportation Safety and Security, Dow Chemical; Stephen Gardner, Democratic Professional Staff, Subcommittee on Surface Transportation and Merchant Marine, U.S. Senate Commerce Committee; Jaime Ramsay, Program Manager, U.S. Customs and Border Protection; Paul Lennon, General Manager-Mass Transit Security, Transportation Security Administration; Ed Pritchard, Director, Office of Safety Assurance and Compliance, FRA; and Peter Roe, Branch Chief-Surface Transportation Security Inspections, Transportation Security Administration.
The 2007 Railway Security Forum and Expo also will feature table-top exhibits from security technology providers.
For more information, please visit the 2007 Railway Security Forum and Expo website.
Shakeup, restructuring at AmtrakIn what is being called around the industry the “Friday Massacre,” Amtrak President and CEO Alexander K. Kummant, who assumed his post in September, on Dec. 15 fired several top officials and embarked on a major reorganization. Dismissed were Chief Financial Officer David Smith, Vice President-Marketing and Sales Barbara J. Richardson, Vice President-Corporate Communications William Schulz, Chief of Police Alfred J. Broadbent, and General Counsel Alicia M. Serfaty (Kummant named Serfaty his temporary legal counsel for the next three months, to assist in the transition period). Among other officials dismissed were Assistant Vice President-Transportation Thomas Schmidt, a former CSX executive who had been on the job only six months.
In a letter to Amtrak employees, Kummant spelled out his changes to senior management, which are effective immediately. “The restructuring and personnel changes put in place the team that will drive the vision and the future of our company,” he said.
Several Amtrak departments have been reorganized. Three senior executive positions—the heads of Security, Technology, and Marketing and Product Management—now report directly to Kummant.
Eleanor Acheson will join Amtrak in mid-January as General Counsel. Until her arrival, Labor Relations Vice President Joe Bress will serve as Acting General Counsel. The finance department is being managed by Acting CFO Dale Stein until a permanent selection is made. Roy Johanson now heads the planning and analysis department. He is assisted by Paul Nissenbaum, before the latter assumes “a new executive role” later on.
In the operations department, Schmidt has been replaced by Acting Vice President-Transportation Jon Tainow until a permanent selection is made. Tainow reports to Chief Operating Officer Bill Crosbie. Police and security have been separated from Operations, with the head of that department reporting directly to Kummant. James McDonnell has been brought in from outside to serve as Chief Risk Officer, replacing Broadbent.
Customer service, managed by Vice President Emmett Fremaux, now reports directly to Kummant. Marketing and sales functions are now part of Fremaux’s organization, which has been renamed Marketing and Product Management. Corporate Communications, headed by Acting Director and long-time spokesman Cliff Black, is now part of Government Affairs, headed by Vice President Joe McHugh.
Ed Trainor, a former Amtrak executive, returns as Chief Information Officer. His deputy is former department head Steve Emanuel, who will handle day-to-day operations of Amtrak technologies.
In a move Kummant said was unrelated to the reorganization, Deputy Chief Engineer-Construction Frank Vacca has been appointed Chief Engineer, filling the position that Bruce Willbrant held in an acting capacity for 13 months following David Gunn’s and then David Hughes’ departure. Hughes became Amtrak’s acting president and CEO and was fired immediately following Kummant’s appointment.
Spitzer picks DMJM’s Sander as CEO of New York MTANew York Governor-elect Eliot Spitzer announced that he has selected Elliot Sander, a senior vice president at DMJM Harris, to be executive director and CEO of the Metropolitan Transportation Authority of New York. MTA is a state agency that controls New York City Transit, the Long Island Rail Road, and Metro-North Railroad, among other properties. Spitzer indicated that Sander will also assume the duties of MTA Chairman Peter S.Kalikow when Kalikow, an appointee of outgoing Gov. George Pataki, leaves that post at a still undetermined date. Sander’s appointment was announced at a news conference in New York City Dec. 15 at which Spitzer also named Anthony E. Shorris as his choice to become executive director of the Port Authority of New York and New Jersey. The Port Authority’s operations include the trans-Hudson PATH rapid transit system.
