June 2007
Protesters halt CN, VIA Rail trafficCN's difficulties with First Nations protesters who have taken to blockading the railroad's busy Toronto-Montreal main line continue. CN today halted freight operations and embargoed all traffic after reportedly armed protesters erected a blockade on the tracks near the eastern Ontario town of Marysville, located approximately 10 miles east of Belleville, Ont. The shutdown affects about of 25 freight trains and 22 VIA Rail passenger trains that operate daily on the corridor.
CN had obtained an injunction from Ontario Superior Court barring occupation of the rail corridor when First Nations protesters blocked the line in April, but said the Ontario Provincial Police refused to enforce the order. In this latest situation, CN said OPP "continues to refuse to intervene," so "in the interest of ensuring the safety of its employees and operations, [we] will indefinitely halt all rail operations until [we have] received assurances that the OPP will remove protesters and guarantee such safety."
Washington Metro FY 2008 budget tops $1.931 billionWashington Metro's board of directors approved yesterday a FY 2008 budget of $1.931 billion, including $1.2 billion for operations and $731 million for capital projects.
"My goal from the start was to not raise fares and to maintain current service levels," said Metro General Manager John Catoe. Instead, his budget, which is comparable to FY 2007, includes new initiatives for rail service expansion and bus service improvements.
The $731 million capital budget will go toward continued expansion of eight-car trains (including traction power work) and compressed natural-gas metrobuses, among other projects. Also on tap are the procurement and delivery of 122 new railcars; continued rehabilitation of older railcars and elevators/escalators; maintenance on and improvements to passenger and rail yard facilities; repair of railcar wash facilities in two rail yards; and continued work on a back-up, comprehensive operations control center.
According to the transit agency, while operating expenses rose 4% to $48 million, primarily due to service improvements and escalating energy costs, revenues went up 2% to $10 million on ridership growth and increased advertising. The local jurisdictions served by Metro will increase their subsidies by 8% to $500 million.
The FY 2008 budget shortfall was reduced by using $12 million from the sale of unused fare collection media; taking advantage of one-time revenue of $40 million won in litigation; reducing the Metro workforce by 220 positions, which will save about $22 million; and cutting consultant expenditures, said Metro.
Is traffic picking up? Total U.S. carload volume, measured in revenue ton-miles, may have finally reached a plateau, following weeks of declines. During the week ended June 23, it was even with the comparable week last year, according to Association of American Railroads figures. Continuing to fall, however, were carload traffic and intermodal volume, which dropped 0.8% and 1.2%, respectively, from the 2006 period. In Canada, carload traffic was up 1.9% and intermodal volume rose 7.6% in the week ended June 23. Kansas City Southern de Mexico’s carload traffic was off 0.9%, but intermodal volume grew 8.1%.
Trinity announces new company formation, $1.4 billion railcar dealTrinity Industries announced today that it has formed a new North American railcar leasing and management service provider, TRIP Rail Holdings, LLC (TRIP). Trinity owns a 20% stake in the company, while five private investors (not related to Trinity) hold the remaining equity. Over the next two years, a TRIP subsidiary will purchase about $1.4 billion worth of railcars from Trinity as well as Trinity Industries Leasing Co., which will manage and maintain those cars.
"By forming this new company, we are able to shift a significant portion of Trinity's railcar backlog that had been dedicated to our internal lease fleet to third-party sales transactions," Trinity Chairman, President, and CEO Timothy R. Wallace said. "By doing so, we can continue growing our leasing operations while simultaneously improving [Trinity's] overall cash flow. We are excited to have identified investors who share our vision of growth and profitability in the railcar industry."
According to Trinity, more details will be disclosed during Trinity's second-quarter earnings announcement.
New York MTA commuter roads to replace M-7 armrestsThe New York MTA board voted unanimously today to equip its commuter railroads’ M-7 cars with new armrests. Since the Bombardier-built cars went into revenue service, Long Island Rail Road and Metro-North Railroad have received complaints as well as monetary claims from riders who have ripped their clothing on armrests. Over the past several years, the carriers have worked with Bombardier, seat manufacturer Multina, and an industrial designer to develop a new model, which MTA says is “approximately three inches shorter than the existing armrest, possesses an increased vertical height at the end, and is made of a new material that does not ‘grab’ clothing.”
MTA will award a nearly $3.59 million contract to Multina to supply 50,982 new armrests for 826 LIRR and 336 MNR M-7 cars. The commuter railroads’ employees will handle the installation. MNR cars will be completed by first-quarter 2009; LIRR by mid-2010.
Alstom lands multi-billion-dollar order from SNCFSNCF (French National Railways) has awarded a $2.82 billion contract to Alstom for 30 bilevel high speed trainsets. The order includes an option for 40 additional sets, valued at $1.34 billion. The new trains will be able to operate at speeds of up to 198.8 mph along the French, German, Swiss, and Luxembourg networks. In addition, they will be outfitted with European network-compatible signaling equipment and traction equipment adapted to the different currents of the countries through which they will travel. Delivery is slated for 2009.
Heartland Corridor tunnel project manager selectedNorfolk Southern’s Heartland Corridor public-private partnership involves $150 million worth of tunnel enlargement work for doublestack clearances in Virginia, West Virginia, Kentucky, and Ohio. AMEC, an international project management and services company with operations in Nashville, Tenn., has been selected by prime consultant STV/Ralph Whitehead Associates to provide geotechnical engineering services for this project.
Twenty-eight tunnels ranging in length from 174 feet to 3,302 feet are to be heightened over a three-year period. AMEC, which has performed numerous geotechnical engineering and tunnel rehabilitation projects, including work for NS over the past 20 years, will conduct a peer review of tunnel design and construction documents and then provide tunnel inspection and construction management services. In addition to tunnel modifications, the construction management team will be responsible for other elements of the Heartland Corridor project, including modification of seven through truss bridges, lowering of tracks at three overhead bridges, modification of nine slide-detection fences, and raising of three sets of electrical transmission lines. Construction activities will be performed while maintaining rail traffic along this heavy-tonnage route.
The tunnel clearance project will shorten by 200 miles the route NS doublestacks must use in the Heartland Corridor region.
Twin Cities LRT prime consultant selectedThe Twin Cities Metro Transit division of the Metropolitan Council has selected AECOM subsidiary DMJM Harris as prime consultant for the $1 billion Central Corridor Light Rail Transit project linking St. Paul and Minneapolis. DMJM Harris, assisted by sister AECOM companies CTE, EDAW, and AECOM Consult, will provide preliminary engineering and final design services.
The CCLRT, which is expected to open in 2014, will tie into Minneapolis’s existing Hiawatha LRT and serve Minneapolis-St. Paul International Airport, the mall of America, the University of Minnesota, and the state capitol complex.
Five more unions approve national Coalition contractAnother five unions have joined the Brotherhood of Locomotive Engineers and Trainmen (BLET) in accepting a new five-year national contract negotiated by the Rail Labor Bargaining Coalition (RLBC). “For the first time in a generation, a major portion of rail labor negotiated in solidarity,” said Fred Simpson, president of the Brotherhood of Maintenance of Way Employes Division (BMWED), one of seven labor unions making up RLBC. Now onboard are the BLET, BMWED, Brotherhood of Railroad Signalmen, International Brotherhood of Boilermakers, National Conference of Firemen and Oilers/SEIU, and the Sheet Metal Workers’ International Association (SMWIA). The only hold-out is the American Train Dispatchers Association. The United Transportation Union (UTU) has been negotiating separately. (Earlier this month, UTU and SMWIA announced a possible merger to form a new union, the International Association of Sheet Metal, Air, Rail and Transportation Workers. Voting ballots on the proposal were expected to be sent to UTU members by month’s end.)
Effective through Dec. 31, 2009, the new contract with the National Carrier's Conference Committee gives up no work rules, raises net wages more than 16% after cost sharing for Health & Welfare, caps employee H&W contributions, expands access to in-network medical benefits for most of the 25% of rail employees previously denied them, and provides no concessions on contracting out or the carriers' work exit demands, according to RLBC.
FreightCar America anticipates lower second-quarter profits, picks up 1,900-car orderDue to considerable softness in the North American railcar market, FreightCar America announced late yesterday that it expects second-quarter net income to come in at $0.85-$0.95 per share--just under Wall Street's estimate of $1.20 per share. Industry orders and backlogs continue to fall, according to the company.
On a positive note, FCA also announced that it has added another 1,900 hopper cars to its order books. The cars, which will be used to carry coal and coke, were specifically designed for an undisclosed buyer and will replace an older hopper fleet.
"In this difficult environment, we are especially delighted to receive this new purchase commitment, which reflects FreightCar America's commitment to develop railcars to meet our customers' specific needs," commented FCA Senior VP-Marketing and Sales Ed Whalen.
FEC unveils new Miami-area grade separationsThree new highway-rail grade separations are now open in Hialeah, Fla., a Miami suburb. The separations were part of the Florida Department of Transportation's $38 million Okeechobee Road Depressed Corridor Project, which lowered Okeechobee Road to pass beneath Florida East Coast Railway and added one travel lane to the roadway in each direction to improve traffic flow between LeJuene Road and the Palmetto Expressway. FEC selected STV/Ralph Whitehead Associates to design the rail bridges, which were completed earlier this month. A 126-foot-long doubletrack bridge carries FEC over Okeechobee Road and two 258-foot-long single-track bridges carry FEC northbound and FEC southbound traffic over the Miami Canal. Construction was performed by Kiewit Southern, V&M Erectors, TIC, and Hal Jones Contractors.
GWI to liquidate Mexican operationsGenesee & Wyoming, Inc., will be shuttering its eight-year-old Mexican operation, Ferrocarriles Chiapas-Mayab, S.A. de C.V. (FCCM), over the next four weeks. After Hurricane Stan struck in 2005, some 70 bridges and 175 miles of rail line were were rendered inoperable in the state of Chiapas between Tonala and the Guatemalan border. FCCM is formally notifying the Mexican Secretaria de Comunicaciones y Transporte (SCT) of its intent to terminate its 30-year concession from the Mexican government.
