March 2007


March 29, 2007
BNSF, NS provide ECP details

Following the Federal Railroad Administration’s issuance of a waiver that covers testing of electronically controlled pneumatic (ECP) brakes, Norfolk Southern and BNSF Railway have released a few details about how they are going to proceed.

Each railroad will conduct separate tests. NS plans to equip 30 locomotives and 400 rapid-discharge coal hopper cars with ECP brakes during 2007 and use the equipment in dedicated coal train service. BNSF plans to test ECP within its intermodal fleet, focusing on international business to/from the San Pedro Bay ports. In addition, BNSF is pursing a partnership with an undisclosed major coal customer “to integrate this technology into one of the longest distance coal routes in the country.”

The FRA waiver, granted on March 21, applies specifically to air brake inspections covered under 49 CFR Part 232, “Brake System Safety Standards for Freight and Other Non-Passenger Trains and Equipment.” It allows a train operating in ECP brake mode to operate to its destination or up to 3,500 miles, whichever is less, without stopping to undergo certain routine brake inspections—more than double the distance currently allowed by federal regulations.

FRA placed several conditions on the waiver approval, including requirements that the railroads “clearly define a process for handling brake problems discovered en route; ensure that ECP brake inspections be performed by qualified individuals; and provide appropriate training to crew members.” The waiver will permit FRA to gather data to be used in developing a proposed rulemaking on ECP brakes. (A copy of the FRA waiver approval letter as well as other information on FRA’s ECP brake program can be found at www.fra.dot.gov/us/Content/1713.)

“ECP brakes represent a major breakthrough in rail technology,” said Norfolk Southern Vice President Operations Planning and Support Gerhard Thelen. “Our tests will help determine how the technology performs in a real-world environment and will indicate whether it will be practical to one day make it commonplace across the entire U.S. rail industry” (which is FRA’s ultimate goal). Added BNSF Vice President-Transportation Dave Dealy, “BNSF plans to expand the testing of this important technology. By leveraging our past experience, BNSF looks forward to building on this foundation to allow further implementation of ECP into our intermodal and coal shipments.”

March 29, 2007
EPA certifies NREC locomotives

The U.S. Environmental Protection Agency has certified National Railway Equipment Co.’s three-engine, 2,100-hp GenSet locomotives. The certification includes NREC’s N-ViroMotive four-axle 3GS-21B and six-axle 3GS-21C models, which have a switching and line-haul NOx Federal Emission Limit of 3.0 g/bhp-hr. “These NOx emissions levels are best in class worldwide for original equipment manufacturers of freight haul locomotives,” said NREC. “It is effectively five to eight years in advance of future anticipated EPA emissions regulations for new freight haul locomotives.”

In addition to receiving EPA certification, NREC has been recognized recently by the California Air Resources Board (CARB) and the Texas Commission on Environmental Quality (TCEQ) as an original equipment manufacturer of Ultra Low Emitting Locomotives.

March 29, 2007
CN prepares Wall Street for lower-than-expected first quarter results

CN, which will be issuing its first-quarter earnings report shortly, today issued an advisory to Wall Street that its first-quarter 2007 diluted earnings per share should fall 5%-10% below year-earlier diluted EPS of C$0.66. CN attributed the expected drop to severe weather conditions experienced in western Canada in January and February, the 15-day UTU strike in February involving 2,800 train and engine service crewpersons, and landslides in British Columbia that have hampered recovery operations for delayed traffic. “We expect a tough first quarter, but our recovery program is ongoing and we will continue to make every effort to deliver diluted earnings per share growth of 10%-plus for the full-year 2007,” said CN President and CEO E. Hunter Harrison.

March 29, 2007
Reject mini-tender offer, CSX advises shareholders

CSX said it has recommended that its shareholders reject a “mini-tender” offer by TRC Capital Corp. of $35.50 cents a share for up to three million shares of CSX’s common stock, or about two-thirds of one per cent of the outstanding total.

In announcing the unsolicited tender offer on March 28, CSX noted that the offer was 3.38% lower than the closing price of CSX’s stock on March 14, the day prior to the date of the offer, and a 9.16% discount to the March 27 closing price of $39.08.

CSX pointed out that the Securities Exchange Commission has issued an investor’s alert concerning mini-tender offers in which bidders are “hoping that they will catch investors off guard if the investors do not compare the offer price to the current market price.”

March 29, 2007
UP races to reopen Sacramento bridge

Just 12 days after fire consumed much of Union Pacific’s 2,500-foot wooden trestle over the American River in Sacramento on March 15, main track one was rebuilt and back in service. The work was completed at 1:30 a.m. on March 27 and the first train operated over the new structure at 1:50 a.m. With working conditions described as “good,” UP scheduled completion of main track two for April 3.

About 50 trains a day use this line and were detoured over other UP routes during the closure. UP originally estimated that it would take two to three weeks to reopen the first of the two tracks.

March 29, 2007
Bombardier doubles per-share profit

An “exceptional year” at Bombardier Transportation helped Bombardier post income from continuing operations of $243 million in the fiscal year ended Jan. 31, 2007. This amounted to 12 cents per share, double the six cents earned the previous year.

“Our fiscal 2007 financial results show that we reaping the benefits of the measures we implemented in recent years,” said Bombardier Chairman and CEO Laurent Beaudoin. “Bombardier Transportation had an exceptional year, breaking industry records in terms of new orders and total backlog. At Bombardier Aerospace, deliveries and order intake rose to the highest level ever for the group.”

New orders worth $11.8 billion were placed with Bombardier Transportation by such diverse customers as the Chicago Transit Authority, the Gautrain Rapid Rail Link in South Africa, and the Greater Paris/Ile de France suburban network. The order backlog at the end of the fiscal year amounted to $27.5 billion, up $6.6 billion from the prior year.

March 29, 2007
UP adopts SolArc fuel management tool

Houston-based Solar, Inc. announced that Union Pacific has adopted SolArc RightAngle software to manage locomotive fueling. “The system’s ability to manage physical logistics will help address price and potential cost concerns associated with fueling our locomotives,” said James Whitkaer, UP’s director of fuel purchasing. According to the supplier, “SolArc RightAngle integrates deal capture, scheduling, inventory management, pricing, accounting, and position reporting and risk analysis in a single platform solution.”

March 29, 2007
Norfolk Southern increases share repurchase authorization

Norfolk Southern’s board of directors has increased from 50 million to 75 million the number of its shares that may be repurchased under a program that started in November 2005. Through March 26, approximately 27.2 million shares were repurchased for $1.2 billion, including 5.4 million repurchased for $263.4 million so far in this year’s first quarter. As of Jan. 31, NS had 397 million shares outstanding.

