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.
Two supportive groups, the Central Atlanta Progress and the Midtown Alliance, have agreed to contribute up to $300,000 to study the proposal to run streetcar lines along Peachtree Street from the city’s downtown to Midtown and from the King Center to Centennial Olympic Park.
The two groups, joined by the city and MARTA, plan to apply for up to $300 million in stimulus money to finance the project's capital costs. Supporters plan to file for the funds prior to a Sept. 15 application deadline.
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.
Suffolk, Va.-based Commonwealth Railway says it will be incorporating RailComm’s Track Warrant Control functionality into its existing Domain Operations Controller System (DOC®).
Commonwealth Railway has dispatched trains within CTC territory by accessing RailComm’s web-enabled Software-as-a-Service (SaaS) delivery model. RailComm’s SaaS offering provides a “pay-as-you-go” model, eliminating capital equipment procurement constraints. Through the SaaS delivery model, Commonwealth Railway is remotely dispatched by parent Genesee and Wyoming’s Portland & Western Railroad, located in Salem, Ore. The addition of the Track Warrant Control module allows Commonwealth Railway to seamlessly dispatch both its CTC and its dark territory from the same control desk.
The DOC® SaaS provides built-in disaster recovery capability. Because the application is accessed over the Internet, in the case of evacuation of the dispatch building, the dispatcher’s can be relocated to any Internet-connected location to continue moving trains. Additionally, since the DOC® control application resides on servers within RailComm’s managed data center in Rochester, N.Y., the requirement for local IT support at each railroad is greatly reduced.
Canadian National Monday reported second-quarter profit fell 16%, reflecting the falloff in freight rail traffic, with net income at C$387 million (US$350 million), or 82 Canadian cents per diluted share, compared with C$459 million, or 95 Canadian cents per diluted share, in the comparable 2008 quarter. Operating income fell 18% to C$583 million.
CN revenue declined 15% to C$1.8 billion (US$1.6 billion). Operating expenses fell 14% due to cost-containment measures and a “significant reduction” in fuel prices compared with the comparable quarter, CN said. CN's operating ratio increased by one percentage point to 67.3%.
The strengthening of the U.S. dollar affected the conversion of the company's U.S.-dollar-denominated revenue and expenses, increasing second-quarter 2009 net income by C$15 million, or C$0.03 per diluted share, the railroad said.
But E. Hunter Harrison, president and chief executive officer, said, "I think we've seen the bottom. "
"The second quarter of 2009 saw a continuation of significant weakness in most of our commodity groups as a result of the current recession in North America and difficult global economic conditions, with all groups but coal registering double-digit declines in carloadings," Harrison said. "The biggest declines were in metals and minerals shipments, principally on account of a sharp reduction in short-haul iron ore movements in northern Minnesota, and in automotive and forest products traffic. Intermodal, grain and fertilizers, and petroleum and chemicals saw lesser declines. Coal was a bright spot, however, as a result of higher U.S. shipments resulting from our acquisition" of the Elgin, Joliet & Eastern Railway.
"CN's solid pricing has limited its top and bottom line slide," Dahlman Rose Director Equity Research and Railway Age Contributing Editor Jason H. Seidl noted. "While volumes based on carloads declined 22%, top line results came in just 15% below the prior year as average revenue per carload increased by 9% due in part to the continuing 4-5% increases in pure price gains, positive changes in traffic mix and FX (foreign exchange). While volume declines were significant, the operating ratio was 67.3%, vs. an operating ratio of 66.3% in 2Q08. On the balance sheet, the company maintains a strong cash position with $238 million increase in free cash flow year-to-date over 2008. While we believe that CN’s optimism regarding solid pricing and a potential bottoming of the market may be well founded, we believe that volumes will continue to decline in the near term and that any turnaround in the market is likely to be slow and gradual. [Yet,] we reiterate our Buy rating as CN continues to be a way for investors to own a 'best in class' company that continues to generate strong free cash flow in a difficult operating environment. CN's prospects for the long-term are favorable despite the ongoing freight recession. The company noted that it sees some signs of improvement in the environment and that business volumes may have reached a bottom. Specifically, the company cites optimism regarding possible improvements in the merchandise business, auto production, steel production, chemicals, petroleum and forest products. We note that these last four industries are expected to enjoy positive growth rates over the next 6-12 months according to our recently published proprietary rail shipper survey."
Seattle's Sound Transit light rail transit ridership Monday, the first day of revenue service, was reported to be light on the 14-mile line. The line made its debut this past weekend, when approximately 92,000 people were given free rides during the two-day period. One-way fares range from $1.75 to $2.50.
The heaviest ridership so far has occurred close to downtown, according to Martin Young, a manager helping with Monday's startup. The 600-space park-and-ride lot at Tukwila International Boulevard Station, one of the few park-and-ride lots provided by the new line, was reported to be about 25% full.
