December 2008
AAR rebuts "shipper abuse" chargesFrom the Association of American Railroads has come a sharp rebuttal to charges that that the railroads are "abusing shippers." It came in response to an editorial that appeared Dec. 22 in the Capital Times of Madison, Wis., under the headline, "Antitrust Rules Needed for Freight Railroads."
In a letter dated Dec. 29, AAR President Edward R. Hamberger cited "significant factual errors and omissions that resulted in a severely skewed editorial."
"Despite the allegations of Rep. Tommy Baldwin, D-Madison, there is no real evidence backing up claims that the rail industry is abusing shippers," said Hamberger. "In fact, two recent federal studies indicate the opposite. A study conducted by the Government Accountability Office two years ago noted that between 1985 and 2000 rail rates across the board fell when adjusted for inflation, for all shippers, including captive ones. Further, the study showed that on average, rates fell even when inflation isn't taken into account. Beginning in 2001, rates began to inch back up, though they are still lower than 1985 levels."
As a result of that GAO study, Hamberger said, the Surface Transportation Board commissioned a follow-up study "focusing on the captive shipper issue. That national study, completed this fall by Madison-based Christiensen Associates, found no evidence of market abuse and specifically recommended against much of the agendas advocated by Baldwin and others."
"The Christiensen study found that rail profits are not excessive, pointing out that they are similar to those of utilities," said Hambeger. "It found that the rate increases that had taken place reflected changes in railroad costs and productivity and did no show abuse inn the market. The study also said that railroad revenues remain tight enough that giving significant rate reductions to one group of shippers would require corresponding increases in rates for other shippers."
Hamberger also said it is not true that railroads "are exempt from antitrust and transportation statutes that apply to other industries. That is false. Almost all antitrust laws apply to railroads, including those prohibiting price collusion or market allocation."
Californians remain upbeat on fed aid for HSRCalifornia's federal elected officials celebrating voter approval of Proposition 1A in November said they would pursue federal funding to advance the state's high speed rail plan. Despite economic turmoil, those vows appear to be intact.
State transportation officials reportedly may seek as much as $20 billion in federal funding to supplement the $9.95 billion in state bonding power approved by voters Nov. 4. The 700-mile system is estimated to cost at least $40 billion, linking San Diego and Los Angeles to termini in San Francisco and Sacramento, the state capital.
Officials believe the Obama Administration's infrastructure investment program will include rail in general, and California's high speed rail plan in particular, as a means of signaling support for projects emphasizing energy efficiency and environmental balance.
California's congressional delegation includes House Speaker Nancy Pelosi and Sen. Dianne Feinstein, both of whom have voiced outspoken support for the state's high speed rail efforts. Just days after the election, Feinstein said, "There is legislation that will set up 11 regional systems in the U.S. for highspeed rail, and we will qualify as one of them." She added, "I think we've now got our ducks in order to be No. 1 on that list, and as an appropriater, that will be a job of mine."
"It seems like the stars are aligned," said Rod Diridon, executive director of the Mineta Transportation Institute and a member of the California High Speed Rail Authority. The authority anticipates $12 billion to $16 billion in federal funds, $6.5 billion to $7.5 billion in private investment, and $2 billion to $3 billion in local and/or county contributions.
Quentin Kopp, chairman of the authority board, said the state will seek stimulus funding to accelerate construction of some or all of the 600 grade-crossing projects required, in order to meet the Obama Administration's desire to fund projects that can move quickly. "That work could begin the earliest -- within six months to two years," Kopp said.
California could also benefit if a bill introduced by Sen. John Kerry, D-Mass., and Sen. Arlen Specter, R-Pa., identifies $23 billion in bonds for high speed rail projects. At least $10 billion of that money would be dedicated to California and the Northeast Corridor.
Savage Services acquires Quality Rail ServicesSalt Lake City-based Savage Services Corp. says it has agreed to acquire the assets and the locomotive and rail services business of Quality Rail Services LLC, based in Golden, Colo. Terms were not disclosed.
The transaction is expected to close as the year ends. Quality Rail Services business will be rebranded as Savage QRS, and will continue to be based in Golden, Colo.
Quality Rail Services provides locomotive fueling, mechanical, and other support services on an outsource basis, serving customers in the central and western states, with 30 locations. Its customers include BNSF, Kansas City Southern, and Union Pacific railroads, as well as shippers.
Savage provides services to companies involved in oil refining, chemicals, coal production, electric power generation, and railroads. Subsidiary CANAC Railway Services Inc. provides railroad engineering, planning, design, rehabilitation, and rail training services.
Deadline extended for proposed trucker pay cutsOverland Park, Kan.-based YRC Worldwide, Inc. said Monday a deadline for a vote on an immediate 10% pay cut and other contract modifications for union workers has been extended by one week, to Jan. 6, 2009.
Ballots were to be counted by Dec. 30, but the company said it made the move due to holiday mail volume, winter weather, and the high number of ballot requests. YRC currently employs about 40,000 union workers.
The International Brotherhood of Teamsters and YRC agreed to a tentative plan for union members to take a pay cut to aid the company's stressed financial condition.
A trust has also been formed as part of the deal, which will give workers the opportunity to buy stock when the company recovers. Union workers will be offered warrants equal to about 15% of the company's outstanding stock, or about 10 million shares, through the trust. The trust can sell the stock after January 2010.
CN wins fight for EJ&E, and makes historyThe Surface Transportation Board has approved Canadian National's application for authority to acquire the Elgin, Joliet & Eastern Railway, which offers the Class I railroad a circumferential route around Chicago--and STB has done so with unaccustomed enthusiasm.
"Approval of this important merger, with the conditions we have imposed, marks a significant step forward in our nation's efforts to alleviate rail and highway congestion," said Board Chairman Charles D. Nottingham in announcing the decision on Christmas Eve. "I am pleased that the Board agreed, after an unprecedented public involvement process, to grant the relief that this merger will provide to the many Chicago neighborhoods that have been disproportionately burdened for many decades with rail-traffic related roadway congestion."
For CN, the case had become a cliffhanger. Its financing agreement for the transaction expires Dec. 31, and there was no guarantee that a decision would come this year.
The approval came with environmental mitigation measures sought by some 10,000 citizens in on-line communities who participated in the process.
The Board said that "although the transaction will result in environmental benefits to those living in or near Chicago, it will have adverse environmental impacts on communities along the EJ&E rail line."
Mitigation measures imposed by the board include:
--Two highway-rail grade separation projects, with CN bearing 67% of the cost of one and 78.5% of the cost of the other.
--Cameras to monitor highway-rail crossings to assist in the timely response of emergency providers.
--School and pedestrian safety measures.
--Noise reduction measures.
--A five-year environmental reporting requirement mandating quarterly reports on mitigation measures.
The Board also imposed a five-year, formal oversight period, with applicants required to submit monthly operational reports and to comply with "their extensive voluntary environmental mitigation, and with the negotiated agreements that have entered into with Amtrak and communities in Illinois and Indiana containing tailored mitigating that applicants have agreed to provide."
Former TC&W CEO Kent Shoemaker, age 74, diesKent Shoemaker, founder and former CEO and chairman of the Twin Cities & Western Railroad and the Red River Valley & Western Railroad, died of complications from Parkinson's disease Dec. 21 in Bloomington, Minn., at age 74.
Shoemaker, the son of railroad executive Perry Shoemaker, rose through the ranks of the old Baltimore and Ohio Railroad. In 1965, he moved to Minneapolis and became assistant vice president of operations at the Soo Line Railroad. He then became president of the former Detroit, Toledo & Ironton Railroad, then became a railroad consultant.
In 1987, Shoemaker began operation of Red River Valley & Western in North Dakota on about 650 miles of track. In 1991, he and others started the Twin Cities & Western, headquartered in Glencoe, Minn. (TC&W was named Railway Age's 2008 Short Line Railroad of the Year.)
"He could see around corners, and he could see where the future of railroading was going," said Doug Head of Minneapolis, a board member of both railroads and a former Minnesota legislator and attorney general. "He was a great communicator, and a soft-spoken and effective leader. Everyone who knew him respected him."
End of the line for Colorado RailcarColorado Railcar Manufacturing, LLC will release all its employees Dec. 31, after having "ceased its business operations" on Dec. 23, according to a statement posted on the company's website by President and CEO Larry E. Salci.
Salci also noted "Colorado Railcar Manufacturing has a major liquidity problem, and its lenders have a secured position in the assets of the company. The company is in the process of liquidation."
The Fort Lupton, Colo.-based company had been seen by some as a potential leader in rejuvenating U.S. passenger railcar manufacturing, as it sought to extend its initial manufacturing capabilities in producing luxury rail passenger equipment for specialty markets. Several U.S. transit properties tested the company's diesel multiple-unit (DMU) equipment options, but actual purchases were limited.
Among those acquiring DMUs were Portland's TriMet, for use on its Westside Express Service( to debut Feb. 9), and the South Florida Regional Transportation Authority (Tri-Rail).
MTA: Clear announcements soothe subway ridersThe train still may be late, but passengers on MTA New York City Transit's M Line appear to be more forgiving of such an instance when they're adequately informed. That may be the takeaway message of the agency's latest "report card" for the line.
In rating overall service a grade of C in 2008, up from C-minus the year before, riders surveyed cited "Station announcements that are informative" and "Train announcements that are easy to hear," as much improved from 2007. The Satisfaction Index for "Overall Service" increased from 88% last year to 89% for 2008.
"It is interesting to note that the greatest increase in grades, from a D-plus to a C-plus, was in 'Train announcements that are easy to hear,'" said NYC Transit President Howard H. Roberts, Jr. "This is most likely due to the replacement of older R42 subway cars with the new R160s. This positive result in customer satisfaction demonstrates how financial investment in new equipment through the MTA Capital Plan and effective maintenance of that equipment leads to improved service."
CSX Intermodal adds Florida optionsCSX Intermodal announced that it is offering its customers a wider range of shipping options in Florida. On Dec. 23, CSXI began offering trailer service, in addition to container service, to Orlando. "The heavily trafficked lane from Orlando to Atlanta will now be available for private trailers owned or leased by companies other than CSXI," said the announcement.
In addition, shipper schedules from the western gateway of Memphis, Tenn., to Orlando are available with expanded gate deadlines.
"The additional flexibility complements our existing services to the important Florida market," said CSXI President Jim Hartwig. "Customers can leverage additional efficiencies with their equipment and take further advantage of existing key lanes such as Savannah to Georgia."
Freight traffic falls in runup to holidaysU.S. carload freight fell 16.7% during the week ended December 20 in comparison with the same week a year ago, the Association of American Railroads (AAR) said. Volume declined 16.1% in the West and 17.6% in the East.
U.S. intermodal volume also fell a comparable 16.5% from the year-ago period. Container volume declined 16.9% while trailer traffic fell 15.3%.
Total volume of 29.1 billion ton-miles was down 15.4% from the same week one year ago. Cumulative volume for the 51 weeks of 2008 through December 20 was off 1.9% t from 2007.