Sander has extensive experience in transportation. In addition to his executive post at DMJM Harris, he is director of New York University’s Rudin Center for Transportation Policy & Management and is responsible for founding the Center in 1996. He serves as publisher of The New York Transportation Journal.
Sander is co-chairman of the Empire State Transportation Alliance (ESTA), a coalition of business, labor, and civic organizations in the downstate New York region, and a member of the Lower Manhattan Advisory Council, which is involved in the redevelopment of the World Trade Center site destroyed on 9/11. In 2004, Sander was appointed to the New York State Advisory Panel on Transportation for 2025, which was responsible for updating New York State’s transportation master plan and developing future state transportation policy. He is also former chairman of the Transportation Research Board Committee on Large U.S. Cities and serves as a senior advisor to the National Association of City Transportation Officials. Prior to 1996, Sander spent 20 years in public service at the city and state level. Among numerous appointments, he served as Commissioner of the New York City DOT, senior transportation advisor to Mayor Giuliani, and represented the City of New York on the MTA Capital Program Review Board.
Admiral Allen to address Railway Age security conferenceAdmiral Thad W. Allen, Commandant of the U.S. Coast Guard, will give the keynote address at Railway Age’s 2007 Railway Security Forum and Expo and sister magazine Marine Log’s Maritime and Port Security 2007. Allen, a four-star Admiral, was appointed by President Bush and assumed his duties as highest-ranking member of the Coast Guard on May 25, 2006. In his address, he will cover the Coast Guard’s mission and its integration into the Department of Homeland Security, as well as security strategies and post-Katrina assessments.
Admiral Allen received high marks for his Hurricane Katrina response and recovery efforts, after taking over as Principal Federal Official (PFO) from then-Federal Emergency Management Agency Director Michael Brown. He also served as PFO for Hurricane Rita in Louisiana. Admiral Allen was selected in 2005 as one of 20 best leaders in America by U.S. News & World Report.
Admiral Allen served previously as the Coast Guard Chief of Staff and Commanding Officer from May 2002 to April 2006. He also held the position of Chairman of the Department of Homeland Security’s Joint Requirements Council from 2003 to 2006.
Presented in cooperation with the Association of American Railroads, American Short Line and Regional Railroad Association, American Public Transportation Association, and Railway Supply Institute, the 2007 Railway Security Forum and Expo will tackle such issues as:
o How resilient is the rail industry?
o Are you prepared for an emergency?
o What have we learned from tragedy and handling major events?
o How can you tap into the security funds available?
o What are the latest developments in container security?
o Is security standardization in your future?
o What best practices can you use to secure vulnerable infrastructure and rolling stock?
o How can you protect tunnel operations?
o What passenger/baggage screening technologies really work?
o Is tracking and tracing technology the answer to managing hazmat security?
Among the other experts onboard to address these topics are Subash Ranjan Thakur, Adviser (Commercial), Railway Board, Indian Railways; Asa Hutchinson, former Under Secretary for Border and Transportation Security at the Department of Homeland Security (2003-2005) ; Michael P. DePallo, Director/General Manager, Port Authority Trans-Hudson Corp.; Mysore Nagaraja, President, MTA (New York) Capital Construction; Skip Elliott, Vice President-Public Safety and Environment, CSX Transportation; William Heileman, BNSF General Director, Police and Protection Solutions; August Greiner, Chief of Police, Morristown and Erie Railway, Inc.; Henry Ward, Director-Transportation Safety and Security, Dow Chemical; Kerry Thomas, Director-National Preparedness Programs, Office of Grants & Training, DHS; Stephen Gardner, Democratic Professional Staff, Subcommittee on Surface Transportation and Merchant Marine, U.S. Senate Commerce Committee; Jaime Ramsay, Program Manager, U.S. Customs and Border Protection; Paul Lennon, General Manager-Mass Transit Security, Transportation Security Administration; Ed Pritchard, Director, Office of Safety Assurance and Compliance, FRA; and Peter Roe, Branch Chief-Surface Transportation Security Inspections, Transportation Security Administration.