March 29, 2007
UP ends new-service coal embargo

Union Pacific announced the end, effective March 27, of an embargo in place since July 18, 2005, on new service from all stations on the Joint Line serving the Southern Powder River Basin coalfields of Wyoming. Doug Glass, UP’s vice president-Energy, said that during a period when an aggressive track work program was under way, “The embargo allowed us to protect service to our existing customers without being forced to transport coal to new customers.”

March 27, 2007
Global Railway's Bach-Simpson wins event recorder orders

Global Railway Industries Ltd., announced that its Bach-Simpson Corp.
subsidiary has signed contracts worth up to $6.8 million, with  options,
to provide event recorders for installation on commuter cars being delivered
to operators in the New York, Los Angeles, and Chicago areas.

Bach-Simpson President Paul Weber said the company's equipment meets the
mandate of safety boards in both the U. S. and Canada for  crash-survivable
event date recorders aboard commuter cars and locomotives.

March 27, 2007
Hand-held readers speed event reporting

To improve the timeliness of event reporting,  Farmrail System crews are
using hand-held AEI (automatic equipment identification) readers to capture
railcar movement events in the field and report them in near  real-time.
Farmrail uses RAILTCRAC®Mobile™  readers provided by iNet and integrated
with RMI&'s RailConnect Transportation Management System. Judy Petty,
controller for Farmrail and chair of an American Short Line and Regional
Railroad Association committee that has been working to improve event
reporting, comments:

"Using RMI's RailConnect TMS, we have  always reported car movement events
to the industry within minutes of when they were entered in the system.
However, because of delays in communicating completed work from the train
crews to the clerks, the timeliness of event reporting was sometimes not as
fast as we needed it to be." She added that with use of the portable
readers, "We have eliminated these delays."

March 27, 2007
FRA finds continued safety problems at CSX

Commenting on the results of a four-day "focused" safety inspection at CSX
Transportation, Federal Railroad Administrator Joseph Boardman said today
that despite general improvement, "The railroad is still not doing enough to
make safety a top  priority."

"Indeed, FRA inspectors identified problems in every area of the company's
safety performance, including track, hazardous materials,  and on-track
equipment," said Boardman. "The recommendation to assess 199 safety
violations against CSX will be taken seriously as the federal investigation
into the railroad's safety program continues."

The focused inspection, which utilized 20% of  the FRA inspector force, was
conducted Jan. 19-22 following a CSX derailment  in East Rochester, N.Y.
"and other recent CSX accidents."

FRA said its inspectors "conducted 583 inspections and found a total of
3,518 defects, or evidence of non-compliance with federal rail safety or
hazardous materials regulations. A defect, per se, does not indicate an
imminent hazard,  but it is something the FRA inspector notifies the
railroad of and it must be corrected. A violation is a serious case of
non-compliance with federal regulations. The 199 violations recommended for
civil penalties are presently being reviewed by the FRA."

March 26, 2007
FRA grants waiver on ECP brake trials

The Federal Railroad Administration has taken an initial step toward granting railroads regulatory relief to conduct long-distance trials of ECP (electronically controlled pneumatic) brakes, with the intent of collecting data to be used in FRA’s pending rulemaking on ECP brakes.

FRA last week granted a waiver to BNSF Railway and Norfolk Southern to begin equipping and operating long-distance pilot trains with ECP brakes. The waiver applies specifically to air brake inspections covered under 49 CFR Part 232, “Brake System Safety Standards for Freight and Other Non-Passenger Trains and Equipment.”

“FRA has decided that, in order to demonstrate the safety and efficacy of ECP brakes in a practical commercial setting, it is necessary to permit a train operating in ECP brake mode to operate to its destination or 3,500 miles, whichever is less, without receiving another Class I brake inspection or an inspection under Part 215,” the agency said. “As a practical matter, railroads are most likely to use ECP brakes first on such trains as intermodal trains from West Coast ports to Chicago or unit coal trains from the Powder River Basin to distant power plants. A valid demonstration of the technology should address that reality.”

The railroads had also asked for a waiver on certain provisions of 49 CFR Part 229, “Railroad Locomotive Safety Standards.” FRA denied this request, which would have affected calendar-day inspections of locomotives used in ECP brake-equipped trains, but did “invite petitioners to present alternatives for handling defects that are found during these inspections when performed enroute on ECP brake-equipped trains.”

In granting the waiver, FRA rejected arguments of the United Transportation Union and Brotherhood of Railway Carmen and Brotherhood of Locomotive Engineers and Trainmen opposing the railroads’ petition. The BRC, for example, argued that BNSF and NS had not proven that ECP brakes afford the same level of safety as visual inspection by Carmen, in that they “merely monitor the pressure in the system and are incapable of detecting unsafe conditions,” such as defective handbrakes, brake shoes, or brake rigging components.

The complete text of the waiver notice can be found at http://dmses.dot.gov/docimages/p89/461480.pdf.

March 26, 2007
R. J. Corman, DM&E win FRA loans totaling $107 million

The Federal Railroad Administration announced approval of an RRIF (Railroad Rehabilitation and Improvement Financing) loan of $58.9 million to the R. J. Corman Railroad Group and a $48.3 million loan to the Dakota, Minnesota & Eastern.

R. J. Corman, which operates eight short lines in Kentucky, West Virginia, Pennsylvania, Ohio, and Tennessee, will use its loan to rehabilitate 24 locomotives and to buy 200 new centerbeam flat cars and 100 new coal hopper cars. Part of the loan will be used to refinance debt incurred for the purchase of railroad property, facilities, cars, and heavy maintenance equipment.

The DM&E loan will be used for safety and service improvements between Wall, S. D., and Colony, Wyo. DM&E says the improvements will be made to accommodate heavy cars that haul grain, ethanol, and minerals. FRA noted that it evaluated this loan separately from DM&E’s request for a $2.3 billion loan to help expand the railroad to the Powder River Basin coalfields. FRA rejected that loan.

March 26, 2007
NS customers build 70 new, 45 expanded facilities

Norfolk Southern expects eventually to pick up 98,000 new carloads of traffic annually from the $2 billion investment that NS customers made last year in 70 new and 45 expanded facilities along the railroad’s lines. The new facilities included a $240 million Gatorade plant that will be the first major rail customer in Progress Park, Wythe County, Va.

March 26, 2007
Alameda Corridor train traffic up 15% in 2006

The 20-mile Alameda Transportation Corridor serving the San Pedro Bay ports of Los Angeles and Long Beach carried 19,924 trains n 2006, an average of 55 a day, according to a trade impact study released March 22. The study also showed that nearly five million Twenty-foot Equivalent Units (TEUs) moved via the corridor last year, a 32% increase over the prior year.

“With more than $256 billion in containerized trade moving through the San Pedro bay ports, this study illustrates the need for a continued federal and state commitment to supporting and improving Southern California’s goods movement infrastructure network,” said the Alameda Corridor Authority.

