March 3, 2010
Weekly Rail Review
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WEEKLY RAIL REVIEW
FOR THE WEEK ENDING FRIDAY, MARCH 5, 2010
THE WEEK’S TOP RAIL AND TRANSIT NEWS (in chronological order):
(MON) Reflective of last year’s weak economy and high unemployment, the New York City Transit Authority reported that its 2009 subway and bus ridership declined 2.7 percent, the first annual ridership drop in six years. However, the total subway ridership of 1.6 billion was the second highest since 1951 and the average weekday bus and subway ridership of 7.4 million was the second highest since 1969. (ffd: NYMTA, Progressive Railroading)
(MON) New York’s Metropolitan Transportation Authority noted its concern about the high cost and comparatively low additional benefit of installing positive train control (PTC) on its Long Island and Metro North Railroads. A NYMTA spokesman said that PTC, which is projected to cost the LIRR and MNRR a total of $700 million to install and activate, would have “marginal benefit” and “introduces significant cost and risk to a rail system that currently has a high degree of safety.” PTC is required by 2008’s Railway Safety Improvement Act to be installed on intercity and commuter rail lines by the end of 2015. (ffd: New York Post)
(MON) Two commuter rail authorities began taking delivery of new passenger railcars. In California, Metrolink took delivery of the first two of a total of 117 railcars that are equipped with new collision-absorption technology. In Philadelphia, SEPTA took delivery of the first three of a total of 120 Class Silverliner V railcars. South Korea’s Hyundai-Rotem is producing both of these orders, however, final railcar assembly is being done in the U.S. (ffd: Progressive Railroading)
(MON) Amtrak announced that wireless Internet access was now available on all its Acela Express trains. Amtrak also announced that wi-fi was now also available at its stations in Washington, Baltimore, Philadelphia, New York City, Providence and Route 128 near Boston. (ffd: Amtrak, wire services)
(TUE) Attempting to address a projected $300 million total budget shortfall for fiscal years 2010 and 2011, New Jersey Transit announced plans for a 25 percent fare increase and service reduction of at least two trains on each of its 11 rail lines. NJT also said that it expected to trim about two percent of its workforce, will reduce its contribution share to employee 401K accounts by one-third, and will reduce executive salaries by five percent. (ffd: Newark Star-Ledger, Progressive Railroading)
(TUE) President Obama signed into law an act to extend federal highway and transit funding through March 28. An earlier funding extension recently expired. In a related story, U.S. Secretary of Transportation Ray LaHood said that the Administration plans to move forward with a “comprehensive, robust transportation bill.” Mr. LaHood commended a comprehensive federal transportation bill presented last fall by House Transportation & Infrastructure Committee Chair James Oberstar (D-MN), but said that the bill’s $450 billion in funding was too high given the current economic conditions. (ffd: Journal of Commerce, Progressive Railroading)
(TUE) Kansas City officials announced a new plan to keep open Kansas City Union Station, which was redeveloped nearly a decade ago primarily as a cultural and entertainment attraction, but that has been losing money ever since. Officials said that they were looking to utilize the station’s approximately 35,000 square feet of empty office space, possible for use by the Greater Kansas City Chamber of Commerce or the Kansas City Area Development Council. (ffd: Kansas City Star, RT&S)
(WED) BNSF CEO Matt Rose cautioned against eliminating coal as a domestic energy source. “The railroad will survive if we get rid of every coal asset in the country,” Mr. Rose said. “The problem is, the country won’t survive.” Mr. Rose added, “[if you] shut down a coal plant that can produce [electricity] at 2-1/2 or 3 cents a kilowatt and replace it with alternative energy at 10 or 15 or 20 cents….it will be the greatest job destroyer that our country has ever seen.” Mr. Rose said that carbon capture and sequestration technology currently being tested was a solution to removing carbon emissions from coal-fired plants. (ffd: Bloomberg News, Trains)
(WED) Kansas City Southern CEO Mike Haverty said that acquisition rumors about KCS have no basis at the present time. “We’re not in any discussions with anybody about being acquired, I can tell you that,” Mr. Haverty said. He also noted that, this quarter this year versus the first quarter last year, the railway’s U.S. traffic was up just under 4 percent and its Mexican traffic was up nearly 25 percent. (ffd: wire services)
(THU) A report prepared by the U.S. Federal Transit Administration was notably critical of Washington, DC’s Metro subway system. The report cited Metro for problems including that it had no process in place to ensure that unsafe situations are identified in a timely fashion and that its top management is not updated regularly about safety matters. In the last year, Metro has been the subject of increased criticism of its operations and safety, especially since the mid-2009 rear-end collision on its Red Line that killed several passengers and injured scores of others. (ffd: Washington Post)
(THU) A survey conducted as part of the Canadian Government’s Rail Freight Service Review process found substantial dissatisfaction with rail service provided by Canada’s two major railways, Canadian National and Canadian Pacific. In a survey of 269 rail shippers, only about 17 percent indicated that they had a good level of satisfaction with their service. Additionally, 62 percent of those surveyed said that they had suffered financial loss due to unsatisfactory service. (ffd: Financial Post, Montreal Gazette)
(THU) U.S. Senator Susan Collins of Maine said that she had secured the commitment of Secretary of Transportation Ray LaHood to protect rail lines in the state threatened with abandonment. The Montreal, Maine & Atlantic recently said that it would have to abandon 233 miles of its lines in the state if a buyer can’t be found for them. In a senate hearing, Mr. LaHood stated that he would ask FRA Chief Administrator Joe Szabo to go to Maine to meet “with all the stakeholders and…figure out some kind of funding opportunity to make sure that these rail lines are not closed down.” (ffd: RT&S)
(FRI) The release was noted of a new book about the Union Pacific Railroad. The book, appropriately titled “Union Pacific Railroad” and published by Voyageur Press, chronicles the history of the railroad from its 1862 inception through the present day. The book notes that UP is the second-largest landholder in the Western United States after the federal government, that it is the longest-standing corporate name in U.S. history, and that its corporate insignia and colors have remained unchanged since 1941. (ffd: Auburn Reporter)
STATS – CLASS 1 RAIL TRAFFIC:
(THU) For the week ending February 27, 2010, U.S. rail volume grand totaled 31.6 billion ton-miles, up 3.9 percent from the comparable period last year. U.S. carload rail traffic was up 2.6 percent, up 3.3 percent in the East and up 2.0 percent in the West. Notable carload increases for the week included metals and metal products up 45.8 percent, non-grain farm products up 39.8 percent, and grain mill products up 22.1 percent. Also for the week, U.S. intermodal rail traffic was up 17.5 percent, Canadian carload rail traffic was up 12.2 percent, Canadian intermodal rail traffic was up 11.0 percent, Mexican carload rail traffic was up 17.0 percent, and Mexican intermodal rail traffic was up 59.2 percent.
For the period January 1 through February 27, 2010, U.S. rail volume grand totaled 233.4 billion ton-miles, down 0.2 percent from the comparable period last year. Also for this period, U.S. carload rail traffic was down 1.1 percent, U.S. intermodal rail traffic was up 6.1 percent, Canadian carload rail traffic was up 12.4 percent, Canadian intermodal rail traffic was up 4.7 percent, Mexican carload rail traffic was up 23.1 percent, and Mexican intermodal rail traffic was up 34.9 percent. (ffd: AAR)
EXPANSIONS, CONTRACTIONS AND ALIKE:
(TUE) GE Transportation announced the sale it would sell its inspection products business line to Progress Rail Services, a subsidiary of Caterpillar Inc. The product line includes defect detectors, data acquisition systems, and other rail inspection products. (ffd: Trains)
(TUE) Passenger train manufacturer Talgo announced that it would locate its first U.S. assembly plant at the former Tower Automotive site in Milwaukee, WI. Talgo will there manufacture two trainsets earlier ordered by the State of Wisconsin and also two trainsets more recently ordered by the State of Oregon. The latter two will be added to the existing fleet of five Talgo trainsets providing Amtrak “Cascade” service in Oregon and Washington State. (ffd: Milwaukee Sentinel, Progressive Railroading)
APPOINTMENTS, ACHIEVEMENTS AND MILESTONES:
(THU) The Washington Metropolitan Area Transit Authority appointed Richard Sarles its interim general manager effective March 29. Mr. Sarles, who recently retired from New Jersey Transit, will succeed John Catoe, who has announced his retirement. (ffd: Washington Business Journal)
(FRI) The shortline holding company OmniTRAX appointed Alan Thiem its regional director of marketing and sales. Mr. Thiem was most recently with Wallenius Wilhelmsen Logistics, a supply chain firm. (ffd: OmniTRAX, Progressive Railroading)
(FRI) The shortline holding company Watco Companies appointed James Andrews its chief mechanical officer for the South Kansas and Oklahoma Railroad. The SKOL operates a fleet of more than 20 locomotives over its 404-mile line. (ffd: Progressive Railroading)
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February 26, 2010
Weekly Rail Review
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WEEKLY RAIL REVIEW
FOR THE WEEK ENDING FRIDAY, FEBRUARY 26, 2010
THE WEEK’S TOP RAIL AND TRANSIT NEWS (in chronological order):
(SAT) Three teenage girls trespassing across a railroad bridge in Melbourne, FL were struck and killed by an approaching train. The incident was reported by national news media. The train and tracks were those of the Florida East Coast Railway. (ffd: wire services)
(MON) U.S. Rep. Jim Oberstar (D-MN) introduced, “The Public Transportation Safety Program Act of 2010.” The bill intends increased federal and state oversight of the nation’s transit systems. In a prepared statement, Mr. Oberstar said that “[this] proposal…will assure that each state has adequate number of fully-trained staff, that it has sufficient authority granted by the state legislature and governor, that it can compel compliance by transit agencies, and that the state oversight entity has financial independence from the transit systems it oversees.” (ffd: wire services)
(MON) Kansas City Southern replaced BNSF as one of the 20 U.S. transportation stocks on the Dow Jones Transportation Average. The move follows BNSF having been taken private as a result of the recent completion of its purchase by Warren Buffett’s Berkshire Hathaway LLC. (ffd: Progressive Railroading)
(MON) Amtrak said that it has asked several architectural and real estate firms to improve the commercial facilities of Chicago Union Station, including improving retail space in and around the station’s Great Hall and office space above it. It said that a previous effort to do this in partnership with the real estate firm Jones Lang LaSalle did not materialize. Amtrak also said that it was looking at plans to improve the station’s passenger concourses, which have been criticized by riders for their many narrow corridors, locomotive exhaust fumes, and other problems. (ffd: Chicago Tribune)
(MON) Austin, TX’s Capital Metro said that it expected to start service on its new commuter rail line sometime in March. The line’s opening has been delayed for some time due to numerous problems, including those related to its communications and signaling system. The line will operate from Leander, TX to stops in Austin, Texas’s capital city. (ffd: Austin American Statesman)
