New Jersey Transit has suspended further work on two new Hudson River commuter rail tunnels for least 30 days at it re-examines prospects for funding the $8.7 billion project. The Federal Transit Administration, through which federal funds flow, is reportedly concerned by the prospect of cost overruns.
In a written statement, New Jersey Transit Executive Director James Weinstein said: “The governor has made it clear to me that the project must stay on time and on budget. Anything short of that is unacceptable.”
The project has not won universal applause among transportation economists. But project advocates claim that it would come close to doubling trans-Hudson commuter rail capacity.
The Ohio Rail Development Commission says it has approved a staff recommendation for the Commission to act as the public sponsor for a $750,000 dollar grant from the Mid-Ohio Regional Planning Commission. The grant would leverage $250,000 in CSX funds for a project to lower the tracks beneath the Front Street bridge in Downtown Columbus, the state capital (near the Arena District).
ORDC says the project would also benefit the environment and reduce traffic congestion by taking up to 70,000 longhaul truck moves off of Ohio’s highways, resulting in substantial fuel and diesel emissions savings.
In a second major project, ORDC staff approved a $125,000 grant to help leverage funds from Norfolk Southern to build a new switch and rehabilitate a rail spur to help revive a vacant South Columbus plant and create jobs.
The switch and spur project will enable Phoenix-based International Technical Coatings to establish a manufacturing operation in the vacant Techneglas plant in South Columbus, and create an estimated 120 to 200 jobs. The Columbus site reportedly was the choice of ITC over a site in Kentucky because of the access to rail and favorable electric rates. In addition, grants are being provided through grants and tax credits from the Ohio Department of Development, the City of Columbus, and Columbus-based American Electric Power.
“Projects like these are the essence of how the ORDC works with the private sector to make significant economic development happen,” said ORDC Executive Director Matt Dietrich.
The important trend, Union Pacific Chief Financial Officer Bob Kight told a Credit Suisse conference in New York Wednesday, is “being in a position to discuss volume growth.” The rate of growth remains a question.
UP expects a peak fall season generally, but as for the seasonal peak in the flow of containers from Pacific Rim countries into the Port of Los Angeles and Long Beach, Kight was quoted as saying, it could be “more of a bump” than a “historical, traditional peak.”
UP’s total freight volume is growing, though more slowly than in the second quarter. UP’s third-quarter volume through August was up 13% from last year. Intermodal was up 24%.
CSX Transportation said at a Dahlman Rose conference on Wednesday that it’s preparing for a peak fall season, with intermodal strengths continuing at least through the rest of this year.
In a decision released Friday, the Surface Transportation Board authorized U S Rail Corp. to build and operate a three-mile line in Brookhaven, Suffolk County, N.Y., that will connect with the Long Island Rail Road, over which the New York & Atlantic provides freight service. The agency said the approval is subject to environmental mitigationconditions.
STB said the purpose of the construction is to enable U S Rail to serve the Brookhaven Rail terminal as a common carrier and to deliver up to 500,000 tons of aggregate annually from sources in upstate New York to Sills Road Realty, the owner of the underlying property, and its affiliates and related companies on Long Island.
U S Rail also will install a rail switch, crushed stone aggregate handling and storage facilities, an intermodal freight storage area, and a transload area with truck scales.
The regulatory agency said the new line will reduce truck traffic in the New York metropolitan area.
New York City’s Department of Transportation and Rep. Nydia Velazquez (D-N.Y.) announced late Thursday a $295,000 study to evaluate a longstanding proposal to reintroduce streetcar service in Brooklyn, specifically designed to bolster transportation in Red Hook district, a neighborhood now enjoying an economic resurgence.
San Francisco-based URS Corp. will conduct a five-month evaluation of the proposed route, currently envisioned to link an Ikea store in Red Hook with either Borough Hall or to the Brooklyn Bridge waterfront. Funding comes from a federal grant Rep. Velazquez helped secure in 2005.