March 22, 2007
MTA beefs up security on commuter trains

The New York MTA has teamed up with the Transportation Security Administration and other New York State law enforcement groups to step up security on its commuter rail properties. The new “Directed Patrol Strategy” increases the number of law enforcement officials patrolling MTA’s Metro-North Railroad and Long Island Rail Road, and will become a permanent part of MTA’s overall security strategy, which includes the well-known public awareness “See Something, Say Something” campaign.

Starting this week, MTA police officers will begin train inspections and deploy their 50 explosive-trained K-9 teams. In addition, TSA will, for the first time, send teams of marshals onto commuter trains; the New York State Police will inspect commuter rail territories; county and municipal police departments located in MNR, LIRR, and Staten Island Railroad service areas will boost patrols at stations, on platforms, and in parking lots; and officers from the New York Police Department will augment patrols in Queens and the Bronx. All officers will be deployed in random patterns, following TSA’s approach of “delivering visible, unpredictable deterrents.”

“Through this security initiative, we have maximized our security resources and taken full advantage of our regional partners,” said Elliot G. Sander, MTA’s executive director and CEO. But there’s more to be done, he pointed out. “We are hopeful that legislation pending in Washington will soon provide the MTA and other mass transit agencies across the country with the resources to do an even better job keeping our customers safe.”

March 22, 2007
Hawthorne retiring after 35 years

After 35 years of distinguished service in the railroad industry, all of them with the Association of American Railroads, Transportation Technology Center, Inc. Vice President-Technology Keith Hawthorne will be retiring, effective March 30. Hawthorne began his AAR career in 1972 in Washington, D.C. as a Research Engineer. He was later transferred to the Chicago Technical Center, where he became part of the Research and Test Department. He soon became CTC's Director of Safety and Applied Technology, and then went on to become Director of Track Train Dynamics, Technical Director, and Assistant Vice President. In 1992, Hawthorne moved to TTCI in Pueblo, Colo., where he served as Senior Assistant Vice President until 1997. The Track Train Dynamics Program, developed to understand and mitigate severe derailment problems that railroads were facing at the time, was particularly successful under his leadership. Another highly successful program he initiated at TTCI was the Safety Resource Team, an employee-led safety program that concentrated primarily on identifying and correcting safety hazards and is now part of OSHA's recommended practices for managing safety in the workplace.


March 21, 2007
Fatigue a “likely” factor in fatal CN collision

The National Transportation Safety Board says that fatigue may have contributed to a head-on collision of two CN freight trains that killed all four crewmembers. NTSB found that failure of the northbound train’s crew to comply with wayside signals was the probable cause of the collision in Anding, Miss., on July 10, 2005. “The crew’s attention to the signals was most likely reduced by fatigue, although other factors cannot be ruled out,” the board added.

“Based on a review of the crew’s 72-hour work/rest history prior to the accident, and the crew’s previous five-day work schedule, the board believes that the train crew’s short sleep periods likely led to their developing a cumulative sleep loss, or sleep debt,” said the announcement, issued March 20, summarizing NTSB’s findings. “Sleep debt occurs when an individual does not obtain sufficient restorative sleep over time.”

Contributing to the accident, said the board, was the absence of a positive train control (PTC) system that would have stopped the northbound train before it exceeded its authorized limits.

“This was an accident that could have been prevented,” concluded NTSB
Chairman Mark V. Rosenker. “We will continue to promote and reiterate the importance of having positive train control on our railroad system.”

March 21, 2007
With Dow partnership, CHEMTREC® builds its “one-stop-shop” for emergency response

Starting this spring, the American Chemistry Council’s Chemical Transportation Emergency Center (CHEMTREC®) will have access to Dow Chemical Co.’s realtime, Web-based railcar tracking system. Similar to the CHEMTREC®/CSX Transportation partnership begun one year ago (RA, January 2006, p. 15), the new “full-scale demonstration” will help responders quickly locate Dow hazmat cars, determine the cars’ condition, and confirm what’s inside them during emergency and non-emergency situations.

“While CHEMTREC® will benefit from this additional resource, emergency response teams and the communities they serve are the real beneficiaries as this program will help to ensure they have access to the timely and critical information they need,” CHEMTREC® Managing Director Randy Speight said during today’s press conference. The information from Dow will supplement CHEMTREC®’s comprehensive chemical reference materials and network of experts plus data supplied by CSX, Federal Railroad Administration, and other industry partnerships. “We are bringing technology and data together for a one-stop-shop,” he added.

Earlier this year, Dow worked with various stakeholders--from the Departments of Homeland Security and Transportation to CSX, Union Pacific, the Association of American Railroads’ hazmat committee, and responder groups like the International Association of Fire Chiefs--to better understand their information needs. As a result, Dow will equip its existing Toxic Inhalation Hazard (TIH) material railcar fleet with GPS technology and leak, tamper, and temperature sensors. If, for example, a tank car valve is being tampered with, a signal will be transmitted from the sensor to a satellite, which will then send an alert to Dow and CHEMTREC®, so they can take action. Both parties also will be notified when TIH cars enter locations with “virtual” fence technology such as loading and unloading facilities and DHS-designated high-threat urban areas like Washington, D.C. (RA, January 2006, p. 59). No federal funds are supporting this initiative.

“We are leading an effort to help demonstrate what technology is capable of doing,” Dow Director of Transportation Safety and Security Henry Ward said today.

The effort will not only improve security, it will increase supply chain visibility. And it goes beyond what’s required by the government for safe and secure hazmat transport. Could the initiative be integrated into the Transportation Security Administration’s pending TIH rail transportation security rules (RA, January p. 12)? Ward would not comment directly, but he stressed that technology is critical to supply chain security. “Technology needs to play an important role here and will be a factor in any regulatory development program,” he pointed out.

Dow plans to expand the initiative to include other hazardous commodities in the future.

According to Ward, "track-and-trace for shipment visibility" is just one part of Dow’s "comprehensive, integrated approach to chemical security," which also includes the Next-Generation Rail Tank Car project (RA, March, p. 13).

March 21, 2007
Global Rail doubles net earnings

On revenues that increased 6.7% to $31.9 million, Global Railway Industries last year posted net earnings from continuing operations of $3.6 million, double the $1.8 million recorded the previous year. In fourth-quarter 2006, revenues increased 6.3% to $7.6l million and net earnings from continuing operations climbed to $0.7 million from a $40,000 loss in the prior-year quarter.

“The sales growth for the year reflects continued strong demand in the railroad and rail transit industries served by the company,” said President and CEO Terry McManaman. Based on increased capital spending plans announced by all major North American railroads and many transit authorities, the company said it anticipates “strong revenue growth” in 2007.