Canadian carload traffic fell 24.8% for the week compared with last year, while Canadian intermodal volume declined 11.2%. Cumulative Canadian carload traffic for the 51 weeks of 2008 through Dec. 20 were down 6.1%. Cumulative intermodal traffic still defied the downward trend, notching an increase of 1.9% from last year.
Kansas City Southern de Mexico (KCSM) carload traffic fell 16.5% for the week compared with last year, while intermodal slumped 19.3%.
Ferrocarril Mexicano (Ferromex) carload traffic rose 29.5% for the week compared with the year-ago period, and intermodal traffic also rose, up 7.4%.
Phoenix-area police poised to handle LRT crowdsPolice forces in Phoenix, Tempe, and Mesa, Ariz., say they'll provide a highly visible presence when the $1.3 billion Metro light rail line makes its debut Saturday, Dec. 27.
Officials from all three police departments have been working closely with light rail representatives for several months to address crowd control, crowd flows, and other potential problems likely to arise along the 20.3-mile route.
The police presence will be bolstered by bomb-sniffing dogs, teams from the Transportation Security Administration, and officers from the state's Department of Liquor License and Control. Also on hand will be at least 700 citizen volunteers staffing system stations, providing information and guidance for those seeking to ride the new line.
Tucson streetcar plan moves ahead As Arizona's state capital readies its light rail system for use, Tucson, Ariz. is proceeding with plans for a $100 million, four-mile streetcar line, set to begin operation in 2011.
Tucson Mayor Bob Walkup said Secretary of Transportation Mary E. Peters phoned him this week with a federal endorsement of the proposed streetcar line, giving the city the opportunity to seek federal matching funds. Tucson has committed $25 million of Regional Transportation Authority funds to the line. Walkup said the city would begin engineering and final design shortly.
Tucson voters approved the streetcar plan in May 2006.
Connecticut lawmakers seek upgraded Danbury BranchTwo Connecticut lawmakers appointed to the state Transportation Committee say they'll seek continued upgrades for Metro-North's Danbury Branch, including extending it further north to New Milford, Conn.
"It could be expanded into New Milford for a very nominal amount of money per mile as compared to other types of projects," said Michael McLachlan, elected to the state Senate last month. "The track for the expansion already exists." McLachlan, said improvements to the branch during the past decade have been "frustratingly slow."
Added state Rep. Toni Boucher, R-Wilton, appointed as a ranking member of the Transportation Committee, "It's been one of my top priorities."
Both Boucher and McLachlan noted the state's Bond Commission recently approved $2.5 million to study a new signal system on the line that could improve service.
Connecticut's Department of Transportation oversees funding for Metro-North capital costs within the Nutmeg State, with its primary focus on Metro-North's New Haven line, running from its namesake city to Grand Central Terminal in Manhattan.
Canadian advocates seek high speed railHigh speed rail advocates in Canada are sponsoring a one-day symposium Jan. 31, 2009, in Kitchner, Ontario, to promote faster national rail passenger service.
The free event will be held at the Region of Waterloo (Ontario) council chambers, in hopes of raising the profile of high speed rail, according to Paul Langan, founder of High Speed Rail Canada.
"The timing is pretty well right on the money in terms of passenger rail," Langan said. The group believes the federal and provincial governments could help kick-start the economy by spending millions of dollars on rail travel, while greening the environment by reducing reliance on vehicles.
Noting the potential shift in transportation attitudes south of the 49th parallel, Langan said, "The United States is the latest country to promote rail transportation, while Canada continues to lag behind." But even Canada is changing, he said.
High speed rail in Ontario and Quebec has been studied seven times since 1984.
Phoenix (light rail) rises to festivitiesIf Thursday is Christmas Day, and Friday is Boxing Day, for Arizonans Saturday, Dec. 27, will mark the official launch of Phoenix's light rail line, to be celebrated with free rides all day and numerous special events.
One gathering, entitled Downtown Phoenix Rising, will celebrate light rail, the Phoenix Convention Center's new North Building, and numerous downtown projects, says Terry Madeksza, representing the Downtown Phoenix Partnership, a business group.
"This is the perfect opportunity to reintroduce people to downtown," Madeksza said, noting thousands of people, including many who seldom travel to the city's downtown, are expected to visit during the weekend.
The initial $1.3 billion, 20.3-mile route runs through Phoenix and Tempe, with its eastern terminus located in Mesa, Ariz.
Make Purple Line LRT, Maryland county planners sayTransportation planners in Montgomery County, Md., said Monday the controversial proposed Purple Line, running in a circumferential course northwest of Washington, D.C., should operate as light rail and not as Bus Rapid Transit.
The move precedes a scheduled vote Jan. 8 by the Montgomery County Planning Board on the project, which runs from Bethesda to New Carollton, Md. in Prince George's County, connecting to Washington's Metrorail system at either end. Light rail support has been solid within Prince George's County; by contrast, Montgomery County residents appear split among those favoring light rail, those seeking BRT as a "cheaper" solution, and those opposed to any transit project at all.
The board will review the planners’ recommendations during its public hearing, and then send its input to the county council. The Maryland Transit Administration is the final decision-making body.
Planners recommended keeping the Capital Crescent/Georgetown Branch bike trail tunnel under Wisconsin Avenue in Bethesda. The trail should continue through the tunnel but be constructed above the train, they say. Planners also recommend widening the trail, where possible, as part of the project.
FRA begins developing PTC regulationsThe Federal Railroad Administration said Monday it is moving forward with developing new rules that prescribe how railroads should implement Positive Train Control (PTC) systems to prevent train-to-train collisions.
"We are acting quickly and without delay because railroads will need guidance on how to create plans to deploy PTC systems by the end of 2015,” said FRA Acting Administrator Clifford C. Eby. Eby noted that the first deadline mandated by Congress in a new rail safety law is April 2010, when major freight railroads, along with intercity and regional rail operators, must submit their PTC implementation plans to FRA for approval.
Eby said developing new rules is a necessary first step to specify how the technically complex PTC systems must function and to describe how FRA will assess a railroad's PTC implementation plan before it can become operational. FRA is already working with its Railroad Safety Advisory Committee to identify key issues and will release a recommendations report in April, he said.
FRA also is coordinating efforts with the Federal Communications Commission to make available a sufficient amount of radio frequency spectrum essential for PTC technology to function properly as it sends and receives a constant stream of wireless signals about the location and speed of passenger and freight trains moving along rail lines.
The agency is working closely with Metrolink, Union Pacific, and BNSF to accelerate the deployment of PTC in the Los Angeles area by the end of 2012, Eby said. A Metrolink passenger train collided with a UP freight move in Chatsworth, Calif., last September.
"I am encouraged that the major freight railroads have reached agreement for the interoperability of PTC technology across different rail systems," said Eby.
The FRA has done extensive PTC-related technical research in recent years and significantly revised federal signal and train control regulations to support development of the safety technology, he said.
DOT, Kansas City Southern reach border accordTransportation Secretary Mary E. Peters has announced the Department of Transportation has reached agreement with Kansas City Southern Railway to advance the East Loop Bypass project, which includes a new rail bridge east of Laredo, Tex., designed to expedite cross-border freight rail traffic between the U.S. and Mexico.
The project is part of DOT's Border Congestion Relief Program, designed to aid and accelerate transportation-related capacity and operational improvements at border crossings.
"Border congestion creates an unnecessary obstacle to efficient trade with our international partners. Providing alternative routes for freight transport is good for the economy and the American people," Peters said in a statement.
The new railroad bridge and East Loop Bypass project also would enhance safety by eliminating numerous highway-rail grade crossings. Peters said that as part of the congestion relief program, the project would receive priority access to many of DOT's assistance programs, including loans and other innovative financing mechanisms.
Unit Rail acquires AirBossUnit Rail, the rail anchor manufacturing division of Amsted Rail, has acquired AirBoss Railway Products, a wholly-owned subsidiary of AirBoss of America, a Canadian rubber manufacturer. AirBoss Railway Products, based in Kansas City, Mo., is a provider of concrete tie fasteners.
Unit Rail described the acquisition as "a strategic addition in that we expands our product offerings to include those for use with both wood and concrete ties, where previously Unit Rail’s focus was on wood ties only. The acquisition of AirBoss Railway Products will streamline the product ordering process for customers of both companies. Customers will continue to purchase anchor products through their current distributors."
“The joining of these two companies will provide customers with a solid and stable supplier of top quality products and services,” said Wes Hodges, general manager, Unit Rail. “The talent, customers, and products of AirBoss complement our business. Their experience and knowledge of the rail fastening market will enhance the further development of Unit Rail’s product line.”
“AirBoss Railway Products sees this partnership as an opportunity for Unit Rail to provide support for the growth of the AirBoss Railways product line, with AirBoss Railway sharing its considerable experience from the North American fastening market,” said Bob Magnuson, president of AirBoss Railway Products.
UTU National Legislative Director James Brunkenhoefer diesJames Brunkenhoefer, the United Transportation Union's long-time National Legislative Director and one of the best-known railroad figures on Capitol Hill, died Friday, Dec. 19, at age 61 after suffering a stroke two days earlier.
Known as "Brokenrail" to his numerous friends and colleagues, Brunkenhoefer was serving his fifth term as the UTU's chief lobbyist. He also was a member of the UTU and United Transportation Union Insurance Association (UTUIA) boards of directors.
"Our union lost a congressional lobbyist considered by his peers, by the lawmakers he lobbied, and by their senior staff as one of the most effective in Washington at his trade," said UTU International President Mike Futhey. "Brokenrail prided himself on making friends for us on both sides of the congressional aisle. Whether explaining our issues to Democrats or Republicans, he was interested in only one result: Do they understand the issue from a UTU member's perspective? He didn't win all lawmakers over to our point of view, but he continued cultivating those who voted against us, recognizing that tomorrow is another day, and it is better to have friends in Congress than enemies. Brokenrail made for this union a lot of good friends in high places, which helped us to achieve many legislative and regulatory agency goals we might otherwise have failed to achieve. He will be sorely missed."
Brunkenhoefer was born July 23, 1947, in Texas, and began his career on the Southern Pacific's Dallas-Sabine District. He was promoted to engineer in 1971, and held seniority in train and engine service crafts over those Union Pacific lines in Texas and Louisiana. He was elected vice local chairperson of Local 83 in Houston in 1969. Brunkenhoefer also served the members of Local 83 as local president, local vice president, member of the local's board of trustees, local chairperson, local legislative representative, delegate and special organizer. In 1980, he was elevated to alternate Texas state legislative director, and in 1982 assumed the full directorship of the Texas State Legislative Board.
At the UTU's Fifth Quadrennial Convention in 1987, Brunkenhoefer was elected national legislative director, and was re-elected to that post at subsequent UTU conventions in 1991, 1995, 1999, 2003 and 2007.
He is survived by his wife, Judy Sinkin, of McLean, Va.
In lieu of flowers, the family has requested that contributions in the name of James Brunkenhoefe be made to So Others May Eat, 71 O Street NW, Washington, DC 20001.
