September 2006
Intermodal traffic still gainingThe Association of American Railroads reports that U.S. railroads handled 256,193 trailers and containers in the week ended Sept. 23, up 6.3% from the corresponding week last year and the second highest weekly volume ever recorded. Carload freight was up 1.0% to 338,141 cars. The strongest carload growth was in grain loadings, up 8.6%; coke, 27.7%; and petroleum products, 20.7%. In the loss column were forest products, down 19.5%; lumber, 18.56%; and motor vehicles and equipment, 15.3%. Total volume, in ton-miles, was up 2.4%.
BART picks team for Oakland Airport ConnectorThe Bay Area Rapid Transit District has selected the team of Balfour Beatty and Mitsui & Co., Ltd., to bid on the Oakland Airport Connector, an automated people-mover system that will replace bus transfer routes between BART’s Coliseum Station and the airport. BART envisions the project as a public-private partnership both in funding and implementation.
Amtrak board under scrutinyThe U.S. Department of Transportation Office of the Inspector General is conducting an investigation of Amtrak’s board of directors.
In a Sept. 26, 2006 letter to Amtrak Board Chairman David Laney, Assistant Inspector General for Competition and Economic Analysis David Tornquist said the IG intends to determine whether Amtrak’s board of directors “is adequately carrying out its legal and fiduciary responsibilities.” Tornquist cited the reason for the investigation as issues raised in the October 2005 General Accountability Office report, “Amtrak Management: Systemic Problems Require Actions to Improve Efficiency, Effectiveness, and Accountability.” He also said that in March 2006, Democratic members of a House Transportation & Infrastructure “Amtrak Working Group” that had been assembled at the request of Chairman Don Young (R-Alaska) to evaluate the GAO report requested that the DOT IG undertake an investigation. These members cited concerns that the board “has not exercised sufficient oversight of the corporation or held management accountable for results” and whether its expenses are “appropriate.”
“Our office plans to conduct a review of how Amtrak’s board of directors carries out its responsibilities,” Tornquist said. “In addition, we plan to review the board’s expenses from Fiscal Year 2002 to the present. The objectives of this review are to determine (1) the rules, procedures and authorities under which the board operates, (2) whether the board has followed established processes and procedures, (3) whether the board has set long-term goals and performance objectives for Amtrak, (4) whether the processes and procedures that the board follows are sufficient for ensuring oversight of, and requiring accountability from, Amtrak management, and (5) whether the board members’ expenses comply with corporate guidelines and whether those guidelines are sufficient to ensure prudent use of corporate resources. The results of our review will aid in identifying whether potential reforms to improve the board’s performance are needed.”
Rapid transit for South AfricaThe Gauteng Provincial Government of South Africa has finalized an agreement with a Bombardier Transportation-led consortium for the Gautrain Rapid Rail Link, a 50-mile rapid transit system connecting Johannesburg, Tshwane (Pretoria), and Johannesburg International Airport. The Bombela Consortium, which consists of Bombardier, French civil contractor Bouygues Travaux Publics, South African civil contractor Murray & Roberts, and Strategic Partners Group (SPG, consisting of several “South African Broad Based Black Economic Empowerment companies”), will provide the system under a $3.3 billion, 20-year DBOM (design-build-operate-maintain) arrangement. Bombardier’s share of the 54-month design-build portion of the contract is worth approximately $950 million; its share of a separate 15-year maintenance services contract is worth approximately $700 million. Construction of the new line will commence immediately.
Bombardier will be responsible for core electrical and mechanical systems, including 96 Electrostar vehicles and CITYFLO 250 communications-based train control technology. Bombardier’s facility in Derby, United Kingdom, will be responsible for vehicle manufacturing, with final assembly performed in South Africa. In conjunction with SPG, Bombardier will provide power supply and distribution systems, communications systems, automatic fare collection, track materials, and maintenance equipment, as well as project management, systems engineering and integration, and testing and commissioning. The civil contractors will be responsible for all of civil works, including tunnels, stations, and a maintenance depot. SPG also will be involved in maintaining the system during the 15-year operations portion of the contract.