(TUE) In response to a projected budget deficit totaling in the hundreds of millions of dollars, the New York Metropolitan Transportation Authority said that it would eliminate more than 1,000 positions. It said that “these cuts represent 15 percent of [its] administrative payroll” and will also include laying off up to 500 subway station agents. The New York Daily News reported that the agency would re-launch its long-sought effort to eliminate conductor positions on subway trains, with MTA Chair Jay Walder noting that some layoffs and service cuts might be averted if significant savings can be found by altering “outdated work rules and past practices.” (ffd: NYMTA, New York Daily News)
(TUE) The Orlando Sentinel reported that Amtrak had notified the Florida Department of Transportation that it would terminate a previous agreement to share tracks with the SunRail commuter rail service, which is projected to serve riders in the Greater Orlando area starting in 2012. The newspaper reported that the agreement termination results from liability concerns. Presently, Amtrak’s “Silver Meteor” and “Silver Star” trains operate on the CSX line that is to be owned by SunRail. (ffd: Orlando Sentinel, Trains)
(WED) CSX and Union pacific announced the creation of UMAX, a new interline intermodal partnership for domestic shipments. The railroads said that the service will launch March 29 and offer service to 600 origin-destination lanes. They added that customers will have access to more than 20,000 53-foot containers, and that shipments can move on just one transportation bill and ramp-to-ramp. (ffd: CSX RR, UP RR, Trains)
(WED) The Baltimore & Ohio Railroad Museum in Baltimore, MD announced the completion of restoration of its famed “Thatcher Perkins” steam locomotive. The locomotive was severely damaged in the February, 2003 collapse of the museum’s roundhouse roof during a severe snowstorm. The museum said that the locomotive would be unveiled and commemorated in a ceremony on Saturday, March 13. (ffd: B&O Railroad Museum)
(THU) Two notable rail events took place in and near Washington, DC this date. During the day, the American Short Line and Regional Railroad Association and sister rail associations and organizations presented “Railroad Day On Capitol Hill.” The event saw hundreds of railroaders, rail shippers, and rail suppliers conduct congressional visits to relate the federal legislative needs of the rail industry. Also this date, in nearby Crystal City, VA, the U.S. Federal Railroad Administration held a forum to present the initial findings of its Switching Operations Fatality Analysis (SOFA) Working Group. The forum was presented to senior railroad operations and safety officials, who helpfully commented on the findings and suggested behavioral and procedural change that could reduce and possibly eliminate employee fatalities occurring during switching operations. (ffd: FRA, Progressive Railroading)
(THU) VIA Rail Canada’s “Ocean” train derailed near Quebec City, QB. The locomotives and several cars of the train were derailed, and several passengers were injured, none seriously. The train was en route from Halifax, NS to Montreal, QB at the time of the accident. (ffd: Trains, wire services)
(THU) Another snowstorm, the fourth of note this winter, deposited measurable snow accumulations in various parts of the nation’s Middle Atlantic states. The wet snow notably downed trees and power lines, caused some passenger trains of Amtrak, Long Island Rail Road, Metro North and New Jersey Transit to be delayed or canceled. A train on Metro North’s and New Jersey Transit’s Port Jervis line was delayed nearly 11 hours when trees fell on tracks in front of it and behind it. (ffd: Mid-Hudson News, New York Times)
(FRI) The Wall Street Journal reviewed a new book on the history of railroading. Entitled “Blood, Iron And Gold: How The Railroads Transformed the World,” the 376-page book was written by Christian Wolmar and published by Public Affairs Press. In his book, which covers railroading from its beginnings to the present time, Mr. Wolmar writes, “Trains may be of the past, but they are still the future…They will improve, not just on high-speed lines, but elsewhere too as technology makes them more efficient….And there is the rather delicious prospect that they might conceivably outlive the car.” (ffd: Wall Street Journal)
STATS – CLASS 1 RAIL TRAFFIC:
(THU) For the week ending February 20, 2010, U.S. rail volume grand totaled 29.8 billion ton-miles, down 0.7 percent from the comparable week last year. U.S. carload rail traffic was down 1.6 percent, down 7.1 percent in the East, but up 2.2 percent in the West. Notable traffic increases included metals and metal products up 44.6 percent, motor vehicles and equipment up 30.5 percent, and grain up 21.9 percent. Also for the week, U.S. intermodal rail traffic was up 19.0 percent, Canadian carload rail traffic was up 9.6 percent, Canadian intermodal rail traffic was up 12.5 percent, Mexican carload rail traffic was up 25.3 percent, and Mexican intermodal rail traffic was up 12.7 percent.
For the period January 1 through February 20, 2010, U.S. rail volume grand totaled 201.8 billion ton-miles, down 0.8 percent from the comparable period last year. Also for this period, U.S. carload rail traffic was down 1.8 percent, U.S. intermodal rail traffic was up 4.7 percent, Canadian carload rail traffic was up 12.5 percent, Canadian intermodal rail traffic was up 3.9 percent, Mexican carload rail traffic was up 24.1 percent, and Mexican intermodal rail traffic was up 31.7 percent. (ffd: AAR)
EXPANSIONS, CONTRACTIONS AND ALIKE:
(WED) The Nebkota Railway withdrew its objection to the purchase of Canadian Pacific’s former Dakota, Minnesota & Eastern line between Chardron, NE and Dakota Jct., NE. The move appears to clear the way for the Nebraska Northwestern Railroad purchase of the seven miles of line from Chardon to Dakota Jct. and its lease of an additional 20 miles of line from Dakota Jct. to the BNSF connection at Crawford, NE. (ffd: RT&S, STB)
APPOINTMENTS, ACHIEVEMENTS AND MILESTONES:
(TUE) Gregory Deibler was appointed executive director of the newly-formed Railroad Management Association. According to its website, the association will work to “serve and support the careers of freight and passenger railroad management personnel.” (ffd: Progressive Railroading)
(FRI) The New York City Transit Authority appointed Carmen Bianco its SVP-Subways. Mr. Bianco was earlier with the NYCTA, and also earlier worked at Amtrak and New Jersey Transit. Mr. Bianco succeeds Steven Feil, who will now serve as VP & Chief Maintenance Officer. (ffd: NYMTA)
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February 19, 2010
Weekly Rail Review
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WEEKLY RAIL REVIEW
FOR THE WEEK ENDING FRIDAY, FEBRUARY 19, 2010
THE WEEK’S TOP RAIL AND TRANSIT NEWS (in chronological order):
(MON) The Association of American Railroads debuted its latest “Freight Rail Works” advertising campaign. The campaign, created by Ogilvy PR Worldwide and EyeCandy Production, will consist of TV, radio, print and online components. AAR also released a report entitled, “Great Expectations: Railroads and U.S. Economic Recovery.” Included in the report, which is available on the AAR website, are the statistics that freight railroads generate nearly $265 billion in total annual economic activity and that every one freight rail jobs supports another 4.5 jobs elsewhere in the country. (ffd: AAR)
(TUE) New Jersey Transit head James Weinstein said that NJT bus and rail riders will see their second fare increase in three years by the end of June, possibly earlier. Mr. Weinstein said that the fare increase would be “not insignificant” and were needed largely as a result of a projected $300 million deficit for NJT for Fiscal Year 2011, which includes the loss of $32.7 million in state subsidies, as was recently directed by the state’s new governor, Chris Christie. (ffd: Asbury Park Press, wire services)
(WED) The U.S. Department of Transportation announced $1.5 billion in federal Transportation Investment Generating Economic Recovery (TIGER) grants. The largest grants, all of which will go to public authorities, were $105 million to assist Norfolk Southern’s Crescent Corridor projects; $100 million to assist Chicago-area CREATE projects; and $98 million to assist CSX’s National Gateway Freight Rail Corridor projects. An $83 million TIGER grant was also made to support the conversion of the former Farley Post Office Building in New York City to the new Moynihan rail station; $267 million in federal and state funding is now available for the Moynihan project, which allows the first phase of the project to start. (ffd: NARP, New York Daily News, USDOT)
(WED) The U.S. Federal Railroad Administration announced a new rail trespasser prevention research study, which an FRA spokesman said was designed to identify and review rail trespassing laws and mitigation strategies. The study will be conducted in and near West Palm Beach, FL, and will partner with that city and also with the South Florida Regional Transportation Authority. (ffd: FRA)
(WED) Canadian Pacific announced that it had settled the last lawsuit stemming from a January 18, 2002 derailment in Minot, ND that released a cloud of anhydrous ammonia, a toxic inhalation hazard. The release caused the death of one person and hundreds of others sought treatment for eye and lung problems. Along with the hundreds of plaintiffs who have settled individual lawsuits with the railroad, a $7 million class-action lawsuit was settled in 2007. (ffd: wire services)
(THU) An economic analysis firm released a study that said that a “normal seasonal trend” could produce double-digit year-over-year carload increases for Class 1 railroads in the months ahead. The study, conducted by Robert Baird & Co., said that a strong fall harvest should continue to drive up agricultural product volumes in the coming months, that chemical volumes have increased, and that automobile production levels remain stable. (ffd: Progressive Railroading)
(THU) The U.S. National Transportation Safety Board announced its 2010 “Federal Most Wanted List of Transportation Safety Improvements.” On the list related to rail are two recommendation aimed at improving and strengthening transit railcar design and assembly, which was given a “yellow” designation, meaning that there has been “acceptable response, but progressing slowly.” (ffd: NTSB)
(THU) Amtrak announced that it would commence on March 1 the project to replace the Niantic River Bridge on its Northeast Corridor Line in East Lyme, CT. The existing bridge, which was constructed decades ago by the former New Haven Railroad, will be replaced by a new structure of bascule span design south of the current alignment. The project will also expand the navigation channel beneath the bridge. (ffd: Amtrak, Trains)
(FRI) The Ports of Los Angeles and Long Beach noted that January of this year was the second straight month in which traffic handled through the port increased. The two ports are No. 1 and No. 2 in the U.S. for handling intermodal containers. A spokesman for the ports said that increases were largely driven by exports, primarily of scrap paper and scrap metals. (ffd: Los Angeles Times)
(FRI) A New York perfume company announced what further publicity billed as “the world’s first railroad perfume.” The company announced the March, 2010 release of Bond No. 9 High Line, a perfume named for the new urban park in Manhattan rebuilt on the former West Side elevated rail line. The perfume, which retails for $220 for a 3-and-1/2 ounce bottle, promises “a scent that conveys a whiff of urban wildflowers and a hint of industrial grit.” (ffd: wire services)
STATS – CLASS 1 RAIL TRAFFIC:
(THU) For the week ending February 13, 2010, U.S. rail volume grand totaled 28.1 billion ton-miles, down 7.0 percent from the comparable period last year. U.S. carload rail traffic was down 8.1 percent, down 16.1 percent in the East – largely due to the impact of back-to-back severe winter storms – and down 3.0 percent in the West. Notable traffic increases included metals and metal products up 24.9 percent and motor vehicles and equipment up 15.0 percent; notable traffic decreases included crushed stone, sand and gravel down 18.9 percent and coal down 16.3 percent. Also for the week, U.S. intermodal rail traffic was up 0.5 percent, Canadian carload rail traffic was up 4.8 percent, Canadian intermodal rail traffic as down 1.6 percent, Mexican carload rail traffic was up 28.1 percent, and Mexican intermodal rail traffic was up 17.3 percent.