“A streetcar system in Red Hook has the potential to reconnect this neighborhood with the rest of the city and greatly improve transit options for residents,” Velazquez said. NYCDOT plans to meet with local groups to explore how a streetcar route would impact the neighborhood.
The project has been delayed for numerous reasons for decades, despite its being championed by the Brooklyn Historic Railway Association, which at one point received approval to move ahead with portions of the project. Several industry observers—and even a few NYCDOT staffers interviewed by Railway Age in recent years (though not for attribution)—have suggested that NYCDOT has been hostile to streetcar restoration in general.
Some, however, note that the city’s current mayor, Michael Bloomberg, has been less averse to exploring streetcar options. And in a statement Thursday, NYCDOT Commissioner Janette Sadik-Khan said, “Once ubiquitous in New York City's streetscape, streetcars remain part of the transportation mix in cities from Toronto to Melbourne, and we need to consider all options toimprove transit access in underserved neighborhoods like Red Hook.”
Rep. Velazquez reportedly has requested $10 million in funds for construction of a Red Hook route, with funding currently being considered by the House.
Hill International said Thursday a joint venture of Hill, Systra Engineering, and Gannett Fleming has received a contractfrom the Port Authority of New York & New Jersey (PA) to “provide expert professional planning, project management, and related services on a call-in basis” in connection with the $4.1 billion capital program of the Port Authority Trans-Hudson (PATH) rail system.
The contract has a one-year base period and up to sevenone-year option periods, Hill said. The amount of the contract was notdisclosed.
PATH a bistate service with 13 stations, links terminals in Newark and Hoboken, N.J., with end points in Midtown and Downtown Manhattan.
SCI Verkehr, the German railway and logistics consultancy, has released a new edition of its World Market for Railway Technology that calls for global railway investment to increase from a currently estimated $168 billion to approximately $205 billion in 2015. Of the total, 53% is expected to come from after-sales.
Describing its new findings in the September issue of International Railway Journal, the sister publication of Railway Age based in Falmouth, England, SCI Verkehr said it timed its updated forecast to coincide with the giant railway exhibition, InnoTrans, in Berlin this month.
North American annual spending is expected to grow to $25 billion by 2015, a 5% increase. But China will be the champion investor.
"For the first time ever, China leads the top ten [country] rankings in terms of investment in railway technology," says the report. "Major projects in the United States, India, and the countries of South America as well as in the Arabian economic area are stimulating further growth. However, it is the Chinese railway technology manufacturers who are increasing their turnover and market share at a breathtaking speed, and more recently outside the domestic market."
The regional forecasts put total investment in Western Europe in 2015 at $50.6 billion, up 23.3%; in Asia, $43.7 billion, up 4.3%; in the former Soviet Union, $17.5 billion, up 4.9%; in Eastern Europe, $12.29 billion, up 2.9%; in Africa and the Middle East, $7.2 billion, up 5.6%; in Australia/Pacific, $3.7 billion, up 2.3%.
The Association of American Railroads Thursday said U.S. weekly rail carload freight volume set a new 2010 record for the second consecutive week, with carloads for the week ended September 4 up 6.9% over the comparable week one year ago.
Moreover, carload freight was “at comparable levels to the same week in 2008,” AAR said, noting the 2008 comparison week included the Labor Day holiday while the corresponding weeks in both 2010 and 2009 did not.
Thirteen of the 19 carload commodity groups increased from the comparable week in 2009, with metallic ores and metals and metal products continuing to post significant increases, up 57.1% and 32.4%, respectively. Nine carload commodity groups posted an increase over the 2008 comparison week.
U.S. intermodal traffic was up 18% from the same week in 2009, and also up 18% compared with 2008.
Canadian freight carload volume rose 19.6% for the week compared with last year, while intermodal gained 13.8%. Mexican freight carload volume advanced 24.7% from 2009 levels, while intermodal rose 14.1%.
Combined North American rail volume for the first 35 weeks of 2010 on 13 reporting U.S., Canadian, and Mexican railroads was up 10% from 2009, while intermodal was up 15%.