March 21, 2007
Loram buys Tangent Rail grinding division

Pittsburgh-based Tangent Rail Corp. announced that it has sold its rail grinding division to Loram Maintenance of Way, Inc., of Hamel, Minn. Loram acquired Tangent Rail’s rail grinding fleet and hired most of the personnel associated with its operation, said today’s announcement. Tangent Rail said it would now focus on its core business of supplying the railroad industry with treated wood products and preservatives, switching and track maintenance services, and tie pickup and disposal.

March 20, 2007
TrentonWorks future still unclear

The Greenbrier Companies announced that its TrentronWorks freight car plant in Nova Scotia has reached a new three-year agreement with its unionized workers and is no longer operating under a strike vote. But Greenbrier President and CEO William Furman said “TrentonWorks’ future will remain on the agenda of the April meeting of Greenbrier’s board of directors.”

“I am pleased that a new agreement has been reached,” said Furman. “It keeps our people at work and protects our customers. Also, it removes some uncertainty about the labor situation at Trenton, and some progress has been made on the severe economic disadvantages which face this facility. While we did not get everything we had hoped to achieve with the contract, we are still discussing with government representatives how the local economic outlook can be improved."

In announcing the labor settlement, Greenbrier noted that “discussions have been tense due to the company’s request for cost and productivity concessions.”



March 19, 2007
FRA scrutinizing CSX track in New York State

Following several recent high-profile derailments in New York State, the Federal Railroad Administration has deployed its T-16 track geometry inspection vehicle on CSX Transportation’s Albany-Buffalo main line, the ex-New York Central/Conrail “Water Level Route,” which is also used by Amtrak. Nearly 1,300 track-miles will be inspected for lining/leveling and gage tolerance.

During the next two days, the T-16 will inspect the Albany-Buffalo main, as well secondary lines to Niagara Falls and to Ripley at the Pennsylvania border. The itinerary will take the T-16 through Oneida, Rochester, and Cheektowaga, where several derailments have occurred. In addition, FRA’s T-18 Gage Restraint Measurement System (GRMS) vehicle has been deployed to inspect for such weaknesses in the track structure such as bad crossties and compromised fastening systems that could cause gauge widening and rail rollover under heavy axle loads. Both vehicles use measurement systems developed by Ensco.

FRA has also begun a quality assessment of CSX’s rail inspection program, starting in New York and then extending it to the railroad’s entire network. FRA says it “is interested in learning what criteria CSX uses to determine how frequently the company inspects its own tracks beyond current federal requirements, if track improvement decisions are made differently when a line has hazardous material or passenger rail traffic, and how track problems are identified and resolved including the use of technology to find flaws. The results of this risk reduction approach will be used to guide similar FRA evaluations of other railroads.”

In addition, FRA is performing a safety review of railroad bridges in western New York.

March 19, 2007
Railway Age announces Short Line and Regional Railroads of the Year

Railway Age magazine has named Nicholasville, Ky.-based R.J. Corman Railroad Group’s West Virginia Line (RJCV) as 2007 Short Line Railroad of the Year, and Jacksonville, Fla.-based Florida East Coast Railway 2007 Regional Railroad of the Year. The awards will be presented at the American Short Line and Regional Railroad Association’s annual meeting in Baltimore, Md., on April 23.

“This year’s winners show the small-road industry what it takes to be a top performer,” says Railway Age Publisher Robert P. DeMarco. “It’s all about strong marketing efforts, first-class customer service, effective asset utilization, wise capital investments, teamwork within the organization and with connecting roads, and, above all, safe operations.”

The West Virginia Line--one of nine R.J. Corman-owned short lines--is being honored for its “spirit of innovation,” demonstrated by a business development partnership with CSX Transportation. The winning entry was submitted by CSXT Director-Regional and Short Line Development Len Kellermann, on behalf of R.J. Corman Railroad Co. President Pete Petree.

In July 2005, R.J. Corman acquired RJCV, a former switch carrier with limited freight traffic. In the spring of 2006, R.J. Corman’s construction company established a 125-person construction crew and its own town near Pax, W.Va., rehabilitated 12 miles of existing track, and completely reconstructed another four miles in less than 90 days. Not only has the work enhanced service to Georgia Pacific, Austin Powder, and Tanner Industries, R.J. Corman’s construction company renewed a 1,100-foot tunnel providing new service to Pioneer Fuel Co.’s new coal loading facility at Pax, W.Va. RJCV and CSXT created joint line freight rates and seamless interline services, generating more than 4,900 new carloads of coal business in the last five months of 2006 alone.

“A combination of speed to market, cooperation, and an intense focus on delivering for mutual customers characterized both carriers’ efforts, but especially R.J. Corman’s,” says Kellermann. “Collaboration with the origin coal shipper was similarly fast and effective, and led to new rail business immediately being accommodated. Customers are pleased with the existing service and will continue to ship long into the future.”

The 351-mile Florida East Coast Railway (FEC) is being recognized for overall excellence. John Lucas, FEC’s Vice President/General Manager-Intermodal Marketing and Sales, submitted the winning entry.

Lucas reports that FEC revenues grew 11% to $264 million, including 2.9% real growth compounded by 8.1% yield gains, and its operating ratio improved by 2.9 percentage points to 70.3%. The Class II regional achieved these records by focusing on several key initiatives. Customers come first at FEC, which is why it operates a scheduled through-train network for both intermodal and carload business. Going one step further in 2006, the regional began developing scheduled local service, working closely with 200-plus carload customers.

By managing expenses, FEC boosted revenue per employee 10% over 2005, and approximately 40% since 2003; and saw expenses per track-mile rise just 7% over 2005, even with capital improvement projects totaling $45 million in 2006. The projects included building 12-plus miles of double track, upgrading three terminals, and leasing four new SD70M-2 high-horsepower, low-emissions locomotives from Electro-Motive Diesel.

Asset utilization is critical to FEC’s success. Following the industry trend toward containerization, and in an effort to improve train capacity/productivity, the railroad began a first-ever beta test for domestic containers last year. Working with its largest intermodal customer, Crowley Liner Service, for supply, FEC added 100 53-foot container/chassis combinations to its private fleet, and has since been able to create train-length capacity between Jacksonville and South Florida due to increased doublestacks. The test, which focused on BJ’s Wholesale Clubs as the target customer, has proven to be a success. FEC plans to expand the service later this year.

Facility audits, safety blitzes, and leadership programs have helped FEC improve safety and contributed to the railroad’s designation as a Gold Harriman Award winner in 2005. “Over the last few years, FEC has increased its focus on safety, stressing to employees the importance of no compromise on safety and constantly being your brother’s keeper across the railroad,” says Lucas. “FEC has seen an 81% improvement since 2002 in the number of reportable injuries.”

The Short Line and Regional Railroads of the Year will be featured in Railway Age’s April issue.


