Downers Grove, Ill.-based Hub Group Inc. Wednesday reported its second-quarter profit fell 45% due to weakness in all of its transport sectors.
Revenue from truck brokerage and intermodal segments—both involving freight rail—each fell 28%; Hub Group’s logistics sales revenue declined 9%. Total revenue fell 26% to $363 million, compared with $491 million in the second quarter of 2008; analysts had anticipated revenue of $387.5 million.
But earnings beat analyst consensus expectations of 21 cents per share. The company said it earned $8.3 million, or 22 cents per share, in the second quarter, compared with $15 million, or 40 cents per share, in the comparable quarter a year ago.
London-based DeltaRail Group Ltd. has been awarded a contract by MTA Metro-North Railroad to supply the regional rail carrier with the WheelChex® wheel impact load measuring system, to be installed this summer through the four-track Park Avenue Tunnel leading to and from Grand Central Terminal in New York.
WheelChex will be linked to Metro-North's maintenance systems so that the company can benefit from regular and consistent information on wheel condition. The tunnel handles the vast majority of Metro-North trains.
The Association of American Railroads Wednesday released its June 2009 Rail Time Indicators economic report, and also launched a new online video summary of the June report. AAR notes the report combines rail traffic data with more than 15 key U.S. economic indicators, including consumer confidence, housing starts, and industrial production, in a non-technical snapshot of how rail traffic data reflects the broader U.S. economy.
"We wanted to pull together the best information from not only the freight rail industry, but also other key economic indicators," said AAR Senior Vice President of Policy and Economics John Gray. "We think the report offers a convenient, clear look at trends that may reveal where the overall economy and freight rail traffic are going."
AAR also launched a monthly video summary of the report, presented by a member of the association's policy and economics team.
AAR’s video highlights trends from the data on the 19 major commodities that AAR tracks in the Rail Time Indicators report. For example, this month, the video examines the impact the U.S. domestic economy is having on the freight rail movement of motor vehicles and equipment, metallic ores, and metals.
"At the end of the day, if people aren't building or buying things, freight rail traffic feels the effects," Gray added. "We thought that a video summary would be a more accessible way to introduce the data to a broader audience."
Both the written report and its video component summary are available for viewing at www.aar.org.
Between June 2008 and June 2008, Class I railroad employment in all categories declined 8.45% to 149,614, a loss of 15,685 jobs. Hardest hit was the transportation (train and engine) category, where the numbers dropped by 13,305 to 55,434, a 17.45% loss.
In other categories, employment of executives, officials, and staff assistants was down 0.02% from a year ago to 10,047; professional and administrative, down 3.13% to 13,276; maintenance of way and structures, down 0.72% to 35,382; and maintenance of equipment and stores, off 5.37% to 28,619.
The transportation (other than train and engine) group showed the only year-to-year increase, with numbers up 3.46% to 6,856.
Total June 2009 employment was down 1.27% from May 2009.
The Surface Transportation Board released the latest employment figures on Wednesday.
New York’s Metropolitan Transportation Authority is struggling with physical obstacles and financial constraints as it pursues construction of both the Second Avenue Subway (phase 1) and its Long Island Rail Road East Side Access (ESA) project to Grand Central Terminal.
MTA reportedly has completed an analysis of the projects’ respective work schedules and budgets. Based on that, the completion date for the $4.4 billion first phase of the Second Avenue Subway, running from 96th Street to 59th Street, has been extended from June 2015 to at least December 2016, and more likely the summer of 2017.
East Side Access, designed to give LIRR a second Manhattan terminal to better serve riders headed to and from Manhattan’s East Side without transferring to or from subway service, would commence operations in September 2016, instead of February 2015.
Given the tortured history of the Second Avenue Subway, a project that has struggled to become reality for decades, reaction to the news was muted. "It will not come as shock to the American people that the Second Ave. subway is behind schedule," said Gene Russianoff of the Straphangers Campaign, a New York-based advocacy group. Russianoff added sympathetically, “It's a big complicated project. I think part of this is bowing to the economic realities of what money is available and when."
The $6.3 billion East Side Access project, combined with the$4.4 billion Second Avenue Subway effort, accounts for more than two-thirds of the $15 billion targeted by MTA Capital Construction for five major projects. One of the five, the $500 million rehabilitation of the South Ferry Terminal subway stop in lower Manhattan, opened in March.
The Teamsters Canada Rail Conference, representing 340 train engineers at VIA Rail Canada that are members of the Brotherhood of Locomotive Engineers and Trainmen (BLET), has given notice to Canada’s intercity railroad that its members could go on strike July 24, forcing cancelation of passenger train service.
VIA Rail reportedly already has begun canceling some of its long-distance trains as a cautionary measure, and said that all trains would be canceled at noon Friday if a settlement with the union is not reached. Trains on the Sudbury-White River and Victoria-Courtenay routes will remain in service, as they are operated by third parties on VIA’s behalf.
A mediator has been appointed to assist in the negotiations and VIA Rail is “hopeful that an agreement will be reached before the set deadline,” the railroad said Tuesday.
TCRC says its members have been without a contract since Dec. 31, 2006. At issue are improved wages and benefits, scheduling that allows members two consecutive days off, and increased training schedules for engineers. “Many of the issues related to what we're trying to achieve here are quality-of-life issues,” TCRC President Dan Shewchuk said.
Washington sources say that Mark Hansen, formerly a fatiguemanagement expert with NASA, is likely to be appointed to the seat onthe National Transportation Safety Board that Kathryn O'Leary Higginswill vacate Aug. 3.
O'Leary informed the White House Tuesday that she would notaccept the new term offered by President Obama and plans open a consultingbusiness.
A deputy secretary of labor in the Clinton Administration,O'Leary has worked more than 30 years in regulatory, administrative, andlegislative positions.
Already before the Senate for confirmation are thenominations of Chris Hart as a member of the NTSB and current member DeborahHersman to serve as board chair.
Atlanta’s on-again, off-again plans for a Peachtree Street streetcar line appear to be on again, as the City Council, in an 11-3 vote, approved a motion to apply for federal stimulus funds to build part of the line.
Just as Portland, Ore.’s MAX light rail operations attracted focus groups from interested U.S. cities beginning in the 1990s, so, too, does the Rose City’s streetcar operation draw interest in the best tradition of “show and tell.” Cincinnati Mayor Mark Mallory is the latest to use Portland as a model for local officials not yet convinced of the potential benefits of a Cincinnati streetcar line.
Mallory said a tour of Portland’s operations remains on the agenda despite Cincinnati’s looming $28 million budget deficit, which could grow to $40 million next year. The mayor and allies hope to reinforce proponents’ plans for a $128 million starter line, using public and private funding sources. Opponents of the plan seek a ballot initiative mandating voter approval this fall for any streetcar plan or other rail options.
Costs of the trip for the mayor and one aide will be paid through a fund established in 2006 as part of a settlement with Duke Energy over its merger with Cinergy. Duke deposited the $750,000 into the Business and Jobs Attraction Account. Others who plan to travel to Portland will have to cover their own expenses.