FCCM has been working with SCT and other Mexican government agencies for nearly two years to develop a reconstruction plan, without success. Lacking such a plan and because rail traffic volumes continue to fall, "we can no longer justify absorbing financial losses or making incremental investments," GWI President and CEO John C. Hellmann said during today's announcement.
The formal liquidation is expected to wrap up by year end. As of March 31, 2007, FCCM held $6.6 million of non-current assets (primarily locomotives and cars) and approximately $10.9 million of current assets (primarily receivables and inventory). Under FCCM's concession terms, the Mexican government may acquire or lease this equipment based on fair market value. Absent acquisition or lease by the Mexican government, GWI said it intends to repatriate and/or sell the equipment in the U.S.
GWI is slated to record about $12 million in charges--the majority of which will be incurred in the second quarter--including such items as severance costs, wind-down expenses, non-cash write-off of currency translation account, and certain tax impacts. In third-quarter 2006, GWI recorded a $34.1 million charge, reflecting the write-down of non-current assets and related effects resulting from Hurricane Stan.
Pennsylvania legislators honor “Liberty Limited” sponsorsThe Pennsylvania House of Representatives has recognized Bennett and Vivian Levin of the Juniata Terminal Company, the Association of American Railroads, Amtrak, CSX Transportation, Conrail, the United States Army War College Foundation, and many others for their roles in sponsoring the “Liberty Limited,” a luxury train composed of restored historic private passenger railcars that carried wounded military personnel from all branches of the armed forces from Walter Reed Army Hospital and Bethesda Naval Hospital to the Army-Navy Football Classic in Philadelphia in 2005 and 2006. The train ran from Washington’s Union Station up the Northeast Corridor to a yard adjacent to Lincoln Financial Field, where the game was played.
A resolution sponsored by Pennsylvania Rep. Richard A. Geist of Altoona was presented to the Levins, the Foundation, and the AAR during a ceremony at the Pennsylvania State Capitol in Harrisburg on June 19.
Vivian Levin originally proposed the idea for the “Liberty Limited” in early 2005 as a way to express support for wounded American servicemen and women. Starting with their own locomotives (two restored former PRR EMD E-8 diesels) and historic railcars (sleeper Little Juniata Rapids, parlor/lounge/café Warrior Ridge, and open-platform observation/business car Pennsylvania 120), the Levins obtained the backing of the Foundation (Bennett Levin is a trustee) and also arranged for the loan of 15 additional railcars through the National Association of Private Railroad Car Owners. Each serviceman and woman was provided with gourmet meals on the trip, a seat on the 50 yard line at the game, and commemorative gifts. Among many other sponsors were the American Short Line and Regional Railroad Association and several corporations and small businesses.
“The railroad industry has a long history of providing support for the military, going back to the Civil War,” AAR President and CEO Ed Hamberger said. “That support continues today. Many of the weapons, tanks, and other motorized vehicles currently being used in Iraq and Afghanistan were delivered to port by U.S. freight railroads.”
The “Liberty Limited” recalled the special trains the Pennsylvania Railroad operated to the Army-Navy game beginning in 1936 and continuing through the 1960s. During the 1950s as many as 20,000 people rode several sections of those special trains.
Signs of a traffic turnaround?While still down from last year, railroad traffic appeared to take a turn for the better in the week ended June 16, the Association of American Railroads reported. Carload volume for the latest week, while down 1.8% from the same week last year, reached its highest weekly level so far this year, and intermodal volume, down 1.3%, was at its second highest level, said the AAR. Total volume, in revenue ton-miles, was off 1.1%. In Canada carload traffic was up 3.7% and intermodal was up 1.8% in the week ended June 16. Kansas City Southern de Mexico reported a 14.1% drop in carload traffic and a 1.3% increase in intermodal volume.
Amtrak and UP reach “slow order” agreementAmtrak and Union Pacific have reached an agreement on "slow orders" that Amtrak said will reduce delays to Amtrak trains traveling on UP while the railroad makes major track improvements.
"This agreement defines in detail the maximum number of minutes of 'slow order' delays allowable on each Amtrak route operated on Union Pacific, while Union Pacific makes track improvements that will increase service reliability and satisfaction in the long run," said Paul Vilter, Amtrak assistant vice president-Host Railroads. "Our on-time performance is the single largest determinant of passenger satisfaction and these changes will make a real difference."
The track improvements are part of $12 billion UP is spending to maintain its track systemwide in 2007, said Tom Mulligan, UP's director of passenger rail operations. "This agreement is instrumental in helping our crews complete the necessary track maintenance that will further enhance safe and timely railroad operations in these corridors as well as improve ride quality," said Mulligan.
Amtrak routes covered by the agreement are the Amtrak Cascades (Washington and Oregon); Capitol Corridor Service, Pacific Surfliner Service, and San Joaquin Service (California); Lincoln Service (Illinois) and Missouri Mules.
CN orders 40 GE and 25 EMD locomotivesCN announced today that it will acquire 65 new locomotives for delivery in 2007 and 2008. GE Transportation Rail will supply 40 ES44DC units to be delivered between December 2007 and February 2008, and Electro-Motive Diesel will build 25 SD70M-2 locomotives for arrival in August 2008. These are in addition to 65 units already on order for delivery this year, 50 4,300-hp SD70M-2's due between August and October and 15 4,400-hp ES44DC's coming in November.
CN said the orders announced today will permit the railroad to retire 45 older locomotives.
CN President and CEO E. Hunter Harrison said the new units are about 15% more fuel efficient than the locomotives they will replace, and are part of a major fuel conservation program by CN, which spent C$900 million on fuel in 2006.
BLET members approve national Coalition contractMembers of the Brotherhood of Locomotive Engineers and Trainmen have voted to accept a new five-year national contract negotiated by the Rail Labor Bargaining Coalition. Still to be counted are votes from the other unions in the coalition: Brotherhood Maintenance of Way Employes division, Firemen and Oilers, Sheetmetal Workers, Train Dispatchers, Railroad signalmen, and Boilermakers. The 2-1 majority by which BLET approved the agreement shows that "this is a strong national contract that will benefit our members," said BLET President Don Hahs. He said negotiators won increases in wages and a cap on health and welfare contributions for members, but "were able to keep the carriers at bay" on other issues originally in management's sights.
Will state oversight of rail projects become the norm?The Arizona State Legislature has approved a bill that would allow the state's Corporation Commission to review any railroad proposal to acquire land or materials by eminent domain, threat of eminent domain, or at auction. The purpose: to ensure that a railroad has examined alternative locations and selected a site that minimizes negative impacts to the environment, natural resources, water, the economy, and historical, archeological, or geographical landmarks. Through third-party experts, railroads would be required to provide an impact assessment to the commission, which could then suggest one or more locations that would have lesser impacts and accommodate the railroad. The commission could also assess and collect fees from the railroad to cover review and other related costs.
Currently, to build an extension of a rail line or construct/operate a new line, a rail carrier must apply to the Surface Transportation Board for authority. Whether the bill will go forward is up to Arizona Gov. Janet Napolitano, who is now considering it.
According to published reports, the bill could affect two Union Pacific projects. The carrier plans to build a new switching yard between Phoenix and Tucson, and is considering use of its tracks for commuter rail between the two cities.
Lat-Lon announces new orders, record first-half salesIowa Interstate and Indiana Harbor Belt are outfitting their locomotive fleets with Lat-Lon's new Locomotive Monitoring Units (LMU). Over the coming months, IAIS will install 32 GPS-equipped units to improve operations and reduce operating costs; IHB will be installing 10 units to track crew productivity, according to the supplier.
Among the LMUs benefits: utilization and fuel management improvements; dwell and idle time reductions; dump valve release elimination; dark territory visibility; one-man-crew safety and crew productivity improvements; and maintenance efficiencies.
The small roads will be able to view their fleets in motion using Lat-Lon's secure, dispatch website, and receive real-time messages when there are changes to locomotive status (battery voltage, temperature, fuel level, customizable inputs, control relays, engine run, and engine hour) or location (based on time or distance). With storage for more than 2,000 active geofences, the LMUs can trigger messages when a locomotive enters a yard, customer site, or state boundary crossing, as well. (Passive geofences can be customized to create fleet analyzation reports.) In addition, the LMUs provide speed, course, elevation, and distance data to help carriers determine average speed, daily or trip fuel usage, idle times, and moving times. Two-way communication technology allows them to request a message, send new business parameters, or reprogram the system with new firmware. According to Lat-Lon, the units' built-in, isolated 74-volt power supply makes installation and integration of additional power equipment easier.
Lat-Lon also announced today that its solar-powered Damage Prevention Unit (DPU/i), equipped with the optional three-axis accelometer, reached record sales during the first half of the year. Through June, Lat-Lon sold 250 units, and said it's on pace to sell more than 500 by year-end--twice the number sold in 2006. Customers like Union Pacific and Wisconsin-based Waukesha Electric Systems (a transformer manufacturer) use the portable DPU/i's to monitor shipments in real-time and identify handling problems in transit. The impact sensor distinguishs between slack-action events, empty car impacts, loaded car impacts, and cushioned vs. non-cushioned impacts. Impact thresholds can be fine tuned for different car and load types.
New York governor nominates new MTA chairmanReports indicate that New York City real estate developer H. Dale Hemmerdinger may be the next Metropolitan Transportation Authority chairman, following Peter S. Kalikow's resignation on May 7. Gov. Eliot Spitzer's nomination yesterday of Hemmerdinger, the former chairman of the independent Citizens Budget Commission, must be confirmed by the Senate.
