Kawasaki Railcar USA is the apparent winning bidder tosupply 23 new R-188 subway cars to MTA New York City Transit under an $87million contract. The contract contains a $384 million option to build anadditional 123 cars and refurbished 350 existing units.
The R-188s, which will be built for NYCT’s no. 7 FlushingLine and equipped with communications-based train control, will be assembled atKawaski’s Yonkers, N.Y., plant, with carbodies fabricated in Japan. New cars orderedunder the option will be manufactured at Kawasaki’s Lincoln, Neb., facility.
In addition, Kawasaki is upgrading the controls on 10 existingR-143 cars with CBTC. The order will be completed in stages from 2011 to 2012.
A $1 million U.S. Department of Transportation CMAQ (CongestionMitigation and Air Quality) grant will enable the New York & AtlanticRailway, which operates MTA Long Island Rail Road’s freight service, to loweremissions from its 11-unit locomotive fleet by approximately 35%.
NY&A will be installing automatic engine start-stop systemsand engine pre-heating equipment on its fleet of EMD GP38-2, SW1001, and MP15AC(pictured) locomotives. A.S.T. Transportation Engineering, a division of Angewandte SystemTechnik Gruppe, Germany, is supplying the pre-heating equipment. An enginestart-stop system supplier will be selected once the CMAQ grant, which isadministered by the State of New York, is finalized. A.S. T.’s technology runsoff the locomotive’s batteries for up to 48 hours, rather than a separatediesel engine. It will work in tandem with the start-stop system, but also isequipped with an onboard plug-inbattery charging device that runs off 120 volts a.c. This setup, according toNY&A, will work well because the railroad’s relatively small fleet is kept atone location.
The NY&A, a division of Anacostia & Pacific, moves about18,000 carloads annually for more than 85 businesses located along the LIRRsystem. The railroad has operated the LIRR’s freight concession since 1997.
The most recent freight car building forecast from Economic
Planning Associates calls for assemblies of 16,000 units this year, based on
current backlogs, first quarter assemblies, and anticipation of modest orders
for covered hoppers, tank cars, and coal cars. Next year will see a modest
improvement to 21,500 units, though EPA says this is a very low number “even
with continued improvements in economic activities” due to “the oversupply of
Noting that the ongoing economic recovery has turned a
three-year slide in rail freight traffic into a rebound year, EPA says that it
“was pleasantly surprised by the jump in railcar orders in the first quarter of
this year, amid reports of significant levels of idle equipment at the end of
last year. The 5,078 cars ordered in the opening quarter of 2010 represent the
highest quarterly level since the third quarter of 2008. New equipment demand
was confined to three car types—coal and related product service cars, covered
hoppers, and tank cars. While we are enthusiastic that the AAR is
reporting increasing utilization of previously idled cars, we believe that the
coal service cars are not a reflection of the need to expand fleet capacity,
but rather the replacement of aged equipment.”
Going into more detail, EPA says that “ethanol production
has been accelerating for a number of months, and previously idled cars are
being pressed into service. Given the large increase in ethanol production in
recent months, it is no surprise that the orders for hi-cube covered hoppers
were for DDG (distillers' dried grain) service. And, we suspect that a number
of the tank cars ordered are for ethanol service.”
The carbuilding pace will begin to pick up in 2012, says
EPA: “Far stronger economic activities will provide support for a variety of
certain railcar assemblies. The extremely low levels of deliveries this year
and next will serve to intensify the pressure to replace aging equipment in
various fleets during the longer-term forecast horizon. After three dismal
years, we look for railcar deliveries to advance moderately to 33,500 cars in
2012 and then expand annually to the level of almost 60,000 units in 2015.”
“From this point on,” says EPA, “we are enthusiastic about the
outlook for commodity and intermodal haulings but are cautious with regard to
new equipment demand in the short term due to the still-large amount of idle
capacity in the rail system. Still, the improvements in major commodities
markets will once again stimulate demand for rail equipment during the longer-term forecast horizon. Agricultural exports are rising, ethanol production is
accelerating, the housing market is improving, light vehicle sales are
expanding, manufacturing activities have been revived, and a stronger economy will
stimulate greater production of electricity. These activities will improve
haulings of grain, ethanol and distiller grain, lumber, motor vehicles and parts,
metals and products, chemicals, plastics, and coal. These improvements will
extend into 2011 and beyond.”
CSX Transportation and Canadian Pacific subsidiary Delaware & Hudson Railway have asked the Surface Transportation Board to approve a joint use arrangement in a north-south rail corridor linking the New York City metropolitan area with the international border at Rouses Point, N.Y. The joint-use corridor would include a line operated by D&H between Rouses Point Junction and Albany, N.Y.
As described in a statement Thursday, “D&H would operate all trains between Saratoga Springs, N.Y., and Rouses Point. Both railroads would conduct their own train operations between Albany and Saratoga Springs. Some of this traffic now moves over CSXT’s Massena Line, which runs from Syracuse, N.Y., to Huntington, Province of Quebec. The joint use arrangement would improve the transit time of this traffic to Albany by more than 45%, reduce transit miles by 35% and gross ton-miles by 442 million.”
The plan also calls for CSXT to handle certain D&H freight moving between Albany, N.Y., and the New York City boroughs of The Bronx and Queens, and enables D&H to offer significantly “greater frequency of service between Montreal and metropolitan New York City. D&H also will retain previously STB approved trackage rights between Albany and Fresh Pond (Queens).”
CSXT and D&H said they will continue to serve all current customers, including local shippers on CSXT along the Massena Line.