The system will open in two phases. Phase 1 will include the Sandton, Marlboro, Midrand, Rhodesfield, and Johannesburg International Airport (JIA) stations. Phase 2 will extend the system to the Park, Rosebank, Centurion, Pretoria, and Hatfield stations.
Evolution grabs hold in KazakhstanKazakhstan’s national railway company, Kazakhstan Temir Zholy (KTZ), has signed a $650 million contract with GE Transportation for 310 new Evolution Series® locomotives—the first to be exported from the U.S. Under terms of the contract, GE will manufacture and ship 10 units in 2008 that will be built at GE’s locomotive manufacturing facility in Erie, Pa. The remaining 300 units will be assembled at a new locomotive assembly plant in Pavlodar, Kazakhstan, with production and delivery of key components taking place from 2008 through 2012.
These particular Evolution locomotives will be specially designed for operation in Kazakhstan and the entire CIS (Commonwealth of Independent States ) region. They will be configured with dual cabs and an interior walkway bridging both ends, and will be powered by GE’s 12-cylinder GEVO engine driving a.c. traction motors—a first for the CIS region. They are expected to be the most environmentally friendly locomotives in the CIS region, which is comprised of former Soviet Union-controlled areas.
GE says the locomotives “will be used to help KTZ move record amounts of goods and materials by rail, driven in large part to strong demand for transit, intermodal traffic, and petroleum products.” GE has a long-standing relationship with the railroad, having already modernized more than 400 locomotives in the KTZ fleet.
American Railcar wins orders for 2,400 new carsAmerican Railcar Industries (ARI) has received orders from American Railcar Leasing (ARL) for 2,000 new tank cars and 400 covered hoppers.
The new tank car orders include a new agreement to build 1,000 at the company’s new manufacturing plant adjacent to an existing plant at Marmaduke, Ark., for delivery in 2008 and 2009; and another 1,000 representing the exercise of an option to be built at the existing Marmaduke plant for delivery in 2008. The hopper cars will be built at ARI’s Paragould plant in 2008 under another option.
In announcing the new business, ARI President and CEO James J. Unger commented: “Our backlog continues to be very strong, and is expected to hit a new record this quarter. While we expect third-quarter 2006 covered hopper railcar volumes to be strong when compared to last year, they will reflect some planned volume slowdown compared to the second quarter, as ARI’s production mix in the third quarter shifted to larger railcars with more complex paint and lining systems, as well as stainless steel covered hopper railcars, a more labor intensive product. There is also some modest decline in volume as a result of very hot summer weather affecting manufacturing operations.”
The company resumed manufacturing operations on Aug. 7 at its Marmaduke tank car plant, which was damaged by a tornado on April 2.
Records fall as intermodal volume climbsU.S. railroads hauled 257,526 intermodal containers and trailers in the week ended Sept. 16, 5.2% more than in the same week a year ago and the highest weekly volume on record. The previous high of 253,165 units was set only two weeks earlier.
Carload traffic did not fare as well in the most recent week, declining by 1.2% to 345,676 cars. Coal loadings were up 5% from last year, but primary forest products were down 16.9%, lumber was off 16.7%, and motor vehicles and equipment fell 15.3%.
In Canada, intermodal volume rose 2.6% to 47,841 units and the number of carloads declined 1.7% to 77,382. Kansas City Southern de Mexico's carload traffic, 12,037, was up 4.5%, and intermodal volume, 4,339 units, was up 21.9%.
Maglev crash in Germany kills 23A Transrapid magnetic levitation train crashed into a maintenance vehicle on an elevated test track in the Emsland region of Germany today while traveling at a speed of nearly 125 mph. Authorities said at least 23 people aboard the train were killed and 10 others were injured. It was the first fatal accident involving a maglev train.
The cause was not immediately clear.
While the technology has been under development and test for a number of years, mainly in Germany and Japan, it has been adopted for revenue service only in China, where a maglev line links the city of Shanghai with its international airport.