March 16, 2007
FRA responds to recent New York State rail accidents

While U.S. Sen. Charles E. Schumer (D-N.Y.) has proposed forming a special task force to investigate recent rail accidents in New York State, the Federal Railroad Administration says it is taking "aggressive steps to find out what went wrong." The agency is "actively conducting comprehensive accident investigations, performing a safety review of railroad bridges in western New York, and scheduling one of our automated track inspection vehicles to check track across the State this spring," FRA Administrator Joseph H. Boardman said in a statement. "I am committed to taking all necessary action to determine why these train accidents happened and will assess penalties against those who violated federal rail safety regulations." Boardman also said that he has asked FRA's regional office to "expedite our investigations into CSX accidents in New York so we can use the findings to guide our next actions to prevent future accidents from occurring."

The most recent New York State accident took place March 12, when a CSX freight train derailed near Oneida, N.Y.

March 16, 2007
NICTD places $48 million car order with Sumitomo/Nippon Sharyo

The Northern Indiana Commuter Transportation District has awarded a $48 million contract to Sumitomo Corp. of America and Nippon Sharyo, Ltd. (and its U.S. affiliate) to build 14 new EMU commuter cars, with an option for six more. Railway Age first reported in January that the order would develop (RA, Jan. p. G3).

The carbodies will be built in Nippon Sharyo’s Toyokawa plant in Japan, with final assembly to be conducted at Super Steel’s plant in Milwaukee, Wis. Delivery is slated to start in December 2008 and continue through March 2009.

The Sumitomo and Nippon Sharyo team have delivered more than 900 railcars to the U.S. passenger rail market since 1980, including 300 bilevel commuter and 26 EMU commuter cars for Chicago’s Metra. It is currently working on an order for 61 bilevel commuter cars for Virginia Railway Express.

March 15, 2007
KCS foresees strong revenue growth

Kansas City Southern stock rose more than 3.8% in trading on the New York Stock Exchange following a forecast that the company’s revenues will rise 10% to 14% a year for the next five years as new business comes aboard, both in the U.S. and in Mexico. At a meeting with analysts and investors in Kansas City yesterday, CEO Michael Haverty said he expected intermodal traffic to be a prime driver of new business.


March 15, 2007
Senate budget plan has $1.78 billion for Amtrak

“We’re on our way to building a 21st Century rail system,” commented U.S. Sen. Frank Lautenberg (D-N.J.) as he announced the inclusion of $1.78 billion for Amtrak in the Senate’s FY 2008 budget plan. That’s nearly double the $900 million proposed by the Bush Administration, which like the Senate figure, includes $100 million in grants to be matched by states. Amtrak’s appropriation this year is $1.3 billion. Amtrak’s own FY 2008 request is for $1.68 billion.

March 15, 2007
Schumer seeks rail safety probe in New York

In the wake of the fiery derailment of a CSX freight near Oneida, N.Y., on March 12, U.S. Sen. Charles E. Schumer (D-N.Y) asked for the creation of a special task force to investigate a number of accidents that have occurred in upstate New York. Schumer said 572 accidents in the area since 2000 have caused $34 million in damage. Schumer has also proposed a Rail Crossing and Hazardous Materials Act that he said would give the Federal Railroad Administration “the teeth” to go after safety violators.

March 15, 2007
Shippers have their own Capitol Hill Day

Consumers United for Rail Equity (CURE) said it expected 300 shippers to descend on Washington today to press for action to fix “a broken rail system.” Their proposed fix is embodied in the Railroad Antitrust Enforcement Act of 2007, which has been introduced by a bipartisan group of senators including Herb Kohl (D-Wis.), Norm Coleman (R.-Minn), Russ Feingold (D-Wis.), David Vitter (R-La.), and Jay Rockefeller (D.-W.Va.). CURE Chairman Glenn English, a former U.S. Congressman, said the legislation will provide customers “with access to rail service options and a venue to challenge market power abuses.”

March 15, 2007
Transportation Services Index down in January

The Bureau of Transportation Statistics announced that the Transportation Services Index (TSI) dropped 0.6% in January from December, falling after a one-month rise. It was the fifth decline in the past eight months and the 19th decline in the 37 months since January 2004. It was the first December-to-January decline since 2004. The TSI for freight fell 0.4 in January and the TSI for passengers fell 0.9%. The TSI is a single seasonally adjusted index of the month-to-month changes in the output of services by the railroad, air, truck, inland waterways, pipeline, and local transit industries.

March 15, 2007
Muni gears up for full operation of T-Third

While weekend-only service started January 13, full service on San Francisco Muni’s new 5.1-mile Third Street Light Rail line (T-Third) will kick off April 7. The line serves 18 stations and runs from Fourth and King streets to Sunnydale in Visitacion Valley.

As part of the $648 million project, a Metro East Light Rail Vehicle Facility is currently under construction on the eastern edge of San Francisco to alleviate overcrowding conditions at other maintenance and operations facilities. T-Third is employing Muni’s existing fleet of Breda LRVs.

March 15, 2007
CATS takes delivery of final Siemens LRV

North Carolina’s Charlotte Area Transit System is ready to carry the first light rail riders the area has seen in nearly 60 years. While the 9.6-mile LYNX Blue Line won’t be up and running until November, Siemens Transportation Systems delivered the last of 16 LRVs, which will operate between Interstate 485/South Boulevard and Seventh Street in Center City. The $462.7 million system is expected achieve daily ridership of 9,100 in its first year of operation, and 18,300 by 2025.

March 14, 2007
Tunnel walls: The next advertising vehicle for BART?

Bay Area Rapid Transit today launched a 30-day test of motion-picture advertising in a tunnel connecting the Montgomery Street and Embarcadero stations. Over the past year, SideTrack Technologies, INC, and CBS Outdoor have mounted a series of high-tech posters resembling a filmstrip on the tunnel’s wall. As trains pass the posters at 35 mph, riders will see what appears to be an animated advertisement for Target.

The ads could generate at least $120,000 per year for BART, plus additional revenues, if the test is successful and the project is expanded.

In early February, Heathrow Express, which carries riders between London’s Heathrow Airport and downtown London, also introduced mini-movie advertising. In addition, transit systems in Boston, Mexico City, and Rio De Janeiro have installed it.

March 13, 2007
Alstom lands two contracts totaling $464.4 million

The Chinese Ministry of Railways (MoR) has selected the consortium of Alstom/Datong Electric Locomotives (China) to provide 500 electric, triple-axle freight locomotives under a contract worth $1.45 billion. Alstom, whose share of the contract is valued at $409 million, will be responsible for designing the locomotives. Its Belfort, France, plant will produce the first 10 units as well as the components that will be integrated into the next 190. Production will be gradually transferred to Datong Electric, which partnered with Alstom in 2005 to manufacture 18 twin-axle locomotives.