For the period January 1 through February 13, 2010, U.S. rail volume grand totaled 172.0 billion ton-miles, down 0.8 percent from the comparable period last year. Also for this period, U.S. carload rail traffic was down 1.6 percent, U.S. intermodal rail traffic was down 2.6 percent, Canadian carload rail traffic was down 13.0 percent, Canadian intermodal rail traffic was up 2.6 percent, Mexican carload rail traffic was up 23.9 percent, and Mexican intermodal rail traffic was up 35.6 percent. (ffd: AAR)
EXPANSIONS, CONTRACTIONS AND ALIKE:
(TUE) Western Labrador Rail Services, part of Genesee & Wyoming’s Canada Region, announced a long-term agreement to provide rail services to the Bloom Lake Railway. WLRS will handle unit trains of iron ore on BLRC-s soon-to-be-built 19-mile line from the mines at Bloom Lake, Quebec to Wabush, Labrador. (ffd: G&W RRs, Progressive Railroading)
(WED) American Railcar Industries and U.S. Railcar announced a joint venture which the National Association of Railroad Passengers said was looking “to challenge the [passenger railcar manufacturing] dominance enjoyed here by foreign manufacturers, such as Bombardier of Canada, Siemens of Germany, Alstom of France, and Talgo of Spain.” The new venture, named US Railcar Company LLC – will initially produce ordered railcars at two factors owned by American Railcar Industries in Arkansas. (ffd: NARP, wire services)
(WED) Rail product manufacturer L.B. Foster announced that it would acquire Portec Rail Products. News reports that that the acquisition price would be $112.4 million. (ffd: Business Week)
(THU) Drake Cement announced that it would acquire from the Clarksdale Arizona Central Railroad, approximately four miles of rail line near Drake, AZ. (ffd: STB)
(THU) Union Pacific filed to abandon approximately one-quarter mile of its Ankeny Industrial Lead in Ankeny, IA. (ffd: STB)
(THU) Union Pacific filed to abandon approximately eight miles of its Bondurant Industrial Lead in Bondurant, IA. (ffd: STB)
(FRI) Elkhart & Western filed to lease, from Norfolk Southern, and operate approximately 23 miles of its Michigan City Branch line between Argos, IN and Walkerton, IN. (ffd: STB)
APPOINTMENTS, ACHIEVEMENTS AND MILESTONES:
(TUE) Canadian National announced the following appointments in its Marketing & Sales Department: Vee Kachroo as VP-Industrial Products; James Cairns as VP-Petroleum & Chemicals; Andy Gonta as VP-Bulk; Paul Waite as VP-Intermodal; Keith Reardon as VP-Supply Chain Solutions; and Doug MacDonald as VP-Corporate Marketing. (ffd: CN Corp.)
(THU) CSX announced the appointment of Fredrick Eliasson as its VP-Emerging Markets. Mr. Eliasson succeeds Derrick Smith, who will serve as a vice president in CSX’s Finance Department. Reporting to Mr. Eliasson is Clark Robertson, who will serve as AVP-Regional Development. (ffd: Progressive Railroading)
(THU) Watco Companies appointed James Mattsen as the market manager for the Yellowstone Valley and Mission Mountain Railroads. Mr. Mattsen was most recently with Progressive Rail. (ffd: Progressive Railroading)
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February 12, 2010
Weekly Rail Review
No Comments
WEEKLY RAIL REVIEW
FOR THE WEEK ENDING FRIDAY, FEBRUARY 12, 2010
THE WEEK’S TOP RAIL AND TRANSIT NEWS (in chronological order):
(SAT) The Middle Atlantic states were hit with back-to-back snowstorms, the first this date with regional totals of between 20 and 30 inches, the second on Wednesday with regional totals of between 10 and 20 inches. Rail and transit operations were notably impacted. Amtrak reduced train service much of the week on the Northeast Corridor Line, and on its Empire and Keystone Services, and also suspended most long-distance service west and south out of Washington, DC. In the New York City area, the Long Island Rail Road, Metro North and New Jersey Transit canceled some services during the storms, although Metro North ran some extras on Tuesday to get additional passengers out of the city in advance of Wednesday’s storm. In the Philadelphia area, Septa halted commuter rail service during Saturday’s storm, but was able to continue much of it during Wednesday’s storm. In the Washington area, commuter rail operators MARC and VRE canceled or reduced service during the week, and Washington’s Metro only operated the underground portions of its subway much of the week. On the freight side, both CSX and Norfolk Southern told their customers to expect shipment delays of 24 to 48 hours. CSX said that many of its lines were hampered “by the heavy snow, downed trees and power lines” and NS said that the weather had notably slowed its operations east of Harrisburg, PA. (ffd: Journal of Commerce, NARP, Progressive Railroading, Trains, wire services)
(SAT) A locomotive engineer on the Portland & Western Railroad was found shot to death alongside the locomotive he was operating. The shooting of Ronald Langlois, Age 44 with six years’ railroad service, occurred in Eugene, OR in the early morning hours this date. Police are investigating the killing. (ffd: KMTR TV, wire services)
(SAT) A runaway CSX coal train derailed 113 cars near Meyersdale, PA. The train was descending the Sand Patch Grade, where CSX’s former Baltimore & Ohio main line crests the Allegheny Mountains. Due to the derailment, as well as the heavy snowfall in the area which hampered cleanup, the line was closed for several days this week, which also resulted in the temporary cancellation of Amtrak’s “Capitol Limited” train. (ffd: Cumberland Times-News, Trains)
(MON) The State of Connecticut noted its State Bond Commission having approved $26 million the previous week to assist in the eventual double-tracking of the Amtrak line between New Haven, CT and Springfield, MA. A spokesperson said that the funding will go toward design, environmental documentation and construction costs. The spokesman added that the state hopes to eventually start commuter train service on the 62-mile line, which presently has some stretches of single track. (ffd: New Haven Register)
(MON) Texas officials said that they are negotiating with Union Pacific to temporarily operate passenger rail service on the UP line serving Arlington, TX. The officials said that they want to operate passenger trains on the line to take up to 10,000 persons to and from next year’s Super Bowl, which is scheduled for February 6, 2011. The UP line is approximately one mile from Cowboys Stadium, where the 2011 Super Bowl will be held. (ffd: Dallas Morning News)
(MON) Amtrak said that they had discontinued use of disposal dinnerware on their “Coast Starlight” train and are now again using real china, table linens and glassware for diners on that train. Amtrak said that china, linens and glassware are now also used for dining on the “Empire Builder” train and on the Auto Train. (ffd: Amtrak)
(TUE) The U.S. Department of Energy withdrew 116 water applications related to the earlier proposed construction of a 319-mile rail line that would serve Yucca Mountain in Nevada. Media reports noted that this was possibly the strongest sign yet that the project to store the nation’s nuclear waste at Yucca Mountain would be abandoned, a cause championed by U.S. Senate Majority Leader Harry Reid (D-NV). Most of the water applications were to build temporary water wells along the line, which was to have run between Yucca Mountain and the existing rail line at Caliente, NV. (ffd: Las Vegas Review-Journal)
(TUE) Metro North Railroad began demonstrating its new “Train Time” online service at several of its commuter rail stations. The service allows computer and web-enabled smart phones to find out whether a Metro North train is on-time, late, canceled or delayed, including the number of minutes it is late, and also what track it will arrive or depart on. (ffd: RT&S)
(THU) In an interview, BNSF CEO Matt Rose noted that coal stockpiles across the U.S. were notably decreasing as a result of this winter’s exceptional weather. Mr. Rose said that a previously large overhang of onsite stockpiles by coal-burning power plants “is truly being wiped out” due both to increased heating demand and the winter storms making it harder for replacement coal trains to reach these utilities. (ffd: CNBC)
(THU) A Canadian National freight train derailed 56 cars near Rivers, MB. A CN spokesman said that the potash train was headed eastbound to a destination in the U.S. There were no injuries in the derailment, the cause of which was being investigated. (ffd: Xinhau News Service)
(THU) New Jersey Transit said that it was set to spend $36.6 million this year to begin work on the reconstruction of the ex-Erie Lackawanna main line between Port Morris, NJ and Andover, NJ, in support of the long-term goal to eventual rebuild the line for future passenger rail service operating between Northern New Jersey and Scranton, PA. The line was taken up by the former Conrail in the early 1980s. Last year, Pennsylvania had applied for $401 million in federal stimulus funding to assist in rebuilding their portion of the line, but that application was recently turned down. The project’s estimated total cost is $551 million. (ffd: Morris County Daily Record, Trains)
(THU) The Massachusetts Bay Transportation Authority announced the start of real-time train arrival information on its commuter rail line operating between Fitchburg, MA and Boston, MA. An MBTA spokesman said that electronic message boards at stations on the line will provide riders with a six-minute countdown to the next train and that commuters can also tune to an AM radio station to hear the same six-minute countdown. The spokesman added that twelve of MBTA’s 13 commuter rail lines now offer train arrival information via radio. (ffd: Progressive Railroading)
(THU) Google, the web search engine, announced a new feature that will allow the viewing of an entire Trans-Siberian Railway journey. A Google spokesman said that the site includes 150 hours of video through “seven time zones, 12 regions and 87 villages.” The site, which was developed in partnership with Russian Railways, may be linked to at www.google.ru/transsib. (ffd: Google)
(FRI) BNSF became a privately held company, attendant with the vote the previous day by BNSF stockholders endorsing the purchase of outstanding BNSF stock by Warren Buffett’s Berkshire Hathaway Company. Berkshire paid $100 per share for the remaining 77.4 percent of BNSF stock it didn’t already own. As part of the deal, Berkshire issued new shares and split its Class B shares 50-to-1. (ffd: Progressive Railroading, wire services)
(FRI) Grupo Mexico’s Ferromex and Kansas City Southern de Mexico announced agreement on several long-standing disputes. The agreement sets rates the railroads must pay related to the use of each other’s lines and terminals. KCSM also reached agreement with Ferrosur that increases KCSM’s access in the central states of Puebla and Tlaxcala, and to the port of Veracruz; KCSM in return agreed to withdraw its objections to the merger of Ferrosur into Grupo Mexico’s transport and infrastructure division, which includes Ferromex. (ffd: Progressive Railroading)
(FRI) The 2010 Wheel Rail Interaction Conference, which will be held this coming May 17-20 in Chicago, has announced that several scholarships will be awarded to deserving industry professionals for both the Conference’s Rail Transit Seminar, to be held on May 17, and the Heavy Haul Seminar, to be held May 19 and 20. Both the Rail Transit and Heavy Haul scholarships include free attendance at the Principles Course, to be held on May 18. All events will be held at the Chicago Marriott O’Hare, and continuing education and professional development credits will be offered. Scholarship details are available at http://wheel-rail-seminars.com/scholarships.htm and conference details are available at http://wheel-rail-seminars.com.