UP opens new Salt Lake City Intermodal terminalUnion Pacific announced the official opening Sept. 20 of its new Salt Lake City Intermodal Terminal, which covers 260 acres, cost $83 million to build, and is designed to handle 250,000 containers and trailers annually. Its features include a track for receiving and departure of trains; four tracks with capacity to handle the unloading of 75 doublestack cars; five tracks for holding cars prior to loading or unloading; two straddle cranes equipped with GPS technology, plus rubber-tired mobile “packer”; more than 1,300 parking places for containers and trailers; advanced technology to coordinate all equipment movements at the facility; and technology that cuts truck
processing time from four minutes to as little as 30 to 90 seconds.
Construction began in February and took six months to complete. The facility is located two miles south of I-80.
NYMTA chief opposes fare hikes or service cuts in 2007With ridership surging at an “astounding” pace, the near future is not the time to consider service cuts or fare increases, says Peter S. Kalikow, chairman of the New York Metropolitan Transportation Authority.
“In the last decade alone, we have seen ridership on the subways and buses increase over 582 million, from 1.064 billion in 1995 to 2.186 billion in 2005,” said Kalikow in a statement on Sept. 20. “That an over 36% increase, when population in the five boroughs has increased only about 12% over a similar period. Now is simply not the time to reduce service to our commuters who have responded in such incredible numbers to the MTA’s service program.”
Kalikow said he also opposed fare increases in 2007. "Certainly, our revenues from various sources have been better than expected,” he said. “As I have always said, we view fare increases as a last report, and if revenues keep pace, I just don’t see a fare increase in 2007.”
Kalikow was responding to published reports that MTA New York City Transit which operates subways and buses, was contemplating reduced service and higher fares in order to cut costs next year. In addition to NYCT, the agency headed by Kalikow also controls the Long Island and Metro-North commuter railroads.
AAR wraps up another successful customer forumRailroads told the shipping community last week that they’re prepared to handle this fall’s record traffic levels. Senior marketing and operating officers from each of the Class I’s gave upbeat presentations at the third-annual, Association of American Railroads- sponsored customer forum.
“Throughout the year, our overall performance has outpaced some of the leading economic indicators,” Norfolk Southern Executive Vice President-Sales and Marketing Donald W. Seale told the 500-plus attendees. “Our second-quarter volume growth of 4% exceeded the 2.5% growth in GDP, and we exceeded two million units for the first time. Despite high energy prices and economic uncertainty, both of which are impacting the manufacturing and consumer sector, we are still in a period of economic expansion.” NS expects increased volumes through the fall and into 2007 for most business segments.
Contributing to this growth: a continued truck driver shortage, high fuel prices, increased international trade, and higher demand for coal.
To keep up, the Class I’s are spending a total of $8.3 billion on capital improvements this year--adding track, improving signals, and buying new locomotives and rolling stock. They’re also improving asset management and expanding intermodal networks. For example, NS’s Seale said the railroad began construction on a new terminal in Columbus, Ohio, in September. When completed in early 2008, it will have an annual lift capacity of 250,000 units, 1,800 wheeled parking spaces, and another 450 spaces for double stacks.
Similarly optimistic about the rail industry’s capabilities were Kansas City Southern officials. “In my 20-plus years in this industry, the North American rail network is more fluid than I’ve ever seen it,” said Owen Zidar, vice president-sales and marketing for the Carload Business Unit. He noted that the Port of Lazaro Cardenas is providing an alternative to congested western ports and premium intermodal service has reduced transit times between Mexico and the southeastern U.S. KCS Senior Vice President-Transportation Mike Chapman added that placing KCSR and Kansas City Southern de Mexico on common operating systems, making capital investments, and hiring more train and engine employees have all contributed to greater fluidity on the system.
According to Executive Vice President-Marketing and Sales Jack Koraleski, Union Pacific has being “investing for growth” with a 2006 capital plan that includes $1.48 billion for maintenance-of-way; $662 million for locomotives and freight cars; $535 million for new capacity; and $123 million for other investments. It’s making key capacity improvements at the Los Angeles Basin, San Antonio terminal facilities, Powder River Basin Joint Line, and North Platte Terminal, among other locations. Koraleski also outlined a possible $3.2 billion capital plan for 2007, which could include accelerating the Sunset double-tracking project, adding Southern Powder River Basin capacity, completing the Iowa/Nebraska CTC project, continuing maintenance projects to improve safety and reliability, and adding 300 more locomotives.