A funeral service is scheduled for 11 a.m., Monday, Dec. 22, at Am Kolel Sanctuary in Rockville, Md., with burial to follow.
STB gives final approval for new Texas lineAfter four years of environmental review and analysis of public concerns--relating partly to the potential impact on the federally-protected golden-cheeked warbler--the Surface Transportation Board has given final approval to the Southwest Gulf Railroad Co. (SGR) to build and operate a seven-mile line in Texas. It will connect the Vulcan Construction Material’s planned limestone quarry in the north central part of Medina County with the Del Rio Subdivision of the Union Pacific near Dunlay, Tex. SGR expects to ship around five million tons of limestone annually.
STB's Section of Environmental Analysis (SEA) started is review inn November 2004, issued a final EIS in May 2008. It determined that three alternative routes would all be environmentally benign. Subsequently, the SEA consulted further with the U.S. Fish and Wildlife Service regarding impacts on the golden-cheeked warbler. The Service finally concurred with SEA's finding and the construction permit was issued.
CN orders 40 EMD high-horsepower locomotivesCanadian National Friday said it has ordered 40 additional high-horsepower locomotives from Electro-Motive Diesel, Inc. (EMD), and secured an option for 50 more. CN will receive 40 EMD 4,300-hp SD70M-2 locomotives in early 2010, with the option for 50 more by 2011.
At present, CN currently has 75 SD70M-2s in service, and 25 additional units, ordered in 2007, will be added to CN's locomotive roster during the first quarter of 2009.
CN President and CEO E. Hunter Harrison said, "The new
EMD locomotives are a sound investment. They will help CN improve the efficiency and reliability of its motive power and enhance customer service, and will also allow us to reduce fuel consumption and exhaust emissions. Rail is the green mode of transportation, and our new locomotives will further enhance our environmental performance."
EMD says the new locomotives will be up to 20% more fuel efficient than the ones they replace and will comply fully with the latest regulatory requirements for reduced locomotive emissions. The new units also include improved crew cabs that will also be isolated from the frame to reduce noise and vibration for train personnel.
The locomotives also will be equipped with distributed power (DP) capability, enabling remote control of a locomotive or locomotives throughout a train from the lead unit, providing faster, smoother starting, improved braking, and lower pulling forces at the head end of a train.
BNSF to sell track, property to Port of Vancouver, Wash.BNSF has agreed to sell approximately 18 miles of rail right-of-way, and 17 acres of adjacent land, to the Port of Vancouver, Wash., for $3.1 million. The port's three-member commission is scheduled to consider the deal next week.
If approved, the port would acquire the acreage and the rail infrastructure outright. The right-of-way is already within the port proper, but BNSF and its corporate ancestors have held title to the property for more than a century.
The deal would allow the port to proceed with $137 million in freight access improvements, including doubling rail line capacity within the port, which in turn would aid port development of more than 600 acres during the next decade.
"We believe we are the only U.S. West Coast port that has this amount of development potential," port Executive Director Larry Paulson said in a statement.
Freight traffic continues lagging behind 2007 levelsU.S. carload freight for the week ended December 13 declined 9.3% compared with the same week a year ago, the Association of American Railroads (AAR) says. Volume fell 3.6% in the West and 16.9% in the East. Intermodal volume declined 11.6% from the year-ago period.
Total volume was estimated at 31.2 billion ton-miles, down 7.7% from a year ago. Cumulative volume for the first 50 weeks of 2008 was down 1.7% from 2007.
Canadian railroads during the week ended December 13 reported carload traffic down 18.1%, while intermodal volume fell 14.4%, compared with the same week a year ago. Canadian traffic for the first 50 weeks of 2008 fell 5.7%, though intermodal increased 2.2% compared with the 50 weeks of 2007.
Carload traffic on Kansas City Southern de Mexico (KCSM),fell 17.0%, and intermodal slipped 1.3%. Carload traffic on Ferrocarril Mexicano (Ferromex) rose 23.7%, while intermodal declined 3.6%.
Added funds help Norfolk cover LRT cost increaseThe Hampton Roads Metropolitan Organization has allocated $3 million in federal funds to help Norfolk, Va.'s 7.3-mile light rail line overcome cost overruns. Board members of the metropolitan planning organization also agreed to allocate $1.5 million to help pay for a study of extending the Norfolk light rail line into neighboring Virginia Beach.
Estimated capital costs for "The Tide" light rails service have increased from $232.1 million a year ago to $288 million. Norfolk's total contribution will grow to $53.7 million. The state and federal government are covering the remainder.
NRLC names new chief labor negotiatorA. Kenneth Gradia has been named the rail industry's new chief labor negotiator, succeeding Robert F. Allen as chairman of the National Railway Labor Conference (NRLC). Allen, who has held the post for 15 years, will remain as a senior adviser until his official retirement next July.
Gradia, 58, has served as vice chairman of NRLC since 2002, first joining the organization in 1984 as labor counsel and serving in that position until becoming director of labor relations in 1994.
Through its National Carriers' Conference Committee (NCCC), the NRLC represents most Class I railroads, including BNSF, CSX, Kansas City Southern, Norfolk Southern, and Union Pacific, in national (multi-employer) collective bargaining with the 13 major rail unions.
Hub Group cuts earnings forecastCiting declining intermodal and truck brokerage volumes, the Hub Group cut its earnings outlook for the year to a range of $1.56 to $1.61 per share from its earlier forecast of $1.65 to $1.70. The analysts' consensus forecast was $1.64.
Hub said intermodal volume in the fourth quarter will range from flat to down 3 % with truck brokerage business off 8-12%.
"The economic downtown has been more dramatic than we anticipated at the time of our last earnings call," said CEO Dave Yeager. "While the downtown has impacted volume, our asset light, variable cost model allows us to be nimble and adjust quickly to market conditions."
Obama picks centrist Republican to head DOTPresident-elect Obama has selected seven-term Congressman Ray LaHood, a centrist Republican from Illinois, to become Secretary of Transportation—a key job in an administration that plans to spend billions rebuilding the nation’s infrastructure as part of an economic recovery program.
LaHood, whose district includes Peoria and Springfield, has a voting record that will please many in the transportation industry. He voted this year for the Passenger Rail Investment Act as well as the Saving Energy Through Public Transportation Act.
The 63-year-old representative, who decided not to run for reelection this year, has become known for his bi-partisan views, and is reported to be close both to the president-elect and to the new White House chief of staff, Rahm Emanuel.
Toronto Transit Commission leans toward light railOfficials representing the Toronto Transit Commission are calling for a commitment to expanded light rail transit, and are urging that LRT not be sacrificed or postponed because of plans for a C$2.4 billion, 4.2-mile extension of the Yonge subway line into York Region.
TTC Chairman Adam Giambrone said the commission's light rail plans give the best return for the dollar. But the Yonge subway project is a high priority for Metrolinx, the regional agency overseeing transit projects in Greater Toronto, among a list of priorities expected to receive C$11.5 billion in provincial funding from Ontario by 2020.
A TTC report says only $5 million is expected for the Yonge extension in the province's spring budget.
"It may be the perfect time to be (advancing) two or three Transit City lines at once," Giambrone said. "All we're saying is, fund your state of good repair, fund Transit City, and then, if we want to talk about other projects, we're happy to go ahead and do them."
CN and Griffith, Ind., agree on EJ&E acquisitionCanadian National announced Thursday it has reached agreement with a third Indiana municipality, Griffith, and the ninth community to date, on mitigation efforts it will provide should it succeed in acquiring the Elgin, Joliet & Eastern Railway.
Under its agreement with Griffith, CN would provide funding for quiet zones, safety fencing near schools and parks, noise mitigation, emergency response personnel training and emergency communication capabilities, and other environmental issues. As with other agreements, the deal is contingent upon regulatory approval of CN's proposed acquisition of the EJ&E by the Surface Transportation Board.
"CN continues to make headway in signing voluntary EJ transaction
mitigation agreements with Indiana municipalities," said Gordon Trafton, the railroad's senior vice-president, Southern Region. "The Griffith agreement follows pacts with the communities of Dyer and Schererville, Ind.
"We now have reached agreements with a total of nine cities, towns and
villages in Indiana and Illinois. The Illinois communities are Frankfort, Hoffman Estates, Mundelein, Crest Hill, Chicago Heights and Joliet. We believe our progress is due to an increasing number of communities along the {EJ&E] recognizing the substantive benefits of our comprehensive voluntary mitigation program," Trafton said.
Paul Weyrich, conservative pro-rail voice, diesPaul M. Weyrich, one of the early founders of the Heritage Foundation in 1973, a voice of American conservativism, and an ardent pro-passenger rail advocate, died Thursday morning, according to the Heritage Foundation. Weyrich was 66.
Along with co-author William S. Lind, Weyrich issued several appeals arguing that fiscal support of rail transit projects could fit into the ideology of fiscal and social conservatives in the U.S. The pair produced "Conservatives and Mass Transit: Is It Time for a New Look?" and also "Does Transit Work? A Conservative Reappraisal," for the Free Congress Foundation, which Weyrich had served as chairman and chief executive officer.
Weyrich argued strenuously for an American recommitment to light rail and streetcars, rejecting an over-reliance on buses as a satisfactory substitute or alternative. Reaching across the political divide, he appeared on a radio broadcast with Rep. Earl Blumenauer, D-Ore., another staunch supporter of LRT and streetcars, to emphasize the common ground shared by liberals and conservatives on rail transit matters.
Weyrich also served on the Amtrak Board of Directors for six years, and was a member of the Amtrak Reform Council, which explored funding options for the national rail passenger carrier (and, critics charged, the option of eliminating Amtrak and a national passenger rail system altogether). Though critical of some Amtrak policies, Weyrich repeatedly voiced support for the corporation, including in a column published Nov. 25 entitled "The Possibility of a Better Future for Amtrak."
MTA approves 'austerity budget' for 2009New York's Metropolitan Transportation Authority Wednesday approved a $11 billion 2009 budget aimed at covering a $1.2 billion deficit, in part through cuts in service and increases in fares and tolls. Pending action (or lack of same) by the state legislature, the MTA Board of Directors cautioned that the base subway far could rise 50 cents to $2.50 by next June. The MTA budget overall calls for a 23% increase in revenue from fares and tolls on the authority's rail and bus lines as well as numerous vehicular bridge and tunnel facility.
MTA next week will issue a public notice for hearings on the plan.
A source within MTA tells Railway Age that the MTA action avoids any significant scaling back of $15 billion worth of capital projects, many of them ongoing and one virtually completed. Such action dovetails with the recommendations made earlier this month by the Commission of Metropolitan Transportation Authority Financing, chaired by former MTA Chairman Richard Ravitch, which issued its findings to Gov. David Paterson.
Instead, the commission at that time urged a payroll tax of 0.33% to be paid by businesses in the MTA's service region, estimated to generate $1.5 billion a year for short-term operational and long-term capital needs.
