Text messaging by a Metrolink engineer was the primary cause of the deadly crash with a Union Pacific freight train in Chatsworth, Calif., on Sept. 12, 2008, the National Transportation Safety Board said Thursday.
NTSB found that human frailty, and not any malfunction of railroad signaling, was to blame for the incident, which killed 25 and injured more than 100.
"Tragically, an instant message turned an ordinary commute into a catastrophe," said Deborah Hersman, NTSB chairman.
NTSB’s findings come despite testimony by some suggesting that the Metrolink train was cleared to proceed. "All recorded data and physical evidence in this accident are consistent with the Metrolink train failing to stop at the red signal at Topanga and continuing along the main track reserved for the Union Pacific train," said Wayne Workman, NTSB’s chief investigator for the accident.
The incident spurred Congress to pass legislation in October 2008 mandating the installation of Positive Train Control on large portions of the U.S. railroad network, including most lines where freight and passenger trains share rights-of-way.
Jeffrey R. Moreland has been nominated by President Obama to serve on Amtrak’s Board of Directors, as the President attempts to fill four vacancies on the nine-member board.
Moreland, an attorney, was BNSF’s executive vice president for public affairs prior to his 2007 retirement. He also served as a BNSF lobbyist and as its general counsel. Prior to joining BNSF predecessor Atchison, Topeka & Santa Fe Railway in 1978, Moreland was an attorney with the Securities and Exchange Commission.
Moreland must be confimed by the Senate, along with two other nominees, Anthony R. Coscia and Bert DiClemente, both of whom were namedby the President last November. Coscia is chairman of the Port Authority of New York & New Jersey. DiClemente is a commercial real estate executive who was an aide to then-U.S. Sen. Joe Biden, now the Vice President.
Union Pacific Corp. Thursday said its fourth-quarter profit fell 17% as volume declined 5%, with net income totaling $551 million, of $1.08 per share. UP notched $661 million, or $1.31 per share, in the fourth quarter of 2008. Revenue fell 12 percent to $3.75 billion from $4.29 billion.
But the largest U.S. Class I railroad’s earnings per share beat Wall Street estimates of $1.04 by four cents. Analysts had anticipated quarterly revenue of $3.78 billion.
“Union Pacific's fourth-quarter earnings reflected the continued impact of the recession that began in 2008,” Chairman and CEO Jim Young said. UP has 4,200 employees furloughed, and 44,000 railcars and 1,600 locomotives stored. Freight revenue again fell across all six of its main businesssegments even though volume improved slightly in its intermodal,agricultural, and automotive sectors.
Young said the economic picture for 2010 looks somewhat more favorable than last year, though the railroad did not provide earnings guidance. UP’s capital expenditures for 2010 are expected to be $2.5 billion (largely in line with 2009), including $200 million allocated for PTC. UP said it would try to put the cost of PTC to chemical shippers, whichare going to require the bulk of the PTCcompliance expenses. Additionally, the railroad expects to spend $150 million of its capital budget on its new Joliet Intermodal Terminal, which is intended to facilitate the conversion of more business from highway to rail.
“Like its eastern counterpart CSX, UP spoke out against current rail legislation (STB reauthorization, a draft of which was recently releaed by the Senate Commerce Committee) and warned that it would cut capital expenditures if costs cannot be recouped,” commented Dahlman Rose & Company Director-Equity Research and Railway Age Contributing Editor Jason Seidl. ”UP believes that the rail bill needs to focus on the railroads’ ability to earn proper returns. We believe that this newly expressed criticism may stem from the company’s belief that some of the recent political events may present a favorable environment for resuscitating opposition to the bill or allow the rail industry to lobby for a new tax credit. In fact, recent events may push the actual passage of rail legislation to 2011 as it does not rank high on the proverbial totem pole on Capital Hill.”
The bistate Delaware River Port Authority (DRPA) says it will spend $12 million to improve its transit hubs in Camden, including $3 million for the Walter Rand Transportation Center in downtown Camden, which serves both DRPA’s PATCO rapid transit line, which ties New Jersey points to Philadelphia, and New Jersey Transit’s RiverLINE diesel light rail transit (DLRT) service, as well as NJT buses.
Construction is set to commence late this year or early in 2011.Roughly $9 million would be applied for unspecified transit-oriented development around Camden’s Broadway and City Hall PATCO stations, both of which are underground.
DRPA says the goal is to attract businesses to the city, considered by many to be among the most beleaguered urban area within the Garden State."This gives Camden a very significant step up to becoming again the vital municipality it once was and can again become," said John Matheussen, chief executive officer of the DRPA. "And transit is key to these kinds of developments."
Bombardier Transportation said Thursday it has received an order from the Hungarian State Railway company, MÁV, for 25 Bombardier TRAXX P 160 AC Locomotives, with an option for 25 more. The contract is worth approximately $112 million. Delivery of the first locomotive is scheduled for spring 2011.
According to MÁV, the locomotives, which operate with alternating current (AC), are intended for passenger service in Hungary as well as for cross-border transport to Austria and Germany.