BNSF’s $2.6 billion in capital commitments for 2006 cover maintenance (44%), locomotives (25%), expansion (17%), mechanical (6%), and other investments (7%). BNSF Executive Vice President and COO Carl Ice and Executive Vice President and Chief Marketing Officer John Lanigan told shippers that the railroad has experienced 17 consecutive quarters of record volumes; PRB coal flowing at record levels; no grain car shortage with fluid service in the sector; record volumes and improved velocity for industrial products; record volumes for intermodal with no port congestion; and overall service/velocity improvements.
Turnout at the forum could indicate that the railroads' investments are paying off. “Attendance has peaked when the industry has had more service problems,” said AAR President and CEO Edward R. Hamberger, noting that this year it dropped nearly 25% from 2005. "This is an indication that more customers believe that our service is improving.”
Railroad representatives said they would continue to invest in service improvements. But reregulation could eliminate much that, pointed out Charles W. Moorman, NS chairman, president, and CEO and AAR chairman. If a railroad “can’t make adequate returns and can’t justify the money it’s spending, investors won’t put up with that as long as they have in the past.”
Chicago Plan: Relief at last?It's been a long wait, but today, Congressman Daniel Lipinski (D-Ill.) announced a new $330 million funding agreement for the CREATE (Chicago Region Environmental and Transportation Efficiency) rail improvement project. The agreement--including $100 million appropriated in last year's federal transportation bill (supported by Lipinski), $100 million from the Class I railroads (new, unspent funding that's part of their total commitment of $212 million), $100 million from the state of Illinois, and $30 million from the city of Chicago--will help the $1.532 billion project move forward over the next three years.
This is good news, said Association of American Railroads President and CEO Edward Hamberger, because the project will “reduce highway congestion, improve passenger rail service, and enhance the efficiency and capacity of freight rail operations through the area. It's what public/private partnerships are all about.”
The ambitious project, first announced in 2003, will create 25 new roadway overpasses or underpasses at locations where auto and pedestrian traffic currently crosses railroad tracks at grade level; six new rail overpasses or underpasses to separate passenger and freight tracks; viaduct improvements; grade crossing safety enhancements; and extensive upgrades to track, switches, and signal systems.
Earlier this year, CN withdrew from the six railroad/city/state consortium formed to fund and construct the CREATE project after Congress appropriated $100 million--$500 million less than anticipated--in federal funds (RA, February, p. 6). While the railroad said it supported CREATE as a worthy concept, it could not justify making an initial financial commitment of $17 million without the prospect of receiving operational benefits.
At midyear, Class I rate of return continues to climb Class I railroads earned a 9.11% rate of return on net investment for the 12 months ended June 30, 2006, up 2.71 percentage points from the same period last year (6.4%), according to recent Surface Transportation Board statistics. Among the seven Class I's, Norfolk Southern again posted the highest ROI, 13.35%, up from 11.85%, and the Soo Line saw the largest jump, coming in at 10.09% vs. just 1.10% last year. BNSF Railway earned 10.50% vs. 8.25% in 2005; CN/Grand Trunk Corp., 8.43% vs. 7.01%; CSX Transportation, 7.18% vs. 5.06%; and Union Pacific, 7.08% vs. 4.40%. Kansas City Southern was the only carrier to see its rate of return fall. It recorded an ROI of 6.61% this year vs. 8.28% in 2005.
NJT/Amtrak forge new long term agreementThe 55-mile section of Amtrak's Northeast Corridor between New York Penn Station and Trenton, N.J., is the busiest passenger rail corridor in the nation, daily hosting hundreds of New Jersey Transit commuter and Amtrak intercity passenger trains, as well as a small number of Norfolk Southern, CSX, and Conrail Shared Assets freight movements. Since 1983, NJT has been paying Amtrak—which owns, operates, and maintains the NEC—the allocated costs of operating its commuter trains, which account for the vast majority of traffic. About 100,000 daily commuters ride NJT’s NEC service (about 400 trains a day), a figure that has been steadily increasing. And in recent years, both agencies, through the Joint Benefit Capital Program, have invested billions in NEC infrastructure, in such projects as the Kearny Connection and a high density signaling and train control system.