CSX shareholder suit settledTwo hedge funds have agreed to pay CSX a total of $11 million in settlement of a shareholder lawsuit alleging violations of securities laws. TCI, which manages The Children's Master Investment Fund, will pay $10 million and 3G Capital Partners will pay $1 million. If the settlement receives the approval of a federal court in New York, where the civil action was initiated, a countersuit alleging that CSX violated its corporate insider trading policy will be dismissed.
The hedge funds waged a proxy fight this year that gave them four seats on the CSX board.
In announcing the settlement, CSX noted that it was party to the action "in name only," though shareholder Deborah Donoghue brought the suit for the benefit of the company.
GATX buys 3,560-car fleetAlco Finance Ltd. has sold a diversified fleet of 3,650 freight cars with an average age of two years to GATX Corp. The $217 million purchase price consists of approximately $30 million in cash and the assumption of $187 million in non-recourse debt.
The new cars will be added to a GATX fleet that totaled 110,000 cars on Sept. 1.
"The acquisition reflects GATX's strategy of only acquiring cars at attractive valuations," said GATX President and CEO Brian A. Kenney. "These railcars are young, fully utilized, and complementary to our existing fleet. The transaction will generate attractive economic returns for our shareholders and enhance or earnings growth over the long term."
Fort Worth maps streetcar systemOfficials in Fort Worth, Tex., have unveiled a plan for a 12-mile streetcar system, including options to generate $250 million to fund at least part of the system.
Andy Taft, chairman of an 18-member task force that studied the idea, says the plan is ambitious but can work. "The committee identified within a pretty tight margin how we could possibly do it," he said. "It's where we take Fort Worth, Texas, to the next step."
The plan recommends starting with a loop in downtown Fort Worth, a route along along West Seventh Street to the Will Rogers Center and the University of North Texas campus, another route down South Main Street with a spur to Evans Avenue and Rosedale Street, and a connection to the medical district along Magnolia and Eighth avenues.
City Council members earlier this year visited streetcar operations in Seattle and Tacoma, Wash., and in Portland, Ore.
Capital funding of $89 million is seen coming from an existing business zone tax mechanism for portions of the city's business district. The city, Tarrant County, gas well revenue, and hotel taxes would contribute about $97 million under the proposal. Taft identified a funding gap of $64 million to be addressed.
RailAmerica, FEC buy four EMD unitsRailAmerica and Florida East Coast announced Tuesday that they have purchased four SD70M-2 locomotives from Electro-Motive-Diesel, Inc. at a cost of nearly $8 million.
The new units meet the Environmental Protection Agency's two-tier emission standards and are 20% more fuel-efficient than the SD40-2 locomotives they will replace. Because two of the new 4,300-hp units can do the work of three of the older locomoives, the new units will replace six SD40-2s.
"These locomotives are significant long-term investments for FEC and RailAmerica," said John Giles, RailAmerica's CEO. "We are strongly committed to investing in this businesses while also contributing to environmental initiatives."
Atlantic City Express Service to debut Feb. 6NJ Transit's new Atlantic City express train will begin weekend rail service between New York City and Atlantic City, N.J., on Feb. 6. Sporting the appropriate acronym of ACES (Atlantic City Express Service), the new train is a joint venture of Caesars Atlantic City, Harrah's Resort Atlantic City, and Borgata Hotel Casino and Spa. They have committed $19.5 million toward outfitting two trains with four railcars each.
Travel time is scheduled to be 2 hours, 30 minutes, and include one stop in Newark, N.J. Introductory fares of $50 (one way coach) and $75 (first class) will be offered. Amtrak will provide reservations and ticketing. State gambling laws prohibit betting opportunities on board, but NJ Transit says other amenities will be offered, including waiters in the first-class section on the top level of the Bombardier MultiLevel cars specifically appointed for the service. Industrial Designer Cesar Vergara of Jacobs designed the interiors and external livery. STV Inc. was overall project manager.
Warren Buffett buys still more BNSF stockOmaha, Neb.-based Berkshire Hathaway, Inc. has purchased another 2.2 million shares of BNSF stock, increasing the company's holding to more than 70 million shares, and also more than 20% of the stock issued.
Documents filed with the Securities and Exchange Commission Monday show Berkshire completed its latest purchases last Thursday. Billionaire Warren Buffett, head of Berkshire Hathaway, has repeatedlys tated that railroads hold promise as long-term investments, but has pointedly invested heavily in BNSF in particular.
CN, two more EJ&E communities reach accordContinuing its strategy of negotiating with communities one by one, Canadian National announced Tuesday that it has reached agreement with two additional Illinois communities, Hoffman Estates and Frankfort, concerning the Class I's efforts to acquire the Elgin, Joliet & Eastern Railway. Hoffman Estates officials say CN will commit $4 million on sound barriers and pedestrian gates to reduce noise and improve safety.
CN has also reached agreements with Mundelein, Chicago Heights, Joliet, and Crest Hill within Illinois, and with Dyer, Ind. CN hopes the Surface Transportation Board will rule in favor of its proposed acquisition of the EJ&E by Dec. 31.
In a statement, Gordon Trafton, CN senior vice-president, Southern Region, said. "We appreciate the cooperation of these communities in reaching agreements on mitigation plans, particularly given their strong concerns about the transaction. With today's announcement, CN has now reached agreements with eight municipalities, with discussions ongoing with additional communities. We have also reached an agreement with Amtrak on its continued access to and from
Chicago's Union Station and are engaged in constructive discussions with Metra."
Wabtec forms joint venture in ChinaWilmerding, Pa.-based Wabtec Corp. says it has formed a joint venture in China, Beijing Wabtec Huaxia Technology Company Ltd., to manufacture friction products for the Chinese rail market.
Wabtec will work with Beijing Huaxia United Friendship New Technology of Electrification Development Co., Ltd., a manufacturer of friction products for the Chinese mainline railway and public transit markets.
"With this investment, we are expanding Wabtec's presence in China, the largest rail market outside of North America," said Wabtec President and CEO Albert J. Neupaver. "The new company will be supported with the technology and manufacturing expertise of Wabtec’s leading, worldwide friction business, now located on five continents. The Chinese market is rapidly growing, and
we expect this joint venture to be a catalyst that will enable us to participate in that growth over time."
Belgian Railways picks Bombardier/Alstom consortium Belgian National Railways (SNCB) has awarded a $176 million contract for 72 M6 double-deck cars to Bombardier Transportation and Alstom Transport, with the consortium splitting the amount roughly evenly. Deliveries are scheduled to take place from April 2010 until March 2011.
The award is the fourth follow-on order from a contract awarded in 1999, totaling 492 M6 double-deck cars equalling approximately 64,000 seats. The M6 cars are used on SNCB main lines, operating at speeds up to 160 k/h (about 100 mph).
Bombardier's Bruges, Belgium, facility will handle production of the four cab cars, as well as the final assembly of the 68 trailer cars. The bogies will be manufactured by Bombardier in Crespin, France. For its part, Alstom Transport's Charleroi, Belgium, will supply the auxiliary converters for all cars and the Atlas solution compatible with ETCS/ERTMS (European Train Control System/European Railway Traffic Management Systems) signaling. Alstom facilities in Vilenciennes and Villeurbanne, France, will respectively deliver the semi-finished trailer cars and the train control devices for the four cab cars.
SNCB CEO Marc Descheemaecker said, "With our number of passengers increasing every year, these double-deck vehicles add both capacity and comfort to our fleet. The M6 double-deck vehicles represent an important contribution to improved mobility. Not only will they allow us to expand our offer during the peak hours on our main lines, they will undoubtedly have a positive impact on the regularity of our trains."
Ansaldo STS-US&S lands China contractAnsaldo STS-Union Switch & Signal says its subsidiary, Union Switch & Signal International (USSI), has signed subcontracts for two new Communications Based Train Control (CBTC) projects as part of its strategic Alliance Agreement with Zhejiang Zheda Insigma Group Company Ltd., based in Hangzhou, China, worth a combined $30 million.
Insigma, a provider of information technology, will be responsible for the major portion of the CBTC hardware acquisition and installation, as well as the Data Communication System between the wayside and car-mounted equipment.
"The combined expertise of Insigma and Ansaldo STS-USSI will prove to be a valuable alliance as we provide much needed transportation improvements in China," said Zhao Jian, chairman of Insigma Group Co., Ltd. "Our design teams will work in tandem to provide our customers with the successful delivery of a safe, reliable transit system."
The two companies seek to provide CBTC signaling systems to public transit agencies throughout China. Ansaldo STS-USSI will serve as the technology supplier; through a license agreement, Insigma, as prime contractor, will perform much of the work associated with the delivery of automatic train control systems to customers in China.
The new projects are for the design and implementation of CBTC signaling systems for Shenyang Metro Company's Line 2 and Chengdu Metro Company's Line 1. USSI and Insigma have been working together on Shenyang Line 1, a 29-kilometer (18-mile) line, since 2006.
Metra adds Railhead Vision Systems LDVRsChicago's Metra has begun installing 243 Locomotive Digital Video Recorders (LDVRs) from Railhead Vision Systems.
Chicago's commuter railroad, Northeast Illinois Railroad Corporation (METRA), has begun installation on 243 LDVRs (Locomotive Digital Video Recorders) from hometown company Railhead Vision Systems. The company's audio and video recording system will be installed in diesel locomotives and on Metra cab cars on both diesel and electric lines.
Railhead Vision Systems' LDVRs provide high-resolution color monitoring to capture grade crossings and signals along the right-of-way regardless of weather, lighting conditions, or time of day. The system simultaneously records the horn and bell for accident investigation.
Dahlman Rose trims earnings projectionsSteep declines in traffic have led Dahlman Rose & Co. to trim its railroad earnings estimates for the fourth quarter and to project a 3%-to-4% decline in traffic in 2009.
"Railroads should still have the ability to maintain pricing, as most carriers have over 50% of their books of business locked up for the year," said the investment company's director of equity research, Jason Seidl (who is also a contributing editor of Railway Age). "However, we believe there will be some pressure exerted on the remaining businesses as the North American economy hits levels it has not seen in several decades. In conjunction with our revised outlook on earnings, we have also slashed our price targets. Our new targets utilize a multiple near the average multiple of that particular rail stock since 2004."
Seidl added, "Although we acknowledge there could be more downside in the group over the near term, the stocks are not trading at an unreasonable level even after considering our strong reduction to earnings. Accordingly, none of our ratings have changed. Calling the turn in the economy will likely prove difficult even for the most astute of economists, so we will not even attempt to be so bold. History shows us, however, that investors normally turn to transportation stocks, in an attempt to 'play the early cycle rally.' As a result, we advise investors to selectively add to their positions on days when the railroad stocks are weak. We would not advise to be overly aggressive at this time due to extreme market volatility and our belief that it may take time for the group to recover."
CSX picks RailComm for Selkirk facilityCSX Transportation has selected RailComm's DOC Yard Automation System for the railroad's Selkirk, N.Y. facility (near Albany). RailComm's Domain Operations Controller (DOC®) server-based control system will provide wireless remote control from the yard tower to 48 GETS HydraSwitch™ machine locations.
