William C. Vantuono, Editor-in-Chief

William C. Vantuono, Editor-in-Chief

With Railway Age since 1992, Bill Vantuono has broadened and deepened the magazine's coverage of the technological revolution that is so swiftly changing the industry. He has also strengthened Railway Age's leadership position in industry affairs with the conferences he conducts on operating passenger trains on freight railroads and communications-based train control.

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U.S. freight carload traffic for the week ending July 2 advanced 0.3% compared with the same week in 2010, the Association of American Railroads said Thursday. U.S. intermodal volume, meanwhile, gained 2.5% for the week compared with a year ago.

aar_logo.jpgAAR noted 15 of the 20 carload commodity groups it measured posted increases from the comparable week in 2010. Pacing the gaining groups were farm products excluding grain, up 22.3%, metallic ores, up 18.5%, and lumber and wood products, up 14.3%. AAR said waste and nonferrous scrap was the only group posting a notable decrease, down 12.3%.

Canadian freight carload volume moved up 7.6% for the week ending July 2, compared with volume one year ago; Canadian intermodal volume also rose, up 6.9%. Mexican freight carload volume rose 3.9% compared with the same week last year, while intermodal was up 60.4%.

Combined North American freight carload volume for the first 26 weeks of 2011 on 13 reporting U.S., Canadian, and Mexican was up 2.7% compared with the same time span last year, while intermodal marked a 7.1% gain.

Friday, 08 July 2011 05:13

STB slashes rate-case filing fee

The Surface Transportation Board announced Thursday that it is cutting the fees that shippers pay to file a railroad rate or unreasonable practice complaint from $20,000 to $350. The board is maintaining the $150 fee to file an expedited small rate case.

stb_logo.jpgThe board said it based its decision on three considerations: "The filing of a complaint is often the Board’s only mechanism for investigating and addressing potential rate violations or other unlawful practices. High fees for the filing of formal complaints may discourage shippers and others from bringing complaints before the Board. The changes to the Board’s regulation sreducing such fees should improve the agency’s management of its docket and resources."

On Feb. 15, the board filed a notice of proposed rulemaking reducing some fees. At that time, Chairman Daniel R. Elliott said, “Charging a small business more than $20,000 to bring a complaint is not right.”

In Thursday’s announcement, the board said: “While Chairman Elliott believes the new fee structure will make it easier for shippers to file formal cases with the Board, he invites them first to avail themselves of the free, informal mediation service offered through the agency’s Rail Customer and Public Assistance Program. He added that the agency also offers a successful program of formal mediation.”

Regional Rail, LLC, on Friday said it has entered into an agreement with Norfolk Southern Corp. to lease and operate the Class I railroad’s York Industrial Track, which runs from York, Pa., to Stony Brook, Pa. Regional Rail said the line will be operated as part of its subsidiary East Penn Railroad, LLC, which serves southeastern Pennsylvania and Delaware.

east_penn_rr_logo.jpgKennett Square, Pa.-based Regional Rail filed the notice of exemption with the Surface Transportation Board last week and plans to initiate service on the line on August 1.

“This addition to our operations further illustrates our solid relationship with NS which has resulted from our mutually beneficial carload growth and quality service on our existing NS served lines,” said Regional Rail President and CEO Bob Parker.

Regional Rail Vice President Al Sauer said, “The presence of a number of existing customers, along with the opportunity to reactivate rail service to other customers and the ability to provide transload services to non rail served facilities gives us an established base from which to grow and expand the carload traffic on the York Line.”

Regional Rail LLC also is the parent company of the Middletown & New Jersey Railroad, LLC which owns and/or operates four rail lines in southeastern New York State.

Chicagoland’s Regional Transportation Authority (RTA), seeking to bolster and assist ridership on its bus and train routes, has produced a video entitled “From the Suburbs to Chicago” aimed at customers using Chicago Transit Authority, Metra regional rail, and Pace suburban bus services.

The two-and-a-half minute video is especially designed for sharing on social media platforms such as Facebook and Twitter. It includes details about: RTA’s goroo, a multi-modal public transit trip planner; weekend passes; and the free fares for children under 7.