(FRI) The U.S. Department of Transportation announced $303 million in loans to fund upgrades to Denver Union Station, the planned centerpiece of Denver’s Regional Transportation District’s FasTracks program. The loans will be $151.6 million from the Transportation Infrastructure Finance& Innovation Act and $152.1 million from the Railroad Rehabilitation & Improvement Financing Act. The Denver Union Station project includes a new light rail and commuter rail station, a new underground bus terminal with 22 bays, and public plazas to integrate transit service. Construction is projected to take four years to complete. (ffd: Progressive Railroading)
(FRI) Making lemonade into lemons, so to speak, related to this winter’s severe weather, a Norwood, NY artist has sculpted a life-size locomotive out of snow. The sculpture, which is now frozen solid, is 160 feet long and 16 feet tall, and is modeled on a steam locomotive and tender that used to operate through Norwood. A Norwood resident commented, “I thought it was going to be just a small thing, but it’s big, it’s big, it’s remarkable.” (ffd: News 10 Now TV)
STATS – CLASS 1 RAIL TRAFFIC:
(THU) For the week ending February 6, 2010, U.S. rail volume grant totaled 29.2 billion ton-miles, up 2.5 percent from the comparable period last year. U.S. carload rail traffic was up 1.4 percent, up 0.2 percent in the East and up 2.0 percent in the West. Notable traffic increases included metals and metal products up 50.8 percent and non-grain farm products up 32.0 percent; notable traffic decreases included crushed stone, sand and gravel down 12.7 percent and pulp and paper products down 10.3 percent. Also for the week, U.S. intermodal rail traffic was up 5.1 percent, Canadian carload rail traffic was up 9.3 percent, Canadian intermodal rail traffic was up 2.4 percent, Mexican carload rail traffic was up 11.4 percent, and Mexican intermodal rail traffic was up 19.5 percent.
For the period January 1 through February 6, 2010, U.S. rail volume grant totaled 143.9 billion ton-miles, up 0.5 percent from the comparable period last year. Also for this period, U.S. carload rail traffic was down 0.3 percent, U.S. intermodal rail traffic was up 3.0 percent, Canadian carload rail traffic was up 14.8 percent, Canadian intermodal rail traffic was up 3.4 percent, Mexican carload rail traffic was up 3.2 percent, and Mexican intermodal rail traffic was up 3.8 percent. (ffd: AAR)
EXPANSIONS, CONTRACTIONS AND ALIKE:
(MON) Grenada Railway filed to discontinue the automatic block signal system over its entire line between the Tennessee state line and Davis, MS. In its filing, the GRYR said that ABS was no longer needed for their operations and that they will instead operate the line under Rule 520, “Other Than Main Track.” (ffd: FRA)
(TUE) Alamanor Railroad filed to abandon approximately 12 miles of line between Chester, CA and Clear Creek, CA. (ffd: STB)
(TUE) Elkhart & Western Railroad said that it hoped to commence operation of 23 miles of former Norfolk Southern, ex-Nickel Plate line on or about March 6. The E&W, one of the Pioneer Railcorp family of railroads, has filed with the U.S. Surface Transportation Board to operate line between Argos, IN, and Walkerton, IN. (ffd: Trains)
(WED) Nebraska Northwestern Railroad filed to acquire, from Canadian Pacific, approximately 28 miles of former Dakota, Minnesota & Eastern line between Chardon, NE; Dakota Junction NE; and Crawford NE. (ffd: STB)
(THU) CSX filed to abandon approximately 4 miles of its Northern Region-Chicago Division-Toledo Terminal Subdivision line between Temperance, OH and Vulcan, OH. (ffd: STB)
(FRI) Canadian National filed to grant CSX limited overhead trackage rights over approximately 22 miles of former Grand Trunk Western line between Munster, IN and Elsdon, IL. In their filing, CN states that the purpose of the granting of trackage rights “is to enable CSX to reduce congestion on its former Baltimore & Chicago Terminal [lines] and enhance the efficiency of its operation in the Chicago area.” (ffd: STB)
(FRI) Stillwater Central Railroad filed to lease, from the Hollis & Eastern Railroad, and operate approximately 14 miles of line between Duke, OK and Altus, OK. (ffd: STB)
APPOINTMENTS, ACHIEVEMENTS AND MILESTONES:
None of note this week.
CORRECTION:
In last week’s edition, I noted, from media news reports, the January 30 death of an on-duty railroad employee who had fallen off a railroad bridge and into the freezing waters of the Hackensack River in Northern New Jersey. I identified that individual as being an employee of CSX, when in fact he was an employee of Conrail-Shared Assets. The employee was working as the bridge operator at the PATH Hack Bridge, which controls openings of both the PATH Hack Bridge and the nearby Conrail Hack Bridge. Thanks very much to those railroad employees familiar with the circumstances of this fatality for sending me the correct information.
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February 5, 2010
Weekly Rail Review
No Comments
WEEKLY RAIL REVIEW
FOR THE WEEK ENDING FRIDAY, FEBRUARY 5, 2010
THE WEEK’S TOP RAIL AND TRANSIT NEWS (in chronological order):
(SAT) CSX suffered an on-duty employee fatality. Robert Fitzgerald, Age 55, was working on a railroad bridge in Hackensack, NJ when he fell 50 feet into the freezing waters of the Hackensack River. Mr. Fitzgerald was able to make his way to the bridge’s pilings before losing consciousness from hypothermia. (ffd: Jersey Journal)
(MON) The Chicago Region Environmental And Transportation Efficiency (CREATE) program said that it would build a flyover in Englewood, IL to grade-separate the Metra Rock Island District line and Norfolk Southern line that cross there. A CREATE spokesman said that $133 million in federal stimulus funding would be used for the project. The spokesperson added that the flyover project is critical due to the number of trains that use the junction; presently each weekday, 78 Metra trains cross on the Rock Island District line, and 14 Amtrak trains and 40 NS freight trains cross on the NS line. (ffd: Trains)
(MON) BNSF debuted its prototype switching locomotive that is powered by hydrogen fuel cells. The locomotive will be initially be used at BNSF yards and terminals in Southern California. BNSF CEO Matt Rose and California Governor Arnold Schwarzenegger attended ceremonies in Los Angeles noting the locomotive’s start of service. (ffd: Orange County Register)
(MON) The U.S. Surface Transportation Board announced the release of an updated study on rail rates and competitiveness. The study, conducted by Christensen Associates, found that rail rates had, in general, increased steadily since 2004, with particularly steep increases in 2008. However, the study found that the rate increases were driven by fluctuating fuel prices and other costs, and did not appear to reflect a greater exercise of railroad market power over so-called captive shippers. (ffd: STB)
(TUE) The U.S. Federal Transit Administration announced that the Obama Administration’s proposed FY2011 transportation budget would include at least $1.8 billion for 27 major transit projects. Projects marked for full funding include the Long Island Rail Road’s East Side [of Manhattan] Access; the Second Avenue Subway, also in Manhattan; the Dulles [Airport] Corridor Metrorail Extension, outside Washington, DC; the Regional Transportation District of Denver’s West Corridor Light Rail Extension; and [Seattle-Tacoma] Sound Transit’s University Link Light Rail Extension. (ffd: Progressive Railroading)
(TUE) Economic Planning Associates issued its latest forecast for freight car orders and deliveries. This year, said EPA, “We expect assembly of 16,000 units [and] in 2011 we look for deliveries of only 21,000 cars….We look for new rail car deliveries to advance moderately to 34,800 cars in 2012 and then expand annually to the level of almost 60,000 cars in 2015.” (ffd: Railway Age)
(WED) The Railroad Retirement Board noted the 75th anniversary of the legislation that created it. The RRB said that, since its 1935 start, it has paid $281 billion to 2 million retired employees, 1.1 million spouses, and 2.4 million survivors. The board said that it would commemorate its anniversary with a series of activities and initiatives during the year, including use of a special logo on its documents and publications. (ffd: RRB, Trains)
(THU) Amtrak released a long-term fleet planning report, “Amtrak Fleet Strategy: Building A Sustainable Fleet For The Future Of America’s Intercity and High-Speed Passenger Railroad.” While acknowledging that finding reliable sources of funding will be challenging, the report plans for the doubling of the Amtrak equipment fleet over 30 years. The report states that, over the next 14 years, Amtrak will need to purchase 780 single level cars, 420 bi-level cars, 70 electric locomotives, 264 diesel locomotives, and 25 high-speed trainsets. The complete report may be read by linking to the National Association of Railroad Passengers website at narprail.org. (ffd: Bloomberg News, NARP, wire services)
(THU) Southern California’s Exposition Metro Line Construction Authority approved the start of work to extend its Expo light rail line seven more miles, from Culver City to Santa Monica, which is on the Pacific Ocean. The Expo Line is already under construction from downtown Los Angeles to Culver City. Officials said that, from state and local transportation taxes, sufficient funding was already available to begin construction of the extension. (ffd: wire services)
(THU) The Surface Transportation Board announced a ruling that requires Union Pacific to establish new rates for chlorine shipments from U.S. Magnesium LLC. The ruling follows a complaint by U.S. Magnesium, which could recover up to $1 million over five years from the ruling. A UP spokesman said that the ruling “constitutes the essence of arbitrary and capricious decision-making” and plans to appeal. (ffd: Trains)
(FRI) In anticipation of the next day’s notable snowfalls, railroads in the Middle Atlantic states began to make contingencies for reduced or suspended operations. Amtrak announced that it would cancel most Saturday train service south of Washington, DC. Also and recalling trains that became stranded in December 19’s snowfall, the Long Island Rail Road announced that it “may suspend train service temporarily when snow accumulation reaches between 10 and 13 inches [in its service areas.]” On the freight side, Norfolk Southern issued a bulletin that “customers with shipment moving through [Mid-Atlantic] areas should expect delays of up to 48 hours.” (ffd: Amtrak, NS RR, NYMTA, wire services)
(FRI) It was noted that the Obama Administration’s proposed budget for FY2011 calls for the U.S. Federal Railroad Administration to charge for some of its rail safety inspection services. The budget states that the “railroad safety user fee…[will] help offset the costs associated with railroad safety inspectors and their activities.” The budget anticipates $50 million in income from these fees in FY2011, all of which would go to the FRA instead of the general fund of the U.S. Treasury. (ffd: Journal of Commerce)
STATS – CLASS 1 RAIL TRAFFIC:
(THU) For the week ending January 30, 2010, U.S. rail volume grand totaled 30.3 billion ton-miles, up 7.8 percent from the comparable week last year. U.S. carload rail traffic was up 7.0 percent; notable traffic increases included motor vehicles and equipment up 45.7 percent and grain was up 41.9 percent. Also for the week, U.S. intermodal rail traffic was up 7.5 percent, Canadian carload rail traffic was down 8.0 percent, Canadian intermodal rail traffic was up 1.5 percent, Mexican carload rail traffic was up 20.8 percent, and Mexican intermodal rail traffic was up 54.2 percent.