The DOC® System features eNtrance and eXit (NX) routing and stacked route planning capability, providing the tower operator with complete control of all routes within the yard. RailComm’s 2.4 GHz RADiANT™ data radios will provide a wireless communications network to link the office with the field locations.
MBTA adding free Wi-Fi service to rail networkMassachusetts Lt. Gov. Timothy P. Murray Monday officially announced a plan to provide free Wi-FI service on all Massachusetts Bay Transportation Authority rail lines, following a successful pilot project on MBTA's Framingham-Worcester route.
"The positive feedback we've received from commuters who are using Wi-Fi on the trains has been fantastic," Murray said. "It became clear early on in the pilot that this service should be expanded to all commuter trains." Murray became involved in the initiative while service as mayor of Worcester.
MBTA is implementing the coverage with partners AT&T, WAAV, and Terminal Exchange Systems. By spring 2009, at least two coaches per train set will be Wi-Fi capable on all 13 MBTA lines.
FRA supports California HST alignmentThe Federal Railroad Administration announced that it has issued a Record of Decision on the California High-Speed Train (HST) Environmental Impact Statement. FRA said it supports the state's selection of preferred alignment and station locations in the Bay Area-central Valley corridor. FRA said its decision "considers environmental benefits and adverse impacts associated with the preferred network, [and] describes mitigation measures to address adverse environmental impacts."
FRA noted that it served as the lead federal agency for the environmental review of the HST program, while the California High-Speed authority is responsible for its planning, financing, construction, and operation.
Iowa Interstate wins funding for 12 locomotivesThe Iowa Interstate will purchase 12 new locomotives with a $31 million RRIF loan it has received from the Federal Railroad Administration. FRA said the new power will allow the regional railroad to increase train lengths, tonnage, and operating speeds, and provide for increased rail service to newly built ethanol plans.
Features include improved crew accommodations and safety, quieter operation, greater fuel efficiency, and reduced emissions. Operating primarily in Illinois and Iowa, the railroad transports agricultural products, plastics, chemicals, steel, lumber, and coal.
TransLink, British Columbia commit funds to expansion British Columbia and TransLink will share the cost of a C$3.1 billion ($2.5 billion) rapid transit expansion from Surrey to Fleetwood, both southeast of Vancouver, to be completed by 2020.
"This will be a minimum six kilometer extension in Surrey along 104th Avenue to Guildford, down 152nd Street to Fraser Highway and out to 168th Street in Fleetwood," Transportation Minister Kevin Falcon said. Falcon said C$2 billion will be spent to double capacity on the existing Expo Line into Surrey, while about C$1.1 billion will be used for the extension.
The first phase of the project will include a study determining the best route and technology options, with each of the partners putting up half of the cost. Falcon expects the study will take 18 to 20 months to complete. A Skytrain extension and light rail transit are the two leading modal options being considered.
TransLink Communications Director Ken Hardie said the transit authority has the cash for the preliminary study despite recent announcements of significant revenue shortfalls. Hardie also said the federal government will be asked to help cover the cost of upgrading Surrey's rapid transit.
Freight traffic decline continues Freight traffic on U.S. railroads was down during the week ended December 6 in comparison with the corresponding week in 2007, the year, the Association of American Railroads says.
Carload freight declined 8.5% from the year-ago period, with loadings down 13.6% in the East and 4.8% on Western railroads. Intermodal fell 9.8% from last year. Total volume was estimated at 32 billion ton-miles, down 7.2% from the same week a year ago.
Coal was up 5.3%, and the All Other Carloads category rose 8.3%, but 17 of 19 commodity group categories saw declines, including: metals and products, down 43.8%; nonmetallic minerals, down 33.5; waste and scrap materials, down 29.5%; metallic ores, down 28.6%; and lumber and wood products, down 27.2%.
Canadian railroads during the week saw carload traffic drop 5.6% from the comparable week a year ago, but intermodal volume rose 2.9% from last year.
Carload freight on Kansas City Southern de Mexico (KCSM) during the week fell 20.2%, and intermodal volume declined 16.4%, from the comparable year-ago period. Carload freight on Ferrocarril Mexicano (Ferromex) fell 43.7%, while intermodal declined by 30.7%.
Draft EIS issued on Alaska Railroad extensionWhen the Alaska Railroad filed a petition on July 6, 2007, for authority to build a northern extension consisting of 80 miles of new main line track, the Surface Transportation Board noted that the project had the potential "to result in significant environmental impacts." The STB announced Friday that its Section of Environmental Analysis (SEA) has issued a Draft Environmental Impact Statement, and interested parties have until Feb. 2 to study the document and submit comments. The Draft EIS is available for downloading at http://www.stb.dot.gov/, under Recent Releases.
The line would run from North Pole to Delta Junction. The Alaska Railroad says it would provide new freight and passenger services that "would enhance opportunities for economic expansion in a relatively isolated area of the state."
Assisting SEA in preparing the Draft EIS were the Alaska State Office of the U.S. Bureau of Land Management, the Alaska District of the U.S. Army Corps of Engineers, the 34th Fighter Wing of the U.S. Air Force at Eielson Air Force Base, the Federal Transit and Federal Railroad administrations, the Seventeenth District of the U.S. Coast Guard, and the Alaska Department of Natural Resources.
Native tribes are among those that have received copies of the Draft EIS.
GO Transit seeks purchase of rights-of-wayGO Transit says it wants to acquire more of the rights-of-way it operates over, perhaps beginning as early as next year.
At present, GO Transit owns only small portions of its network, including a segment around Toronto's Union Station, the eastern portion of the Lakeshore route, and small stretches of the Barrie and Stouffville lines. GO Transit is primarily a tenant on host railroads Canadian Natinal and Canadian Pacific.
"We want to take those corridors and move them up to a higher level of service. The only way you can do that is to manage your own infrastructure," GO Chief Executive Officer Gary McNeil said. McNeil said CN and CP may be willing to consider a sale "as long as they can get certain guarantees (and) we're willing to pay a price." Funding for such acquisitions has not been identified.
Most North American passenger railroads, including Amtrak and VIA Rail, operate mostly over rights-of-way owned by freight railroads. Exceptions to this include New Jersey Transit and the Massachusetts Bay Transportation Authority, which operate over large portions of right-of-way purchased by their respective state governments.
NJ Transit awards contract for Lackawanna Cut-Off workNew Jersey Transit's Board of Directors Wednesday awarded a design contract worth up to $5.8 million to Morristown, N.J.-based Jacobs Engineering Group for proposed passenger service restoration on 7.3 miles of the Lackawanna Cut-Off, in the northwest portion of the state. Design is slated for completion by May 2010.
NJ Transit is pursuing the first segment of the former Lackawanna Railroad route after a larger plan for service on 88 miles of track reaching to Scranton, Pa., failed to gain enough political traction.
Current estimates to building a single-track rail line to extend existing NJ Transit rail service from Port Morris to Andover are $36.6 million, compared with $551 million for the entire project. The incremental approach also negates the immediate need for New Jersey and Pennsylvania to coordinate fiscal efforts.
The Federal Transit Administration issued a finding of no significant impact (FONSI) three months ago that allows the first stage of the rail project to proceed.
Railroad employment up in OctoberU.S. Class I railroad employment remained comparatively strong at 164,025 in mid-October, up 1.06% from September 2008 and down only 0.78% from pre-recession October 2007.
The numbers in six of the seven employment groups were up in October from September levels: executives, officials, and staff assistants, 0.17%; maintenance of way and structures, 0.40%; maintenance of equipment and stores, 0.55%; transportation (other than train and engine), 0.48%; and transportation (train and engine), 2.2%. The only decline was in the professional and administrative category, down 0.67%.
A major improvement over October 2007 was the year-over-year increase of 1.51% in maintenance of way and structures employment.
Berkshire Hathaway buys more BNSF stockWarren Buffett's Berkshire Hathaway, Inc. has lost billions in the stock market slump but its faith in BNSF Railway is still strong. According to documents filed on Wednesday with the Securities and Exchange Commission, Bershire Hathaway purchased another, 3.26 million shares of the railroad company on Monday and Tuesday, increasing its ownership position to nearly 20%.
Buffett in the past has said railroads have good long-term prospects and are healthier than in past years.
Shares of BNSF were up just shy of 1.4% to $77.00 just after noon Thursday.
Indiana Rail Road taps 10East RailDOCS system10East Corp. has announced that the Indiana Rail Road has chosen and deployed the RailDOCS Preventive Maintenance Management System (PMMS) for the railroad's signal requirements, including the Tests & Inspections system, the Configuration Management system, and the Plan Management Program.
Brian Hall, the railroad's Supervisor of Signals said, "Even though we are a smaller railroad, Configuration Management was a large concern for us, not only because of Federal mandates, but because having a configuration management system would allow us to track certain things that were more time-consuming to manage in the past. I can now manage quick and efficient remediation on my railroad, including OEM bulletins and internal railroad standards."
Boardman backs coast-to-coast AmtrakAmtrak's new president and CEO, former Federal Railroad Administrator Joseph Boardman, has news for "those who may make incorrect assumptions about my past affiliations."
"[L]et me be very clear: I am here because I believe in Amtrak," Boardman told Amtrak employees in a letter two weeks after he came on the job. "Splitting off the Northeast Corridor or separating the NEC infrastructure from operations are absolutely not in my plans. I not only want to preserve our coast-to-coast, interconnected system, but also want to see it prosper…I plan to build on the many opportunities we have to show how critical passenger rail is to the economy and mobility of America."
Boardman, whose appointment has come under criticism from some unions, also said: "A couple of things you should know about me: I’m a former member of IBEW and Teamsters. I am a straight shooter, so you'll know where I stand on things. I listen closely and rely on the strengths of well-qualified people to give me their recommendations. I strongly believe that collaboration is a necessity in our business, and I don't have much time for those who stand in its way."
Connecticut interests seek more Hartford rail serviceConnecticut state political and transportation officials, joined by environmental and business groups, are urging the Nutmeg State to recommit to improved rail service between New Haven, Conn., and Springfield, Mass.
The route, currently served by Amtrak, has been recommended for expansion, including extensive double-tracking, in several studies over many years. Officials now also seek three new stations along the route, including one in North Haven, Conn.
"The fact that we had a train track running right up the (Interstate 91) corridor, but without commuter rail, just seemed a shame," says state House Speaker-elect Christopher G. Donovan.
Donovan was joined by outgoing House Speaker James A. Amann, and representatives from the Tri-State Transportation Campaign, Connecticut Public Interest Research Group, Environment Connecticut, the Regional Plan Association, and the Connecticut Business and Industry Association.
A state DOT spokesperson said that state officials are in discussions with Amtrak, owner of the route, concerning interim service, "something that is significant and can be done in the short term."
Fitch finds railroads strong in a weak economyFitch Ratings finds the railroad industry "well positioned financially to confront the challenges of a weakened U. S. economy." For 2009, Fitch forecasts "a relatively favorable pricing environment, strong liquidity, and ongoing capital markets access."
This assessment is part of Fitch's broad overview, released Tuesday, of what lies ahead for the railroad and trucking industries in the coming year.