The 2007 Railway Security Forum and Expo also will feature table-top exhibits from security technology providers.
For more information, please visit the 2007 Railway Security Forum and Expo website.
Canada will review rail safetyCanada’s Ministry of Transport has announced that it will appoint an independent panel early next year to undertake a “full review” of the Railway Safety Act.
“Since 2002, there has been an increase in railway accidents and main-track train derailments in Canada,” said the announcement by Lawrence Cannon, minister of transport, infrastructure, and communities. “Most recently, in 2005 and 2006, derailments led to fatalities, serious injuries, and significant environmental damage in British Columbia, Alberta, and Quebec. It is time for Canada’s rail sector to work under rail safety legislatin that is in step with development in the industry and with other transportation modes. This review will provide the opportunity not only to improlve the Safety Act, but also to generate new rail safety ideas in Canada."
DHS proposes closer watch on rail hazmat shipmentsThe Department of Homeland Security's proposed new rule requiring closer monitoring of Toxic Inhalation Hazard (TIH) materials shipped by rail drew an immediate response from the railroads. Pledging its support in any effort “to keep our nation safe and secure,” the industry pointed out that the responsibility for the safe movement of hazmat is one it shares with ”all the players in the logistics chain.” (Less than 1% of all shipments that travel by rail are TIH.)
“Railroads, for example, do not own the tank cars used to ship highly hazardous chemicals,” said Association of American Railroads President and CEO Edward R. Hamberger in a prepared statement. “Tank car owners, chemical shippers, and railroads each play a critical role in the transportation of hazardous materials.” He noted that “unlike other industries, railroads are required by the federal government” to carry these materials.
DHS acknowledged the rail industry’s continued work to implement “key security measures.” But Homeland Security Secretary Michael Chertoff said that the new rulemaking released today would "significantly reduce the risk that chemicals can be turned into deadly weapons when they are in transit between chemical plants." It would require railroads to:
* Assure a positive chain of custody of TIH railcars from origin to destination. "The bottom line is someone has to have ownership of and accountability for the way this material is handled," Chertoff maintained.
* Track and provide car-location information. "We want to know where these cars are and we want to know how to reach them if necessary if there's information about a threat," Chertoff said. "By next year, under this regulation, we will insist on knowing the exact location of a specific dangerous chemical car within five minutes of the time that we make the request. We will also require that the railroads give us the capability within a 30-minute period to find all the high-risk cars located within a given geographic area."
* Reduce standstill time. "We have an agreement with industry, which we achieved during the summer, that will require [railroads] to drive-down the standstill time of these dangerous chemicals in the coming year," Chertoff reported.
* Follow specific procedures to report security incidents or concerns to the federal government.
* Appoint a rail security coordinator to share information with the federal government.
In addition, the rulemaking would formalize the "Transportation Security Administration’s freight and passenger rail inspection authority,” allowing the agency to impose up to $10,000 in fines per security violation, per day.
In addition, a "companion proposed rule" was issued today by the Department of Transportation. It would require railroads to analyze safety and security concerns when determining certain hazmat-carrying train routes and select "the practical route that most minimizes risk."
The total estimated cost to industry for these proposals: $162 million over 10 years.
During the announcement, Chertoff said that DHS will "very soon" release security regulations that specifically address chemical plants.
DHS's proposed rule will be posted to the Federal Register on Thursday, Dec. 21, and will be open for public comment for 60 days.