Service problems on the NEC, the brunt of which have been borne by NJT riders, are increasing in frequency. The most recent serious incident was a May 25 substation failure that de-energized the catenary system from Maryland to New York, stranding almost 400,000 passengers. Other, less-serious service disruptions are becoming more common. All are symptomatic of what most industry observers agree is a lack of adequate federal investment in the NEC.
It is within this context that NJT and Amtrak have renewed their existing operations and maintenance services agreement and have extended the Joint Benefit Capital Program. The new six-year agreement is effective Oct. 1 (the beginning of Fiscal Year 2007) and ends Sept. 30, 2012. Based on fully allocated costs, NJT will pay Amtrak a fixed amount of $34.4 million per year in Fiscal Years 2007-2009, a slight increase (about $400,000) over what it’s paying this fiscal year. The amount will be recalculated for Fiscal Years 2010-2012, based on actual Amtrak costs and usage factors. In addition, NJT will pay Amtrak 31.5% (based on current service levels) of Amtrak’s actual costs for all electric power consumed on the NEC between Washington, D.C. and New York—approximately $22 million annually, compared to the $15-$20 million annually it has been paying. There’s also a revised liability agreement, in which NJT will no longer be responsible for all costs in the event of claims or losses involving Amtrak trains. This new, “no-fault” agreement means NJT and Amtrak will each be responsible for claims against their respective property, equipment, employees, and passengers. The Joint Benefit Capital Program has been renewed for six years. NJT and Amtrak have committed to investing $260 million each in capital improvements to electric traction, track, communication, signals, and structures. FY 2007 projects include electric power substation upgrades, replacing catenary, and completing life-safety projects in the Hudson River tunnels.
NJT and Amtrak have also entered into a joint planning process for an NEC “reliability and capacity expansion capital plan” for projects to be completed by 2016, said NJT Executive Director George Warrington. “The planning process will assure that intercity and commuter service needs are clearly defined and accommodated as ongoing annual capital programs are developed and implemented,” he said. Since NJT has “a significant and vested interest, even though it is not a majority user, in NEC electric power issues,” a “power grid steering committee will be established, with NJT and other users consulted on such topics as long-term power purchase contracts, capacity studies, capital investment, and alternative power procurements.” Also to be examined is the possibility of building a new dispatch center in Manhattan to replace the existing CETC (Centralized Electronic Traffic Control) facility in Philadelphia. Amtrak had proposed locating the new control center at its centralized operations facility in Wilmington, Del., but NJT rejected this idea. “That was an unacceptable outcome,” Warrington said. “We wanted the center close, so our dispatchers could control day-to-day [train] movement.”
New Jersey Governor Jon Corzine was present at the agreement’s announcement, which took place during an NJT board meeting. Following up on Warrington’s remarks concerning service reliability on the NEC, Corzine was asked by reporters from several news outlets (among them Bloomberg, the New York Times, and the Asbury Park Press) whether the State of New Jersey should pursue taking over NEC operations between Trenton and New York from Amtrak. Corzine said that the state views this as an option “worthy of deep exploration” and that Amtrak “can never do enough when they want to because of a lack of resources.”
Warrington—who is intimately familiar with the NEC (he ran it when it was a separate business unit under former Amtrak chief Tom Downs, before taking over as Amtrak’s president prior to his 2002 appointment as head of NJT)—characterized Amtrak as “under siege.” There is a need for NJT “to step up and protect our interests,” he said. Corzine “is interested in exploring models, and we've been thinking about those opportunities,” he said. The governor “has a deep appreciation for some of the frustrations we all have about the condition of the NEC, but more important, of the historic paralysis in Washington around effectively funding and creating the right kind of model that puts the right level of attention financially and managerially on the NEC.”