Sound Transit projects 26,600 per weekday by the end of the first year; ridership on Monday appeared to fall short of that projected target. "It's a Monday morning, on a brand new system, on a really nice sunny summer day in July," Sound Transit spokeswoman Linda Robson pointed out.
Sound Transit also has yet to adjust its bus routes to offer transfer opportunities; many bus routes will be adjusted this fall. Sound Transit LRT also will be extended two miles to Seattle-Tacoma International Airport by the end of the year; a shuttle bus from Tukwila Station currently connects the new line to the airport.
New Jersey officials, led by Gov. Jon Corzine, Saturday announced that light rail transit was the preferred rail option to serve the CSX Northern Branch, traversing the eastern portion of Bergen County, New Jersey’s most populous county.
NJT Executive Director Rich Sarles, participating in the press conference held Saturday in Ridgefield, N.J., to announce the decision, said preliminary engineering could begin in 2010, with groundbreaking in 2011, and revenue service beginning in 2014.
The decision in effect extends the existing Hudson-Bergen Light Rail Transit (HBLRT) line north 11 miles from its current terminus in North Bergen (Hudson County), N.J., to Tenafly, in Bergen County, making the HBLRT moniker more accurate.
The move also reverses efforts by many to implement a diesel multiple-unit (DMU) shuttle service on the 11-mile stretch, with passengers transferring to and from existing HBLRT operations (shown at left). The DMU proposal itself was advanced beginning in 2003; prior to that, New Jersey Transit had given strong indications that it would extend light rail into Bergen County.
CSX currently operates a light freight schedule on the Northern Branch, cited by some to justify the DMU option to comply with Federal Railroad Administration safety regulations. LRT proponents countered that temporal separation measures, such as those used within New Jersey by both Newark Light Rail and RiverLINE diesel light rail transit operations, could be used equally effectively to address safety concerns.
New Jersey Transit says it has submitted a revised Draft Environmental Impact Statement to the Federal Transit Administration for approval for public release, expected shortly. Public hearings on the DEIS are scheduled to be held in Northern Branch communities this fall. Those communities include Ridgefield, Palisades Park, Leonia, Englewood, and Tenafly.
A National Transportation Safety Board investigator says it appears that the operator of a San Francisco Municipal Railwa (MUNI) light rail car switched fromautomatic to manual control just prior to a crash injuring 48 passengers. The train operator also was injured; none of the injuries was considered life-threatening.
The accident occurred July 18 as a westbound L train struck a K train that was sitting at a boarding platform in the West Portal Station, the western end of MUNI’s busy, underground LRT conduit running beneath the city’s Market Street. Investigators have found that the L-Taraval outbound train was switched from automatic to manual mode while still inside the tunnel approaching the platform. Normal MUNI procedure is to wait until the train enters the station to switch to manual.
The MUNI operator reportedly told investigators he blacked out shortly before the accident.
This incident is the latest of several rail accidentsoccurring in recent weeks, including an accident May 9 involving two Massachusetts Bay Transportation Authority (MBTA) Green Line light rail transit trains that injured 49, and the deadly crash June 22 on Washington’s Metro RedLine, resulting in nine fatalities.
In the MBTA incident, the operator was suspected of text messaging against regulations, similar to the suspected actions of a Metrolink engineer last September, among the dead after his train ran a red signal and crashed into a Union Pacific freight train in Chatsworth, Calif.
A flaw in the automatic train control system, not operator error, appears the likely cause of the Washington MetroRail crash.
Norfolk Southern CEO Wick Moorman described to the National Governors Association on Saturday how public-private partnerships “can create additional capacity in our rail transportation network, with public benefits of jobs creation, less highway congestion, lower environmental emissions, and fuel savings.”
Addressing a meeting of the association at Biloxi, Miss., Moorman (pictured at left) cited two public-private ventures – the Heartland Corridor between the Port of Virginia and Columbus, Ohio, and Chicago, and the Crescent Corridor linking New Jersey to New Orleans and Memphis, Tenn. – as examples.
He said the Crescent Corridor alone will create 41,000 “green jobs over the next decade and shift more than a million trucks a year off the highways and onto rails, saving more than 150 million gallons of fuel annually as well as reducing carbon emissions by nearly two million tons a year.”
It will take more strategic initiatives like these, Moorman suggested, to prepare the railroads to handle their share of freight volumes that transportation economists predict will grow 86% by 2035.
“Our nation’s transportation network is a complex, interdependent system that demands our combined creative efforts to operate it most efficiently,” Moorman said. “Our experience at Norfolk Southern has shown that by working together in public-private partnerships, we can achieve far more in far less time and with far greater public benefits than any of us can by working alone.”