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Hot News! Edited by Carl G. Perelman |
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DM&E RAILROAD ANNOUNCES MANAGEMENT CHANGE: Richard Hamlin, Trustee for CP's acquisition of the DM&E today advised CP of changes to DM&E's senior management team. Effective immediately, Kevin Schieffer, President and CEO, has left the company to pursue other opportunities. Ed Terbell, Chief Operating Officer, and Kurt Feaster, Chief Financial Officer, will manage the day to day operations of the railway while the DM&E remains in trust. "Messrs. Feaster and Terbell and the management team have been strong performers in managing the DM&E, and its subsidiaries: Iowa, Chicago & Eastern Railroad and Cedar American Rail Holdings, and will continue with their duties reporting directly to me pending CP assuming control of the railway," said Mr. Hamlin. On September 30, 2008 CP received regulatory approval from the US Surface Transportation Board to acquire control of the DM&E Railroad and its subsidiaries. The STB denied all requests for conditions other than those agreed to voluntarily by CP. Following a 30-day review period, CP expects to assume control of the DM&E October 30, 2008. (Canadian Pacific Railway - posted 10/07) RAILPOWER TECHNOLOGIES POSTPONES COMPLETION OF NEW MANUFACTURING FACILITY: Railpower Technologies Corp., today reported that it will postpone the completion of the new assembly plant in Saint-Jean-sur-Richelieu, Quebec, which was initially planned for completion in the first quarter of 2009. The Company started the construction of the facility in June of 2008, and does not expect to restart it until new significant orders are secured. "The measure aims at preserving cash due to slower sales than anticipated. Certain expected large orders have been delayed this year by customers due to the economic slowdown and other factors related to delayed governmental subsidies in the United States" said Mr. Mathieu, President and CEO of Railpower. "To our knowledge, no significant orders have been awarded by the large Class I Railways to any of the low horsepower locomotives manufacturers In North America, during the year" added Mr. Mathieu. The Company has also decided to put in place a cost reduction plan which includes, among other things, the elimination of certain employment positions in order to lower its costs and continue operations to meet current and future customers' requirements. About Railpower (Railpower - posted 10/07) QNS&L EMPLOYEES TAP INTO SYSTEM TO IMPROVE FATIGUE MANAGEMENT: The Quebec North Shore and Labrador Railway has won the Railway Association of Canada's 2008 Safety award for giving their employees a more direct connection to crew calling as part of their fatigue management program. Cliff Mackay, President and CEO of the RAC, said the initiative uses the Internet to help employees plan their rest periods more efficiently and increase the safety of their operations. The main benefit is that employees don't depend on receiving a call to work from their supervisor. Information is updated every five hours, there are no other operators on the rail line and the system is password protected. The annual Safety and Environmental Awards program was created in 2005 by the Railway Association of Canada, which represents some 55 freight and passenger railways, to encourage workers to adopt safe, environmental practices and operational techniques. They transport 75 per cent of surface freight in the country, move 67.9 million passengers annually and generate only three per cent of the country's transportation greenhouse gas emissions. (Rail Association of Canada - posted 10/07) NORFOLK SOUTHERN ISSUES ITS FIRST SUSTAINABILITY REPORT: Norfolk Southern Corporation has issued its first sustainability report, describing the company’s commitment to responsible economic, environmental, and social performance. The report, which the company plans to issue annually, is posted on Norfolk Southern’s environmental Web site at www.nscorp.com/footprints. Through narrative, metrics, and profiles of employees who are making a difference, the 56-page report documents Norfolk Southern’s sustainability progress. Its content is modeled after the sustainability reporting guidelines of the Global Reporting Initiative. In a letter introducing the report, Wick Moorman, Norfolk Southern chairman, president, and chief executive officer, said, “Our goal is to achieve industry leadership in fuel conservation, emissions reduction, efficient energy use, recycling, use of renewable materials, and environmental partnerships.” Moorman notes that as technology has transformed railroad operations, it also has made them greener. For example, one train can haul the equivalent of up to 500 truckloads, and on a single gallon of diesel fuel, a freight train can move a ton of freight an average of 436 miles. “Today, rail is more vital to our national transportation network than ever, and it is the most energy-efficient and eco-friendly way to transport the goods that move the nation’s economy,” Moorman said. “These clear advantages of rail freight transportation have far-reaching implications for addressing our nation’s crowded highways while protecting and conserving natural resources.” “We believe it is our responsibility to conduct our business in accordance with sustainability practices that will help to provide ongoing opportunities for our people, our communities, our customers, and our investors,” Moorman said. “Just as we have served our customers and communities for close to two centuries, Norfolk Southern is dedicated to being a responsible corporate citizen for generations to come.” (Norfolk Southern Corporation, Randy Kotuby, Alex Mayes - posted 10/06) SENATE PASSES FEDERAL RAILROAD SAFETY IMPROVEMENT ACT: The U.S. Senate yesterday passed H.R. 2095, the Federal Railroad Safety Improvement Act. The bill includes Amtrak reauthorization language and authorizes significant federal funding for intercity passenger rail service and corridor development. The measure authorizes $12.9 billion over five years