"Following a resurgence in the railroad industry over the past five years, the largest Class I railroads are well positioned financially to confront the challenges of a recessionary economic period," said Fitch. "Although volume growth has slowed over the past couple of years, the industry continues to enjoy favorable pricing environment. This has resulted in strong margins across the industry... . Industry liquidity remains strong as well, with each of the top four railroads maintaining relatively large cash balances and access to large, undrawn revolving credit facilities... . Fitch expects railroads generally to rein their pricing power in 2009, although lower overall volumes could result in some deterioration in pricing later in the year. A significant portion of the railroads' book of business re-prices in the first half of the year, and the railroads have indicated that negotiations on those contracts so far are yielding percentage price increases in line with those seen in 2008, which Fitch estimates are in the mid-to-high single digits."
Fitch also expects railroad operating ratios to remain relatively low: "Although operating ratios may worsen somewhat from the strong levels seen in the third quarter of this year, when lagging fuel surcharges provided the railroads with a substantial tailwind, Fitch expects the four largest Class I railroads to continue posting operating ratios in the low-to-mid-70% range in the latter part of the year, still relatively strong but off the low levels seen in 2008."
Fitch expects railroad capital spending in 2009 to be near or below the level of spending in 2008, strengthening free cash flow and permitting stock repurchases.
Fitch finds truckers to be in far less fortunate position: "In sharp contrast to the strong financial positioning of the U.S. railroad industry, the U.S. trucking industry is entering 2009 in a weakened state. Overcapacity, particularly in the less-than-truckload sector, has eroded pricing over the past year, while high fuel costs added to the industry's difficulties ... Trucking is closely tied to the shipment of cyclical products like retail goods and industrial components. As a result, the trucking industry is more exposed than the railroads to the relative strength of the U. S. economy."
New York Air Brake acquires Anchor Brake Shoe Co.Watertown, N.Y.-based New York Air Brake Corp. says it has acquired Anchor Brake Shoe Co., a manufacturer of locomotive and freight car brake shoes.
Anchor Brake Shoe's product line includes high and low friction composition shoes and tread conditioning shoes, which are manufactured to Association of American Railroads interchange standards or to specific customer requirements, New York Air Brake said in a statement.
"Anchor is a good strategic fit for New York Air Brake," added New York Air Brake President J. Paul Morgan. "The addition of brake shoes to our product line will allow us to provide a more comprehensive service to our North American customers while the global network of
the Knorr-Bremse Group will help Anchor penetrate new markets." Munich, Germany-based Knorr-Bremse is the parent company of New York Air Brake.
CN in accord with Chicago Heights, Mundelein on EJ&E acquisitionCN, continuing its efforts to allay concerns over its planned purchase of the Elgin, Joliet & Eastern Railway, has reached agreement with an additional two Chicago suburbs, Chicago Heights and Mundelein, Ill. Under the latest agreement, CN will assist in the creation and maintenance of quiet zones and take various steps to improve operations, safety, fencing, and emergency preparedness, as well as and promote economic development in the two communities.
The agreement, as with others CN has made with Chicagoland communities, is contingent upon approval by the Surface Transportation Board of CN's proposed acquisition of the EJ&E.
Gordon Trafton, CN senior vice-president, Southern Region, said, "We thank [these communities] for working with CN to negotiate a mutually satisfactory plan to manage the impact of our transaction. More municipalities are responding to CN's outreach efforts by entering into mitigation agreements with the railroad that address their unique concerns. To date, CN has reached agreements with three other municipalities along the EJ&E line -- Joliet and Crest Hill, Ill., and Dyer, Ind. -- and CN remains committed to negotiating additional agreements with other communities along the EJ&E."
Last week CN also reached an agreement with Amtrak preserving Amtrak's current route to Chicago's Union Station for passenger service to and from downstate Illinois points.
Fed funding could power Issaquah, Wash., streetcarIssaquah, Wash.'s City Council has approved administering $500,000 in federal grants to restore vintage trolley operations by next summer. The Issaquah Valley Trolley Project, comprised of volunteers from the city's historical society, will administer the funds, restoring one trolley car, repairing track, and installing signals.
"There is pretty low risk to the city that we would have to expend any additional money on the project," said city Councilman Joshua Schaer, chair of the Transportation Committee.
Issaquah previously has rejected efforts to commit funds to the project, including one four years ago that essentially sought the same role for the city as the acceptance agency for federal funding.
Seattle City Council backs streetcar network planSeattle's City Council, in a 6-3 vote, Monday endorsed a streetcar network for the city, as the one-year anniversary of the 1.3-mile South Lake Union streetcar line (Dec. 13) approaches. The dissenting trio on the council argue that bus services can meet Seattle's needs.
The vote does not guarantee funding for the plan; only one of four proposed streetcar lines has funding commitments from Sound Transit. But Councilwoman Jean Godden, who supported the plan, said, "If you don't have a plan, why, then you don't have any possibility of putting it into practice."
An amendment to the approval requires the council to acquire more specific information before Seattle spends any money on a given line. A report envisions a four-line streetcar network costing $685 million.
WMATA issues RFP for Series 7000 carsReacting quickly to last week's approval by the Federal Transit Administration for extending rail service to Dulles International Airport, Washington Metropolitan Area Transportation Authority (WMATA) now seeks proposals for 64 7000 Series railcars, or half the number required for the new extension.
WMATA's Finance, Administration and Oversight Committee endorsed staff recommendations, which WMATA's board of directors is scheduled to consider at its meeting Dec. 18.
Funding for the initial 64 new rail cars is available through an agreement with the Metropolitan Washington Airports Authority. Funding for the remaining rail cars is subject to approval of the Metro Board of Directors.
Besides the 128 new rail cars for the Dulles extension, the winning bidder would rehabilitate up to 620 4000 Series cars, many of which have been in service for 25 years. WMATA has said it may eventually purchase as many as 700 7000 Series cars.
"It was necessary for us to develop a long-range program for the renewal and rehabilitation of our railcar fleet due to age, wear, and capacity constraints," said Dave Kubicek, Metrorail's assistant general manager. "This plan will allow us to consolidate our efforts on current and future rail cars, thereby meeting a variety of needs all at the same time."
Kansas commits funds to Amtrak extension studyKansas state transportation officials have committed $200,000 for the state's portion of a study to evaluate extension of Amtrak's Heartland Flyer north of Oklahoma City to a new terminus in Kansas City, Mo.
Oklahoma and Texas, which already supply state support to the Amtrak service, also are contributing to the study, which will estimate construction costs, equipment requirements, and annual operating costs.
The study will include evaluation of a daytime roundtrip separate from the Heartland Flyer between Kansas City and Oklahoma City, but Amtrak observers consider such a scenario unlikely.
Proposed stops in Kansas include Lawrence, Topeka, and Newton as top contenders. Other new stations suggested include Emporia, Strong City, Wichita, and either Winfield or Arkansas City. Kansas Department of Transportation spokesman Ron Kaufman says the study is expected to be finished sometime next year.
Legislatures in the three states would have to agree to come up with the money to pay for it, a cost-sharing procedure that has had limited success at best for Amtrak since its creation in 1971.
Transit ridership keeps climbing as gas prices fallThe American Public Transportation Association (APTA) Monday said Americans continue to ride public transportation at record levels even though gas prices have declined. APTA said more than 2.8 billion trips were taken on public transportation in the third quarter of 2008, up 6.5% from the third quarter of 2007 and the largest quarterly increase in public transportation ridership in 25 years.
APTA noted that, by contrast, vehicle miles of travel (VMT) on the nation's highways declined in the same period by 4.6%, according to the Federal Highway Administration.
For rail modes, light rail (modern streetcars, trolleys, and heritage trolleys) had the highest percentage of ridership increase among all modes,up 8.5% during quarter compared with the comparable period last year. Light rail systems showed double-digit increases in the following areas: Baltimore (19.6%); Minneapolis (18.3%); Sacramento (16.5%); New Jersey (15.9%); Los Angeles (15.3%); Dallas (15.2%); Denver (15%); Buffalo (13.4%); and Memphis (13.3%).
"The record increase in public transportation trips demonstrates the exceptional value of public transportation in today’s economy," said APTA President William W. Millar. "The fact that public transit ridership surged while gas prices and highway travel declined, shows a growing demand for more bus and rail services."
Regional rail ridership grew by 6.3%. Regional and commuter systems with double-digit ridership growth included: Albuquerque (35.8%); Pompano Beach, Fla. (32.9%); New Haven, Conn. (32.2%); Portland, Maine (29.6%); Oakland (26.1%); Stockton, Calif., (22.5%); Seattle (22.4%); Harrisburg/Philadelphia (21.7%); Dallas (18.8%); Los Angeles (17%); and San Carlos, Calif. (16.4%).
Heavy rail (subways and elevated trains) ridership increased by 5.2%, led by Los Angeles (14.1%), San Juan (13.5%), Lindenwold, N.J. (13.3%), Miami (12.2%). and Atlanta (11.3%).
Bus ridership posted the second largest ridership increase at 7.2%, and riderrship in communities with a population of less than 100,000 had an 11.6% increase.
APTA's ridership report is available at the association's website at www.apta.com/research/stats/ridership.
STB issues Final EIS in CN/EJ&E caseThe Surface Transportation Board announced Friday that its Section of Environmental Analysis (SEA) has issued its Final Environmental Impact Statement on Canadian National's proposed acquisition of Elgin, Joliet & Eastern, but cautioned that completion of the Final EIS "should not be interpreted as determinative of the board’s ultimate final decision on the merger."
The board also held open the possibility that its final decision in the case may be issued prior to Dec. 31, when CN's purchasing agreement with EJ&E's owners expires.
"In the final EIS, SEA identifies both potential beneficial and adverse environmental effects associated with the proposed truncation," said the board in its executive summary of the document. "The proposed acquisition would have beneficial environmental effects on communities located along the five CN rail lines leading into and out of Chicago, including decreased traffic delay, reduced noise, reduced emissions, and fewer shipments of hazardous materials by rail. Communities along the EJ&E rail line, however, would experience adverse effects, including increased traffic, delay, noise, air emissions, and the shipment of hazardous material by rail.
"Further, the Final EIS concludes that the preexisting conditions in communities on the EJ&E rail line--that is, substantial vehicular delay during peak travel times, and safety risks due to the high volume of cars, trucks, and current freight and passenger trains--are problematic. The proposed acquisition would likely exacerbate these preexisting conditions," STB said.
SEA recommends that a number of mitigation measures be imposed if the board approves the transaction, including these actions to taken by the applicants: funding of 15% of the cost of two grade separations; paying for installation of CCTV cameras to assist 13 emergency service responders in Illinois and Indiana; helping fund improvements to maintain the existing Quiet Zone in Barrington, Ill.; and establishing local agency liaisons to work with federal, state and local natural and water resource agencies to develop resource management plans.