For the period January 1 through January 30, 2010, U.S. rail volume grand totaled 114.7 billion ton-miles, relatively unchanged from the comparable period last year. Also for the week, U.S. carload rail traffic was down 0.7 percent, U.S. intermodal rail traffic was up 2.5 percent, Canadian carload rail traffic was up 16.2 percent, Canadian intermodal rail service was up 3.7 percent, Mexican carload rail traffic was up 25.7 percent, and Mexican intermodal rail traffic was up 45.2 percent. (ffd: AAR)
EXPANSIONS, CONTRACTIONS AND ALIKE:
(THU) Canadian National announced that it would construct a new “logistics park” in Alberta. The CN Calgary Logistics Park, which will be built near Calgary, will include an intermodal terminal, as well as room for shippers to co-locate with CN and custom-build their facility in place. The new facility will cost approximately $100 million to develop and is expected to open in 2013. (ffd: Logistics Management, Progressive Railroading)
(THU) The Montreal, Maine & Atlantic announced that it had filed a “notice of intent” with the U.S. Surface Transportation Board to abandon approximately 233 miles of its lines in Maine. The possibility of abandoning the lines was announced by the MM&A in August, 2009, and the railroad has since then been seeking a state or regional takeover of the ownership of the threatened lines. (ffd: MM&A RR)
APPOINTMENTS, ACHIEVEMENTS AND MILESTONES:
(WED) BNSF appointed Stan Alexander its AVP-Technology Services, succeeding Beth Bonjour, who earlier announced her intention to retire June 1. Most recently with Federal Express, Mr. Alexander earlier was a consultant to BNSF, working on systems architecture and integration for the merger of the Burlington Northern and Santa Fe railroads in the mid-1990s. (ffd: BNSF RR)
(THU) Watco Companies announced the appointment of Jesse Garth as the general manager of the 1.5-mile Baton Rouge Southern Railroad. Mr. Garth, who has been with Watco since 1983, will succeed Linn Hermann, who will now manage car repairs for Watco’s Gulf Region. (ffd: Progressive Railroading)
(THU) Cliff Black, Amtrak’s longtime corporate communications spokesperson, announced his intention to retire effective March 31. Mr. Black joined Amtrak in 1981 and has served under eight Amtrak CEO’s during his tenure. (ffd: Trains)
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January 29, 2010
Weekly Rail Review
No Comments
WEEKLY RAIL REVIEW
FOR THE WEEK ENDING FRIDAY, JANUARY 29, 2010
THE WEEK’S TOP RAIL AND TRANSIT NEWS (in chronological order):
(MON) The Long Island Rail Road reported that its 2009 ridership decreased 4.6 percent from its 2008 ridership, the railroad’s largest year-to-year drop since the 1970s. A LIRR spokesman attributed the decline to the recession and steep job losses in New York City, the final destination of many LIRR riders. Also on Monday, and in response to a larger-than-expected budget deficit for the upcoming fiscal year, the LIRR said that it planned to reduce some train services, including eliminating nearly all train service between Ronkonkoma and Greenport, NY after this summer, and thereafter operating between those points only on summer weekends. (ffd: East Hampton Press, New York Post, Trains)
(MON) The New York Times reported that BNSF, CSX Norfolk Southern and Union Pacific had asked coal shippers to take steps to reduce coal dust emissions coming from loaded coal cars, especially those on coal shipments originating out of Wyoming’s Powder River Basin coal fields, which were determined to have a deteriorating effect on track stability. The report stated that BNSF had planned to set dust limits last September, but delayed implementing them when shippers asked the U.S. Surface Transportation Board to intervene. Limiting coal dust would be accomplished by such means as covering loads or spraying them with a latex coating to keep dust from taking flight. (ffd: New York Times)
(TUE) Washington, DC’s Metro subway suffered two on-duty employee fatalities. The accident happened in the early morning hours when two track workers were struck and killed by a hi-rail vehicle in a work zone on the subway’s Red Line near Rockville, MD. In an unrelated story later in the week, the Washington Metropolitan Area Transit Authority approved a “short-term” fare increase of ten cents to help close a projected $40 million budget deficit. The increase is effective between March 1 and June 30. (ffd: NTSB, Progressive Railroading)
(TUE) Standard & Poors announced that Warren Buffet’s Berkshire Hathaway concern would be included in its S&P 500 index. Berkshire Hathaway will replace BNSF on the list, attendant with BNSF being acquired in its entirety by Berkshire Hathaway. (ffd: Bloomberg News)
(WED) In an announcement the National Association of Railroad Passengers called “the kickoff of a new era in American passenger trains,” the Obama Administration announced where most of the $8 billion for passenger rail appropriated by the American Recovery & Reinvestment Act would be allocated. The Northeast U.S. will get $485 million for 22 projects; the Southeast will get $1.876 billion for 11 projects; the Midwest will get $2.617 billion for 24 projects; and the West will get $2.943 billion for 24 projects. The three states gaining the most funding are California, with $2.25 billion for its high-speed rail project plus $94 million for conventional services; Florida, with $1.25 billion for its Tampa-Orlando high-speed rail project; and Illinois, for its project to increase speeds on the line between Chicago, IL and St. Louis, MO to up to 110mph. Complete project details may be found on the APTA website at apta.org and the NARP website at narprail.org. (ffd: APTA, FRA, NARP, wire services)
(WED) Dallas, TX filed a lawsuit to evict the Museum of the American Railroad from its current location at Fair Park. A city spokesman said that it had attempted to negotiate a new lease with the museum (which occupies and uses city property at Fair Park), a lease that did not seek rental payments, but that the two concerns have been unable to reach agreement following 16 months of negotiation. (ffd: Dallas Morning News)
(THU) Three individuals were convicted in federal court in West Virginia of causing a Norfolk Southern train derailment in August, 2005. The three individuals had stolen $234 worth of copper wire from utility poles along the NS right-of-way and, in an effort to avoid detection, had laid two 15-foot, 375-pound steel I-beams across the rails. A train struck the I-beams and derailed. The men were each sentenced to five years in a federal prison and collectively ordered to pay $398,071 in restitution to the railroad. (ffd: Trains)
(THU) Norfolk Southern announced that it would propose to “declassify” its board of directors at its next annual stockholders meeting. The action would subject all NS board directors to annual election, replacing the current structure in which three classes of directors are elected for staggered three-year terms. “The decision to seek declassification sends a message of accountability,” said NS CEO Wick Moorman. (ffd: NS RR)
(FRI) Industry observers took note of the actions of the Reading & Northern Railroad in Northeastern Pennsylvania, which in December, 2009 awarded its over 150 employees with all-expense paid vacations. R&N CEO Andy Muller said, “If it wasn’t for our over 150 dedicated men and women, Reading and Northern would not be the successful railroad that it is today. As a way to celebrate, we are giving full-time employees an extra week of vacation, as well as a paid trip to either Disney World; Branson, MO; Williamsburg, VA; London, England; or a cruise. This is our way of saying thank you for a job well done.” (ffd: R&N RR)
STATS – CLASS 1 RAIL TRAFFIC:
(THU) For the week ending January 23, 2010, U.S. rail volume grand totaled 30.2 billion ton-miles, up 4.9 percent from the comparable period last year. U.S. carload rail traffic was up 2.9 percent, up 10.7 percent in the East, but down 0.2 percent in the West. Also for the week, U.S. intermodal rail traffic was up 2.9 percent, Canadian carload rail traffic was up 13.5 percent, Canadian intermodal rail traffic was up 7.4 percent, Mexican carload rail traffic was up 29.8 percent, and Mexican intermodal rail traffic was up 41.6 percent.
For the period January 1 through January 23, 2010, U.S. rail volume grand totaled 84.4 billion ton-miles, down 2.5 percent from the comparable period last year. Also for this period, U.S. carload rail traffic was down 3.2 percent, U.S. intermodal rail traffic was up 0.9 percent, Canadian carload rail traffic was up 19.1 percent, Canadian intermodal rail traffic was up 4.4 percent, Mexican carload rail traffic was up 27.4 percent, and Mexican intermodal rail traffic was up 42.5 percent. (ffd: AAR)
STATS CONTINUED – CLASS 1 4TH QTR AND FULL YEAR 2009 RESULTS:
(TUE) Canadian National reported the following results for the Fourth Quarter 2009 versus the Fourth Quarter 2008: Revenues of C$1.882 billion versus C$2.200 earlier, a decrease of 14.5 percent; operating income of C$653 million versus C$820 earlier, a decrease of 20.4 percent; net income of C$582 million versus C$573 earlier, an increase of 1.6 percent; and an operating ratio of 65.3 percent versus 62.7 percent earlier, a disimprovement of 2.6 percent.
For the Full Year 2009 versus the Full Year 2008, CN reported the following results: Revenues of $C7.367 billion versus $C8.482 billion earlier, a decrease of 13.1 percent; operating income of C$2.406 billion versus C$2.894 billion earlier, a decrease of 16.9 percent; net income of C$1.854 billion versus C$1.895 billion earlier, a decrease of 2.2 percent; and an operating ratio of 67.3 percent versus 65.9 earlier, a disimprovement of 1.4 percent. (ffd: CN Corp.)
(Note: In reviewing Canadian National’s operating ratio, and also that of Canadian Pacific’s below, please note that, generally, Canadian railroads do not provide health benefits to their Canadian employees, those individuals instead being covered by Canada’s national health care system. Canadian railroads do provide health benefits to their U.S.-based employees.)
(THU) Canadian Pacific reported the following results for the Fourth Quarter 2009 versus the Fourth Quarter 2008: Revenues of C$1.122 billion versus C$1.300 billion earlier, a decrease of 13.7 percent; operating income of C$269 million versus C$287 earlier, a decrease of 6.3 percent; net income of C$194 million versus C$188 million earlier, an increase of 3.2 percent; and an operating ratio of 76.0 percent versus 77.2 percent earlier, an improvement of 1.2 percent.
For the Full Year 2009 versus the Full Year 2008, CPR reported the following results: Revenues of C$4.303 billion versus C$4.932 billion earlier, a decrease of 12.8 percent; operating income of C$900 million versus C1.042 billion earlier, a decrease of 13.6 percent; net income of C$612 million versus C$607 million earlier, an increase of 0.8 percent; and an operating ratio of 79.1 percent versus 78.4 percent earlier, a disimprovement of 0.7 percent. (ffd: CPR Corp.)
(THU) Kansas City Southern reported the following results for the Fourth Quarter 2009 versus the Fourth Quarter 2008: Revenues of $406.8 million versus $423.8 million earlier, a decrease of 4.0 percent; operating income of $91.9 million versus $91.2 million earlier, an increase of 0.8 percent; net income of $34.9 million versus $39.2 million earlier, a decrease of 11.0 percent; and an operating ratio of 77.4 percent versus 78.5 percent earlier, an improvement of 1.1 percent.
For the Full Year 2009 versus the Full Year 2008, KCSR reported the following results: Revenues of $1.480 billion versus $1.852 billion earlier, a decrease of 20.1 percent; operating income of $268.2 million versus $390.2 million earlier, a decrease of 31.3 percent; net income of $69.0 million versus $184.2 million earlier, a decrease of 62.5 percent; and an operating ratio of 81.9 percent versus 78.9 percent earlier, a disimprovement of 3.0 percent. (ffd: KCSR Corp.)