Kalikow has spent seven years at MTA's helm, and is the second longest-serving chairman in the agency's history. Under his leadership, a number of major projects have moved forward, including MTA New York City Transit's Second Avenue Subway and MTA Long Island Rail Road's East Side Access.
Transit agencies exercise options for more Wabtec locomotivesMotivePower Industries has added 12 more MPXpress® commuter locomotives, worth $33 million, to its order books. Southern California Regional Rail Authority and the Metropolitan Council of Minnesota (Northstar) exercised options to purchase an additional four units each, as part of a multi-agency procurement awarded in 2006, which included 11 units each for SCRRA and Utah Transit Authority plus options for another 45 for UTA, SCRRA, Massachusetts Bay Transportation Authority, and Northstar. The Mid-Region Council of Governments in New Mexico, which is currently running five MPXpress units, also exercised an option for four. The Wabtec Corp. subsidiary will build the units in Boise, Idaho, and anticipates delivery in 2008-2009.
"We've now delivered or received orders for 100 MPXpress® locomotives from eight different transit agencies throughout North America since 2003," commented Wabtec President and CEO Albert J. Neupaver during today's announcement.
The MPXpress® locomotives are said to offer such technological improvements as higher horsepower engines, improved fuel efficiency, advanced emissions reduction technology, and microprocessor controls. They will contain a number of components produced by other Wabtec subsidiaries, including the microprocessor control system, braking equipment, brake shoes, and radiators.
NITL cautions on fed role in passenger/freight operationThe National Industrial Transportation League has expressed concern to Congress about language in the new Energy Independence Bill relating to the operation of transit trains on freight railroad facilities.
"Our members rely on a freight rail system to provide timely, efficient, and energy-efficient movement of products and raw materials," said NITL President and CEO John B. Ficker in a June 15 letter to the House Transportation and Infrastructure Committee. "The goals of moving more passenger traffic from single occupancy passenger vehicles to mass transit is important and one we support; however, it shouldn't negatively impact the freight movements."
"Mass transit agencies and freight railroads should negotiate agreements in good faith that provide benefits to both parties, and we believe this should be an agreement negotiated between the parties rather than imposed by government."
Fort Worth & Western acquires "green" switchersFort Worth & Western (Texas) has purchased two new Ultra Low Emission Gen Set 1,400 hp locomotives from National Railway Equipment Co. The short line has been running the units in its Hodge Yard (Melody Hills) since May 28, according to FW&W President Steven P. George, and, due to their successful operation, is considering ordering more in the future.
"We are determined to continue our search for new technology to gain emission benefits and fuel economy in order to improve the quality of the environment and reduce fuel consumption," said George.
The new units are said to reduce nitrous oxide and particulate matter emissions by up to 80% and consume up to 40% less fuel. A Texas Commission on Environmental Quality grant covered $1.8 million of the $2 million-plus pricetag.
Railpower, UP continue switcher delivery talksIt remains unclear when Railpower Technologies Corp. will wrap up a Union Pacific order for 98 refurbished, environmentally friendly road switchers. The supplier announced last month that it could not meet the June 15 deadline, despite having increased production of the RP20 Series units, and is currently in talks with the railroad to establish an extended deadline. Sixty-six of the 98 units have been delivered since the C$94 million contract was awarded in 2005. The RP20 Series is said to have been "specifically designed to reduce high fuel usage in road and branch line switching operations, where locomotives use up to three times the amount consumed by yard switchers."
"Union Pacific has demonstrated flexibility that we very much appreciate," said Railpower President and CEO Jose Mathieu.
Also last month, Railpower announced that it was considering operating its own manufacturing facility. While an offer was made during second-quarter 2007 to purchase an existing facility in Montreal, the supplier ultimately decided that the site would be unsuitable. "We are currently looking at other sites and hope to be in a position to make an announcement in the coming months," said Mathieu.
Transportation investors report sees “brighter” second halfThe Wall Street Transcript has published a 50-page report on Transportation and Logistics that takes an optimistic view of the remainder of the year despite a decline so far in freight activity.
“The transport group as a whole has performed very well in the first part of 2007, in particular the airline and rail stocks,” says the investment publication. “While the economy has slowed, businesses have been more aggressive at reducing inventories, and that has had a negative impact on freight volumes year to date. Things have picked up somewhat of date and the outlook brighter for the rest of the year.”
One analyst interviewed for the report, John Barnes of BB&T Capital Markets, calls attention to a potential railroad problem—“legislation that has been proposed looking to strip the rails of their antitrust exemption and reregulate the rail industry, especially with regard to pricing for certain customers. I think that’s probably the legislation that needs to be paid most attention to, because the rails are still not earning their cost of capital.”
Among railroads, Barnes is particularly high on Norfolk Southern (“a best-in-class carrier”) and Union Pacific (whose new management “is doing a phenomenal job”).
RDC presses $65 million claim against GuatemalaPittsburgh-based Railroad Development corp. (RDC) filed a claim on June 14 to institute arbitration proceedings against the Republic of Guatemala. RDC is seeking compensation in excess of $65 million for itself and its affiliate, Ferrovias Guatemala (FVG) in a dispute that it wants arbitrated under the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA).
“RDC has made heroic efforts to restore and operate the completely abandoned national railway in Guatemala,” said RDC/FVG Chairman Henry Posner III, “and was on a solid financial path, despite the failures of Ferrocarriles de Guatemala (FEGUA), the government entity owning the assets that we are responsible for, to meet its own contract responsibilities.”
But last August, said Posner, a government decree declared the rolling stock component of the 1988 privatization to be “lesivo,” or against the interests of the state, which “effectively derailed our company and our business prospects.”
TTC moving ahead on LRVsSix builders have expressed an interest in bidding on 204 new low-floor light rail vehicles the Toronto Transit Commission is planning on ordering next year for its existing streetcar system: AnsaldoBreda, Bombardier, Mytram, Siemens, Skoda, and Vossloh-Kiepe. Kinkisharyo had also expressed interest but has since dropped out.
Citing a TTC presentation at last week’s APTA Rail Conference in Toronto, Railway Age Contributing Editor Greg Gormick describes the specifications for the new LRVs as “very demanding due to the nature of our existing non-LRT streetcar system. We have extremely sharp curves and single-bladed track turnouts that are going to pose problems for any existing low-floor truck. Other complications include the requirement for the new cars to not only be able to handle an 8% grade, but also push a disabled car up that grade.” As for the new lines in TTC’s Transit City proposal, “these would be built to much higher, contemporary LRT standards,” says Gormick. “The TTC has said that it would be looking at a totally different car for those lines.”
According to local Toronto transit advocate Steve Munro (“who had much to do with saving our system back in 1972,” Gormick notes), “The TTC plans to include public participation in the evaluation of possible new cars. This will include a website, and would-be vendors will be asked to provide a [design] for viewing. The current plan is to award a contract in June 2008 with the prototype cars delivered in 2010. The nub of this issue is funding. [The Toronto City] Council is pursuing a tri-partite arrangement with Queen’s Park and Ottawa, a scheme that could very well see this in limbo for years. We don’t have years. The cars proposed here will only cover replacement of the existing fleet, let alone expansion into new routes.”
BNSF’s “big dig”The Washington State DOT has set aside $38.2 million in fuel tax revenues to construct a railroad “tunnel” that would allow it to complete construction of an interstate highway over BNSF Railway trackage near Spokane.
The 1,330-foot-long, 54-foot-wide tunnel is actually an at-grade structure consisting of 260 six-foot-long, 42-ton concrete arches covered by fill upon which the highway, called the North Spokane Corridor, would be built. WashDOT, which is currently seeking bids and has completed some of the engineering work, is paying for the tunnel’s construction. The tunnel’s 54-foot width is large enough to accommodate a second main line track, though BNSF has not announced plans to construct one. WashDOT determined that building the tunnel plus the long approaches needed to bring the highway up over the tracks is far less expensive than sinking the rail line below grade and keeping the highway at grade.
The tunnel’s height will be 28 1/2 feet above top-of-rail, more than enough clearance to accommodate doublestack trains with curve superelevation. WashDOT and BNSF are collaborating on tunnel lighting and ventilation issues and track realignment and drainage. Construction and maintenance agreements are currently being negotiated. Projection completion is expected for spring 2009, though a construction start-up date has not been determined.
T&I Committee OKs Oberstar safety bill, with changesThe House Transportation and Infrastructure Committee has, by voice vote, approved an amended version of H.R. 2095, the The Federal Railroad Safety Improvement Act of 2007, whose primary sponsor is Chairman James L. Oberstar (D-Minn.). The Congressional Quarterly described the amended legislation as “a carefully brokered compromise that seeks to balance the demands of railroad management and labor unions.”
T&I Committee Republicans, siding with the railroads, had objected to Oberstar’s original provision in the bill of eliminating so-called “limbo time,” the period during which railroad employees who have completed their shifts are transported to their base of operations to begin their rest period. Under current rules, limbo time is not on-duty time and therefore cannot be counted toward hours-of-service limits. Oberstar’s original bill, citing worker fatigue issues, would have changed that. The compromise, to which Oberstar (the son of a union official) reluctantly agreed, phases in restrictions on railroad use of limbo time over two years, after which an employee’s monthly limbo time would be limited to 10 hours. Opponents said Oberstar's original bill would have created “insurmountable scheduling problems and other unintended consequences,” according to the Congressional Quarterly. The full T&I markup was the second time Oberstar relented on limbo time.
Among other provisions, H.R. 2095 would reauthorize the Federal Railroad Administration, renaming it the Federal Railroad Safety Administration an adding a substantial number of safety inspectors. It The also would increase civil penalties for safety violations and criminal penalties for failing to file an accident report on time. FRA’s most recent authorization expired in 1998.
Three other rail safety bills have been floated. The Senate’s companion bill to H.R. 2095 is S. 1438, which Sen. Charles E. Schumer ( D-N.Y.) introduced and which the Commerce, Science & Transportation Committee is considering. The Bush Administration also introduced a rail safety bill (H.R. 1516 in the House, S. 918 in the Senate) in March; no action has been taken on either version.
