New York-based Dahlman Rose & Co., in its third quarter Rail Shipper Survey, notes “railroad shippers anticipate an average base rate increase of 3.2% over the next 6-12 months. This is largely in line with the 3.3% increase expected in our 2Q09 Shipper Survey and below the 3.6% increase noted in our 1Q09 Shipper Survey.
“While some may view the downtick as an indication of pricing pressure, we believe it is indicative of an economic stabilization. As volumes start to come back, rail pricing should firm as well in our view,” the firm said.
Dalhman Rose’s survey also suggests shippers support rail legislation efforts on Capitol Hill only to a certain point, noting, “A vast majority of shippers seem to support some sort of action on Capital Hill while only 4% want the regulators to stay totally out of the railroad business. However, it is important to note that not all shippers who support government action want actions that are unfavorable to the railroads.” The survey finds “22% of respondents ... are in favor of a 25% rail investment tax credit, while 21% would support a short line tax credit. An improved rail costing model would win the support of 24% of our respondents, while DOJ [Department of Justice] oversight was selected by just 13% of respondents.”
In terms of rate case actions, Dahlman Rose’s survey found “98% of shippers indicated that they do not plan to file any rate action against a railroad over the next 12 months. This is an increase from 94% and 88% in our 2Q09 and 1Q09 surveys, respectively, suggesting that shippers feel pricing will come in on its own or that current pricing practices are not egregious.”
Dahlman Rose also found shipper optimism improving. “Shippers expect their respective businesses to grow approximately 5.9% for the next year, versus 2Q09 and 1Q09 survey responses of 4% and 1% respectively. We believe this optimism is largely driven by the modest improvement in theeconomy in the third quarter. Building products and chemicals showed the highest expected growth over 2Q09.”
Norfolk Southern said Tuesday its customers now can receive text messages notifying them of the status of shipments with Railcar Event Alerts. Using a simple application on the company’s e-commerce site, accessNS, customers can set up alerts to advise them of a variety of events for as many as three railcars, containers, trailers, or chassis at a time.
NS says once an alert is set up, Railcar Event Alerts checks the status of the equipment every hour and sends a text message to the customer’s cell phone if the status has changed.
Information available through Railcar Event Alerts includes: changes in ETA or ETI; bad order notification; when a shipment is received from another rail carrier; when a shipment is placed for a shipper’s customer; and/or when a car in the shop has been repaired and is moving again.
For customers needing assistance with e-commerce applications, Norfolk Southern also has added live online chat support. NS stresses that this is in addition to the toll-free help line and email support the accessNS team already provides.
By clicking the “Live Support” link, available in the top left corner of the accessNS title bar or as a button on the accessNS sign-on screen, customers can open a chat session with support personnel in realtime. This new feature is meant to allow the accessNS support team to help more customers in less time.
RailComm says it has provided New Jersey Transit with a control system for several derail devices as part of the NJT’s ongoing upgrade of Hoboken Rail Yard, a major service and storage facility for the rail corporation.
A RailComm Control Panel is located adjacent to the wheel truing machine pit and controls the derail devices. Operation of each derail is enabled via a keyed selector switch on the derail control panel. Blue and amber LEDs are mounted on the building end walls.
Upon derail activation, the derail is applied on the track and the automatic blue flag is raised. The blue LED illuminates when the derail is applied and the blue flag is on, while the amber LED illuminates when the derail is open and the blue flag is off.
The Long Island Railroad (LIRR), San Francisco Bay AreaRapid Transit (BART), and Washington Metro (WMATA) are using IBM Maximosoftware to manage predictive maintenance programs for rolling stock andfacilities. Maximo software can predict and automatically schedule themaintenance process, providing information on the exact location and conditionof all assets and equipment.
The LIRR will use IBM technology to manage and maintainapproximately 1,180 railcars, locomotives, and their associated part. As partof a project expected to be completed in 2012, IBM will also be helping theLIRR expand its asset management system to include facilities, bridges, andtunnels. The IBM Maximo software integrates the work order and materialsmanagement systems within the LIRR Corporate Asset Management System to improvebusiness operations, lower maintenance costs and improve passenger safety.LIRR’s Corporate Asset Management System will be expanded to includemaintenance and management of all IT assets including PCs, laptops, servers,and software licenses, facilities including Penn Station and Atlantic AvenueTerminal, and assets being installed for the East Side Access project that willconnect the LIRR to Grand Central Terminal. The system will also integrate with the LIRR’s GeographicInformation System and MTA Business Service Center software applications toimprove administration and support. The LIRR plans to utilize hand-held devices using IBM’s mobile versionof their asset management software for work orders and materials management.