(THU) Norfolk Southern reported the following results for the Fourth Quarter 2009 versus the Fourth Quarter 2008: Revenues of $2.106 billion versus $2.502 billion earlier, a decrease of 15.8 percent; operating income of $549 million versus $813 million earlier, a decrease of 32.5 percent; net income of $307 million versus $452 million earlier, a decrease of 32.1 percent; and an operating ratio of 73.9 percent versus 67.5 percent earlier, a disimprovement of 6.4 percent.
For the Full Year 2009 versus the Full Year 2008, NS reported the following results: Revenues of $7.969 billion versus $10.661 earlier, a decrease of 25.3 percent; operating income of $1.962 billion versus $3.084 billion earlier, a decrease of 36.4 percent; net income of $1.034 billion versus $1.716 billion earlier, a decrease of 39.7 percent; and an operating ratio of 75.4 percent versus 71.1 percent earlier, a disimprovement of 4.3 percent. (ffd: NS Corp.)
EXPANSIONS, CONTRACTIONS AND ALIKE:
Note of note this week.
APPOINTMENTS, ACHIEVEMENTS AND MILESTONES:
(MON) Canadian National announced the following appointments: Keith Creel as EVP & Chief Operating Officer; Jean-Jacques Ruest as EVP & Chief Marketing Officer; Luc Jobin as EVP & Chief Financial Officer; Sean Finn as EVP-Corporate Services & Chief Legal Officer; Kim Madigan as VP-Human Resources; Robert Noorigian as VP-Investor Relations; Jeff Liepelt as SVP-Eastern Region; and Karen Phillips as VP-Public & Government Affairs. (ffd: CN RR)
(TUE) Norfolk Southern appointed Thomas Hurlbut VP-Audit & Compliance. Mr. Hurlbut succeeds Joseph Dimino, who retired January 31 after a 33-year career with NS and its predecessor railroads. (ffd: NS Corp.)
(THU) BNSF announced the retirement of Beth Bonjour, who has been its AVP-Technology Services. A successor to Ms. Bonjour was not immediately named. (ffd: BNSF Corp.)
(THU) The San Luis & Rio Grande Railroad appointed Mathew Abbey its General Manager. The SL&RG is a railroad of Iowa Pacific Holdings. (ffd: Alamosa Valley Courier)
(FRI) The U.S. Federal Railroad Administration appointed Dr. Magdy El-Sibaie as its deputy associate administrator for safety, regulatory, and legislative affairs. Dr. El-Sibaie, who was recently FRA’s director of research and development and has most recently served as the acting associate administrator for hazardous materials of the U.S. Pipeline and Hazardous Materials Safety Administration, will succeed Grady Cothen, who has announced plans to retire from the FRA in March. (ffd: FRA)
CORRECTION:
In last week’s edition, I opened the paragraph reported full year results for Union Pacific with the sentence, “For the Full Year 2009 versus the Full Year 2008, BSNF reported the following results.” The full year results were, of course, those of Union Pacific.
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January 22, 2010
Weekly Rail Review
No Comments
WEEKLY RAIL REVIEW
FOR THE WEEK ENDING FRIDAY, JANUARY 22, 2010
THE WEEK’S TOP RAIL AND TRANSIT NEWS (in chronological order):
(SUN) Amtrak put into effect minor timetable changes on its Northeast Corridor line, as did several interconnecting commuter railroads, including SEPTA and NJ Transit. The latter – with little notice – discontinued a pair of trains on its Atlantic City commuter rail line, including a heavily patronized morning train into Philadelphia, a move that drew sharp criticism from transportation advocates and media in Southern New Jersey. (ffd: SEPTA, NJ Transit)
(MON) Canadian National announced that it would make an initial donation of C$100,000 to the Red Cross in support of the agency’s relief efforts in Haiti, which suffered a major earthquake on January 12. CN said that it would also match employee donations to the Red Cross dollar-for-dollar. (ffd: CN RR)
(MON) Iowa Interstate RR debuted its No. 513 locomotive, which has been newly repainted in the colors of the former Rock Island Railroad. The railroad said that it would operate the locomotive on its ex-Rock Island line between Blue Island, IL and Council Bluffs, IA. (ffd: Trains)
(WED) The U.S. Surface Transportation Board, which is continuing to oversee Canadian National’s acquisition of the Elgin, Joliet & Eastern Railway, said that it would send questionnaires to 33 towns along the EJ&E line, asking elected officials there about a number of effects, including train noise, vibration, street blockages, and road traffic delays. Several communities continue, for various reasons, to mount legal challenges to CN’s EJ&E acquisition. (ffd: Journal of Commerce)
(WED) The CEO’s of two Class 1 railroads expressed concern over the Senate bill that, if passed, would reauthorize the Surface Transportation Board and also increase federal oversight of railroad commercial activities. CSX CEO Michael Ward said that, “We see…demands on the horizon which could negatively impact the financial health of the industry…The current Senate version of the STB reauthorization bill is not balanced.” Union Pacific CEO Jim Young said that, “Without additional changes, we cannot support the bill,” but added that, “our commitment here is to work with the [Senate] staff” related to bill changes. (ffd: Financial Times, Journal of Commerce)
(WED) New York City’s Staten Island Railway began automated fare collection at its Tompkinsville station. Previously and since onboard fare collection was eliminated in 1997, fares were only collected at SIR’s St. George Terminal, where the line connects with the Staten Island Ferry, which allowed passengers to ride between any other stations on the line for free. A city transit spokesman said that, as SIR’s ridership has increased, the overall system revenue loss was now estimated at about $3.4 million annually. (ffd: NYMTA)
(THU) The U.S. National Transportation Safety Board announced that its investigation of the September, 2008 head-on collision between a Union Pacific freight train and a Metrolink commuter train in Chatsworth, CA had concluded that the accident was the fault of the engineer of the Metrolink train, who was text-messaging while operating his train and failed to respond to a stop signal as a result of his distraction. Among the NTSB’s followup recommendations was that the Federal Railroad Administration require the installation of inward and outward-facing audio and image recorders in all locomotive cabs and cab car operating compartments to verify that train crews abide by wireless device rules and safety procedures. The recommendation drew sharp criticism from the Brotherhood of Locomotive Engineers & Trainmen labor organization, which said that the installation of inward-facing cameras would be unnecessary and wasteful. (ffd: BLET, Los Angeles Times, NTSB, Progressive Railroading)
(THU) Longbow Research released a survey of rail car market conditions. The Longbow Report said that, “There is little interest in new [freight] cars and we do not expect demand to begin increasing until late in 2010.” The report also estimated that rail car owners may have scrapped approximately 70,000 older cars in 2009, which it said was the second consecutive year with a high level of scrapping activity. (ffd: Longbow Co., Progressive Railroading)
(FRI) Philadelphia transit and commuter rail operator SEPTA announced a Valentine’s Day-inspired contest. The contest, which is called “Did you find love on SEPTA?,” asks riders to submit stories about how they found new love or reconnected with a lost love while riding a SEPTA train, bus or trolley. The winning couple will be taken on a specially charted elevated train on what SEPTA said would be “a romantic ride through West Philadelphia” to view the Mural Arts Program’s Love Letter Project, which consists of 50 rooftop murals viewable from “the El”. (ffd: Philadelphia Daily News)
STATS – CLASS 1 RAIL TRAFFIC:
(THU) For the week ending January 16, 2010, U.S. rail volume grand totaled 28.7 billion ton-miles, down 15.6 percent from the comparable week last year. U.S. carload rail traffic was down 0.8 percent, down 0.9 percent in the East and down 0.8 percent in the West. Notable traffic increases included motor vehicles and equipment up 83.2 percent and notable traffic decreases included coal down 14.5 percent. Also for the week, U.S. intermodal rail traffic was up 1.3 percent, Canadian carload rail traffic was up 24.1 percent, Canadian intermodal rail traffic was up 5.7 percent, Mexican carload rail traffic was up 21.0 percent, and Mexican intermodal rail traffic was up 41.7 percent.
For the period January 1 through January 16, 2010, U.S. rail volume grand totaled 54.2 billion ton-miles, down 6.2 percent from the comparable period last year. Also for this period, U.S. carload rail traffic was down 6.7 percent, U.S. intermodal rail traffic was down 1.2 percent, Canadian carload rail traffic was up 22.3 percent, Canadian intermodal rail traffic was up 2.9 percent, Mexican carload rail traffic was up 26.0 percent, and Mexican intermodal rail traffic was up 42.9 percent. (ffd: AAR)
STATS CONTINUED – 4TH QTR AND FULL YEAR 2009 RESULTS:
(TUE) CSX reported the following financial results for the Fourth Quarter 2009 versus the Fourth Quarter 2008: net income of $305 million versus $247 million earlier, an increase of 23.5 percent; operating income of $583 million versus $692 million earlier, a decrease of 15.9 percent; revenues of $2.320 billion versus $2.674 billion earlier, a decrease of 13.2 percent; and an operating ratio of 74.9 percent versus 74.1 percent earlier, a disimprovement of 0.8 percent.
For the Full Year 2009 versus the Full Year 2008, CSX reported the following results: net income of $1.152 billion versus 1.365 billion earlier, a decrease of 15.6 percent; operating income of $2.285 billion versus 2.768 billion earlier, a decrease of 17.4 percent; revenues of $9.041 billion versus $11.255 billion earlier, a decrease of 19.6 percent; and an operating ratio of 74.7 percent versus 75.4 percent earlier, an improvement of 0.7 percent. (ffd: CSX Corp.)
(THU) BNSF reported the following financial results for the Fourth Quarter 2009 versus the Fourth Quarter 2008: net income of $536 million versus $615 million earlier, a decrease of 12.8 percent; operating income $895 million versus $1.116 billion earlier, a decrease of 19.8 percent; revenues of $3.681 billion versus $4.373 billion earlier, a decrease of 15.8 percent; and an operating ratio of 74.9 percent versus 73.7 percent earlier, a disimprovement of 1.2 percent.
For the Full Year 2009 versus the Full Year 2008, BNSF reported the following results: net income of $1.721 billion versus $2.115 billion earlier, a decrease of 18.6 percent; operating income of $3.262 billion versus $3.912 billion earlier, a decrease of 16.6 percent; revenues of $14.016 billion versus $18.018 billion earlier, a decrease of 22.2 percent; and an operating ratio of 76.0 percent versus 77.6 percent earlier, an improvement of 1.6 percent.
Also, BNSF said that it would spend approximately $2.4 billion in capital improvements in 2010, including purchasing 170 locomotives at a total cost of $320 million. (ffd: BNSF Corp.)
(THU) Union Pacific reported the following financial results for the Fourth Quarter 2009 versus the Fourth Quarter 2008: net income of $551 million versus $661 million earlier, a decrease of 16.6 percent; operating income of $1.002 billion versus $1.141 billion earlier, a decrease of 12.2 percent; revenues of $3.754 billion versus $4.286 billion earlier, a decrease of 12.4 percent; and an operating ratio of 73.3 percent versus 73.4 percent earlier, an improvement of 0.1 percent.