Not surprisingly, reporters jumped all over Corzine’s and Warrington’s informal remarks. In recent years, proposals to separate NEC operations from infrastructure have been floated by several interested parties. The prospect of a state agency assuming NEC operations from Amtrak closely follows what the Amtrak-hostile Bush Administration has been pushing as part of its efforts to “reform” Amtrak: turning over responsibility for operations and investment in passenger trains to individual states. The concept of a “multi-state compact” has been proposed for the NEC, but this idea has largely been dismissed as unworkable and unaffordable by state officials, including those from New Jersey. It was strong resistance to this and other restructuring ideas that got former Amtrak president and CEO David Gunn fired in November 2005. Gunn, who during his tenure embarked on a capital program to bring the NEC into a state of good repair, had warned many times that large portions of the NEC’s infrastructure (originally constructed in the 1930s by the Pennsylvania Railroad) are dangerously close to failure.
In any case, it is New Jersey interests—not Amtrak—that plan to make huge investments in the NEC over the next decade. The multi-billion-dollar plan to double throughput into New York—the Trans-Hudson Express Tunnel and a new underground station at 34th Street—is one that NJT and the State of New Jersey and the Port Authority of New York & New Jersey have developed and will fund. NJT is spearheading conversion of the Farley Post Office Building into a new passenger rail station as part of expanded NY Penn facilities. NJT’s new multilevel cars are expected to enter service later this year, and the agency is actively pursuing development of dual-mode a.c. catenary/diesel locomotives and multiple-unit cars. Given all this activity and investment, it may be wise for NJT to at least look into the pros and cons of operating a major rail line in which it has an enormous vested interest.
Keystone Corridor ready for 110-mph trainsAmtrak plans to introduce 110-mph service on its Keystone Corridor between Philadelphia and Harrisburg, Pa., on Oct. 30 following completion of a $145 million upgrade of the 104-mile line. Push-pull express trains will cut journey time from the current two hours to 90 minutes. Local service will improve to 105 minutes. Three weekday and two weekend roundtrips will be added.
In addition to push-pull operations, the upgrades include the laying of approximately 200 miles of continuous welded rail; installation of 216,000 concrete ties, 48,000 wood ties, and 52 new switches; and improved signaling and electrification systems, including two dozen new signal houses.
Amtrak Chairman David M. Laney joined Pennsylvania Gov. Edward G. Rendell today in announcing completion of the project. “Just last year we saw a 14% increase in ridership on our trains along the Keystone Corridor,” said Laney. “To respond to this demand, Amtrak and the Commonwealth of Pennsylvania worked together to develop a partnership to improve rail serviced the local level.” Norfolk Southern, which provides local freight service along this line, was a partner in the project.
The announcement said Keystone trains will now be the fastest outside the Northeast corridor, plying a former Pennsylvania Railroad route that dates back to 1834.
Greenbrier expands its railcar repair businessThe Greenbrier Companies’ “active growth plan” continues with today’s acquisition of "substantially all" the operating assets of intermodal and railcar repair services provider Rail Car America, Inc. Included in the $34 million deal is RCA’s American Hydraulics division, which reconditions and repairs end-of-car cushioning devices used in boxcars and flat cars, and wholly-owned subsidiary Brandon Corp., operator of a Nebraska-based switching railroad.
Post acquisition, Greenbrier’s Rail Services unit is expected to generate about $160 million in annual revenues, according to unit President Tim Stuckey. With RCA’s four U.S. facilities, GRS will now offer repair and wheel shops in 23 North American locations. “This expanded geographic coverage will meet customer requirements to work with fewer suppliers and provide seamless, high-quality service, with close proximity to a shop network, and quick turn-around times,” Stuckey said. “The acquisition also complements other recent initiatives in the parts business, including our Ohio Castings joint venture and an acquisition from YSD Industries, which produce railcar sideframes and bolsters, and boxcar doors and roof products, respectively.”
These moves are part of Greenbrier's $60 million in manufacturing investments over the past year. They make market sense, said Greenbrier President and CEO William A. Furman, because “demand for railcar repair and refurbishment is accelerating as the railcar fleet continues to age, and robust equipment utilization and traffic loadings put additional stress on railcars."