MoR also awarded Alstom a $55.4 million contract for the electrification of the Shi-Tai high speed line. Stretching over 117.4 miles, the line will link the cities of Shijiazhuang and Taiyuan, located in the provinces of Hebei and Shanxi--about 372.8 miles from Beijing. The work will allow travel from Beijing to Taiyuan in three hours, enabling trains to peak at 155 mph. Alstom will provide the electrification equipment for overhead lines as well as engineering support and installation supervision. Equipment delivery is slated to begin at the end of the year and wrap up in mid-2008.

March 13, 2007
RDC fights “a culture of corruption and denial”

Ten years, ago, Railroad Development Corporation won a 50-year concession to take over and operate Ferrovias Guatemala, the decrepit, abandoned Guatemalan-government-owned railroad. Over the past decade, RDC made much progress restoring the railroad to operating condition and bringing customers back on board. Now, says RDC, the government is attempting to perform what amounts to hijacking the operation, and RDC is fighting back.

RDC today filed a Notice of Intent to Submit Claims to international arbitration against the Republic of Guatemala on behalf of itself and it Ferrovias Guatemala under CAFTA (Central America-Dominican Republic-United States Free Trade Agreement). “Recent actions by the Government of Guatemala have amounted to an indirect expropriation of our company’s assets and direct interference with its contractual rights,” said RDC Chairman Henry Posner II. “We believe that these actions were taken on behalf of private Guatemalan companies interested in selected assets contained in the 50-year concession we won through a bid process in 1997. This has left us no choice but to seek remedies to the conflict at the international level, as it is clear that the legal system in Guatemala will continue to be manipulated against us. In August 2006, following the effective date of CAFTA, the Government of Guatemala issued a Presidential Decree declaring the privatization of the national railway rolling stock against the interests of the state. Since then, Ferrovias Guatemala has suffered increased losses due to inability to obtain credit; reluctance of freight transportation customers to do business with a private entity under attack by the Government of Guatemala; and inability to generate lease revenue from railway-related businesses such as lease of station facilities in urban areas and the railway’s right-of-way between urban centers for businesses such as electricity distribution.” Added RDC President Robert A. Pietrandrea, “The Government of Guatemala’s failure to treat Ferrovias Guatemala and its investors fairly as required under CAFTA has so undermined our ability to operate and meet our investment objectives that it constitutes an indirect expropriation of the company’s assets and right to earn revenue.”

The filing initiates an arbitration process that will allow RDC to present its claims at the end of a three-month waiting period. In the meantime, says Posner, RDC will “confront the culture of corruption and denial. We are under tremendous pressure financially due to the chilling effect of the government’s actions against us. At the same time, keeping an under-capitalized railroad open in an environment like Guatemala’s has proven supremely challenging in any number of ways; this ranges from flooding to invasion by squatters to outright theft of our right-of-way by both private sector and public sector entities, with the tacit encouragement of the central government. For these reasons we have taken this drastic action in an environment where the government has not only ignored its responsibilities under the terms of the [concession] but has acted against us and is now taking steps to drive us out without paying fair compensation.”

March 12, 2007
BNSF’s economic development efforts pay off in 2006

BNSF Railway’s 2006 economic development efforts have led to a $1 billion investment in the location of 107 new or expanded facilities along its lines and the creation of 4,000 jobs.

Among the companies that BNSF assisted was Wm. Bolthouse Farms. The supplier of fresh carrots opened a new refrigerated distribution facility, Fresh Logistics, in Hodgkins., Ill., to distribute produce and fruit juices from Bakersfield, Calif., to the Chicago metropolitan area.

Other newly located facilities included ethanol plants in California and Minnesota; produce distribution centers in California, Illinois, Kansas, and Texas; lumber yards in California, Colorado, Idaho, Missouri, Oklahoma, Texas, and Washington; plus plants for building products, fertilizers, plastics, and aggregates.

“BNSF is proud to help Bolthouse Farms and other companies” respond to “rapidly changing market conditions,” commented Vann Cunningham, assistant vice president-BNSF Economic Development. This, he said, is “key to their continued success, and to the success of the communities in which they operate.”

From 2004 through 2006, BNSF’s economic development efforts have resulted in $3.54 billion in facility investments and created 14,300 jobs.

March 12, 2007
STB may create energy transportation advisory committee

The Surface Transportation Board says it’s considering establishing “a rail energy transportation advisory committee to provide independent advice and policy suggestions to the STB on issues related to the reliability of the rail transportation of resources critical to the nation’s energy supply.” It has invited public comment until April 26 on the desirability of such a committee.

The agency said it believes a committee of rail and energy-industry stakeholders could foster open and effective communication “on such issues as rail performance, capacity constraints, infrastructure planning and development, and effective coordination among suppliers, carriers, and users of energy resources.”

“The success of our national energy policy and related job creation and economic growth will increasingly depend on the rail industry’s ability to meet energy producers’ growing demand for efficient rail transportation,” said STB Chairman Charles D. Nottingham.

The decision initiating the proceeding (Ex Parte 670), along with details for submitting comments, is available by clicking here.

March 12, 2007
Intermodal traffic up in February, carload freight down

U.S. railroads originated 924,904 units of intermodal traffic in February, a 4.1% increase over February 2006, reversing an early-year trend. But carload freight was down 4.2% to 1,261,167 cars. For the first two months of 2007, intermodal was up 0.9% and carload freight down 5.6%.

Weather continued to be a factor. “The U.S. freight railroad ‘factory floor’ is outdoors and about 141,000 miles long, and during February a lot of those miles were under snow and ice,” said AAR Vice President Craig F. Rockey.


March 12, 2007
Harrisburg Division is Norfolk Soutthern’s safest

Norfolk Southern, a perennial standout in workplace safety, has determined that its Harrisburg Division was the safest operating division on the railroad in 2006, with an injury ratio of .56. The corporate goal for 2006 was a .89 injury ratio.

Within the Harrisburg division, the Transportation Department recorded the lowest operating department injury ratio in NS’s history .31. Railroad injury ratios are based on reportable incidents per 200,000 employee-hours worked.

The Harrisburg Division, one of NS’s 11 operating divisions, has 1,800 main-line route miles in five northeastern states. “Between the volume of train traffic on the division and the weather in the Northeast, working injury-free cannot be taken for granted,” observed Harrisburg Division Superintendent Jerry Hall.

For the last 17 years, Norfolk Southern has won the E.H. Harriman Memorial Safety Award for providing the safest workplace among North America's Class I railroads. The Association of American Railroads has not yet announced results for 2006.


March 8, 2007
Small shippers assail CN’s 100-car requirement

With the support of the Canadian Wheat Board and nine other grain-industry corporations, Great Northern Grain (GNG) today filed a major level-of-service complaint against CN. GNG operates a 17,000-ton-capacity inland grain terminal at Nampa, Alberta.