For the Full Year 2009 versus the Full Year 2008, BSNF reported the following results: net income of $1.898 billion versus $2.338 billion earlier, a decrease of 18.8 percent; operating income of $3.392 billion versus $4.075 billion earlier, a decrease of 16.8 percent; revenues of $14.143 billion – the most revenues of any Class 1 railroad – versus $17.970 billion earlier, a decrease of 21.3 percent; and an operating ratio of 76.0 percent versus 77.3 percent earlier, an improvement of 1.3 percent. (ffd: UP Corp.)
EXPANSIONS, CONTRACTIONS AND ALIKE:
(TUE) Eastside Rail Freight RR commenced freight operations over a portion of the line recently purchased from BNSF by the Port of Seattle. Eastside Rail Freight will operate over the ex-Northern Pacific line between Woodinville and Snohomish, WA, a distance of 16 miles. (ffd: Trains)
(TUE) Electro-Motive Diesel announced that they would offshore a new traction motor shop to be built in San Luis Potosi, Mexico. The plant is expected to open in March. (ffd: Trains)
(FRI) The U.S. Surface Transportation Board granted Minnesota Northern RR’s earlier application to abandon approximately 21 miles of its Warroad Subdivision between Roseau and Warroad, MN. (ffd: STB)
APPOINTMENTS, ACHIEVEMENTS AND MILESTONES:
(SAT) Max Solomon passed away near Pittsburgh, PA at Age 76, from complications of a stroke suffered two years ago. Mr. Solomon was the longtime superintendent for the Pittsburgh area for Penn Central, Conrail and Norfolk Southern. CP Solomon on the now-NS main line is named for Mr. Solomon.
(MON) Thema Drake was appointed director of the Virginia Department of Rail and Public Transportation (DRPT). Ms. Drake was most recently a member of the U.S. House of Representatives for Virginia’s Second 2nd congressional district. (ffd: Progressive Railroading)
(WED) The Obama Administration nominated Jeffrey Moreland to the Amtrak board of directors. Mr. Moreland was a longtime attorney for the Sante Fe and then the BNSF, retiring in 2007 as the latter’s executive vice president for public affairs. (ffd: Journal of Commerce)
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January 15, 2010
Weekly Rail Review
No Comments
WEEKLY RAIL REVIEW
FOR THE WEEK ENDING FRIDAY, JANUARY 15, 2010
THE WEEK’S TOP RAIL AND TRANSIT NEWS (in chronological order):
(MON) Amtrak President Joseph Boardman said that the railroad was anticipating “an exciting 2010” and would shortly announce plans for major equipment purchases, which he said would include over 100 locomotives and “several hundred” passenger cars. Mr. Boardman also highlighted several major infrastructure improvements Amtrak was undertaking, including replacement of the 102-year-old bridge on its Northeast Corridor line in Niantic, CT and installation of Positive Train Control technology on the rail lines it owns and operates, the latter targeted for completion by 2012, three years in advance of the deadline mandated by the Railway Safety Improvement Act of 2008. (ffd: NARP, Progressive Railroading)
(TUE) Canadian National suffered an on-duty employee fatality. The CN brakeman, whose name was withheld at the time of this news report pending notification of next of kin, was reported crushed between two boxcars while switching the Ford plant in Oakville, ON, Canada. (ffd: Hamilton Spectator)
(TUE) Norfolk Southern experienced a trestle fire at Jackson, AL on its line between Birmingham and Mobile. The fire was of such intensity that it greatly damaged the locomotives of a train halted by the blaze. One of the train’s crewmen, Aaron Milhouse, Age 46, suffered injuries in the fire that he died of later in the week. (ffd: Trains)
(TUE) The Federal Railroad Administration released its final rule concerning Positive Train Control (PTC), the installation of which is called for by the Railway Safety Improvement Act of 2008. The rule promulgates regulations that require PTC on lines over which scheduled intercity and commuter passenger service is operated, and on Class 1 railroad lines that carry over 5 million gross tons annually and also transport toxic-inhalation-hazard (TIH) commodities. The RSIA mandates that PTC implementation plans be filed with the FRA by April 16, 2010 and that all PTC installation be completed by December 31, 2015. (ffd: Logistics Management, Los Angeles Times, Wall Street Journal)
(TUE) A class action lawsuit was filed in Chicago alleging that funding for Chicago-area transit is administered in a manner that discriminates against minority peoples. The suit charges that Metra commuter rail service is overfunded at the expense of Chicago Transit Authority buses, subways and elevateds. A Metra spokesman said that the railroad “categorically denies any type of racial discrimination” and that “a lot of information stated in the lawsuit [is] not true.” (ffd: wire services)
(TUE) Noting that 2010 is the tenth anniversary of Acela Express service, Amtrak said that it would have wireless Internet service available on Acela trains starting in March. Amtrak said that it would also replace current Acela seating with “blue, shiny leather seating,” update carpeting and curtains, and install sturdier tray tables, the latter in response to complaints from customers about noisy and loose trays. (ffd: New York Times, wire services)
(WED) New York’s Metropolitan Transportation Authority debuted its new website. The new site features real-time updates on delays and service disruption occurring on buses, subways and commuter trains serving New York City and its surroundings. It also provides a trip planner, as well as improved system map and fare information. (ffd: New York Times)
(THU) U.S. Secretary of Transportation Ray LaHood announced new guidelines for federal funding of transit projects. The new guidelines allow funding requests to be evaluated on their environmental, community, and economic benefits, instead of evaluating them strictly by their cost and how quickly they would move riders. The change was quickly lauded by transit planners and advocates, including the American Public Transportation Association, which issued a statement saying, “This new policy will rescind budget restrictions issued by the previous administration that focused primarily on ‘cost effectiveness’ (i.e. how much a project shortened commuter times in comparison to cost) and now recognizes the wide range of benefits that public transportation provides.” (ffd: NARP, Trains, Washington Post)
(FRI) In a notable advertising campaign, Amtrak has placed ads in the gray bins at O’Hare Airport in which air passengers place carry-on items for security screening. The ads encourage air travelers to consider Amtrak as a travel alternative to, from and through Chicago, which is served by approximately 50 Amtrak trains daily. Ad slogans appeal to potential train travelers to “upgrade to coach” and “wear mismatched socks – we’ll never know.” (ffd: Chicago Tribune)
STATS:
(THU) For the week ending January 9, 2010 – the first full week of 2010 – U.S. rail volume grand totaled 25.5 billion ton-miles, down 12.4 percent from the comparable week in 2009. U.S. carload rail traffic was also down 12.4 percent, down 12.0 in the East and down 12.7 in the West. Also for the week, U.S. intermodal rail traffic was down 3.6 percent, Canadian carload rail traffic was up 20.4 percent, Canadian intermodal rail traffic was up 0.2 percent, Mexican carload rail traffic was up 32.1 percent, and Mexican intermodal rail traffic was up 44.4 percent. (ffd: AAR)
EXPANSIONS, CONTRACTIONS AND ALIKE:
(MON) The North Carolina Department of Transportation announced that the Carolina Coastal Railway would be the interim operator for its P&N rail line. The Carolina Coastal will begin operating the first four miles of the rebuilt rail line in February. The state purchased the P&N line in 1991. (ffd: Progressive Railroading)
(FRI) Carolina Coastal Railway filed to acquire the Morehead & South Fork Railroad’s lease with the North Carolina State Ports Authority. Approval of this filing will permit the Carolina Coastal to operate approximately 1 mile of line and 4 miles of intra-terminal trackage in Moorehead City, NC. (ffd: STB)
(FRI) Pioneer Industrial Railway and the Central Illinois Railroad jointly filed to discontinue service over approximately 15 miles of the Kellar Branch, in and around Peoria and Peoria Heights, IL. (ffd: STB)
(FRI) YCR Corporation filed to lease and operate approximately 20 miles of line between Wesley Junction, WA and Toppenish, WA, and approximately two miles of industrial spur near White Swan, WA. (ffd: STB)
APPOINTMENTS, ACHIEVEMENTS AND MILESTONES:
(MON) Related to the change of New Jersey governors, James Simpson was appointed as the head the New Jersey Department of Transportation, succeeding Stephen Dilts. Mr. Simpson is a former chief of the U.S. Federal Transit Administration. Also, Jim Weinstein, a former NJDOT commissioner, was appointed the head of New Jersey Transit, succeeding Richard Sarles. (ffd: Bergen Record, Times-Herald Record)
(TUE) Kansas City Southern announced a reorganization of its transportation and mechanical departments, including the following appointments: Chad Devenney as the GM of its new Midwest Division, covering territory from East St. Louis, IL west to Kansas City, MO, and south to Shreveport, LA; David Carroll as the GM of its new Southeast Division, covering territory from Counce, TN to Jackson, MS, west to Shreveport and south to New Orleans; and Mark Redd as GM of its Southwest Division, covering territory from Laredo, TX to Shreveport. KCSR also appointed Claude Friesland as AVP-Positive Train Control/Advanced Train Implementation; Rick Stones as AVP-Advanced Systems Planning; and Greg Walling as AVP-Network Services. (ffd: KCSR RR)
(WED) Bill Browder of the Association of American Railroads was recognized for his work achievements prior to his February 1 retirement. Mr. Browder is the AAR’s Director-Operations and was earlier with the Southern Railway and Amtrak. Mr. Browder, who may be reached prior to his retirement at wbrowder@aar.org, was recognized in a presentation made this date by the Federal Railroad Administration’s Switching Operations Fatality Analysis Working Group.