Both carload and intermodal volume declineFreight volume on U.S. railroads continued to run below last year's levels in the week ended June 9. The AAR reported today that carload traffic was down 5.8% for the latest week and trailer/container volume was off 3.2%. Total volume measured in revenue ton-miles declined 5.1%. For this year's first 23 weeks, carloads were down 4.4% from 2006, intermodal was down 1.4%, and ton-miles were off 3.1%.
Canadian carload traffic in the week ended June 9 was up 1.6% from the corresponding week last year and intermodal was down 3.4%. Year-to-date, Canadian carloads were down 1.0% and intermodal was up 1.3%.
Chemical Safety Board proposes chlorine unloading safeguardsThe U.S. Chemical Safety Board today asked the U.S. DOT to take steps to make chlorine railcar transfer systems safer. In a new safety bulletin, the board said some transfer systems "lack effective detection and emergency shutdown devices, leaving the public vulnerable to potential large-scale toxic releases."
The board asked the DOT to expand its regulatory coverage to require chlorine railcar unloading facilities "to install remotely operated emergency isolation devices to quickly shut down the flow of chlorine in the event of a hose rupture or other failures in the unloading equipment."
The board cited two previous instances--in August 2002 near Fetus, Mo, and August 2005 in Baton Rouge, La.--when ruptured hoses caused accidental chlorine releases. In the first incident, hundreds of residents were evacuated and three were hospitalized. In the second incident, an emergency shutdown feature held the release to less than minute and there was no impact on the community.
Former LIRR President Bauer signs on with SynergxKenneth Bauer, whose 30-year career with the New York Metropolitan Transportation Agency included a stint as president of the Long Island Rail Road, has entered into a consulting agreement with Synergx Systems, Inc., of Syosset, N.Y. Most recently, Bauer served as president of national transit for Railworks Corp. Synergx specializes in data communications and security products and services.
NJ Transit adding to Multilevel orderInstead of rebuilding its fleet of 46 17-year-old Comet III trailer cars and cab cars (35 trailers and 11 cabs), New Jersey Transit has decided to exercise an option with Bombardier Transportation for 45 Multilevel cars, adding to the initial order of 231.
NJT says it would be more cost effective and beneficial in terms of ridership capacity to purchase more Multilevels than rebuild Comet IIIs, which date back to 1990 and are due for a mid-life overhaul. The agency has been trying to accommodate growing ridership; the Multilevels offer a 15%-20% improvement in seating capacity (wider, more comfortable 2 by 2 seats on two main levels, compared to 2 by 3 seats on one level). The Comet IIIs were built by Bombardier.
Approximately 25 of the initial order of 234 Multilevels have been delivered and are being deployed on Northeast Corridor trains. Plans call for deliveries to conclude in 2009. The Multilevels are designed to operate system-wide on NJ Transit, including the NEC, North Jersey Coast, and Morris & Essex lines, and are capable of 125-mph top speed.
Eight Multilevels in the new order are being financed by the Atlantic City Redevelopment Authority and three casinos, and will be used in special excursion service between New York Penn Station and Atlantic City. These cars will be fitted with custom interiors and adorned with a special livery. A consortium of STV and Jacobs is designing these cars, with primary design work performed by Jacobs National Design Principal Cesar A. Vergara.
NJT also plans to rebuild the aging Big Shark River drawbridge between Belmar and Avon on the North Jersey Coast Line. The bridge was constructed in 1921 and carries 48 NJCL trains per day. Under a $10.3 million contract, PTK-MARK III Inc. of Newtown, Pa., will replace the timber approach spans to the bridge with a concrete and steel structure, a job that is expected to take two years to complete.
DM&E seeking a back door to the PRBCedar American Rail Holdings President and CEO Kevin V. Schieffer may still have a chance to realize his dream of extending the reach of the Dakota, Minnesota & Eastern Railroad 260 miles into the Powder River Basin and compete with giants Union Pacific and BNSF Railway for lucrative coal contracts.
Following the FRA's rejection on Feb. 26 of a $2.5 billion RRIF loan on the basis of what FRA said was concern over DM&E's ability to pay the loan back--not on the project's merits--Cedar American hired Merrill Lynch and Citigroup to seek alternative sources of funding--namely, auctioning off all or part of the DM&E and sister railroad Iowa, Chicago & Eastern, or finding a partner to finance the PRB project. According to a report published on line by Trains magazine, there were as many as 30 interested parties (out of 100 approached), and they have been narrowed down to 10 consortiums, some of which include railroad companies. CN, Canadian Pacific, and an undisclosed short line are reportedly among these final 10, which are expected to submit final, possibly enhanced, proposals by the end of this week. Each railroad is aligned with a private equity group or other parties described as having "deep pockets." The reason for this is for them to be able to avoid the steep regulatory hurdles of having controlling ownership in the DM&E.
It would appear that CN or CPR would benefit from a stake in Cedar American, owing largely to good rail connections. CPR's Twin Cities-Chicago main line connects with the DM&E at Winona, Minn. CN connects at Dubuque, Iowa, with the IC&E.
The new coal line, which has been in the making for the better part of a decade, would start at Wall, S.D., run along the Cheyenne River to Edgemont, S.D., and then west into the PRB. In February 2006, the Surface Transportation Board granted final regulatory approval for the line. Cedar American--a privately owned company in which railway supplier L.B. Foster Co. has a 13.4% interest--and point man Schieffer have been fighting an uphill battle to finance and build what would become, based on mileage and projected revenues, a Class I. The fiercest opposition has come from the Mayo Clinic in Rochester, Minn., which has waged a public relations battle against building a railroad it claims will be harmful to the environment and to its clinic patients. As well, BNSF Railway has opposed the line, on the grounds that taxpayer dollars should not be used to finance a private project on such a large scale (though it and other railroads have benefited from smaller scale public-private partnerships), and has reportedly waged a behind-the-scenes lobbying campaign on Capitol Hill. The DM&E's $2.5 billion RRIF loan application was tainted by allegations of cronyism, as it was Republican South Dakota Senator John Thune who was largely responsible for increasing the RRIF program by ten-fold, from $3.5 billion to $35 billion last year. Thune was a lobbyist for Cedar American before his election to the U.S. Senate.
Schieffer--not one to remain silent, especially in his highly publicized battles with the Mayo Clinic--hasn't yet issued a public statement on any potential financial dealings involving his railroads. He has, however, attempted to ally any fears his employees may have about new owner/investors. "In the coming weeks," he said in a letter issued last week, "we will have potential investors and possible partners on the property. There are lots of lookers, and we will allow many different players to look things over. But just because they are looking doesn't mean they will ultimately be in the deal, or that there will be a deal."
Former AAR p.r. chief Dan Lang dies at 68Daniel Lee Lang, 68, former vice president-information and public affairs, Association of American Railroads, died at his home in Bowie, Md., on June 11. A native of Steubenville, Ohio, Lang joined the AAR in 1966 as assistant manager-news service, and became head of the department in 1981. He left the association in 1992 and subsequently worked for Transport Topics, the American Trucking Associations publication, from which he retired two years ago. Lang was a frequent contributor to Railway Age in the 1990s. His death followed by just a few days that of one of his associates at the AAR, Ronald Shumate. Both Lang and Shumate worked at the Roanoke (Va.) World-Herald before joining the association.
Canada's carriers ready for oil sands industry growthAlberta's booming oil sands energy market has Canada's two biggest railroads stepping up investments to meet demand. The oil sands reserves in northern Alberta are said to be second only to Saudi Arabia's, and according to the Conference Board of Canada, industry will spend more than C$100 billion over the next decade in oil sands development, construction, and infrastructure upgrades.
CN President and CEO E. Hunter Harrison announced late yesterday that his company is well-positioned to seize growth opportunties in the area and will spend nearly C$350 million in Western Canada this year. He added that this investment strategy includes taking advantage of growth prospects in North American trade with Asia and the boom in the West with the new Port of Prince Rupert container terminal, which is scheduled to open in the third quarter. CN also plans to build a new C$1.6 million transload facility at one of its main Edmonton (Alberta) rail yards off Yellowhead Trail. The Edmonton Bissell CargoFlo operation, to be run by CN WorldWide North America, will permit rail-to-truck transfer of such products as methanol, sodium hydroxide, drilling mud, ethanol, and biodiesel.
In late May, Canadian Pacific announced that it is seeking regulatory approval to construct a 16-mile rail line serving new and planned oil sands industry plants located near Edmonton. The new line is slated to haul by-products from the bitumen upgrader plants, including sulphur, petroleum coke, asphaltene, and various liquids and gases. The railroad is investing $15 million for new infrastructure, and will first offer expanded transload capabilities for in-bound construction materials. (For more details, see Breaking News, May 29, "CP looking to expand rail lines.")
Agreement ends Metro-North strike threatThe New York MTA and Teamsters Local 808 announced an agreement today that MTA said "effectively ends the possibility of a strike this year" against Metro-North. The agreement, which both sides expect to be ratified on June 22, covers the final 601 Metro-North employees still without a contract. The other 4,100 ratified settlements in April and May. The announcement withheld details of the agreement pending ratification, but said it dealt with salary parity, furlough issues, and work rules.
Class I ton-miles down, earnings up in first quarter The rail industry's increased pricing power is reflected in a Surface Transportation Board report showing that U.S. Class I railroads in this year's first quarter earned net income of $1.327 billion, up from $1.322 billion in the 2006 quarter, although their total ton-miles of traffic declined to 421.8 billion from 430.0 billion. Class I revenues in the first quarter rose to $12.83 billion in this year's first three months from $12.467 billion in the 2006 period, and net railway operating income increased to $1.673 billion from $1.638 billion. Among major railroads, only BNSF Railway posted an increase in ton-miles in this year's first quarter. BNSF also reported the largest net income, $433.1 million, though Union Pacific led the Class I field in operating revenues with $3.8 billion.