“We remain focused on allocating additional capital toward strategic growth opportunities in each of our business units in the coming quarters,” Furman said.
Emergency Response and Preparedness Program gains groundMore than 125 public transportation agencies and suppliers have signed up for the American Public Transportation Association's new Emergency Response and Preparedness Program. The program, announced this summer (see Breaking News, "Help us help you: Sign up for APTA’s new transit emergency assistance program," Aug. 8.), "is the first national program" of its kind, according to APTA President William W. Millar. "Last year, when Hurricane Katrina hit, red tape and a lack of national inventory of available resources made responding effectively difficult," he explained. That's why APTA, with funding support from the Federal Transit Administration, is working to coordinate resources and personnel to help agencies conduct emergency evacuations or respond to other catastrophic situations. A database will be created listing all participating organizations' available equipment and personnel.
Peters tapped as new DOT secretaryMary Peters, former Federal Highway Administrator (2001-2005), has been nominated as the next Secretary of Transportation, succeeding Norman Mineta, who resigned from the post in July.
Commenting on President Bush's nomination of Peters, AAR President and CEO Edward R. Hamberger said that Peters "has shown great capacity to master transportation policy across all modes" and "demonstrated the ability to work with all stakeholders in addressing our transportation needs." He noted that Peters' background includes serving as secretary of transportation for her home state of Arizona.
Heartland project moves ahead with highway fundingA major rail intermodal project, Norfolk Southern’s Heartland Corridor doublestack route, is moving forward with funding channeled through the Federal Highway Administration (FHWA). Norfolk Southern announced today that it has joined the states of Ohio, West Virginia, and Virginia in entering into a memorandum of understanding with FHWA governing the release of $95 million in federal funds for the rail doublestack clearance project. The next task is to complete environmental and engineering studies, after which construction will begin. The project is to be completed by the end of 2009. FHWA’s Eastern Federal Lands Highway Division will be project manager.
The Heartland Corridor Project is a public-private partnership that will open up an 1,100-mile doublestack route by raising tunnel clearances and eliminating other obstructions in western Virginia, West Virginia, and on to Columbus, Ohio. It’s funded through the SAFETEA-LU Act provision for Projects of National and Regional Significance and is designed to provide a rail alternative for traffic that would otherwise move on already congested highways.
Intermodal traffic sets new high; carload volume flatThe Association of American Railroads said today that U.S. rail intermodal traffic for the week ended Aug. 26 reached a new weekly high of 253,981 trailers and containers, up 7.1% from the same week a year ago. Carload traffic in the latest week was up 0.7% from last year to 341,295 cars. Total volume, an estimated 34.3 billion ton-miles, increased 1.8%.
Canadian intermodal traffic in the week ended Aug. 26 was up 5.2% from last year to 47,785 units, while carload traffic dropped 3.2% to 75,163 cars.
Kansas City Southern de Mexico reported intermodal volume of 4,244 units in this year’s latest week, down 1.6% from last year, and carload volume of 11,516 cars, up 3.1%.
Railroad accident rates drop in year’s first halfThe Federal Railroad Administration today released incident/accident rates for the first six months of 2006. They showed across-the board improvement. The total incident/accident rate was down 1l% from last year while the train accident rate dropped 18.4% and the yard accident rate declined 20.3%. The rate of highway-rail incidents was down 3.45% (although the actual number of fatalities at crossings increased 5.8% to 182). The rate of incidents and accidents takes into account exposure to risk (total train miles and train switching miles, for example) as well as the actual number of occurrences.
Bombardier wins major UK suburban train orderTransport for London has awarded a $425 million contract to Bombardier for the supply and maintenance of 152 100-mph Electrostar EMU cars for service on the East London Line and the North London Railway. The contract includes options for up to 196 additional cars. The initial Train Services Agreement is for 7.5 years; it may be extended for up to 30 years. According to Bombardier, 1,614 Electrostar cars are already operating on suburban lines in the UK.