(WED) Patriot Rail announced the promotion of Lawrence Rutstein from Manager-Special Projects to VP-Contracts & Administration. Patriot Rail also appointed Sandra Dahl its new divisional controller. (ffd: Patriot Rail Corp., Progressive Railroading)
(THU) John Catoe announced that he would resign as general manager of the Washington Metropolitan Area Transit Authority effective April 2. Mr. Catoe has WMATA GM for the last three years. (ffd: NARP)
(FRI) The U.S. Surface Transportation Board announced that its Railroad-Shipper Transportation Advisory Council (RSTAC) had elected Terry Voss its chairman and Reilly McCarren its vice-chairman. Mr. Voss is SVP of Ag-Pro and Mr. McCarren is CEO of the Arkansas & Missouri Railroad. RSTAC meetings are not open to the public. (ffd: RSTAC)
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January 8, 2010
Weekly Rail Review
No Comments
WEEKLY RAIL REVIEW
FOR THE WEEK ENDING FRIDAY, JANUARY 8, 2010
THE WEEK’S TOP RAIL AND TRANSIT NEWS (in chronological order):
(MON) The American Public Transportation Association and the International Union of Railways announced the scheduling of three regional seminars that they said would “provide U.S. decision makers with the information necessary to implement high-speed rail. An event spokesman said that the Federal Railroad Administration’s Chief Administrator, Joe Szabo, and its Deputy Administrator, Karen Rae, would be the keynote speakers at these seminars. The seminars will be held February 8-9 in Washington, DC; February 9-11 in Chicago, IL; and February 11-13 in Los Angeles, CA. (ffd: Railway Age)
(TUE) New Jersey Transit announced the opening of its newly reconstructed station in South Amboy, NJ. The new station now includes a center-island, high-level platform that makes the station accessible to customers with disabilities, and climate-controlled waiting shelters. (ffd: New Brunswick Home News, NJ Transit)
(WED) New York’s Metropolitan Transportation Authority announced the opening of the new Atlantic Terminal Pavilion in Brooklyn, NY. The new $108 million station, constructed on the site of the Long Island Rail Road’s Atlantic Terminal, connects the LIRR, 10 subway lines, and five bus routes. The station serves approximately 25,000 LIRR riders and approximately 31,650 transit riders each weekday. (ffd: NYMTA, New York Times)
(THU) Severe winter weather, which included heavy snows and subzero temperatures, impacted rail operations in the Midwest U.S. BNSF told its customers this date that its service “is being impacted by extreme cold and winter weather conditions across [its] central and northern regions, which includes Colorado, Illinois, Kansas, Missouri, Montana, and North and South Dakota. Amtrak canceled part of its “Empire Builder” service between St. Paul, MN and Seattle, WA, and part of its “California Zephyr” service between Chicago, IL and Denver, CO, several days this week. (ffd: Amtrak, Journal of Commerce)
(FRI) The Federal Railroad Administration released new structural standards for passenger cars. The new standards require stronger front-end frames on new passenger cars and some locomotives to help prevent them from collapsing or telescoping on impact. The standards applies to new equipment ordered after the FRA standards rule takes effect. (ffd: Bloomberg News, FRA)
(FRI) The Long Island Rail Road and the Metro North Railroad announced that they had both set new system on-time performance records in 2009. The LIRR achieved on-time performance of 95.2 percent and MNRR achieved on-time performance of 97.8 percent. Both railroads consider a train on time if it reaches its final destination within six minutes of the scheduled arrival time. (ffd: Progressive Railroading)
(FRI) Veolia Transportation announced that its Massachusetts Bay Commuter Railroad had received a two-year extension to operate commuter rail service serving the Greater Boston area. The extension was granted by the Massachusetts Bay Transportation Authority. MBCR has operated Boston commuter rail services since July, 2003. (ffd: wire services)
(FRI) Union Pacific originated a notably long test train, totaling nine locomotives and 295 cars. The intermodal train originated this date in Dallas, TX and was bound for Long Beach, CA. The train totaled 3-1/2 miles in length. (ffd: Fort Worth Star-Telegram)
STATS:
(THU) For the week ending January 2, 2010, U.S. rail volume grand totaled 25.5 billion ton-miles, down 1.2 percent. Also for the week, U.S. carload rail traffic was down 1.5 percent – up 6.8 percent in the East, but down 5.8 percent in the West – and U.S. intermodal rail traffic was up 1.8 percent, Canadian carload rail traffic was up 16.9 percent, Canadian intermodal rail traffic was up 7.4 percent, Mexican carload rail traffic was up 17.1 percent, and Mexican intermodal rail traffic was up 23.3 percent.
For the Full Year 2009, U.S. rail volume grand totaled 1.49 trillion ton-miles, down 15.1 percent from the Full Year 2008. Also for the Full Year 2009, U.S. carload rail traffic was down 16.1 percent, U.S. intermodal rail traffic was down 14.1 percent, Canadian carload rail traffic was down 17.7 percent, Canadian intermodal rail traffic was down 14.0 percent, Mexican carload rail traffic was down 9.3 percent, and Mexican intermodal rail traffic was down 12.5 percent. (ffd: AAR)
EXPANSIONS, CONTRACTIONS AND ALIKE:
(TUE) The Surface Transportation Board granted the Alaska Railroad’s earlier request to construct a new line from Eielson Air Force Base to Delta, AK and nearby Fort Greely. The new line is expected to cost approximately $700 million. (ffd: Anchorage Daily News, wire services)
(TUE) Norfolk Southern filed to discontinue its freight rail service over approximately 14 miles of line between Baltimore, MD and Cockeysville, MD. The line is owned by the Maryland Transportation Administration, and light rail transit is operated over part of the line. (ffd: STB)
(TUE) The Reading & Northern acquired the Towanda Monroeton Shippers Lifeline Railroad, which runs between Towanda, PA and Monroeton, PA. Media reports indicated that the acquisition will allow for increased shipments of pipe and sand, such as will be used to drill natural gas fields. (ffd: Daily Review, Progressive Railroading)
(THU) CSX filed to discontinue service over approximately 63 miles of its Northern Region-Louisville Division-Hoosier Subdivision line between Bedford, IN and New Albany, IN. (ffd: STB)
APPOINTMENTS, ACHIEVEMENTS AND MILESTONES:
(TUE) Continuing the practice of rotating its vice-chairmanship, the Surface Transportation Board announced that Frank Mulvey would now be its vice-chairman. Mr. Mulvey succeeds Chip Nottingham in this role. Dan Elliott continues as the STB chairman. (ffd: Journal of Commerce)
(TUE) The Intermodal Association of North America elected Stephen Branscum its 2010 chairman. Mr. Branscum is BNSF Group VP for consumer products. (ffd: Progressive Railroading, wire services)
(THU) The Cumbres & Toltec Scenic Railroad announced that Soni Honegger has resigned as the railroad’s general manager. Mr. Honegger had held the position since August, 2008. (ffd: Rio Grande Sun)
(FRI) Amtrak announced that its board of directors had extended the one-year contract of its current president, Joe Boardman. An Amtrak spokesman said that Mr. Boardman’s “one-year term [had been extended] for an unspecified period until such time as more members are appointed to the Amtrak Board of Directors.” Mr. Boardman has been Amtrak’s president since the resignation of Alex Kummant in November, 2008. (ffd: Amtrak, wire services)
(FRI) BNSF announced the appointment of Dean Wise as its new VP-Network Strategy. In his new position, Mr. Wise, who was most recently with Norbridge Consulting, will be responsible for haulage management, interline management, network strategy development, public-private partnerships, and short line business development. Mr. Wise succeeds Peter Rickershauser, who has announced his retirement effective April 30. (ffd: BNSF RR, CNN)
(FRI) Genesee Valley Transportation, which operates the Depew, Lancaster & Western, the Falls Road, the Mohawk, Adirondack, & Northern, and the Delaware-Lackawanna Railroads, announced the promotion of Gregory Cheshier from Director-Transportation to VP-Operations. GVT also announced the appointment of David Blount as its Director-Business Development. (ffd: Progressive Railroading)
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January 1, 2010
Weekly Rail Review
No Comments
WEEKLY RAIL REVIEW
FOR THE WEEK ENDING FRIDAY, JANUARY 1, 2010
THE WEEK’S TOP RAIL AND TRANSIT NEWS (in chronological order):
(TUE) BNSF suffered an on-duty employee fatality. Sam Lundy, Age 44 with 17 years’ railroad service, was killed when a car he was riding derailed and pinned him against a building next to the sidetrack he was switching. (ffd: Minnesota Public Radio)
(WED) The Surface Transportation Board reported the seven Class 1 railroads shed approximately 2,000 jobs between mid-October and mid-November, 2009, such that total Class 1 employment stood at 147,097 at the end of November. In their report, the STB noted that Class 1 railroad employee totaled approximately 600,000 persons in 1967. (ffd: Journal of Commerce, STB)
(THU) Officials of Chicago’s Chicago Region Environmental & Transportation Efficiency Program (CREATE) noted completion of another project of the program, the upgrading of McCook interlocking. McCook locates approximately 13 miles west of downtown Chicago, where BNSF’s Transcon Line crosses the CSX-Indiana Harbor Belt route between Blue Island and Franklin Park, IL. The upgrading allows trains to increase their speed through the interlocking from 10mph to 25mph. (ffd: Journal of Commerce, Progressive Railroading)
(THU) Despite budget pressures, the Chicago Transit Authority charged transit riders only a penny to use CTA buses and subways on New Years Eve.and until 6AM on New Years Day. A CTA spokesman said that the penny fare called attention to the transit system as a “convenient, safe and affordable travel alternative for those out celebrating the New Year.” (ffd: Chicago Tribune, wire services)
(FRI) The Alaska Railroad noted the 25th anniversary of state ownership. The railroad had been owned by the U.S. government since its 1923 start, but in 1983 President Ronald Reagan signed federal legislation that authorized the transfer of the railroad to the State of Alaska. In 1983, the railroad’s total assets were valued at $37.2 million, but by 2009 they were valued at $854.1 million. (ffd: Anchorage Daily News)
STATS:
(WED) For the week ending December 26, 2009, U.S. rail volume grand totaled 22.1 billion ton-miles, down 0.9 percent from the comparable week last year. U.S. carload rail traffic was down 1.1 percent from the comparable week last year, up 1.3 percent in the East, but down 2.3 percent in the West. 17 of 19 carloads commodity groups saw increases, including motor vehicles and equipment up 52.1 percent, lumber and wood products up 44.8 percent, and grain up 31.1 percent. Also for the week, U.S. intermodal rail traffic was up 14.2 percent, Canadian carload rail traffic was up 33.5 percent, Canadian intermodal rail traffic was up 49.0 percent, Mexican carload rail traffic was up 37.7 percent, and Mexican intermodal rail traffic was up 53.3 percent.
For the period January 1 through December 26, 2009, U.S. rail volume grand totaled 1.47 trillion ton-miles, down 15.4 percent from the comparable period last year. Also for this period, U.S. carload rail traffic was down 16.3 percent, U.S. intermodal rail traffic was down 14.3 percent, Canadian carload rail traffic was down 18.2 percent, Canadian intermodal rail traffic was down 14.2 percent, Mexican carload rail traffic was down 9.5 percent, and Mexican intermodal rail traffic was down 12.9 percent. (ffd: AAR)
EXPANSIONS, CONTRACTIONS AND ALIKE:
(MON) Texas’s Regional Rail Right of Way Company filed to abandon, and the Dallas, Garland & Northeastern and Union Pacific jointly filed to discontinue trackage rights over, approximately 6 miles of line between Renner Junction, TX and Collin, TX. (ffd: STB)
(MON) Northern Plains Railroad filed to discontinue service over approximately 61 miles of the former Soo Line, leased from Canadian Pacific, between Bisbee, ND and Kramer, ND. Northern Plains also filed to discontinue service over approximately 27 miles of the former Soo Line, leased from Canadian Pacific, between Devils Lake, ND and Harlow, ND. (ffd: STB)
(THU) Burlington Junction Railway filed to lease, from BNSF, and operate approximately 4 miles of line, currently operated by the Missouri & Valley Park Railroad, in St. Louis, MO. (ffd: STB)
APPOINTMENTS, ACHIEVEMENTS AND MILESTONES:
(MON) Eliot Keller passed away at Age 62, from complications from Lou Gehrig’s Disease, in Iowa City, IA. Mr. Keller was a noted rail advocate for the State of Iowa and a reader of Weekly Rail Review. (ffd: Trains)
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