Traffic decline fails to dent employmentDespite a 4% decline in traffic in this year's first four months, Class I railroad employment held steady and even managed a slight increase. In April, the large railroads employed 167,278 workers ranging from executives to maintenance staff, up 0.16% from March and 0.86% over April 2006. The biggest percentage increase from April 2006 was 5.5% in the category of executives, officials, and staff assistants. The biggest decline was 2.60% in the transportation (other than train and engine) group. In total numbers, transportation (train and engine) workers make the largest single employment group. These operating employees numbered 70,509 in April, up 0.68% from April 2006 but down 0.30% from March 2007.
Are 10,000-foot-long trains the "wave of the future"?They may be for BNSF Railway. The Class I railroad ran the first of what is now a series of 10,000-foot-long intermodal trains across the Southern Transcontinental line to increase capacity and velocity. The initial 10,000-foot international intermodal stacktrain departed Los Angeles on May 12, and arrived at Logistics Park-Chicago on May 15. It operated over the 2,200-mile Transcon, which is now almost entirely double-tracked, and used distributed power with four locomotives in front and two in back.
Advance planning was key to the move. BNSF employees coordinated delivery and schedules with customers, arranged for railcar supplies and locomotives, and informed other rail employees as well as ports that the train was running. They also resolved challenges unique to the extended-length train, including fueling and inspection locations.
The trip's success has prompted BNSF to implement regular weekly operation of similar 10,000-foot-long trains, and the railroad plans to expand the service in the coming months.
BNSF mechanical shops partner to improve safety, productivityBNSF Railway's mechanical shop employees use hand-operated hydraulic presses to apply, remove, or straighten parts on damaged locomotives.
To improve safety and productivity, the railrooad's Argentine-Murray (Kansas City) and Topeka System Maintenance Terminals recently teamed up to develop a special press guard. Made of steel mesh, the guard is lowered for hydraulic press operation and raised for parts change-out and press adjustment or maintenance.
The project "required a design that provides protection and allows employees to use it productively, but also provides access for maintenance," says Safety Assistant George Rocha, who managed guard development and implementation. It took "thought and a lot of creativity," he added, to come up with a high-quality end result. To accomplish this, Rocha worked with Dennis Bossolono, shop superintendent; John Reppond, general foreman; Darryl Cummings, supervisor of boilermakers; Jerry Turner, Topeka environmental representative and former safety assistant; Gordon Hall, boilermaker; and Gary Parsons, Topeka shop superintendent, retired. And so far, the guard has been a success.
What's next? Shop employees are looking for new ways to widen the margin of safety, Rocha says.
Pacer to launch new transload facilityTo support growing international freight traffic demands, Pacer Distribution Services, Inc., is opening a new 52-door transload center adjacent to the ports of Los Angeles and Long Beach. The facility, located on 5.4 acres in Carson, Calif., will provide additional capacity to the company's existing area warehouse operations.
"The recent shift in the marketplace caused by some of the largest ocean carriers reducing the number of inland locations they serve presents Pacer with an opportunity," said Kent Prokop, president of PDS, a Pacer International subsidiary. "This additional facility allows us to respond quickly to the rising demand from importers; it allows us to add capacity to transload more international freight into Pacer's more efficient 53-foot domestic containers for inland moves from the West Coast."
The move also supports the company's logistics services strategy. "We will roll out a fully integrated international freight transload service with domestic door-to-door delivery in the near future to further leverage this transload capacity expansion,” said Pacer International Vice President-Marketing David Hoppens, during today's announcement.
Greenbrier selected for double-stack cut down workThe Greenbrier Companies has landed contracts to trim 2,500 existing 48-foot double-stack intermodal platforms to 40-foot versions to "more efficiently match traffic flows and container loads." The cut-down work, received from two separate and undisclosed customers, will be performed at six Greenbrier shops through early 2008. Contract terms were not released.
Greenbrier says it is "well-positioned" to win more orders of this type, "as the original builder of a majority" of the approximately 50,000 48-foot platforms now in North American service.
MTA readies for East Side Access tunnel constructionNew York MTA's 200-ton tunnel boring machine (TBM) is one step closer to starting its "earth-eating journey" later this summer. According to MTA Capital Construction President Mysore Nagaraja, the machine's first giant pieces were lowered into the mouth of the 63rd Streeet Tunnel in Queens, N.Y., yesterday as part of the long-awaited East Side Access project to bring MTA Long Island Rail Road trains to Manhattan's Grand Central Terminal, which now serves just MTA Metro-North commuter and New York City Transit trains. "For transit aficionados, the arrival of a Tunnel Boring Machine is like the moment when the Christmas tree arrives at Rockefeller Center," Nagaraja said. "This is a big milestone...."
Once the rest of the TBM pieces are brought into the tunnel, they will be transported through it, under the East River, to a "launch box" under 63rd Street and 2nd Avenue. The TBM will then be assembled there and begin digging toward Grand Central. A second TBM is slated to arrive later this year to dig a second tunnel for the project.
The bilevel 63rd Street tunnel was built in 1969 for subway and commuter train service, but due to budget shortfalls, it remained unused until 1989. Subway F train service was then routed through the tunnel's upper level to 63rd Street and Lexington Avenue. The lower level now terminates at 63rd Street and 2nd Avenue, where the TBM will begin boring to Grand Central. Connecting tunnels will be completed in Queens to link the tunnel to LIRR's main line and Port Washington branch.
Enter now! RMI's “Fast Track” awards deadline is June 29RMI is holding its third-annual Fast Track awards competition to recognize railroad customers that maximize the firm's web-based applications for managing rail operations, improving customer service and business processes, and reducing costs.
To qualify, entrants must demonstrate, among other factors: "consistently high percentage compliance with TRAIN II reporting standards; advanced management reporting through SuperTrip, RailConnect Business Intelligence, or other third-party tools; use of RailConnect EMS services to better control car hire costs or increase fleet earnings; advanced use of ShipperConnect FMS services to improve fleet performance and customer service; advanced use of automation to report events using tools such as AEI and m-Crew; and utilization of tools such as e-BOL and ShipperConnect to automate the flow of information between the railroad and its customers.”
For more information and to receive an application, contact RMI's Jennie Baker at (404) 355-6734 or jennieb@railcarmgt.com. The deadline is June 29. Winners will be announced Sept. 1.
Ron Shumate, former railroad spokesman, dies at 68James Ronald (Ron) Shumate, 68, a former Association of American Railroads public relations officer, died June 6 at his home in Alexandria, Va. A native of Charlotte, N.C., and a journalism graduate of the University of North Carolina at Chapel Hill, Shumate was business editor of the Roanoke (Va.) World-News before joining the AAR in 1966. Among his positions was that of AAR liaison with the Association of Railroad Editors and its successor, the Association of Railroad Communicators.
Capitol Corridor ridership at monthly high--againIt's getting to be a habit: California's Capitol Corridor trains carried 141,789 passengers in May, a new monthly record, eclipsing the former record of 127,572 riders set in April. The Capitol Corridor Joint Powers Authority operates 32 trains a day between Sacramento and the Bay Area and 14 daily direct trains to San Jose, providing an alternative to travel on three congested freeways, I-80, I-880, and I-680. Fiscal year-to-date ridership has increased 13.3% with eight consecutive months of growth, and revenue that's increased 21.7% in the same period, according to Eugene Skoropowski, managing director of the authority.
UTU, Sheet Metal Workers propose a mergerThe 80,000-member United Transportation Union (UTU) and 150,000-member Sheet Metal Workers International Association (SMWIA) have proposed joining forces to form a new union, which they have named the International Association of Sheet Metal, Air, Rail and Transportation Workers—SMART. UTU says the merger, which would create an organization with 230,000 members, is endorsed by the AFL-CIO. The UTU board of directors voted unanimously this morning to put the merger before the UTU membership for ratification. If approved, the merger would become effective Jan. 1, 2008. Details of the ratification process have not been finalized, but UTU expects ballots to be sent to its members by the end of June.
The proposed merger would create, within SMART, a Transportation Division that would include the UTU’s air, bus and rail members. Rail non-operating-craft workers now represented by the SMWIA would negotiate in national rail negotiations with SMART’s Transportation Division, whose senior officers would be those elected at the UTU quadrennial convention in August. These officers “would have the same duties of international president, assistant president, general secretary and treasurer, national legislative director, and international vice president as they do under the UTU constitution,” UTU says. Also, “No UTU general committee of adjustment or UTU local or UTU legislative board will be closed as a result of this merger, nor will any UTU general committee or UTU local lose its jurisdiction.”
“The proposed SMART merger designed to boost UTU’s strength at the bargaining table, to bolster UTU’s strength in fighting off attempts by other organizations and carriers to take our jobs, and to assure the long term financial viability of the UTU and the United Transportation Union Insurance Association (UTUIA),” said International President Paul Thompson. The UTUIA would remain autonomous within SMART but “would have opened to it a vast new pool of potential policy holders, allowing the UTUIA to expand and remain financially secure.” UTU is currently engaged in contentious national negotiations with Class I’s; after many months, no agreement has been reached.
Besides strength in numbers, the UTU is touting these advantages of merging:
• The UTU constitution will remain intact and become a part of the SMART constitution. It would take the approval of the SMWIA general president and the UTU International president, plus a 75% vote of SMART, to make subsequent changes to the merger agreement, “effectively giving UTU veto power.”
• SMWIA’s “organizing expertise and strength. The SMWIA spends some 40% of its receipts on organizing, with 90 local and 30 staff organizers. This organizing structure would assist UTU in organizing short line railroads, bus properties, and airlines.”