Said MAV-TRAKCIO Co. CEO Dr. Imre Markus, “Our locomotive investment project and the purchase of the new TRAXX locomotives are very important for achieving better energy efficiency within our fleet and replacing older locomotives. The new locomotives will contribute to the modernization and energy effectiveness of the Hungarian railways. They will enable MÁV-TRAKCIÓ Co. to reduce maintenance costs and continue to fulfill more contractual obligations for international corridors.”
Åke Wennberg, president of the Locomotives and Equipment Division of Bombardier Transportation, said: “The TRAXX locomotive isproving itself superbly in the market. There are currently around 800 TRAXX locomotivesin service in Europe alone. We are very pleased that MÁV too, has now placedits trust in our electric locomotives, and that we can therefore contribute tothe further development of passenger rail transport in Hungary.”
Final assemblyof the AC locomotives for MÁV will take place at the Bombardier plant in Kassel,Germany. The car bodies will be produced at Bombardier’s site in Wrocław,Poland, the bogies in Siegen, Germany, and the bogie frames in our Hungariansite of Mátranovák. The Mannheim and Hennigsdorf sites, in Germany, will supplythe propulsion and controls technology as well as the propulsion equipment.
Madrid-based CAF (Construcciones y Auxiliar de Ferrocarriles, SA) says it is working to address problems involving loose bolts in Pittsburgh’s light rail vehicle fleet, operated by the Port Authority of Allegheny County (Pennsylvania).
Keith N. Nippes has joined Kustom Seating Unlimited, Inc.(KSU), Bellwood, Ill., a supplier of OEM and aftermarket seating products to the transportation industry, as its new president. KSU founder Joseph Lazzara will continue in his role as CEO.
Nippes has held the positions of president of Vapor Bus International, vice president-sales and marketing for Ricon Corp., and, most recently, president and COO of Ultimate North America Transportation Equipment, LLC.
“Keith will lead our dynamic team of professionals in meeting established company goals and objectives aimed at expanding our present market share, while maintaining our position as the leader in rail transportation seating andrelated products,” said Lazzara.
“His knowledge and experience gained through his numerous previous successes will be a valued asset to KSU,” Lazzara added.
CSX Corp. late Tuesday said its fourth-quarter earnings were up 23% compared with the same quarter a year ago, with earnings per share of 77 cents beating Wall Street analyst estimates by one cent. But analysts also acknowledged special circumstances for that gain and expressed some disappointment in the railroad’s slumping volume, attributed primarily to weak demand for coal.
Jacksonville, Fla.-based CSX last year sold its famed Greenbrier Hotel located in West Virginia; excluding that action of one year ago, CSX earnings from operations fell 16%.
Morgan Stanley analysts William Greene and Adam Longson commented: “CSX's 4Q09 operating income shortfall vs. consensus and tepid views on both coal (likely to remain depressed through 2010) and domestic intermodal (pricing pressure continues) are likely to fuel bearish sentiment around rails.”
Green and Longson added, “Though CSX reported a headline beat of $0.77 vs. consensus of $0.76, consistent with our model, an unexpected tax benefit of $15 million accounted for ~$0.04 of the result. In fact, CSX missed our operating income forecast by $30 million or $0.05 per share with lower than expected revenue (other revenue in particular) driving much of the miss, offset slightly by better than expected operating costs. In the earnings release, management set a marginally bearish tone by specifically noting that they expect utility coal demand to remain weak well into 2010 and that competitive truck pricing continued to weigh on domestic intermodal yields.”
They concluded: “Looking forward, we see high likelihood of a pullback during the 4Q09 earnings season; however, we expect such an event will prove to be a buying opportunity, as it was during 3Q09 earnings, if it occurs. Long-term, we reiterate our Attractive View on rails as a result of growth driven by (1) pricing power, (2) productivity improvements, and (3) rebounding volumes.”
Said CSX Chairman, President, and CEO Michael Ward in a statement, "The economy continued to show modest, sequential improvement in the quarter.” He added, “CSX worked aggressively on gaining operating leverage and further strengthening the fundamentals of our business for the future."
The consortium, led by the Siemens Mobility Division, includes Invensys Rail Corp. (formerly Safetran Systems) and D/A Builders, LLC, a joint venture of Daidone Electric of Newark, N.J. and Aldridge Electric of Libertyville, Ill. The CBTC system will be radio-based, using WLAN (Wireless Local Area Network). The project is due to be completed in 2017.
Siemens said CBTC will increase PATH’s passenger capacity from 240,000 per day to 290,000, by shortening headways. PATH’snew PA-5 cars, supplied by Kawasaki Railcar USA, are “CBTC ready” and are now being placed into service. “Upgrading the system to CBTC will shorten the distance between operating trains, enabling more trains to move into and out of New York City on the basis of the existing infrastructure,” said Siemens. “CBTC will also enhance the system's throughput to meet future peak time demands, inaddition to increasing safety and reliability while reducing ongoing maintenance costs. In addition to this increase in capacity, a new Siemens-provided train supervision system will help PATH operate more efficiently and know exactly where each train is located in the rail network.”
The PATH rail system is more than 100 years old, running from both Newark and Hoboken in New Jersey to the World Trade Center and Herald Square in Manhattan.