Union Pacific said late Thursday it is the first railroad to earn the Eastman Chemical Company Supplier Excellence Award for overall company performance. The award signifies consistent performance in providing Eastman with high-quality products and services and working on Eastman’s behalf to improve the company’s efficiency and competitiveness. It represents the highest level of all awards presented in the Eastman Supplier Excellence Program.
“Customer service is paramount at Union Pacific and we are extremely proud to receive Eastman’s Supplier Excellence Award,” said Diane Duren, Union Pacific vice president and general manager—Chemicals. “Our entire UP support team in operations and dispatching, as well as marketing and sales, play very important roles in providing customer value.”
Established in 1991 bythe Kingsport, Tenn.-based company, Eastman Chemical's Supplier Excellence Award is based on a supplier’s ability to meet the highest level of reliability and quality.
Recipients are selected by virtue of their outstanding contributions in working to create value for the company. In addition to these standards, a company's corporate image and overall stewardship are considered, as well as its history of service to its customers.
WLRoss-Greenbrier Rail Holdings, which was formed by WL Ross & Co., a private equity firm, and The Greenbrier Companies, announced Friday that it has acquired a lease portfolio of nearly 4,000 railcars valued at approximately $230 million.
The new company is owned by affiliates of WL Ross for the purpose of acquiring railcar assets to be managed by Greenbrier, which will receive management and other fees and incentive compensation tied to performance.
WLR–GBX said it intends to seek additional opportunities to acquire railcar lease portfolios.
William A. Furman,president and CEO of Greenbrier, said, “The formation of WLR–GBX and this portfolio acquisition are consistent with our stated strategy to use the WL Ross relationship with Greenbrier as a platform to pursue growth in less cyclical, higher margin, after-market opportunities. The pursuit of these opportunities through structured transactions, which Greenbrier helps originate and manage and in which WL Ross makes a direct investment, leverages our core competencies. The transaction will be accretive to earnings and presents the potential for the company to participate in significant upside.”
Wilbur L. Ross, Jr., chairman and chief executive officer of WL Ross, said, “The company is well-positioned for the expected rebound in demand for freight cars and the long-term growth resulting from rail’s fuel efficiency compared with motor freight.”
A short line plots land use development and alternative energy options, along with acquiring a right-of-way, to best advantage—and beats recessionary odds.
Parsons Brinckerhoff has appointed Richard A. Schrader chairman, succeeding Keith J. Hawksworth, who is retiring after 33 years with the firm.
In his new position, Schrader, currently Executive Vice President and Chief Financial Officer, “will provide broad policy oversight for PB,” the company said. PB has begun an executive search process for a CFO to succeed Schrader, who has been with PB for 27 years and has been a member of the firm’s Board of Directors since 1992.
Prior to joining PB in 1983, Schrader served on active military duty in the U.S. Army Corps of Engineers for 11 years with assignments on military construction projects, including command of an engineer company in Germany.
He has also served on the faculty of the United States Military Academy at West Point as Assistant Professor in theDepartment of Social Sciences. He has a bachelor’s degree from West Point, a master’s degree from The Johns Hopkins University School of Advanced International Studies, and an MBA from Long Island University.
Hawksworth, who joined PB in1976, served as CEO from December 2007 through December 2009 and during that time led a strategic planning process that resulted in PB’s October 2009 merger with Balfour Beatty, the international infrastructure group operating in professional services, construction services, support services, and infrastructure investments.
Prior to his appointment as CEO, Hawksworth was Chief Operating Officer of PB’s International division. He also served as head of PB’s Asia-Pacific operation and was PB’s Principal-in-Charge on many of the firm’s largest international projects.
“I look forward to having Rich as a partner in guiding PB going forward,” said PB President and CEO George J. Pierson. “I will continue to rely on Rich’s extensive expertise in financial management and will look to him for assistance in determining PB’s strategic direction.”
Schrader will also undertake additional duties in service of Balfour Beatty Group.
New York City Transit's subway and bus system will eliminate 1,722 jobs—by layoffsor attrition—by July 4, according to information filed with state authorities.
The planned elimination of the V and W subway routes and dozens of bus lines is responsible for the latest round of layoffs. These will cost the jobs of 122 subway car inspectors and 500 bus drivers.
New York Metropolitan Transportation Authority Chairman Jay Walder earlier announced plans to lay off 500 subway station agents and to eliminate 600 administrative positions through layoffs or attrition.
The staff reductions will make a dent, though not a big one, in MTA's looming $800 million operating budget deficit.
Both U.S. carload freight and intermodal traffic showed strength in the week ended April 24, the Association of American Railroads reported Thursday. Carload volume was at its highest level since the first week of December 2008, while weekly intermodal volume reached its highest level this year, AAR said.
U.S. carload freight was up 14.6% from the corresponding week in 2009, while still down 10.8% from the comparable week in 2008. U.S. intermodal traffic rose 15.1% from last year but trailed the 2008 total by 5.4%.
All 19 carload commodity groups were up from last year, led by gains in commodities associated with the steel industry: metallic ores, up 163%; metals, up 80.2%; waste and scrap, up 59.7%; and coke, up 12%.
Other notable increases included 25.3% for motor vehicles and equipment; 45.% for primary forest products; 22.8% for lumber and wood products; and 13.1% for chemicals.
Canadian carload freight for the week ended April 24 was up 22.5% from the comparable period in 2009, while intermodal traffic rose 10.1%. Mexico’s two major railroads reported carload freight rose 27.3% from the comparable 2009 week, while intermodal inched up 4.8%.
Combined North American rail volume for the first 16 weeks of 2010 on 13 reporting U.S., Canadian, and Mexican railroads was up 7.6% from last year, while intermodal advanced 9.9% from a year ago.