• The combination of UTU and SMWIA political action committees (PAC), which would create the 21st largest (of 4,000) PACs in America and the 7th largest union PAC, “increasing the effectiveness of congressional and state legislature lobbying.” The SMWIA strike fund now exceeds $50 million, which SMWIA General President Mike Sullivan says “could grow to $100 million.”
• Access to SMWIA’s 186 training facilities and union halls throughout the U.S. “These training facilities could be used to train local officers without imposing hefty expenses on the locals. The SMWIA’s almost 200 union halls, meanwhile, could be used for meetings of UTU locals and UTU for Life chapters.”
Thompson says UTU explored merger opportunities with a number of other unions, including the International Association of Machinists and Aerospace Workers, the Communications Workers of America, and the Amalgamated Transit Union. Discussions with the SMWIA “have been going on for more than a year,” he says. “The creation of SMART provides the greatest benefit for UTU members, which should become clear from the reading of the merger agreement.”
The combined active membership of SMART would restore the numbers the UTU had when it was created in 1969, UTU says. The SMWIA, representing members of building trades, production workers, and rail and shipyard employees, traces its roots to 1887, with rail shop workers first joining the SMWIA early in the 20th century.
CSXI to offer intermodal service at New York Container TerminalLater this month, CSX Intermodal will start providing intermodal rail service at the Port of New York and New Jersey's New York Container Terminal (Staten Island, N.Y.). The five-day-a-week service is slated to connect customers to Chicago; Cleveland and Columbus, Ohio; and Detroit, Mich. Final operating details have not yet been released. For more details, click here.
Alstom-led consortium lands $57.4 million Indian contractDelhi Metro Rail Corp. (DMRC) has selected an Alstom-led consortium to supply a train control and signaling system for its metro lines 1 and 2 extension project. Alstom Projects India, Ltd., Alstom Transport, S.A., and Sumitomo Corp. will handle design, manufacture, installation, and commissioning work for the project that will extend the lines 23 miles by March 2010. Alstom, which was awarded a separate signaling contract for lines 1 and 2 in 2001, will now provide its URBALIS™ information and train control technology.
Wabtec buys wheelchair lift/ramp builder Wabtec Corp. has acquired electro-mechanical wheelchair lift/ramp manufacturer Ricon Corp. from a private equity firm. The $73.5 million cash deal, including debt repayment, is expected to be accretive in the first year. Panorama City, Calif.-based Ricon has annual sales of approximately $70 million on its products for the bus, commuter railcar, and passenger transit vehicle market. The company complements Wabtec's "presence in the transit bus market, where our Vapor Bus division is the leading provider of components and assemblies for door operating systems," Wabtec President and CEO Albert J. Neupaver said during today's announcement. "Ricon has a global reach, with sales in North America, Europe, and the UK; and significant aftermarket growth opportunities. In addition, we expect Ricon to continue to benefit from increasing demand for public transit around the world, strong government spending, and existing regulations that require accessibility products."
KCS announces safety record, capacity-enhancement projectKansas City Southern Railway employees reached a milestone on May 25. Those working between West Point, Miss., and Counce, Tenn., achieved 365 days of injury-free work "with positive attitudes and utmost professionalism," said KCSR Trainmaster Orville King.
"Going forward, we must continue to work safely, accept responsibility for our own safety, as well as the safety of our peers, and provide customer service that is second to none," King said. "If we can do that, we're making a great contribution to ourselves, our families, and toward achieving our safety vision of becoming the safest railway in North America."
In other news, KCS de Mexico's operations group, with assistance from the information technology division, began implementing a new Management Control System to enhance train capacity. The tool, which automatically generates car trip plans to help make train scheduling "more accurate and efficient," will be put to use along the Matamoros to Monterrey; San Luis Potosí to Tampico; Veracruz to Valle de México; and Lázaro Cárdenas to Morelia routes. As soon as a customer releases a car, a trip plan is created from that customer's facilities to the KCSM yard where the train will be assembled. Once the train reaches its capacity, cars are automatically retripped to the next train.
Virgin Trains testing biofuel blendVirgin Trains operated Europe's first environmentally friendly biodiesel-powered train in passenger service this week. The Voyager's run between London and North Wales is part of a six-month pilot being led by VT, the Association of Train Operating Companies, and the Rail Safety & Standards Board to "pioneer a sustainable fuel breakthrough for the rail industry."
To handle the new 20% biodiesel-blended fuel, modifications were made to the locomotives' Cummins engines. In addition, special fueling points were installed at Bombardier Transportation depots in Barton-under-Needwood, Staffordshire, and Crofton, West Yorksire.
"If the trial is a success--and we believe it will be--and we can convert our Voyager fleet to run on B20 biodiesel, we could cut our CO2 emissions by up to 14%," said VT Chairman Sir Richard Branson. "Government wants to see a reduction in transport's carbon dioxide emissions, and Virgin and the rail industry are at the forefront. We're starting with 20% biodiesel and hope to increase this amount to 100% in the future."
DOT picks nine Urban Partnership semi-finalistsCompetition for $1.1 billion in U.S. DOT Urban Partnership funding narrowed yesterday as DOT Secretary Mary E. Peters announced nine metropolitan areas as semi-finalists: Atlanta, Dallas, Denver, Minneapolis-St. Paul, Miami, New York, San Diego, San Francisco, and Seattle.
Asserting that DOT wants cities "to try something different, innovative, and daring when it comes to fighting traffic," Peters said all of the semi-finalists had submitted proposals that would levy tolls on vehicular traffic and offer more transit options to the public. She said the winners will be announced by mid-August.
Peters went to New York City to announce the semi-finalists. New York Gov. Eliot Spitzer seized the occasion to announce his support for Mayor Michael R. Bloomberg's controversial plan to impose traffic tolls on motor vehicles entering Manhattan below 86th Street between 6 a.m. and 6 p.m.--$8 for cars and $21 for commercial trucks.
Meanwhile, legislation was introduced in the state legislature in Albany to carry out the mayor's plan. Supporters of the mayor's congestion pricing strategy hope the lure of substantial federal funding will give impetus to a plan that has met opposition among both Democrats and Republicans.
May freight traffic: "Not too much to cheer about"In May, both U.S. rail carload and intermodal shipments continued to slide, according to figures released by the Association of American Railroads. Following April's trend, which was said to be consistent with the "tepid level of growth" in the national economy, "there isn't too much to cheer about" in May, said AAR Vice President Craig F. Rockey. But he stressed that "we should keep in mind that U.S. freight railroads moved more freight in 2006 than ever before" and that even with the decreases so far in 2007, "the absolute volumes being moved by the railroads today are still very high. For example, intermodal volume is down 1.2% through May, and even if this rate of decline continues for the rest of the year, 2007 would still be the second highest-volume year for intermodal in history, behind 2006."
Carload freight was down of 4.6% in May compared with May 2006, and trailer/container loadings were down 2.0%. Commodities showing declines included crushed stone and gravel (10.3%) and grain (9.4%). Coal carloadings also saw a decrease (3.9%) largely due to heavy rains and tornado damage in the Midwest early in the month, according to AAR.
For the first five months of the year, total U.S. carloads were off 4.3%, with the biggest drops in crushed stone, sand, and gravel, down 11.3%; motor vehicles and equipment, down 10.5%; and coal, down 1.7%.
U.S. intermodal traffic fell 1.2% for the year's first five months. Total rail volume, measured in ton-miles, was off 3.0%.
In Canada, rail carload traffic was up 1.6% in May, but down 1.1% for the year to date. Intermodal traffic was up 1.8% for the month and increased 1.5% for the first five months.
Kansas City Southern de Mexico reported a 5.0% decline in May carloads and a 4.8% drop in the first five months. Intermodal units increased 10.4% in May and 10.9% year to date.
For the week ended June 2, U.S. rail carloads and intermodal volume fell 1.2% and 0.7%, respectively, from the corresponding period in 2006. Canadian rail carloads and intermodal volumes rose 5.9% and 0.4%, respectively.
NS: I-81 corridor PPP back in playIs the time right for Norfolk Southern to press forward on the Interstate 81 corridor rail capacity expansion project? It appears so. At an Investor Day conference yesterday in New York City, the railroad said that since its Heartland Corridor between Norfolk, Va., and the Midwest is in operation, it is refocusing its attention on increasing rail capacity and reducing highway congestion along the I-81 corridor, one of the nation’s busiest trucking routes. The project is actually a major revamping and expansion of a concept that traces its origins to 1981 and was last seriously promoted in 2003, around the time when the term “public-private partnership” (PPP) came into more widespread use in the railroad industry. The renamed project, now called the “I-81 Crescent Corridor,” runs between Louisiana and New Jersey. It includes two potential parallel routes and is designed to draw truck traffic off several interstate highways.
The I-81 Crescent Corridor, which would cost up to $3 billion by early estimates, represents “significant freight potential for Norfolk Southern,” NS Vice President-Intermodal and Automotive Marketing Mike McClellan said during a presentation to analysts. Why? Because long-haul intermodal services along I-20, I-40, I-85, and I-81 are largely undeveloped and great portions, particularly in Virginia, are extremely congested. More than 1 million truckloads can be diverted to Crescent Corridor rail service, and there is existing intermodal and motor carrier interest in developing service in the corridor, he said. McClellan said that NS will introduce 28 new trains as it develops the network, to which motor carriers, intermodal marketing companies, and private fleets with rail trailers/containers will have access. The railroad would improve 10 terminals along the corridor, among them facilities at Harrisburg, Charlotte, Memphis, and Atlanta.
Funding for the project would come from a combination of public and private investments. Virginia has committed $40 million but so far is the only state to sign on. NS is now seeking additional support from a variety of sources, along the lines of the Heartland Corridor, which has involved a mix of federal, state, and local funds plus NS’s own capital. Such a project as the Crescent Corridor, observers say, presents a compelling argument for federal investment tax credit legislation now pending in Congress.