As for the timing of a final decision, STB had this to say: "SEA anticipates that the U. S. Environmental Protection Agency (EPA) will publish notice of the availability the Final EIS in the Federal Register on Dec. 12, 2008. [Under existing regulations] agencies must wait 30 days from EPA's Federal Register notice before issuing a final decision unless they have an internal appeal process. The board has such a process, which means that the board could issue a final decision in less than 30 days from Dec. 12, 2008. If the board were to do so, SEA recommends that the board's administrative review period be expended to permit parties to seek agency reconsideration of the final decision within 30 days after it is served, rather than the typical 20 days. The board would consider any administrative appeals in a subsequent decision.”
Rail carload traffic tumbles 10% in NovemberReflecting a sharply worsening economy, U.S. railroad carload traffic was down 10.1% in November and intermodal traffic dropped 7.9%--"by far the largest monthly declines since we stated keeping track of monthly traffic in 1997 and probably since well before then," according to John Gray, senior vice president of the Association of American Railroads.
Seventeen of the 19 major carload categories showed declines in November. Those categories included: motor vehicles and equipment, down 32.%; chemicals, down 16%; metals and metal products, down 39.6%; and grain, down 16%.
Canadian rail carload traffic 12.3% in November, and intermodal traffic declined 7.7%. Carload traffic on Kansas City Southern de Mexico was down 17.7% while intermodal traffic declined 2.5%.
France orders Bombardier TRAXX locomotivesFrench Railways (SNCF) has placed an order with Bombardier Transportation for up to 80 TRAXX F140 DE locomotives, with an initial firm order for 45 locomotives valued at $203 million.
Bombardier points out that the TRAXX locomotive family is characterized by a modular concept. They are used in both freight and passenger service on international networks. So far, more than 1,300 TRAXX units have been sold.
Metro-North 'diagnoses' catenary conditionsMTA Metro-North Railroad, in conjunction with the Connecticut Department of Transportation, says it has hired two companies to help it conduct a high-tech diagnostic examination of its catenary system, located on its New Haven Line (Northeast Corridor) from Pelham, N.Y., to New Haven, Conn. The electrified New Canaan branch is included in the $400,000 contract.
Condrieu, France-based Gerken SAS, a manufacturer of carbon brushes, and Selectra, an Italian technical analysis concern, will help Metro-North photograph and examine the wires and associated support items, portions of which are 95 years old, using digital optics.
Metro-North says actual catenary conditions will be compared by computer to established criteria to ensure reliable operation and identify potential trouble spots.
Metro-North New Haven Line equipment also employs third-rail electric power to travel south of New Rochelle to and from Grand Central Terminal.
Report offers plan for New York MTA fundingA wide range of revenue sources would spread the cost pains suffered by New York's Metropolitan Transportation Authority, according to a commission report chaired by former MTA chief Richard Ravitch. The report seeks a regional payroll tax on employers in the MTA service area, new tolls on "free" bridges connecting Manhattan and the other boroughs, and fare and toll hikes averaging 8%.
Last month MTA warned it might require fare hikes of 23%, along with service reductions in bus and subway frequency on off-peak and weekend hours and even the elimination of some bus and subway routes altogether.
The commission's proposals must be approved by the New York State legislature and Gov. David Paterson. "My overall thought is we're going to have to make the tough choices; it's either going to one source of pain or another," Paterson said.
Capital projects would receive funding from the "mobility tax," proposed to be 33 cents per $100, aimed at regional employers. "It would be a totally new credit," Ravitch said. The funds would be placed in a new borrowing entity to ensure they were applied only to capital projects, and not diverted to fund operations as in past instances.
The proposal to place tolls on city-owned bridges is significant since it echoes and earlier effort by New York City Mayor Mike Bloomberg, which was defeated.
FTA approves rail link to Dulles AirportReversing its opposition of nearly a year ago, the Federal Transit Administration has given approval to extending Washington, D.C.'s Metrorail system to Tysons Corner and Dulles International Airport, both in Virginia. Approval from the Secretary of Transportation and the Office of Management and Budget is still required, but is expected.
FTA last year criticized the $5.2 billion Silver Line last year, citing cost overruns, delays, and concerns over project and operational management. Despite that, several Virginia and regional officials credited FTA with keeping the project alive.
"We've been pushing this boulder up the hill for years," said Sen. John W. Warner (R-Va.). "This is one of the best examples in my 30 years here of bipartisanship achieving an end result that benefits the entire greater Washington metropolitan area."
The 23-mile Silver Line would stretch from the current Metrorail Orange Line station at Falls Church past Dulles Airport and into Loudoun County. Supporters say the line may capture 60,000 riders a day.
Bombardier earnings top Street estimatesBombardier announced Thursday that it earned net income of $245 million in this year's third fiscal quarter, which ended Oct. 31, compared with $91 million in the same quarter last year. Per-share earnings were 14 cents in this year's quarter compared with five cents last year and exceeded Wall Street estimates by two cents. Consolidated revenue this year was $4.6 billion, compared with $4.2 billion in the 2007 quarter.
"We have delivered solid results again this quarter," said Pierre Beaudoin, president and CEO of Bombardier Inc. "During the quarter, Bombardier Aerospace continued to improve its EBIT margin, underscoring the focus on execution. Bombardier Transportation increased its revenues and EBIT margin and received a good level of new orders at $2.8 billion in a book-to-bill ratio of 1.2.
"Although it is too early to assess the severity and duration of the economic slowdown and its potential impact on both businesses, we are confident of our future, having taken significant steps in the last few years to strengthen our operations and financial position," said Beaudoin. "We have a backlog totaling $51.9 billion--representing an average of 2.7 years of revenue--spread across all business and geographies."
Beaudoin also said that "Bombardier Transportation should be less impacted as governments, through public entities, often increase spending on infrastructure projects during economic turndowns."
Bucking other unions, UTU backs Boardman choiceThe United Transportation Union is supporting the Amtrak board's choice of Federal Railroad Administrator Joseph Boardman to succeed Alex Kummant as president of the national passenger railroad though the leaders of 14 unions representing 14,000 Amtrak workers have expressed their "strong disappointment."
The unions that disapprove the appointment said in a statement Wednesday that the board "has tried to preempt the incoming Obama Administration from determining the direction of Amtrak." They said the board "rushed to put its stamp on Amtrak’s future, by first encouraging the resignation of Alex Kummant to create the vacancy, and then installing the person who represented the Bush Administration on the board as interim president and CEO."
In response, UTU spokesman Frank Wilner said on Thursday: "Joe Boardman was the most effective Federal Railroad Administrator in the 41-year history of the FRA. His commitment to improved rail safety and quality of life was unswerving and aggressive. He proved to be a friend of train and engine service employees.
"While the UTU shares the other rail organizations' concerns regarding the Amtrak board votes," said Wilmer, "we recognize hat Mr. Boardman was directly representing the Bush Administration as an Amtrak board member land was not independent in that activity. The UTU looks forward to working constructively with Mr. Boardman in his new role as Amtrak’s president and CEO."
Trucker offers stock in return for concessionsTrucking giant YRC Worldwide is offering employees represented by the Brotherhood of Teamsters a 15% ownership stake in the company if they will agree to changes in current labor agreements, including a 10% wage cut, suspension of the cost of living adjustment (COLA), and pensions plan modifications. Resulting savings to the company are estimated at $220 million to $250 million annually.
The offer applies to workers at YRC Worldwide's Yellow Transportation, Roadway, Holland, and New Penn business units.
"This modification would address our operating cost structure, which is higher than a number of companies in our industry, due primarily to pension funding plan obligations," said Bill Zollars, the company's chairman, president, and CEO. "Funding pensions for our own Teamsters employees is affordable; however, paying for all the retirees and former employees of failed companies required under our current plan makes us less competitive."
Seattle considers more streetcarsBuoyed by the success of the modest 1.3-mile South Lake Union Streetcar which began revenue operations almost one year ago, the Seattle City Council Transportation Committee is recommending streetcar operations be expanded to other parts of the city. The committee Tuesday voted 4-2 to support a proposed $685 million streetcar expansion, with lines running up First Hill (Hospital Hill), down 1st Avenue, and up to the University District, among other locations.
Full funding has not been identified for the proposal, which will be considered by the full City Council next week. But Seattle voters last month did approve some funds for the First Hill line as part of Proposition 1, a half-cent tax increase desilgned to provide $17.9 billion to Sound Transit during the next two decades.
Some critics of the proposed streetcar plan voice concern over the potential negative impact such a system would have on existing bus services.
Ridership on the South Lake Union Streetcar in 2008 reached 347,000 on October 1, "surpassing first-year ridership three months ahead of schedule," supporters say. The $52.1 million project, funded largely with local funds generated by a special tax district, opened Dec. 12, 2007.
Bombardier's SFO AirTrain contract renewedBombardier Transportation announced Wednesday that it will continue to operate and maintain the San Francisco International Airport's AirTrain system under a new, eight-year contract valued at around $100 million. The system uses Bombardier CX-100 technology, and Bombardier has operated it since it opened in 2003. The SFO AirTrain fleet of 38 vehicles serves nine stations along six miles of elevated guideway and has consistently surpassed the contract availability of 99.5%. It connects with the BART system.
Airport director John L. Martin commented: "Since start-up, the SFO AirTrain has been a model airport people mover system, with a high level of service and reliability, providing the critical link between the terminals, parking garages, rental car facility, and BART."
Bombardier notes that the SFO AirTrain was "the first transit system in the world to deploy communications-based train control--the Bombardier CITYFLO 650 ATC automatic train control technology."
CN, Amtrak agree on Chicago line accessEarlier commitments made by Canadian National are embodied in an agreement announced Wednesday that will ensure Amtrak's continued access to the St. Charles Air Line route for its trains between Union Station in Chicago and downstate Illinois destinations, including Carbondale and Champaign.
The agreement is part of CN's continuing effort to ease concerns about its proposed acquisition of the principal lines of the Elgin, Joliet & Eastern, to which it would divert some of the freight traffic that now moves through Chicago. The agreement also provides for CN to continue to maintain the route used by Amtrak.
CN is urging the Surface Transportation Board to reach a final decision on its proposal so that the transaction can close by the Dec. 31 deadline set by the parties to the purchase agreement. "We hope that the resolution of Amtrak's concerns will help the STB expedite its overall review to that end," said CN's president and CEO, E. Hunter Harrison.
Red signal's visibility in Metrolink crash questionedThe visibility of a red signal may be a factor in the Sept. 12 train collision in Chatsworth, Calif., involving a Metrolink passenger train and a Union Pacific freight train. Investigators from the National Transportation Safety Board have discovered that the red signal in question may not have been as clearly visible as the green and yellow displays.
"We did some signal inspections. Can't hardly see the red," one investigator reportedly told another before a meeting Sept. 15, three days after the crash.
Still unclear is how much of a factor such visibility contributed to the crash, which killed 25 and injured 135, and spurred congressional action to mandate Positive Train Control on U.S. routes sharing freight and passenger traffic by 2015. NTSB officials note that train collisions normally have more than one cause, and cell phone records indicate that the Metrolink engineer was using his cell phone just before the accident occurred.