To learn more about hazmat transport and railroad security efforts, join Railway Age Jan. 22-23, 2007 at its third-annual Railway Security Forum and Expo, held in cooperation with AAR, ASLRRA, APTA, and RSI. RSI Executive Director-Washington Thomas D. Simpson, CSX Transportation Vice President-Public Safety and Environment Skip Elliott, Conrail Director-Risk Management Neil Ferrone, Dow Chemical Director-Transportation Safety and Security Henry Ward, and RSI Vice Chairman-Tank Car Committee William Finn will be among the speakers discussing these issues.
Rail traffic stays ahead of 2005 levelsThe Association of American Railroads announced that in the week ended Dec. 9, total U.S. railroad volume reached an estimated 33.2 billion ton-miles, 4.7% above the comparable week last year. Carload traffic was up 3.5% and intermodal volume rose 1.6%.
On Canadian railroad, carload traffic was down 6.0% and intermodal loadings were up 5.2%.
Mexico’s largest railroad, Kansas City Southern de Mexico, reported that carload volume was up 10.0% from last year and intermodal was up 17.7%.
NJ Transit picks tunnel construction managerNJ Transit has selected the CM Consortium--consisting of Tishman Corp., Parsons Corp., and ARUP--to handle construction management for a proposed $7.2 billion trans-Hudson tunnel. The tunnel is part of NJ Transit’s far-reaching Access to the Region’s Core project, which also includes a new rail station in Manhattan and signal and track improvements along the Northeast Corridor line.
FreightCar America delivers milestone carIn a ceremony at its plant in Danville, Ill., FreightCar America officially delivered its 100,000th aluminum coal car, a Bethgon®II. The milestone car is part of an order totaling 2,695 cars for NRG Energy, Inc. of Princeton, N.J. It was accepted and christened by Virginia Farrow, NRG Energy’s manager, rail fleet. NG owns power generating facilities in Texas and in the Northeast, South Central, and Western regions of the country. Since 1997, NRG has acquired 4,500 aluminum coal cars from FreightCar America, all built at the Danville plant.
California picks high speed engineering teamsCalifornia’s High Speed Rail Authority Board has selected two engineering/environmental teams to lead efforts to design two proposed high speed regional rail lines: Los Angeles to Orange county and Palmdale to Los Angeles.
STV will lead the LA-Orange County team. A joint venture of Hatch Mott MacDonald, URS, and ARUP has been picked for the Palmdale-LA project. “The selection of these two regional teams is a very important step for building this project and ensuring the environmental clearance and permitting is completed according to our timetables,” said Judge Quentin L. Kopp, who heads the authority. “Now we can begin the engineering work and right-of-way preservation, which will be critical tasks assigned these teams.”
CPR announces 2007 capital spending plansCanadian Pacific Railway announced details today of a 2007 capital improvement program estimated to cost $C885 million to $C895 million, compared with the $C845 million CPR is spending this year.
Planned expenditures next year include $C150 million for locomotive acquisitions, overhauls, and fuel-saving modifications; $C40 million to maintain and increase capacity in automotive and intermodal terminals; $C60 million for information systems; and $C625 million to maintain and upgrade rail, ballast, crossties, and automated signal systems, buildings and equipment; to extend and build new sidings; and to acquire land for future development.
The remainder of the budget will go primarily for modifying and updating the freight car fleet.
Portal Bridge up for renewalAmtrak’s 96-year-old Portal Bridge on the Northeast Corridor, which on an average weekday handles 393 NJ Transit and 51 Amtrak trains, is nearing the end of its useful life and will be replaced with a new structure or upgraded and expanded, according to a notice published in the Dec. 12 Federal Register seeking public comment.
The Federal Railroad Administration and NJ Transit, in cooperation with Amtrak, will jointly prepare an environmental impact statement to study improvements to enhance capacity and operation of the two-track drawbridge, which spans the Hackensack River and is located on the NEC “High Line” between Newark and New York. It was originally constructed in 1910 by the Pennsylvania Railroad as part of the PRR’s massive Pennsylvania Station project. It was designed to last about 100 years.