BART will use IBM technology for integrating and managingits purchasing, inventory and maintenance systems that support all trains,stations, equipment and operations. Part of the modernization project includingupdating and integrating older trains and adding new railcars to the fleet,BART will use the software to know the condition and location of all of itsassets and automatically manage maintenance in line with business operations toknow what parts, people, and time are required to fix problems. BART will useMaximo to conduct analysis and schedule maintenance before a part or systemfails. The software will also help BART make sure it has the right partsavailable before they are needed, and eliminate parts that are no longer used.The intelligent asset management software will allow BART to continuouslyevaluate and implement improvements while better planning jobs for a moreefficient workforce, and help BART prepare for the purchase, testing, andacceptance of new railcars. Maximo will also help BART adopt internationalstandards for inventory and allow it to better address regulatory requirements.
WMATA is using IBM technology to manage all of its assets,including more than 12,000 bus stops and train stations, 106 miles of track,1,144 railcars, and 1,500 buses. Beyond the transportation assets, WMATA usesthe IBM software to maintain 594 escalators and 275 elevators. Once informationis gathered from across the transportation system, the IBM software helpsmanage nearly 180,000 work orders each month. The system provides mechanicswith suggested work plans for standard maintenance procedures to ensure thatthe equipment is repaired before it fails. This level of preventativemaintenance allows WMATA to improve maintenance procedures by integrating theoverall work procedures with contract management, as well as monitor and managemaintenance equipment. This will lower the operational maintenance cost whileimproving productivity and prolonging the life span of the equipment.
Explaining that it seeks "another way to demystify the process," the Surface Transportation Board will begin holding public oral arguments in major cases.
"Hearing from parties directly and having the opportunity to ask them questions will help us make better decisions," said STB Chairman Daniel R. Elliott III.
The oral arguments will give parties an opportunity to directly address the board. The format will be similar to oral arguments in federal appellate courts, allowing board members to ask questions before making a decision. While the proceedings will be open to the public, only counsel for the parties will be allowed to present argument.
Elliott also plans to overhaul the Board's website, www.stb.dot.gov, to make more information more readily available to stakeholders and the public. "We are doing the public's business and the public should be able to quickly and easily learn what we are doing," Elliott said.
The first scheduled oral argument will be on Oct. 27, in the case of Entergy Arkansas, Inc. and Entergy Services, Inc. v. Union Pacific Railroad Company and Missouri & Northern Arkansas Railroad Company, Inc., STB Docket No. 42104 and DesertXpress Enterprises, LLC—Petition for Declaratory Order, STB Finance Docket No. 34914.
The Board has also scheduled oral arguments for Nov. 23, but a list of cases to be argued then has not been finalized.
Siemens Transportation Systems has delivered the first two of nine light rail transit cars to Hampton Roads Transit, as the agency prepares to launch “The Tide” light rail service along its 7.4-mile starter line in Norfolk, Va., roughly one year from now.
The Association of American Railroads reported Thursday that total volume on U.S. railroads for the week ending Oct. 3 was an estimated 29.7 billion ton-miles, off 16.6% from the corresponding week last year.
Railroads originated 277,734 carloads, down 17.2%. All 19 commodity groups lost ground, with declines ranging from 2.7% for chemicals to 53.2% for metallic ores.
Intermodal traffic added up 206,293 trailers and containers, down 15.7%. Container volume fell 10% and trailer volume was off 37%.
Regionally, carload traffic were down 16.4% in the West and 18.3% in the East.
Canadian railroads reported volume of 73,377 carloads, down 7.3% from last year, and 43,724 trailers and containers, down 15.6%. Mexican railroads originated 12,597 carloads, down 0.9%, and 7,593 trailers and containers, down 3.4%.
Combined North American rail volume for the first 39 weeks of 2009 on 13 reporting U.S., Canadian, and Mexican railroads totaled 13,204,334 carloads, down 18.8% from last year, and 9,139,639 trailers and containers, down 16.7%.