If efforts to raise investment dollars are successful, construction on the I-81 Crescent Corridor could begin in 2008, with the first new/improved services rolling out in 2009 and work wrapping up by 2013. Capital improvements would involve such projects as double-tracking, siding extensions, and traffic control, in addition to intermodal terminal improvements.
STB schedules hearing on rail transportation of energy resourcesThe Surface Transportation Board is holding a public hearing on July 18 to address efficiency and reliability issues of rail transportation of coal, ethanol, biofuels, and other energy products. The hearing is important, the Board says, because the reliability of the nation's energy supply is crucial to economic and national security, and rail transportation of energy resources is "a vital link in the energy supply chain." It will take place in Kansas City, Mo.
Anyone wishing to participate as a hearing speaker should file a written notice of intent with STB by June 19 and provide written testimony by July 5. For more details, click here.
Sound Transit moves one step closer to light rail expansionSound Transit and the University of Washington have announced a proposed agreement to extend ST's Link light rail system 3.15 miles to UW's Seattle campus and the surrounding area. The new $1.6 billion University Link (U-Link) would run in twin-bored tunnels from downtown Seattle to stations at Capitol Hill and on UW's campus near Husky Stadium.
Last fall, the Federal Transit Administration authorized ST to enter into final design of the project, and required ST to reach an agreement with UW for construction and service. ST plans to submit a Full Funding Grant Agreement application to FTA in September, with approval expected a year later. It is applying for a $750 million federal grant that would cover nearly half of U-Link's pricetag. (The rest will be funded by local tax dollars. Voters will consider this and other light rail expansion proposals as part of the Roads & Transit ballot measure in November.) Construction could start as soon as late 2008, with service commencing in 2016 and drawing about 70,000 daily riders by 2030.
Among the elements of ST-UW's proposed agreement:
* Establish an interim terminus for Link light rail at the UW station near Husky Stadium and the UW Medical Center.
* Support ST's construction plans for tunneling operations running south from UW to Capitol Hill.
* Identify at least two public entrances to the underground UW station.
* Set construction timelines for work on the campus not to exceed 5-1/2 years.
* Set specific monitoring measures for magnetic field and vibration thresholds to protect UW research facilities during light rail operations.
* Provide $35 million to UW for acquiring construction and operations easements, addressing parking impacts at Husky Stadium and UW's participation in design review and approval, and coordinating construction and future operating agreements.
The UW Board of Regents and ST Finance Committee will consider the proposal today; the full ST Board will review it on June 14.
KCS banking on a shorter route to MexicoFor Kansas City Southern, traffic flow on the north-to-south alignment of its NAFTA Railway linking Chicago with Mexico City and other points in Mexico involves routing trains over a long detour in southeastern Texas—specifically, trackage rights over Union Pacific’s heavily used Rosenberg-Flatonia and Flatonia-Victoria lines, a distance of 160 miles. Now, KCS hopes to shorten its route to Mexico by 70 miles with a new plan to rehabilitate an existing but out-of-service direct route between Victoria and Rosenberg that it purchased from UP following KCS’s establishment of TFM (now KCS de Mexico) during privatization of Mexico’s national railway system.
KCS has applied to the Federal Railroad Administration for an approximately $100 million RRIF (Railroad Rehabilitation and Improvement Financing) loan to rehabilitate the Victoria-Rosenberg line, former Southern Pacific trackage. Reestablishing service along this line would eliminate the need for KCS to operate over that section of the UP.
The project is an extension of KCS subsidiary Texas Mexican Railway’s main line upgrade in southeastern Texas, a project that was covered by an RRIF loan in 2004. Some track salvage and preliminary rail grading has already been completed for the new project along the northern end of the line. KCS says it intends to continue work immediately, and will also be pursuing a separate rail bypass around Victoria.
“This project is one of the most strategically important actions our company could undertake right now,” KCS Chairman and CEO Michael R. Haverty said. “Upon completion, it will immediately reduce our operating costs to the point that the project will pay for itself. It will facilitate the development of a superior service route for intermodal shippers to and from Mexico, add badly needed rail capacity to south Texas, and return vital rail service to communities along the line.”
KCS will still need to operate over UP lines between Beaumont, Tex., and Rosenberg (via Houston) and Victoria and Robstown, Tex., to link with the Tex-Mex and its connection to KCSM at the Laredo/Nuevo Laredo border crossing into Mexico.
Metro-North wins "green" awardMTA Metro-North Railroad has received the Green Seal Award for switching to ultra-low sulfur diesel fuel five years before Clean Air Act amendments mandate its use in locomotives and marine engines. The Federated Conservationists of Westchester County, N.Y., recognized the commuter rail agency's "leadership in helping to improve local air quality."
"Our decision to accelerate the switch to ultra low sulfur diesel fuel is an example of our commitment to be a good neighbor to the communities we serve," said George Walker, MNR senior vice president-operations. The commuter railroad, which uses 7 million gallons of fuel annually, converted to ULSD in January. The "green" fuel is said to reduce emissions of sulfur (by about 95%), hydrocarbon (13%), carbon monoxide (6%), nitrogen oxide (3%), and particulate matter (13% or about 10 tons a year).
Before making the move, MNR negotiated with fuel dealers, who agreed not to raise prices for the "green" fuel. It also sought assurances from locomotive manufacturers that ULSD wouldn't compromise locomotive performance. While the fuel requires "more frequent" change-outs of lubricating oil, MNR is implementing a recycling program, which will burn used lube oil to heat the Croton-Harmon Shop.
MNR employs diesel-powered locomotives in the unelectrified portion of its territory: the Upper Hudson and Upper Harlem lines and the Danbury and Waterbury branches of the New Haven Line, a total of 212 route-miles. (On the west side of the Hudson River, the Port Jervis and Pascack Valley lines are not electrified, but that service is provided by New Jersey Transit, which is currently transitioning to ULSD.)
CPR, maintenance-of-way union reach tentative agreementThe 3,200 Canadian Pacific maintenance-of-way employees who went on strike May 15 could be back at work in just a few days. CPR announced today that the railroad and the Teamsters Canada Rail Conference--Maintenance of Way Employees Division have reached a tentative, three-year contract settlement. The Memorandum of Settlement is now being sent to union membership for ratification over the next few days, according to CPR.
Contract details are expected to be released following ratification. The union had been asking for a 13% pay raise over a three-year period for workers who now earn an average of $C42,000 a year. CP offered 10%.
SEPTA, LACMTA win Rail Rodeo eventsSoutheastern Pennsylvania Transportation Authority and Los Angeles County Metropolitan Transportation Authority took top honors at the American Public Transportation Association's 2007 International Rail Rodeo competition. SEPTA won the Rail Transit Team Achievement Award and the Operators Competition; LACMTA came out on top in the Maintainers Competition. Twenty North American rail transit systems participated in the 15th annual Rodeo, which was held June 2 in conjunction with APTA's Rail Conference in Toronto (June 3-5).
The Rail Transit Team Achievement Award recognizes employees "who keep North America's rail transit systems operating safely and efficiently." Members of SEPTA's team included Aaron Murphy (operator), Michael Shepard (operator), Jason Rickert (maintainer), Robert Derr (maintainer), and Robert Brooks (maintainer).
The Operators Competition measures such professional skills as train operation; safety regulations knowledge; train equipment; and track right-of-way rules and procedures. SEPTA won first place with operators Aaron Murphy and Michael Shepard. Santa Clara Valley Transportation Authority earned a second place finish, and Massachusetts Bay Transportation Authority, third.
In the Maintainers Competition, participants are judged on their troubleshooting abilities. LACMTA took home first prize with maintainers Eric Czintos, Ronnie Burt, and Toshimasa Manaka. San Francisco Bay Area Rapid Transit came in second, and Denver's Regional Transportation District, third.
One-seat rides between Connecticut and New Jersey?New York MTA Executive Director and CEO Elliot G. Sander has announced two new pilot programs that would provide seamless transportation for Connecticut and New York State residents. Because MTA riders increasingly use multiple transit modes to reach their destinations, Sander told Crain's Breakfast Forum attendees that his agency will explore regional trains and ticketing to the New Jersey Meadowlands in 2009, as well as a centralized call center.
"As new population and employment centers emerge, public transportation riders need to be able to access information across systems and travel as if the entire region was on a unified network," Sander said. "The vision is to integrate our transportation network with others so that customers can have a seamless journey between states and across transportation systems using different modes of travel."
MTA, including its Long Island Rail Road and Metro-North Railroad commuter agencies, is working with Amtrak, New Jersey Transit, and the New Jersey Sports and Exposition Authority on a one-seat, regional ride pilot. Beginning in Summer 2009, MNR's New Haven Line riders will be able to get to 10 Giants and Jets National League Football games by train. Boarding will start in New Haven, Ct., with riders remaining on the train until they reach Secaucus, N.J. Once in Secaucus, they will transfer to special NJ Transit shuttle trains to and from the New Jersey Meadowlands Sports Complex. All MNR, LIRR, and New York City Transit riders will have a chance to transfer to these and other football trains at Manhattan's Penn Station, using a single ticket for the entire journey. According to MTA, this would be the first time that a single ticket has allowed travel across MTA commuter trains, subways, and buses, and NJ Transit trains.
"Our hope is that this pilot will lead to projects that are induced by other kinds of travel patterns, such as new commuting to work patterns, which we will see more of as the population grows," Sander explained.
The second pilot project stems from MTA's Customer Service Initiative, which revealed a greater need for easy access to transit information. MTA is now considering establishing one designated customer service phone number. Similar to 311, MTA customers would reach an agent, who could provide transportation information for all MTA agencies.
BRT looms big in Los Angeles transit expansionRail transit partisans have called "bus rapid transit" (BRT) something of an oxymoron. But Los Angeles calls it a crowd-pleaser, and the $3.121 billion operating and capital improvement budget proposed for FY 2007-2008 by LA Metro gives an expanding role to buses. Rail continues to play a major role in Los Angeles, with $742 million or 22.8% of the new budget earmarked for countywide rail, including Metro Rail operating and capital costs and a $58.5 million subsidy for Metrolink. But BRT has come along faster than some expected.