(“From the Suburbs to Chicago” can be seen here.) 

“I think this video animation is really eye-catching and a new way to get the word out. We put a lot of information on brochures and printed schedules but it still can be confusing for someone who has never or rarely used public transportation. This animation gives a great explanation for riders from the suburbs of how the CTA, Metra, and Pace work together to get people where they want to go,” said RTA Executive Director Joe Costello.
Friday, 08 July 2011 06:07

Greenbrier 3Q revenue up

The Greenbrier Cos. Friday reported revenue of $317 million in its third quarter ended May 31, up from $207 million in the comparable period in 2010. Net loss for the quarter was $3.3 million, or 14 cents per diluted share, compared with net earnings of $4.6 million, or 23 cents per diluted share, in the prior year's third quarter.

greenbrier_cos._logo.jpgLake Oswego, Ore.-based Greenbrier noted that, excluding a one-time charge of $10.0 million pre-tax, $6.0 million after-tax, for costs associated with the retirement of $235 million of senior unsecured notes during the quarter, net earnings were $2.7 million, or 10 cents per share.

Wall Street took the one-time charge in stride.  Shares of GBX were down 3% in mid-morning trading Friday, and halved that loss in early afternoon trade. And in an analyst note Friday, Steve Barger, KeyBanc Capital Markets Inc. director, Industrial Manufacturers, said, “Rather than focusing on these quarterly results, we think investors should look to GBX’s orders of 6,400, which implies a book:bill of 2.9 for the quarter (and represented the strongest level of quarterly bookings since fiscal 1Q08). We think this could be indicative of solid order activity for the industry.”

Barger added, “Overall, we think the order rate and the industry commentary renew our confidence in our positive thesis for the [industry] group, and we continue to believe investors should want exposure” to Greenbrier and its competitive rivals.

The company noted it ended the quarter with $34.3 million of cash and $112.2 million of committed additional borrowing capacity. New railcar deliveries in the third quarter of 2011 were 2,200 units, compared to 700 units in the third quarter of 2010. Greenbrier's new railcar manufacturing backlog as of May 31 was 13,600 units with an estimated value of $1.05 billion, compared with 9,500 units valued at $720 million at February 28, 2011.

Said President and CEO William A. Furman, “As anticipated, we returned to profitability during the quarter, excluding the one-time charge associated with retiring our $235 million senior unsecured notes. However, these results did not fully meet our expectations, principally due to a temporary shortage of castings in North America and a temporary delay in certification of railcars in Europe, which dampened new railcar deliveries by about 300 units. In addition, about $2 million of certain other non-recurring general & administrative costs were incurred during the third quarter.”

Furman added, “Business momentum continues in what we believe is the early stage of an upturn in the markets we serve. Revenue in our Manufacturing and Wheel Services, Refurbishment & Parts segments, and lease rates on our lease fleet have grown for the third consecutive quarter, driven by stronger demand for our products and services. Business visibility continues to improve, particularly in new railcar manufacturing, where we are experiencing a cyclical recovery and benefitting from the strength of our diversified and expanded product portfolio and the ramping up of additional capacity.”

San Antonio’s VIA Metropolitan Transit has hired HNTB Corp. as a program manager to determine plans for an urban rail line. HNTB, with an office in the city, will work as VIA's in-house consultants to determine the potential rider market, route or routes, and whether light rail transit (LRT) or streetcar would better serve the city.

san_antonio_via_logo.jpgVIA has tentatively proposed north-south and east-west streetcar lines through San Antonio’s downtown, and hopes HNTB will help it pinpoint more exact routes.

“We're the glue that's going to be responsible for day-to-day focus on these efforts, supporting the staff here,” said Kyle Keahey, HNTB Corp.’s associate vice president and the VIA project program manager.

HNTB also will counsel VIA on finding the financial means to build any rail system, something Keahey says must occur before the Federal Transit Administration will consider providing any fiscal support. “As program manager, we will help you find the money,” Keahey said.

San Antonio, population 1.33 million, is the largest city in Texas without an urban rail transit system.

