Lake Oswego, Ore.-based railcar supplier Greenbrier Cos. will receive a $75 million term loan from New York investment firm WL Ross & Co. LLC, allowing the company to pay down debt and prepare for future industry growth. The two parties continue to discuss a possible increase in the loan’s size, to $150 million.
In return, Greenbrier has issued warrants to WL Ross to purchase 3.4 million shares, amounting to a company stake of 17% stake, with a $6 “strike price,” or roughly a 25% discount to the stock’s closing price Wednesday. WL Ross will also buy at least $1.5 million in stock.
The squeeze on railway suppliers already has forced Greenbrier Cos. to slash its dividend and implement cost-cutting measures. Greenbrier Cos.also has diversified by pursuing other related businesses, including refurbishment and parts, leasing and services, and marine manufacturing. More than half of the company's revenue in its latest fiscal year came from outside railcar production.
Shortly before noon Thursday, shares of Greenbrier Cos. traded at $8.33, up 4.52%.
Toronto-based GO Transit will commence summer weekend and holiday rail service to Ontario’s Niagara Region beginning June 27. The service will offer four train trips daily in each direction on Saturdays, Sundays, and holidays from June 27 through through Canadian Thanksgiving weekend, October 12.
The two-hour trip will link Toronto’s Union Station with Port Credit GO Station, Oakville GO Station, Burlington GO Station, St. Catharines VIA Rail Station, and Niagara Falls VIA Rail Station.
An adult single ride fare from Union Station to Niagara Falls will be C$15.90.
"This new GO rail service will bring tourists to Niagara's wineries, restaurants, and attractions such as the incomparable Niagara Falls. Our government is expanding public transit across the province, making investmentsthat build our economic infrastructure and put people to work," said Ontario Minister of Transportation Jim Bradley in a statement.
The Washington Metropolitan Transit Authority (WMATA) is expected Thursday to approve a $4 million environmental and engineering study of the Columbia Pike Streetcar, a five-mile line extending from Washington Metro’s Pentagon City Station in Arlington, Va.
The streetcar plan, backed by Virginia’s Arlington and Fairfax counties, will overlap and supplement existing bus routes currently handling about 14,000 passengers per day. The streetcar is projected to cost at least $160 million, up from an estimate of $150 million in 2008; it would include 12 stops, according to the Columbia Pike Revitalization Organization, a non-profit public/private partnership pursuing the project under its Pike Transit Initiative subsidiary.
“We’re quite enthusiastic about it in Arlington,” said Christopher Zimmerman, an Arlington County supervisor who sits on WMATA’s board of directors. “For us, it’s one of our top transportation priorities in Arlington. It’s critical to the development planned in the corridor.”
MTA Maryland has received a State Employee Risk Management Administration (SERMA) Award of Excellence in the Health & Safety Working Groups category for implementing an advanced warning system. MTA implemented the system on Feb. 8, following two years of testing, tapping ProTran 1 LLC’s Protracker wireless advance warning system.
MTA says the technology warns train operators of dangers ahead such as track workers, emergency responders, and speed restriction locations. The technology also alerts track workers and emergency responders of approaching trains. The technology is also capable of giving advance warning to the train operator of fire and chemical releases.
The agency claims to be the first transit property in North America to have a fully operational wireless advanced warning system, and says other U.S. transit properties are using MTA’s approach as a model.
U.S. senators from Pennsylvania, New Jersey, and New York are vocally backing a 20-year effort to restore passenger rail service along the Lackawanna Cut-Off, a famed rail right-of-way that last saw active rail service in 1981. The Cut-Off this week received a “finding of no significant impact,” or FONSI, from the Environmental Protection Agency, clearing the way for the states to seek funding.
Recent media attention has focused on support from Pennsylvania’s two senators, Arlen Specter and Bob Casey (both Democrats), but any service introduction likely will begin in New Jersey, with New Jersey Transit extending its existing operations west of Port Morris, N.J. New Jersey’s U.S. Senate contingent ,Robert Menendez and Frank R. Lautenberg (also both Democrats), have supported the line’s resumption for many years.
A relative newcomer is U.S. Sen. Charles Schumer (D-N.Y.), who has voiced support for efforts to extend the Cut-Off project north of Scranton, Pa., across the state border to Binghamtom, N.Y, in New York State’s Southern Tier region.
For New Jersey, one factor driving the project is the potential loss of federal highway funds if the state fails to improve air quality under the Clean Air Act. Service on the Cut-Off route would offer a travel alternative to citizens in northwest New Jersey and northeastPennsylvania who now use Interstate 80 as the primary travel option.
Most involved with the project at present presume that NewJersey Transit would be the initial operator of any service, though some have argued that the tristate nature of the larger plan requires Amtrak to play an eventual role.
Lawrence Malski, chairman of the Northeast Pennsylvania Regional Railroad Authority, said the project will be completed in phases to allow for lower funding requests. Though Malski and others suggest that the initial Pennsylvania service from Delaware Water Gap could be up and running in four years, many industry observers, citing the 20 years already logged by project proponents, say such a timetable is optimistic at best.
Theresa Watkins McMillan, deputy executive director of policy for the San Francisco Bay Area Metropolitan Transportation Commission, has been named deputy administrator of the Federal Transit Administration
In announcing the appointment on June 5, FTA noted that McMillan will join administrator Peter Rogoff "in leading a staff of more than 500 in Washington, D. C., and 10 regional offices across the United States and managing an annual budget of approximately $10 billion and $8.4 billion in Recovery Act funds."
"Ms. McMillan brings real world expedience and a history of achievement to FTA," said Secretary of Transportation Ray LaHood. "She will be a valuable asset to the federal transportation program and the Department's senior management team."
At a ceremony Monday in North Bergen, N.J., marking the ceremonial start of construction for a new trans-Hudson rail tunnel, Federal Transit Administrator Peter Rogoff pledged $3 billion in federal funding to fully cover the cost ofthe $8.7 billion project, called Access to the Region’s Core Mass Transit Tunnel.
Rogoff said the FTA would offer a "down payment” toward an eventual commitment of $3 billion by approving a $1.35 billion Early Systems Work Agreement to immediately commence work on the tunnel project. The Agreement includes $650 million in federal funds, including funds from the American Recovery and Reinvestment Act, to be matched by an equal amount of local funding.
“This project has been talked about for decades. Because of New Jersey’s leadership and President Obama’s recovery agenda, today the talk stops and the construction begins,” Rogoff said. “The Obama Administration is committed to being a full partner in this historic investment. It will put thousands of people to work. It will improve the lives of many thousands more by shortening their commute.”
The tunnel will allow New Jersey Transit trains access to a new station in midtown Manhattan, north and east of existing Penn Station. Monday’s ceremony marked construction of a bridge to span U.S. Routes 1 and 9 over the new tunnel’s mouth on the New Jersey side.
The project is targeted for completion in 2016, and is paired with a second $1.7 billion project to replace the Northeast Corridor’s Portal Bridge, which spans the Hackensack River in the New Jersey Meadowlands.