"Metro Rapid has become the hallmark of our service expansion," an MTA spokesman told the Los Angeles Times. "People from around the world have come to study it."
In announcing its proposed spending plan on June 5, MTA said: "There will be a slight increase in bus service hours spread throughout Los Angeles County, including the popular Metro Orange Line, but the quality of service will improve as Metro launches eight new Metro Rapid lines in FY 08 and purchases up to 100 new 60-foot articulated buses that have more seating capacity than standard 40-foot buses. In the next fiscal year, Metro will experiment with a 65-foot prototype bus on the Metro Orange line."
The BRT Orange Line links the North Hollywood Metro Rail stop with Warner Center in the San Fernando Valley. According to The Times, the Orange Line reached its current ridership of 24,000 a month 13 years ahead of the target date.
TranSystems and Lichtenstein Consulting Engineers mergeTransportation consulting firm TranSystems (Kansas City, Mo.) and bridge engineering firm Lichtenstein Consulting Engineers (Paramus, N.J.) have joined forces. The combined companies employ 1,300 professionals in 45 U.S.-based offices. Merger details were not disclosed.
"Our markets and services are remarkably complementary," Lichtenstein principal Charles Minervino said during today's announcement. "Together, our firms can provide expanded integrated services to the transportation community while maintaining both firms' personal commitment to exceptional client relationships."
Lichtenstein offers consulting services nationwide, and specializes in bridges, highways, and railroad engineering. Well-known for its bridge projects, it works on suspension and cable-stayed bridges, long span trusses, moveable bridges, and historic structures. Lichtenstein developed the AASHTO codes that serve as standards for U.S. bridge inspections and ratings.
TranSystems provides architecture, engineering, planning, management, supply chain, and real estate consulting as well as security services to all sectors of the transportation industry.
BNSF completes successful blitz on Campbell SubdivisionMore than 250 BNSF Railway employees joined forces last month on an extensive track project along nine miles of the Campbell Subdivision, east of Gillette, Wyo. During the 14-hour blitz, completed over three days, crews undercut more than 18,513 feet of track; surfaced 22.16 pass miles, including all turnouts and grade crossings on the subdivision; finished 138 thermite welds; eliminated 80 rail joints, making the subdivision "joint free"; relaid 25,806 lineal feet of rail; replaced three switch machines and two turnouts; and installed 180 concrete ties, 187 wooden ties, and five insulated-joint panels. In addition, the set-out track off the main line at Clovis Point was extended by 140 feet; two Zukinut detectors were replaced with paddles; guard rail was replaced at East Fortin; and one signal mast was relocated. The work wrapped up on time without injury or incident and eliminated all slow orders along the subdivision, according to the railroad.
BART marks its 50th birthdayThe San Francisco Bay Area Rapid Transit system marked its 50th birthday yesterday. On June 4, 1957, the California State Legislature and Gov. Goodwin Knight created BART as a "preemptive strike against the massive influx of cars and people moving into the Bay Area after World War II."
And 15 years later, rail service began. When BART gave transit professionals a sneak-peek at the new system, just two months before its opening, Railway Age was there. The July 10, 1972, edition of the magazine called BART "the world's newest and unquestionably most advanced rapid transit system." It quoted IRT President William Ronan, chairman of New York's Metropolitan Transportation Authority, as saying that American cities owe BART and "its never-cry-uncle" general manager, Bill Stokes, a great debt: the Bay Area began to dig its way into the future at a time when "ecology" was a term known only to professors; at a time "when the production of autos out-distanced the birth of babies in the nation by three to one...when California not only captured the crown for being the largest state in people population but also achieved first place in horns, exhaust pipes, and autos generally."
Since Sept. 11, 1972, BART has carried more than 1 billion riders. "We were there to keep the economy moving when the 1989 Loma Prieta earthquake knocked out the Bay Bridge, and most recently when the MacArthur Maze connector collapsed," BART Board President Lynette Sweet said during yesterday's celebration. "We're there each and every day for hundreds of thousand of people who want to avoid gridlock, high gas and parking prices on their way to work, to sporting events, parades, and other large social gatherings. And we're there for those concerned about the future of our environment." Sweet added that "we are hopeful the current legislature restores the deep cuts in transit funding that the current governor has proposed."
Railpower recalls switchers for safety upgradeRailpower Technologies Corp. announced June 1 that it had asked its customers to temporarily suspend operation of 59 Generation I, II, and III Green Goat yard switcher locomotives pending a safety upgrade. The recall followed a fire in a Generation I Green Goat locomotive on May 30. The recall did not affect the company's road switcher fleet of more than 100 locomotives.
Railpower said it was undertaking "an in-depth analysis of the cause of the fire in Generation I and II GG-series locomotives in order to determine temporary and permanent solutions." The company said that for Generation III locomotives, it has already completed a study of potential difficulties and "will install a new version of software for battery pack monitoring and implement some mechanical improvements for additional protraction."
"Our goal is to ensure the safety of our customers and their ability to return to normal operations as rapidly as possible," said Railpower President and CEO José Mathieu. "We will devote the resources necessary to demonstrate our commitment to support our products and to satisfy our customers’ needs."
Rail trespasser fatalities declineNew safety statistics from the Federal Railroad Administration show that there were 97 trespasser fatalities in this year's first three months, a decline of 5.8% from the 103 fatalities in last year's first quarter. Grade crossing fatalities increased 3.8% to 83.
Train accidents declined 12.6% in the first quarter, with collisions down 16.7% and derailments down 7.4%. Yard accidents declined 19.9%.
There were four employee fatalities in the 2007 quarter, compared with two in the 2006 period, six in 2005, and five in 2004.
LIRR names new presidentMTA Long Island Rail Road Acting President Raymond P. Kenny is handing over the reigns on June 18 to Helena E. Williams, former president of Long Island Bus (1993-1998). Kenny, a 34-year LIRR veteran, took over the post in September 2006, following the resignation of James Dermody, who headed LIRR for nearly three years.
"Helena's unique combination of experience in transportation management and Long Island policy issues made her the obvious choice to lead the LIRR to the next level," said MTA Executive Director and CEO Elliot G. Sander during today's announcement. "We interviewed candidates from throughout the MTA family and around the world, but Helena rose to the top, and I expect her to hit the ground running."
As the first woman to lead the commuter rail agency, Williams' initial priorities are slated to be customer safety, service reliability, and "laying the groundwork for meeting future transportation demand." Her previous transportation experience has prepared her for the role. At the bus company, Williams oversaw a variety of service improvement projects, including the implementation of Metrocard; transition to a fleet of clean, eco-friendly buses; initiation of a new paratransit service; and development of an employee availability program that dramatically cut costs.
Williams began her career in New York City, working for the Mayor's Office of Municipal Labor Relations. She moved to the MTA in 1985 as labor counsel and was later promoted to Long Island Bus's chief of staff, before assuming the presidency in 1993. She served most recently as senior counsel at Cablevision and previously served as Nassau Deputy County Executive.
Private equity firm acquires majority stake in RMIPrivate equity firm The Carlyle Group has acquired a majority stake in RMI, a provider of web-based railroad business management tools. Financial terms were not disclosed. RMI's management team will remain in place.
"Carlyle's extensive knowledge of the transportation sector, as well as its global network, will enable us to further the growth of the business," RMI CEO J. Peter Kleifgen said during today's announcement. "We will have the resources to continue to pioneer new technologies and industrywide initiatives, as well as to develop new business in related markets."
Commented Carlyle Managing Director Steve Bailey: "We look forward to assisting the RMI management team in taking their dedicated customer focus and sophistocated suite of integrated services to other market segments in the U.S. and abroad."
Founded in 1979, Atlanta, Ga.-based RMI specializes in transportation, revenue, and equipment management systems and services for the short line and regional railroad industry. Through automation, its products help streamline costs and increase efficiencies by eliminating time-intensive manual processes.
First Texas grade crossing goes on cameraThe first railroad crossing photo enforcement system in Texas was introduced in Grand Prairie on June 1, a joint effort of the city, Union Pacific Railroad, and Redflex Traffic Systems, Inc., of Scottsdale, Ariz.
Accidents at Grand Prairie's 11 crossings have caused five fatalities in the last four years, though they are equipped with gates and flashing lights. The first photo enforcement installation, at SE 9th Street and Pacific Street, will be followed by at least five others. Proceeds generated by the program will be dedicated to crossing safety improvement.
Hellman takes helm at GWI, succeeding FullerMortimer B. Fuller, III, stepped down on June 1 as CEO of Genesee & Wyoming, Inc., (GWI) and was succeeded by John C. Hellmann, who became president of the short line/regional holding company in May 2005.
Since Hellman joined GWI in 2000 as chief financial officer, the company has acquired more than two dozen rail operations worldwide, increasing its market capitalization from $50 million to approximately $1.3 billion today.
Fuller became CEO in 1977 after purchasing a controlling interest in Genesee & Wyoming in 1977, when it had 14 miles of track and served a single customer. His great-grandfather, Edward R. Fuller, founded the railroad in 1899.
Rail traffic slide continuesCarloads traffic on U.S. railroads in the week ended May 26 was down 4.7% from a year ago and intermodal traffic trailed by 1.0%. Total volume in ton-miles was down 1.8% from the 2006 week. For the year so far, carload volume was down 4.5%, intermodal was off 1.2%, and ton-miles were down 2.8%.
Canadian carload traffic in the latest week edged up 0.3% and intermodal volume was flat. Year-to-date, Canadian carloads dropped 1.5% and intermodal was off 0.8%.
Kansas City Southern de Mexico reported carload traffic down 6.6% in the latest week and intermodal volume up 15.6%.