San Francisco Central Subway gets environmental OKSan Francisco's proposed $1.3 billion Central Subway line, extending light rail service in Chinatown, has cleared federal environmental hurdles, making it more likely federal funding will be made available.
The San Francisco Municipal Transportation Agency Tuesday awarded a $147.4 million contract to Central Subways Partners, a joint venture of AECOM USA Inc. and EPC Consultants, to manage the project. SFMTA's Board of Supervisors must still sign off on the agreement.
"These developments are significant milestones for a project that is crucial to the future of transportation in San Francisco," said SFMTA Executive Director Nathaniel Ford.
Two route options identified for LA Gold LineA study has identified two feasible routes, out of 13 original options, for extending Los Angeles' Gold Line light rail line from Montclair to L.A./Ontario International Airport.
One route would travel east from Montclair along the Pacific Electric Trail before heading south along the Cucamonga Creek Channel to the airport. The second route would be built alongside the Metrolink track and south along the Cucamonga Creek Channel to the airport. Cost of the extension is estimated between $300 million and $400 million.
"We're seeing throughout the nation the extension of light rail to regional airports," said Mike Bair, director of transit and rail programs for San Bernardino Associated Governments. "If we can get to Montclair--and that's a big if--it's not a far stretch to go to the airport."
Denver RTD solicits public/private partnershipsDenver's Regional Transportation District plans to pay up to $5.25 million to three groups of bidders selected to submit potential money-saving proposals for privatizing two FasTracks light rail route projects under a design, build, operate, and maintain (DBOM) model.
RTD is packaging its East Corridor to Denver International Airport and the Gold Line to Arvada/Wheat Ridge with construction of a heavy-rail maintenance yard and facility into a single project, named Eagle P3, with "P3" signifying public/private partnership.
RTD says stipends, with a maximum of $1.75 million to each team, would give it ownership rights to all of the ideas that each team submits, with the right to use ideas from losing bidders to sweeten the final deal with a winning bidder. Rick Clarke, RTD's acting FasTracks program manager, said that without a stipend, it is possible that one or more of the teams would back out of the process.
Criticism of trans-Hudson rail tunnel mountsCriticism of New Jersey Transit's proposed $8.7 billion Access to the Region's Core Mass Transit Tunnel continues to surface, with a Monmouth County freeholder being the latest to object to the plan's shortcomings. Freeholder John D'Amico, in a letter to NJ Transit Executive Director Richard Sarles, has questioned why the current tunnel design bypasses Amtrak's Penn Station in New York, something Amtrak has also questioned discreetly.
D'Amico sent copies of his letter to Gov. Jon Corzine, the state's U.S. congressional delegation, and the North Jersey Transportation Planning Authority (NJTPA), the metropolitan planning organization (MPO) overseeing the project from the New Jersey side.
D'Amico, an NJTPA alternate member, says he supports building a second tunnel to augment two 100-year-old tubes under the Hudson, but said, "The principal concern is that the proposal, as it stands, eliminated construction of a tunnel to the existing Penn Station, which is essential to provide an alternative in case of a problem with one or both of the 100-year-old tunnels. That is the scariest defect in the proposal put forth."
"The National Association of Railroad Passengers and Amtrak have said unless there is a connection via the new tunnel to Penn Station, you don't have the redundancy you'd need if there is an emergency," D'Amico said. "Amtrak wouldn't have a way to get to New York if the old tunnels fail." D'Amico said he favors an alternative to connect the new tunnels to Penn Station, make some improvements there to accommodate the additional trains and to build a scaled-down station under 34th Street.
Besides NARP, several local rail advocacy groups have hammered at the project in its current form, arguing that it fails to plan for future regional needs. But NJT dismisses other alternatives as too expensive, as well as a threat to capturing the federal approval required for the project.
The concerns expressed by D'Amico, a Democrat, add a bipartisan balance to those questioning the project. Last month New Jersey Republican state senators, in a letter to New York Gov. David Paterson, called for New York State to pay part of the cost of the proposed tunnel.
New Jersey short line stores CSX idle gearCSX Corp. has tapped New Jersey short line Cape May Seashore Lines to store excess gondola cars currently idle due to the economic slowdown. "They are being stored right now. There's no demand for them," said CSX's Robert Sullivan. CMSL General Manager Anthony C. Macrie says the short line railroad is happy to provide space for car storage.
Residents in Dennis Township and Middle Township, N.J., began calling local officials when the railcars arrived, concerned over a perceived increase in rail traffic. "I'm worried for friends that live next to the railroad tracks in Dennisville," said South Dennis resident Ruth Fisher, who first reported the trains.
Countered West Cape May resident Paul Mulligan, "This is a reflection of the economy of today. With the slow economy, these cars have no work. They're getting them off the track and in storage."
CSX's Sullivan said the cars are empty and have never carried hazardous materials. CMSL's Macrie noted all 13 railroad companies in New Jersey are storing cars to ride out the bad economy.
Port of Tacoma applies GPS to speed inland rail movesThe Port of Tacoma announced Tuesday its intent to improve tracking its inland rail supply chain by testing a GPS system that tracks intermodal containers from portside terminal to destinations in the Midwest and eastern U.S.
Officials say the system will allow the port's intermodal planners to better understand inland rail issues and work with both railroads and shippers to improve freight rail delivery.
"We will be able to proactively work with our steamship and rail partners to plan for the future and make sure that Tacoma remains a high-velocity transit point in the global supply chain," said Rob Collins, Port of Tacoma manager of Transportation and Supply Chain Planning.
BNSF, ocean shipping line Yang Ming Line, and Edmonton, Alberta-based Safefreight Technology, the developer of the technology, are aiding the port in its efforts.
BNSF puts fuel surcharge changes on holdBNSF announced Tuesday that "due to current volatility in the fuel markets," it was postponing fuel surcharge changes that had been scheduled to take effect in January and February 2009. "These changes would have extended the mileage-based fuel surcharge program and increased the strike price on carload shipments from $1.25 to $2.50 per gallon of Highway Diesel Fuel," the railroad said. "We will continue to monitor the state of the fuel markets as the year progresses and provide an update no later than July 1, 2009."
Super Steel closing Schenectady plantMilwaukee-based Super Steel Products Inc. announced Monday that it would close its Super Steel Schenectady plant at Glenville, N.Y., by April 3, 2009, due to lack of business. Layoffs of around 170 workers will begin Jan. 31.
The company blamed the closure on "the dramatic slowdown in the global and national economies and steep decline in orders." Not affected is a Super Steel plant in Milwaukee that recently received a $22 million contract to assemble 10 commuter railcars for delivery in 2010.
After going into business in the mid-1990s, Super Steel Schenectady's 180,000-square-foot plant worked on a projects ranging from the assembly of General Motors locomotive destined for the Long Island Rail Road to the rebuilding of a fleet of turbotrains for the State of New York. Due to high operating costs and other problems, the partially rebuilt turbotrain fleet is in storage.
A Schenectady County legislator, Robert Farley, suggested that the decision to close the plant was a worst-case scenario precipitated by a recent law requiring 90 days' notice prior to a plant closing occurring on or after Feb. 1, 2009.
Timken wins Indian bearing orderIndian Railways has placed a $16 million order with the Timken Co. for Timken® AP™ Class E bearings for use on passenger and freight trains. Timken, which has supplied India's rail system for 20 years, noted that its AP bearing design reduces maintenance costs and improves fuel efficiency for a railroad that transports 18 million passengers and two million metric tons of freight a day.
EnerTeck and Class I plan fuel performance testsEnerTeck Corp. announced that its subsidiary EnerTeck Chemical, working with an unnamed Class I railroad, will begin a performance demonstration on Dec. 15 "of the fuel savings, environmental, and other benefits of the utilization of its principal product, EnerBurn® for the railroad industry."
The tests will be administered and monitored by an independent testing company, Janelle Engineering of Punta Gorda, Fla. ECC anticipates that the results "will confirm the projected 8-15% improvement in fuel economy, as well as demonstrating significant improvement in emissions levels."
NICTD taps Railhead Vision Systems for wireless videoRailhead Vision Systems has been chosen by the Northern Indiana Commuter Transportation District (NICTD), operator of the South Shore Railroad, to install a wireless video system on its 68-car passenger fleet. The Railhead Vision system is composed of a combination of 2 to 4 interior and/or exterior high-resolution cameras to capture all grade crossings and signals along the right-of-way regardless of weather, lighting conditions, or time of day. The system also simultaneously records events inside the passenger areas to improve the safety and security of the riders.
The Digital Video Recording (DVR) system records and displays GPS speed, map location, time, and the display from up to four cameras while also audibly recording the horn and bell for accident investigation. Video and event data can be downloaded wirelessly from select cars in the fleet for instant access to data from the coach cars to improve functionality and save time. An optional GPS mapping feature, which NICTD has chosen to include, allows for quick and easy search capabilities tying together location, time, and speed in the event that such data is required.
Austin weighs a second passenger rail lineAustin, Tex., remains on course to open its 32-mile diesel light rail transit (DLRT) Red Line next March, linking the state capital with Leander, but members of the Capital Area Metropolitan Planning Organization (CAMPO) Monday began reviewing plans for a second line to link Austin, Manor, and Elgin, Tex.
Planners estimate the second route, the Green Line, would cost between $161 million to $192 million to build. Voter approval for the line is required. The new route likely also would operate DLRT equipment; operator Capital Metropolitan Transportation Authority currently owns six Stadler-Bussnag diesel units to be used on the Red Line.
Accidents down, fatalities up slightly in nine monthsWith 716 large and small U.S. railroads reporting, total accidents and incidents in this year's first nine months were down 10.3% to 9,232 compared with the corresponding period last year, according to the Federal Railroad Administration's Office of Safety Analysis.
Fatalities were up fractionally in this year's January-September period, to 637 from 633. These included 370 trespasser fatalities, an increase of 6.9%; 214 grade crossing fatalities, a decrease of 17.1%; and 20 employee fatalities, compared with 10 last year.
Train accidents this year declined 9.5% to 1,828; collisions increased 2.1 % to 148; and derailments were down 10.6% to 1,322. Yard accidents declined 4.1% to 1,003.
Minneapolis suburbs plan development ahead of LRTMinnesota's proposed Southwest Light Rail Transit line from Minneapolis to suburban Eden Prairie is by no means a done deal, but four municipalities--Eden Prairie itself, St.Louis Park, Hopkins, and Minnetonka--are anticipating its arrival by planing future economic development and zoning.
The 14-mile proposed LRT route is scheduled to commence revenue operations, at the earliest, in 2015. But, "Overall, we see it as a great improvement to the quality of life for Hopkins residents," said Kersten Elverum, Hopkins' director of planning and economic development. "People are just so excited about the opportunity to use light rail to get downtown. We see it as one more reason that Hopkins is unique and really well positioned to be a livable, walkable, great place to live into the future."
St. Louis Park is likewise upbeat. "We're very excited about the prospects of light rail transit," said Community Development Director Kevin Locke. Pedestrian-oriented housing is already in place in the city's Elmwood neighborhood because the proposed Wooddale Avenue light rail station site is nearby, Locke said.