The EIS will evaluate various build alternatives that could retain, replace, or modify the existing Portal Bridge. Alternatives proposing to retain the existing bridge would include rehabilitation of the existing structure to a state of good repair, along with construction of an additional bridge for added capacity—presumably part of NJT’s Trans Hudson Express Tunnel project into Manhattan. A new bridge could be either a moveable or a fixed bridge and its height above mean high water (MHW) would vary accordingly. A new structure may consist of a two- or three-track bridge. Alternatives proposing to replace the existing bridge would require the construction of two new bridges of varying heights, types, and number of tracks. The two new bridges could be built on new parallel alignments, or one new bridge could be built on the existing bridge alignment through a staged approach. Each of these new bridges would have two or three tracks. Alternatives proposing to modify the existing bridge would entail rehabilitation and raising of the existing bridge to a new height. The existing bridge may be fixed in place or may remain moveable, depending on the proposed height above MHW. A new bridge could also be constructed on a different alignment.
Public comment on the scope of the EIS will be accepted through Jan. 31, 2007.
AAA executive named president of Operation LifesaverHelen M. Sramek, current Director of Federal Relations for the American Automobile Association (AAA), will become President of Operation Lifesaver Inc. on Jan. 8, 2007. She will replace Gerri L. Hall, OLI's president since late 1995, who announced earlier this year that she would leave the Washington-based grade crossing safety organization at the end of 2006.
Sramek, a native of Omaha, Neb., has nine years’ experience heading federal legislative and regulatory advocacy for AAA, and a decade as chief of staff for former Rep. Doug Bereuter (R-Neb.). From 1990-1993, she served as Executive Assistant to the Administrator of the Agency for International Development.
BNSF says DM&E project could delay its trainsBNSF Railway announced today that in a filing Dec. 11 it told the Surface Transportation Board that if the STB authorizes DM&E to haul Powder River Basin coal along the former IM Rail Link’s line, it could cause substantial additional delays to time-sensitive BNSF trains at Savanna, Ill. BNSF noted that its transcontinental main line between the Pacific Northwest and Chicago crosses the former IMRL line at Savanna en route to the Chicago Gateway “where delays could be substantially increased by the addition of PRB coal trains regardless of what route into Chicago is used by DM&E.”
BNSF said its filing also said STB should study whether DM&E's proposed shipment of PRB coal into Chicago over the former IMRL line could have other environmental impacts not addressed in the Environmental Appendix filed by DM&E and Iowa, Chicago, & Western Corp., successor to IMRL, including impacts to air quality and transportation systems, all of which could be faced by each community situated along the former IMRL lines in Iowa and Illinois.”
NS buying new locomotives and cars in 2007Norfolk Southern has announced a $1.24 billion capital improvement program for 2007 that includes purchase of 53 six-axle locomotives for $321 million, acquisition of 1,300 higher capacity coal cars, purchase of 739 freight cars as their leases expire, and the rebuilding of 388 multilevel autoracks. The sum of $60 million is provided for projects related to computers, systems, and information technology.
In addition to equipment spending totaling $401 million, NS plans to invest $884 million in roadway projects. The largest roadway outlay will be $610 million for rail, crosstie, ballast, and bridge projects, including $73 million for infrastructure improvements to increase capacity. There’s an additional 41 million for maintenance-of-way equipment and $18 million for environmental projects and public improvements at grade crossings.
The 2007 budget contains $97 million for business development initiatives, including investments in intermodal terminals and equipment, increased access and capacity for coal traffic, bulk transfer facilities, and vehicle production and distribution facilities.
The capital plan allocates $28 million for unspecified public private partnerships.