CNG said the action, which was filed with the Canadian Transportation Agency, is based on “a recent change to CN’s advance-product program that is preventing smaller grain companies and single-point shippers from securing enough rail capacity to stay viable. It is also a serious concern for farmers who face added costs, marketing challenges, and delivery disadvantages from reduced flexibility in rail transportation for their grain.”

“For the 2006-07 crop year,” said CNG, “CN eliminated opportunities to advance-book guaranteed supplies of railcars in units of 50 (except for a limited supply of cars available through cash bids). The rail now offers only blocks of 100 cars, which must essentially be booked to one destination for 42 consecutive weeks to secure supply. This is impossible for single-point shippers and smaller companies.”

“This change by CN could put our business in jeopardy,” said Bruce Horner, CNG’s CEO. “If this continues, only very large players will be left to ship and handle grain in the West. We believe CN is failing to meet its obligation of service to small shippers and farmers.”

In addition to the Canadian Wheat board, intervener status in the case is sought by Great Sandhills Terminal, Northeast Terminal, Northwest Terminal, Parrish & Heimbecker, Paterson Grain, Prairie Wheat Terminal, Providence Grain Group, Southwest Terminal, and Weyburn Inland Terminal.

March 8, 2007
STB schedules hearing on rail infrastructure needs

The Surface Transportation Board will hold a public hearing on April 11 to examine the adequacy of railroad infrastructure to handle future traffic demands.

”Our nation’s freight-rail system will be relied upon to handle significant increases in traffic in the years ahead,” said STB Chairman Charles D. Nottingham. “This hearing should shed light on whether current plans and investments are adequate to meet rail capacity demands, and, if not, what new policies and strategies need to be implemented.”

(The railroad capacity shortage is the subject of Railway Age’s March 2007 cover story, “The Looming Crisis in Transportation.”)

The STB hearing will collect “views and information about rail-freight traffic forecasts; the extent of capacity constraints and the ability of railroads to meet rising demand; the infrastructure investment needed to ensure that the nation's freight-rail system continues to operate in an efficient and reliable manner; possible solutions to the challenges presented by growing rail traffic and limited capacity; and the potential role of public-private partnerships and innovative financing tools in meeting these challenges.”

In its official notice of the hearing (STB Ex Parte No. 671), the board commented:

“In recent years there has been growing recognition that rail capacity in the United States has become constrained. These capacity constraints come at the same time as many forecasts predict that rail freight demands will continue to grow over the next 20 years. Railroads experienced more than a 50% increase in traffic from 1990 to 2003, and traffic is projected to continue to increase as the economy grows. Some forecasters predict that multimodal freight tonnage in the United States will rise by nearly 70% between 1998 and 2020. The convergence of increased demand with constrained capacity has highlighted the need to address what further infrastructure investment will be required to meet these demands. While some railroads have announced significant infrastructure investment plans, some observers have questioned whether that investment alone will be sufficient to meet the rail transport needs of a growing economy.”

The board invited testimony from “carriers, shippers, port administrators, state entities, and federal agencies.”

Persons wishing to speak at the hearing should submit a written notice of intent to participate no later than March 21.

March 8, 2007
Northstar clears another hurdle

BNSF Railway has signed an agreement allowing Minnesota’s first commuter rail project, Northstar, to operate along 40 miles of trackage between Big Lake and downtown Minneapolis. The state, along with the Northstar Corridor Development Authority, announced last May, that they had reached an agreement in principal with BNSF. The recent deal secures the inital terms, marks the completion of NCDA’s negotiations with the railroad, and meets one of the final Federal Transit Administration requirements necessary to obtain federal matching funds for the $307.3 million project.

The state of Minnesota will acquire the right to use BNSF tracks for the life of Northstar Commuter Rail, and it also will spend $107.5 million to buy permanent land easements, which allows Northstar to continue operating even if BNSF sells its assets to another entity. The Metropolitan Council, which will oversee Northstar operations and already operates the state’s Hiawatha LRT, has signed a joint-use agreement with BNSF, outlining Northstar’s schedule. That schedule includes five weekday morning trips from Big Lake to Minneapolis and one reverse trip; five weekday afternoon/evening trips from Minneapolis to Big Lake and one reverse trip; and three roundtrips each weekend day. Special-event service will be negotiated. Finally, a service agreement “identifies the terms by which BNSF may commit to operate the trains.” At the end of the 10-year agreement, “Northstar may consider other vendors for train crewing services.”

NCDA expects to receive federal funding approval later this year and begin Northstar service in late 2009.

March 8, 2007
Amsted donates truck system to DOT

The U.S. Department of Transportation’s newest exhibit features an Amsted Rail Motion Control Truck Assembly, along with more than 200 other transportation-related items. Located at DOT’s Washington, D.C., headquarters, the Transportation Walk display “celebrates America’s contribution to the movement of people and goods.”

According to Amsted, the truck “will help illustrate the role that railroads have played--and still play today--in meeting America’s transportation needs.” It includes Pennsy Adapter Plus and PreLoad Plus constant contact side bearings.

March 8, 2007
UP, Dow partner to increase rail security

Union Pacific and Dow Chemical Co. have signed a Memorandum of Cooperation (MOC) that continues their partnership to improve rail safety and security. The MOC outlines eight key goals, which the companies plan to implement within the next 10 years.

“Our mutual commitments give us a stronger framework for working together by building on new and existing elements of safety and security,” said UP Chairman and CEO Jim Young, during the recent announcement.

The goals, which are said to be consistent with Responsible Care® practices, are:

* By 2012, UP and Dow will improve community outreach, education, and training initiatives with national, regional, and state TRANSCAER® programs “along highly hazardous chemical transportation routes.”

* By 2010, the companies will enhance hazmat shipment visibility through "continuous surveillance." GPS units and sensors will be installed on "all highly hazardous chemical tank cars, reducing the time these cars are unattended in transit.”

* By 2017, the team will complete development of the Next-Generation Tank Car for transporting highly hazardous chemicals. The car is expected to offer “a significant increase in safe and secure performance over existing fleets.”

* By 2015, the railroad and supplier will reduce the shipment of highly hazardous chemicals by 50%, “while continuing to meet the needs of the marketplace and reducing overall risk.”

* By 2010, the partners will work to eliminate non-accidental releases of hazmat.

* The companies plan to deploy communications-based train control and anti-collision system technology pending Federal Railroad Administration approval and the results of two pilot projects beginning this year.

* By 2015, UP and Dow will reduce by 50% the dwell time of highly hazardous chemical shipments through High Threat Urban Areas.

* By 2015, the team will generate a 50% improvement in hazardous material rail operations safety “through targeted initiatives such as maintenance and operating improvements.”

