The Railway Tie Association, which in January estimated wood crosstie demand for 2010 at 19.4 million ties, has taken a new look at the market and its economic model now forecasts the sale of 19 million ties. And that may be high.
“Unfortunately, the data through June 2010 shows the 12-month rolling total of annual purchases at only 18 million ties,” says RTA Executive Director James C. Gauntt. “While a rebound may be under way, there are reasons that this recovery will likely be slower and weaker than desired.”
One reason, says Gauntt, is the unfunded federal mandate for installation of Positive Train Control. He quotes industry sources as saying the tab for PTC was $70 million in 2009 and will exceed $1 billion in 2010, and “the railroads have to re-align their budgets” to pay for it.
Another reason for pessimism, said Gauntt, is the lack of certainty that the short line tax credit will be extended. (Short lines accounted for 3,821,000 of the 20 million wood ties installed in 2009.)
Bombardier Transportation said Tuesday that, in consortium with Site S.p.A., it has won a second major order in Algeria, to provide INTERFLO*250 ERTMS (European Rail Traffic Management System) Level 1 for the new Saida-Moulay Slissen line.
As consortium leader, Bombardier will receive roughly $15 million, or roughly 62.5%, of the $24 million contract package. Italian civil works company Astaldi S.p.A. is acting as general contractor for the project, which will be delivered to the Algerian State Railways, Bombardier said. Bombadrier will be responsible for the design and supply of the signaling system for the construction of the 120-kilometer (74-mile) line.
Also included in the project is the latest generationRelease 4 BOMBARDIER EBI Lock 950 computer-based interlocking (CBI) system, the EBI Screen central traffic control center, the EBI Switch 500 point machines, and EBI Track 2000 train detection system.
Bombardier already is delivering the first electronic interlocking system on Algeria’s Tabia-Mecheria line for the same customer.
Anders Lindberg, president, Rail Control Solutions, Bombardier Transportation, said: “This ERTMS milestone for Bombardier demonstrates, yet again, the success of our technology. We look forward to working with the customer on this new line and continuing to contribute to rail development in Algeria and in Africa.”
Tax breaks totaling $200 billion would be complemented with a six-year, $50 billion plan to rebuild U.S. infrastructure under a proposal aired by President Obama on Labor Day.
The President plans to provide more details on Wednesday in Cleveland. The administration envisions the infrastructure portion of the proposal as a down payment of any reauthorization of surface transportation spending; the last such measure, TEA-LU, expired in 2009.
“We are going to rebuild 150,000 miles of our roads; that’s enough to circle the world six times. We’re going to lay and maintain 4,000 miles of our railways, enough to stretch coast to coast,” the President said Monday, announcing his latest effort to reinvigorate the U.S. economy. Also foreseen in the plan is rehabilitation or reconstruction of 150 miles of airport runway.
Among numerous groups responding, the American Association of State Highway and Transportation Officials said Tuesday it was “highly supportive of President Obama’s proposal to immediately invest $50 billion to rebuild roads, expandhigh speed rail, and rehabilitate airport runways.”
John Horsley, AASHTO executive director, said, “We have demonstrated that investing in transportation infrastructure is one of the fastest ways to create and sustain jobs. An AASHTO January 2010 survey of states showed 9,800 ready-to-go projects valued at nearly $80 billion. If Congress wants to pass legislation investing in our transportation infrastructure, the states stand ready to put those dollars to work.”
Horsley claimed the states’ track record creating and sustaining jobs is excellent. More than 90% of Recovery Act-funded transportation projects, representing approximately $48 billion in investments, are under contract, he said. AASHTO also noted information on how states are delivering Recovery Act projects can be found at http://recovery.transportation.org. Also, details on states’ ready-to-go projects survey is online at http://downloads.transportation.org/Ready-to-Go.pdf.
Similarly, Laura Barrett, executive director of the Transportation Equity Network, said, “Just last week, TEN released a study called ‘More Transit = More Jobs.’ We’re pleased to see from President Obama’s $50 billion transportation infrastructure proposal that he agrees. We want to see as much transit as possible in federal infrastructure investments—both to maximize job creation, and to expand access to work, education, health care, and opportunity.”
Barrett offered one caveat: “When it comes to highways, repairs and maintenance should be a greater priority than new construction, since highway repairs and maintenance create more jobs than new construction,” she said.
The Partnership for Public Service for the second consecutive year has named the Surface Transportation Board No. 1 among small federal agencies in its 2010 list of the Best Places to Work in the Federal Government.
Among 34 small agencies (those with at least 100 but fewer than 2,000 employees), STB achieved a top index score of 86.8 (up from its 2009 score of 80.4, and higher than the scores achieved by any other agency, small or large). The index score measures performance of agencies related to employee satisfaction and commitment.
“This award is a testament to every Board employee,” said STB Chairman Daniel R. Elliott III. “It is to their credit that they have created and nurtured a culture of collegiality in which innovation is treasured and rewarded.”