Monday, 11 July 2011 04:52

Axion, Sicut form joint venture

Axion International announced that it has signed a letter of intent with Sicut Holding Ltd. to form a global joint venture for the manufacture and sale of Recycled Structural Composite (RSC) crossties utilizing their respective licenses from Rutgers University.

The new company, to be known as Axion Rail LLC, will be 65% owned by Axion, which is based in the U.S., and 35% by U. K.-based Sicut.

Axion’s current licenses cover markets in North America, South America, Australia, Russia, and a portion of the Chinese market. Sicut is the licensee of patents owned by Rutgers for Europe, India, South Africa, Southeast Asia, and part of the Chinese market.

“We have been working with our partners at Sicut since Axion’s founding,” said Steve Silverman, Axion’s president and CEO. “However, instead of dividing our efforts among the world’s different geographic regions, the time has come to take advantage of our synergies and combine forces to sell our innovative products on a truly global basis.”

Maine’s largest city, Portland, hopes to upgrade numerous grade crossings this summer, in conjunction with the anticipated expansion of Amtrak Downeaster passenger rail service.

amtrak_downeaster_logo.jpgThe crossings, all affecting Forest Avenue, are located at Walston Street, Riverside Street, Allen Avenue, Read Street, Congress Street, and Woodford Street. The Northern New England Passenger Rail Authority began work on the crossings late last year.

The improvements are part of a $40 million project to extend Amtrak’s state-supported Downeaster service roughly 30 miles from Portland to Freeport and Brunswick, Me. Portland currently is the terminus for the service, which connects Maine with Boston’s North Station.
Bombardier said Monday it has recognized suppliers Hitachi and ABB with its first Bombardier Transportation Sustainable Suppliers Awards.

bombardier_logo.jpgBombardier said the  awards, to be issued annually, recognize suppliers’ accomplishments in the field of sustainable development, emphasizing the strong strategic importance of a responsible supply chain as part of the company’s objective to foster Corporate Social Responsibility (CSR).

Hitachi was honored for its sustainable product design and life cycle concepts, Bombardier said, while ABB received the award for its long-term engagement and continuous improvement in CSR.

Bombardier Transportation Vice President Operations and Chief Procurement Officer Pierre Attendu, along with Bombardier Transportation CSR Director Christoph Schwärzler, made the announcement during a suppliers day at the company’s headquarters in Berlin. “Congratulations to both Hitachi and ABB for their clear commitment to a responsible supply chain, which is a key component of our continuous commitment to Corporate Social Responsibility,” said Attendu.

The Bombardier Transportation Sustainable Suppliers Awards are based on Bombardier’s supplier self-assessment survey of a total of 423 master vendors. The selection criteria cover quality systems (IRIS); environment, health and safety systems (ISO 14001 and OHSAS 18001); labor conditions and business ethics (SA 8000); and general CSR commitment (GRI level B reporting), including philanthropic engagement.
Brad Chase has been named president of OmniTRAX Canada in Winnipeg, with responsibility for overseeing operations including the Port of Churchill, North America’s only deepwater Arctic port, and the Hudson Bay Railway, which delivers freight in Manitoba along 630 miles of track. He will also have oversight of the Carlton Trail Railway, based in Saskatchewan, and the Kettle Falls International Railway connecting British Columbia to the U.S.

omnitraxlogo.jpgChase was formerly senior vice president of Kleysen Group LP in Winnipeg, heading the Intermodal Business unit.

“Brad’s leadership abilities, transportation background, and deal-making skills are keys to expanding our operations and partnerships in Canada,” said Gary Long, president and CEO of OmniTRAX, Inc.

“I look forward to pursuing business opportunities for OmniTRAX that also benefit Canada, and particularly, Manitoba, Saskatchewan, and the North,” said Chase. “We will make strategic capital investments, seek joint ventures, and work with all levels of government to ensure that the Hudson Bay Railway and the Port of Churchill contribute to the success of Canada's Northern Strategy.”

OmniTRAX-managed businesses are located in three Canadian provinces and 10 U.S. states.
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