March 7, 2007
Bureau of Explosives celebrates 100th birthday

The Transportation Technology Center, Inc., will be celebrating the Bureau of Explosives’ (BOE) 100th anniversary at the annual Hazardous Materials Seminar in Kansas City, Mo., May 22-24. Created under Association of American Railroads’ predecessor, the American Railway Association, BOE is a self-policing agency promoting the safe transportation of explosives and other hazardous materials to railroads and shippers. With a chemical laboratory and 16 inspectors, BOE is said to have written the first hazmat regulations, which were subsequently adopted and expanded upon by the Interstate Commerce Commission and later the U.S. Department of Transportation.

March 7, 2007
Nordco acquires Dapco rail inspection services

Nordco is merging Dapco Technologies, LLC, and Dapco Industries into its stable of railroad maintenance-of-way services. Based in Ridgefield, Conn., Dapco Technologies owns and operates ultrasonic rail inspection vehicles and Dapco Industries designs and manufactures customized inspection systems. Terms of the deal were not disclosed.

“With the acquisition of Dapco, we have significantly broadened the range of products and services that Nordco offers to the railroad industry,” commented Bruce Boczkiewicz, CEO of Nordco, which is headquartered in Oak Creek, Wis.

This is Nordco’s second acquisition in six months. In September, the company purchased Arcola, Ill.-based J.E.R. Overhaul, which rebuilds maintenance-of-way equipment and manufactures components and assemblies. It also provides equipment maintenance and repair services and rents reconditioned machinery.

March 7, 2007
Hirschmann debuts wireless upgrade for crane users

Crane owners can incorporate and monitor up to four sensors at once with Hirschmann Automation and Control’s TRS 05 wireless system upgrade. Using the existing console and hardware, TRS 05 is compatible with most Hirschmann systems on hydraulic or lattice boom cranes. Sensors are said to have an operating range of up to 1,000 feet and options include anti-two block, load, angle, and wind speed. According to Hirschmann, Frequency Hopping Spread Spectrum Technology is used to ensure accurate and consistent reception of data and provides additional protection against interference common to rail construction job sites. In addition, the TRS 05 contains unique, serialized transmitter identifiers to ensure proper operation when other cranes are working in the area, and is available with an optional repeater or as a standalone system.

March 6, 2007
EPA proposes “very aggressive” new emission standards

Railroads are carefully studying the Environmental Protection Agency’s proposed new Clean Air Locomotive and Marine Diesel Rule, which EPA says would produce benefits outweighing costs by 20 to 1.

EPA estimates that when fully implemented, the rule “would cut particulate matter emissions by 90% and nitrogen oxides emissions by 80%. This would result in annual health benefits of $12 billion in 2030 and reduce premature deaths, hospitalizations, and respiratory illnesses across the United States. These benefits would continue to grow as older locomotive and marine engines are replaced. Overall benefits are estimated to outweigh costs by 20 to 1.”

EPA said the rule would tighten standards for existing locomotives when they are remanufactured, to be effective “as early as 2008 but no later than 2010.” It would set ”stringent” new standards for new engines, to be phased in starting in 2009 and establish long-term regulations requiring the use of advanced technology to reduce emissions.

Association of American Railroads President Edward R. Hamberger called the proposed new standards “very aggressive” and pledged the industry’s commitment “to do everything practical to make the nation’s freight railroads even cleaner and greener.”

CSX Transportation EVP and COO Tony Ingram commented: “We look forward to working with EPA to support policies that are good for the environment, meet our freight rail business objectives, and efficiently serve our customers.” Ingram said CSXT has already taken “significant voluntary actions--beyond what is required--to reduce locomotive emissions and fuel use.”

At the agency’s invitation, Ingram joined EPA Administrator Stephen Johnson at Port Newark, N.J., for the announcement of the proposed rule. He brought along two of the new low-emission locomotives that he said have helped CSXT reduce CO2 emissions by 330,000 tons over the last five years.

EPA said the new rule builds on the Clean Air Nonroad Diesel Rule (announced May 11, 2004) and the Clean Diesel Truck and Bus Rule (announced Dec. 21, 2000).

March 6, 2007
Trespasser fatalities blemish railroad safety record

In nearly every safety area, railroads made solid progress in 2006: total accidents and incidents dropped 8.6% to 12,833 from the prior year, train accidents declined 12.4% to 2,834, collisions were down 27.1% to 186; derailments were off 8.3% to 2,101; yard accidents fell 17.7% to 1,475. But in an area over which railroads have the least control, the story was grimmer: trespasser deaths increased 14.5% to 530. There was also a 1.4% increase in highway/rail grade crossing fatalities, to 362.

Preliminary safety statistics for 2006 may be found by clicking here.

March 6, 2007
BLET discloses provisions of tentative labor pact

The Brotherhood of Locomotive Engineers and Trainmen (BLET) today released major elements of a tentative agreement reached on Feb. 28 by the Rail Labor Bargaining Coalition and the National Carriers conference Committee, provisionally wrapping up negotiations that began in November 2004.

The agreement includes wage increases of 2.5% retroactive to July 1, 2005, 3.0% retroactive to July 1, 2006, 3.0% effective July 1, 2007, 4.0% on July 1, 2008, and 4.5% on July 1, 2009. In addition, certain health and welfare benefits are expanded.

BLET also said the railroads “will withdraw all work rules proposals regarding staffing/consolidation, manpower utilization and productivity improvements, and job actions.”

If ratified by the membership, the agreement will become effective June 1.

The labor coalition represents about 48% of employees who have been involved in the negotiations. The United Transportation Union has been negotiating separately.

March 2, 2007
A&M installs new RFTrax locomotive tracking system

The Arkansas & Missouri Railroad has selected RFTrax’s new Asset Management Platform™ (AMP) for Locomotives. Installed on 15 engines, including three remote control units, the system has been helping to reduce costs and boost productivity for several months, according to the 139-mile short line.

“We expect to recoup the cost of the RFTrax system within six months through cost savings and greater efficiency,” said Casey Shepherd, chief mechanical officer at A&M. “By remotely tracking the temperature of locomotives, we can avoid extensive idling to stay warm--and that saves up to five gallons of diesel per hour, per unit. The system alerts us to start the engine if the temperature drops.” In addition, access to the GPS location of all assets permits improved scheduling, he reported. “When a customer has unloaded and released cars, we can identify the closest switcher to pull the cars and hand them off to the Class I, reducing car-billing charges,” Shepherd said. “We get them off our line faster.”

The AMP combines an onboard Asset Command Unit™ with multiple sensors, a backend database application, and a Web portal, which allows customers to view and manage the information provided. By accessing current data on a locomotive’s exact geographical location and idling time, and receiving automated alerts on man-down or low temperature scenarios, railroads can optimize equipment and personnel utilization, according to RFTrax.

“With one easy-to-use Web interface, railroads can get an up-to-the-minute picture of all their assets for efficient management, reduced costs, and improved safety,” said Hal Haygood, president of RFTrax.