STB takes new look at proposed new Texas lineThe Surface Transportation Board has issued a Supplemental Draft Environmental Impact Statement (SDEIS) examining three additional routes for a new seven-mile railroad line that Southwest Gulf Railroad Co. wants to build in Medina County, Tex. The line will connect a proposed Vulcan Construction Materials LP limestone quarry with Union Pacific’s Del Rio subdivision.
The board issued a Draft Environmental Impact Statement (DEIS) in 2004 that examined four potential routes as well as a no action alternative (the use of trucks rather than trains to transport the limestone). Comments received led the board to pursue options that would be friendlier to “rural historic landscapes,” among other considerations.
Public comments on the new statement will be accepted until Jan. 29, 2007.
Firm pricing is a plus as traffic weakensLower freight volume has led Lehman Brothers to ”modestly” reduce its fourth-quarter earnings estimates for the four largest U.S. railroads: Union Pacific, BNSF, CSX, and Norfolk Southern. But Lehman analyst Garrett Chase believes that “firm pricing will continue to drive good earnings and margins for the group.”
The new estimate for UP is $2.58 per share vs. a previous estimate of $1.61; for BNSF, $1.39 vs. $1.40; for CSX, 59 cents vs. 63 cents; and for NS, 99 cents vs. $1.
DMJM acquires Egis-Semaly The transportation engineering firm of DMJM Harris announced that it has acquired New York-based Egis-Semaly, Inc., and expects to complete integration of the two companies next month. Egis-Semaly, which specializes in the design and management of transit infrastructure projects, was acquired from Semaly SA, an engineering firm based in France. Its clients include MTA New York City Transit, Long Island Rail Road, Metro-North Railroad, and MTA Capital Construction.
Rail traffic slows along with the economyThe national economic slowdown is reflected in new traffic statistics from the Association of American Railroads. In the week ended Dec. 2, U.S. Class I’s originated 334,532 carloads of freight, a scant 46 carloads more than in the corresponding week last year. Intermodal volume dropped by 3,493 units, or 1.4%, to 240,229 trailers or containers. For the month of November, originated carloads dropped by 0.9% to 1,622,455, while intermodal traffic increased by 0.7% to 1,182,424 units.
”Because railroads serve our nation’s producers and consumers, the domestic economy has a fundamental impact on them, and the current status of the auto and housing sectors are reflected in rail traffic figures for motor vehicles and equipment and lumber,” said AAR Vice President Craig F. Rockey. “Overall, however, rail volume in 2006 remains ahead of 2005 levels, thanks especially to coal and intermodal, which are the two top revenue producers for U.S. railroads.”
PATH capital budget tops $225 millionThe Port Authority of New York and New Jersey has proposed a 2007 capital improvement budget of $225.22 million for its rapid transit subsidiary, PATH. The biggest single outlay, $89.225 million, will go toward the purchase of 340 new cars that PaTH has ordered from Kawasaki. The budget also includes $23.7 million for an 800 MHZ police radio program, $11 million for installation of a truing machine at the Harrison shops, and $36.6 million for safety-related expenditures.
TieTek opens new plant in HoustonTieTek, the composite tie manufacturer, says a newly opened plant in Houston, Tex., will provide product flexibility as well as extra capacity. The new facility, which complements an existing plant in Marshall, Tex., will be able to produce crossties and switch-ties up to 22 feet long. With three production lines running, TieTek each week will consume 500 tons of recycled plastic and rubber from 15,000 used ties.
BNSF, UP load record number of Joint Line trainsBNSF and Union Pacific loaded a record average of 67.1 coal trains a day on the Joint Line in Wyoming in November, beating the previous record of 66.5 trains set in June.
BNSF announced the new record in a service advisory on Dec. 5 that also updated ongoing construction projects in Nebraska. Six miles of new second main track between Bayard and Degraw are scheduled to go into service late this month. Fourteen miles of new second main between Angora and Northport will be opened in January, and 6.4 miles between Ashland and South Bend will be completed in the second quarter of 2007.