In the past year, Elliott has implemented more flexible work schedules, established weekly Chairman’s Open-Door Hours, and instituted "Genius Awards" to recognize employees who come up with good ideas.
China will finance, and a Chinese company will build, a 19-mile, $950 million railway link between the Ukrainian capital city of Kiev and its main airport, along with auxiliary facilities, the China Daily newspaper reported Friday.
The newspaper said Ukrainian President Viktor Yanukovich igned a loan agreement for the railway on his first visit to China, which began Thursday.
Construction will begin in 2011 and the project is expected to be completed in 2014.
Transportation Secretary Ray LaHood Thursday announced $3.6 million for the State of Michigan to begin work on the rehabilitation of the Battle Creek Station. The funding is part of the $40 million allotted to Michigan under the American Recovery and Reinvestment Act (ARRA) for its high speed rail program.
The $3.6 million in Recovery Act funds will be used to renovate the station’s interior lobby, bathrooms, ticketing areas and offices, lighting, signage, and to make the station compliant with the Americans with Disabilities Act. The exterior of the station will also see significant upgrades. The building will be refaced with new and restored masonry and new exterior lighting will be installed.
“President Obama’s bold vision for high-speed rail is a game-changer for transportation in Michigan and the United States,” said Secretary LaHood (pictured at left). “This undertaking will not only create good jobs and reinvigorate our manufacturing base, it’s also going to relieve congestion on our roadways and reduce our dependence on foreign oil.”
Kansas state transportation planners have narrowed their proposals for expanded Amtrak passenger rail service across the state to two possible options.
One option would provide nighttime service for what Amtrak estimates would be 92,500 passengers a year between Newton, Kan., and Fort Worth, Tex., essentially linking Amtrak's Southwestern Chief, which passes through Newton on its Chicago-Los Angeles run, to the Heartland Flyer, which runs from Oklahoma City to Fort Worth.
A second, more expensive option would offer daytime service between Kansas City, Mo., and Fort Worth for a projected 174,000 passengers annually over the same general route, requiring more equipment and additional improvements to track and facilitiesalong the way.
Depending on th option, officials estimate the service will require either $154 million for infrastructure and equipment costs, plus apotential $3.2 million annual operating subsidy paid by state funding, or in the second case $476 million for infrastructure and equipment, plus $8 million annually in state support.
The state is working on more detailed business plans for both routes during the next 12 months to present to Kansas state legislators in the 2012 session, said Dennis Slimmer, a transportation department spokesman.
The Surface Transportation Board posted preliminary statistics Thursday showing that fatalities on U.S. railroads increased 18.2% to 370 in the first six months of this year compared with the same period in 2009.
The principal contributors to the increase were trespassing fatalities, which increased 20% to 228, and grade-crossing fatalities, which were up 12.7% to 124.
Train accidents cased six fatalities in this year’s first six months, compared with one in the prior-year period. There were 10 employee fatalities this year, the same as in the 2009 period.
The number of accidents and incidents reported by 740 railroads totaled 5,403 in this year’s first half compared with 5,424 reported by 741 railroads in the 2009 period.
Train accidents were down 5.4% to 892 in the 210 period. Collisions were down 7.5% to 62, and derailments declined 2.4% to 640. Yard accidents declined 1% to 488.
Canadian officials said Thursday up to C$265 million in federal funds (US$251 million) will be made available to advance light rail transit in the Kitchener-Waterloo metropolitan area of southwestern Ontario. The region has advocated for LRT and,at times, has politely suggested its LRT needs have been unnecessarily subjugated to those of nearby Toronto.
Prime Minister Stephen Harper says the money will go towardconstruction of a light rail system between Kitchener and Waterloo. A bus line between Kitchener and Cambridge, Ontario, also is part of the plan. Harper says the federal contribution of C$265 million is one-third of the projected cost.
The money is part of Ottawa's previously announced stimulus spending strategy.
Harper says the plan will stimulate the regional economy. "Projects like this will pay dividends for our economy and our communities long into the future," he said.
Both U.S. freight carload traffic and U.S. intermodal traffic hit their highest levels in 2010 during the week ended August 28, the Association of American Railroads said Thursday.
U.S. freight carload traffic rose 5.8% compared with the same week in 2009, though still trailing 2008’s total by 11.3%. U.S. intermodal traffic advanced 17.1% from the same week in 2009, though down 1.2% from 2008 levels.
AAR said 15 of the 19 carload commodity groups increased from the comparable week in 2009, with “significant increases” in metallic ores, up 62.%, metals and metal products, up 40.2%, and farm product excluding grain, up 33%.
Canadian freight carload traffic rose 16.5% from the comparable week in 2009, while intermodal also rose, up 24.4%. Mexico’s two major railroads reported freight carload traffic rose 18% from one year ago, while intermodal grew by 26.7%.