Hutchinson, former DHS leader, to address Railway Age security forumAsa Hutchinson, former Under Secretary for Border and Transportation Security at the Department of Homeland Security (2003-2005), will give a special luncheon presentation at the 2007 Railway Security Forum and Expo on Jan. 22. With experience working on national security issues in both Congress and key administration assignments, Hutchinson will address today's security challenges. The luncheon will be attended by Forum registrants and Simmons-Boardman Publishing Corp.'s Maritime & Port Security 2007 attendees in Arlington, Va.
Hutchinson was confirmed by the U.S. Senate for three separate, critical positions: as the first Under Secretary for Border and Transportation Security at DHS, as Administrator of the Drug Enforcement Administration, and as the youngest U.S. Attorney in the nation (by President Ronald Reagan). He spent two terms as U.S. Congressman from Arkansas, and is currently founding partner and CEO of the Hutchinson Group, LLC, a business development and security consulting firm located in Little Rock, Ark.
As DHS Under Secretary, Hutchinson was responsible for 110,000 federal employees within the Transportation Security Administration, Customs and Border Protection, Immigration and Customs Enforcement, and the Federal Law Enforcement Training Center. In addition, he managed and coordinated the overall security of U.S. borders and transportation systems, including development of the US-VISIT program--a historic biometric entry-exit system for foreign visitors to the United States.
Presented in cooperation with the Association of American Railroads, American Short Line and Regional Railroad Association, American Public Transportation Association, and Railway Supply Institute, the 2007 Railway Security Forum and Expo will tackle such issues as:
o How resilient is the rail industry?
o Are you prepared for an emergency?
o What have we learned from tragedy and handling major events?
o How can you tap into the security funds available?
o What are the latest developments in container security?
o Is security standardization in your future?
o What best practices can you use to secure vulnerable infrastructure and rolling stock?
o How can you protect tunnel operations?
o What passenger/baggage screening technologies really work?
o Is tracking and tracing technology the answer to managing hazmat security?
Among the other experts onboard to address these topics are Subash Ranjan Thakur, Adviser (Commercial), Railway Board, Indian Railways; Michael P. DePallo, Director/General Manager, Port Authority Trans-Hudson Corp.; Mysore Nagaraja, President, MTA (New York) Capital Construction; Skip Elliott, Vice President-Public Safety and Environment, CSX Transportation; William Heileman, BNSF General Director, Police and Protection Solutions; August Greiner, Chief of Police, Morristown and Erie Railway, Inc.; Henry Ward, Director-Transportation Safety and Security, Dow Chemical; Kerry Thomas, Director-National Preparedness Programs, Office of Grants & Training, DHS; Stephen Gardner, Democratic Professional Staff, Subcommittee on Surface Transportation and Merchant Marine, U.S. Senate Commerce Committee; Jaime Ramsay, Program Manager, U.S. Customs and Border Protection; Paul Lennon, General Manager-Mass Transit Security, Transportation Security Administration; Ed Pritchard, Director, Office of Safety Assurance and Compliance, FRA; and Peter Roe, Branch Chief-Surface Transportation Security Inspections, Transportation Security Administration.
The 2007 Railway Security Forum and Expo also will feature table-top exhibits from security technology providers.
For more information, please visit the 2007 Railway Security Forum and Expo website.
FRA proposes to double most safety violation finesUnder proposed new guidelines announced today, the Federal Railroad Administration will double its civil penalties for most violations of federal rail safety regulations.
FRA said it had evaluated more than 2,000 provisions of safety regulations, using a five-point severity scale: “At the low end of the scale the guideline penalty would amount to $l,500. At the high end of the scale where a violation is extremely likely to result in an accident or incident, the guideline penalty amount would be $8,500. Willful violations would range from $2,500 to $11,000. The current statutory maximum of $27,000 for grossly negligent violations or for patterns of repeated violations that have caused an imminent hazard of death or injury, or have caused death or injury to individuals would remain unchanged.”
Visit www.fra.dot.gov for a copy of the proposal. Public comments will be accepted until Jan. 4.
Europe’s most powerful diesel rides on Timken bearingsThe Timken Co. of Canton, Ohio, announced that a team of its engineers from Germany, Spain, and England had worked together to develop a bearing and housing system for Vossloh Locomotives’ heavy-duty EURO 4000, Europe's most powerful diesel-electric locomotive. Vossloh is building 18 EURO 4000 units at its plant in Valencia, Spain, for Angel Trains Group, a unit of Royal Bank of Scotland Group PLC, for operation in Spain, France, Belgium, and Germany, with an option for 12 more.
Railpower terminates losing contract and moves onRailpower Technologies announced today that it has reached agreement with a customer to terminate a contract for 35 Green Goat hybrid-power yard locomotives. The customer will receive approximately $1.1 million and will return three Green Goats already delivered. The contract represented the major part of a provision for contract losses totaling $21 million shown on Railpower’s balance sheet as of Sept. 30. The settlement will have “a significant positive impact” as the provision for contract losses drops by an estimated $18.7 million in the fourth quarter.
“We are confident in our ability to enter into new contracts on normal commercial terms with this and other customers,” said Jose Mathieu, Railpower president and CEO. “This settlement will allow us to focus on expanding sales of and delivering our RP-series road switcher locomotives.” The company’s current backlog of 113 switchers includes 105 of the RP-series units.
Crossing and trespasser fatalities increaseU.S. railroads have reported increases in both grade crossing and trespasser fatalities for this year’s first nine months. Crossing deaths rose 3.1% to 269, compared to the corresponding period last year, and trespasser deaths were up 8.2% to 398.
Total rail fatalities were 682 in January-September 2006 vs. 683 in the prior-year period. There were 10 employee fatalities this year, down from 21 in the first nine months of 2005.
Total rail incidents this year declined 6.8% to 9,694. Train accidents were down 13.1% to 2,134 and caused two fatalities, vs. 31 fatalities last year. Collisions were down 28.6% to 145, derailments declined 9.5% to 1,583, and yard accidents dropped 18.4% to 1,109.
Marubeni Corp. acquires Midwest Railcar Corp. Japan-based Marubeni Corp. and its U.S. affiliate, Marubeni America Corp., have acquired Midwest Railcar Corp. (Elk River, Minn.), a freight car operating leasing firm. Terms of the deal were not disclosed.
Marubeni--which includes transportation, industrial, energy, and financial divisions, among others--will not break-up MRC's existing management team. "Marubeni's financial strength and commitment to invest significant capital in Midwest Railcar's business will enable Midwest Railcar to accelerate the growth of all three of its core businesses of railcar leasing, railcar management, and railcar brokerage," said MRC President and CEO Richard M. Murphy. "With this acquisition, Marubeni intends to expand the Midwest Railcar business model to other international regions such as, but not limited to, Europe and Asia in the very near future."
Harrison to remain at CN's helm through 2009CN has announced that E. Hunter Harrison will continue in his position as president and CEO through Dec. 31, 2009. Harrison took the top job on Jan. 1, 2003, and in 2004, signed a five-year contract, expiring at the end of 2008.
Commenting on the new one-year contract extention, Board Chairman David G. A. McLean said: "Hunter has been a tremendous leader, transforming CN into one of the continent's leading railroads."
CN also announced that it has acquired Savage Alberta Railway, Inc. (SAR), from Salt Lake City-based Savage Companies. CN began operating SAR upon closing the C$25 million deal on Dec. 1.
The 345-mile short line transported about 35,000 carloads of freight last year. CN plans to upgrade its track to "improve operations and customer service and maximize its potential for transporting greater volumes of coal, grain, and forest products." In addition, the Canadian Class I is "offering employment to SAR's approximately 75 employees and will honor the existing collective labor agreement."