including: $5.3 billion in capital grants, $2.9 billion in operating grants and $1.9 billion for grants to states for intercity passenger rail development. The House approved the legislation on September 24. The bill must now be signed into law by the President, and Congress will need to pass annual appropriations bills to provide the funding levels authorized in the bill. In addition to authorizing spending for rail expansion, the legislation reauthorizes and toughens rail safety programs, including requiring rail companies to equip cars with "positive train control" systems to help avoid collisions. "The work on this authorization bill spanned nearly three congresses and does change the existing conditions for Amtrak, the rail industry and the states," said Alex Kummant, Amtrak president and CEO. "Apart from safety enhancements, the bill creates for the first time a state and federal funding partnership which places rail passenger service on a more equal footing with other modes, and encourages rail corridor development. Passage of this bill is a significant statement by Congress that will positively affect the traveling public for generations to come." "Provisions in the bill that mandate positive train control across the industry will provide significant safeguards for the traveling public," said Chairman of the Amtrak Board Donna McLean. "Amtrak prides itself as a leader in safety innovations. The Board supports the requirements of the bill and implementing them will be our highest priority." Senators Frank Lautenberg (D-NJ), Tom Carper (D-DE), Kay Bailey Hutchison (R-TX), Gordon Smith (R-OR), Commerce Committee Chairman Daniel Inouye (D-HI) and former Senator Trent Lott (R-MS) are to be commended for their tireless efforts on behalf of the passenger rail industry and for their persistence in getting the legislation passed. On the House side, Chairman James Oberstar (D-MN), Ranking Member John Mica (R-FL), Rep. Corrine Brown (D-FL)and Rep. Bill Shuster (R-PA) are also to be commended for their hard work and commitment to improving intercity passenger rail service for all Americans. In the fiscal year that ended September 30, Amtrak carried over 28 million riders, a sixth straight year of record ridership, and earned more than $1.7 billion in ticket revenue for the national passenger railroad. (Amtrak, Alex Mayes - posted 10/03) PATRICK ADMINISTRATION ANNOUNCES AGREEMENT TO PURCHASE RAIL LINES Massachusetts Lieutenant Governor Timothy P. Murray, Senator John Kerry, U.S. Rep. Jim McGovern, and CSX Corporation Chairman, President and Chief Executive Officer Michael J. Ward today announced a comprehensive multi-year rail transportation agreement that significantly increases options for commuters and lays the groundwork for improving the flow of product shipments. The agreement has been in the works for nearly four years in close cooperation with the Massachusetts Bay Transportation Authority (MBTA). The agreement includes the addition of five commuter trains that will serve Worcester, while leaving open the possibility of additional trains as rail capacity is created. In addition, it will facilitate the Patrick-Murray Administration’s plan to extend commuter rail service to New Bedford and Fall River, provide the potential for even more commuter service for Worcester, and create the ability of area companies to ship or receive products on double-stack rail cars. Double-stack rail cars carry containers that would otherwise move by truck on already-crowded highways. “This is an historic day for all of Massachusetts, and most especially for Worcester and the South Coast,” said Lieutenant Governor Timothy P. Murray, who has been working on this issue since he was Mayor of Worcester and led the negotiations with CSXT on behalf of the administration. “Thanks to our partners, Senator Kerry and Congressman McGovern, we’ve reached an agreement that increases commuter options and ultimately could make Worcester the new rail hub of New England. We appreciate CSXT staying at the table and making this agreement a reality.” “This agreement marks a milestone in the public transportation history of Massachusetts, a history which for the people of Central and Southeastern Massachusetts had been marked by decades of insufficient rail service,” Senator Kerry said. “This agreement is the result of months of intense negotiations between CSXT and federal and state officials and it has the potential to provide an economic boost to the entire Commonwealth. I also can’t say enough about the efforts of Lieutenant Governor Tim Murray and Congressman Jim McGovern in helping to get this deal done; they’ve worked tirelessly for years on improving commuter rail service to Central and Southeastern Massachusetts and really delivered for their communities.” “As a strong supporter of better public transit, Senator Kennedy is very pleased by the agreement between the Commonwealth and CSX. Increased commuter service is vital for state’s economic future, and this agreement will have an immediate impact on the frequency of service between Boston and Worcester. He especially commends Governor Patrick, Lt. Governor Murray, Senator Kerry, and Representative McGovern for their effective leadership.” ”This is an important day for the people of Massachusetts,” said U.S. Rep. Jim McGovern, who was also an integral part of making this agreement a reality. “These have been tough negotiations, but this agreement has been worth the hard work. Increasing the capacity of commuter rail service from Worcester to Boston, and to the South Coast, is essential for our transportation system and for economic development in the Commonwealth. I particularly want to commend Senator Kerry and Lieutenant Governor Murray for their determination and leadership on this issue. And I want to thank CSX for their willingness to work with us." “Commuter rail is an important part of the Governor’s statewide transportation plan to relieve congestion,” said Transportation Secretary Bernard Cohen. “Reaching agreement on important terms for four strategic rail assets, including the CSXT-owned portion of the lines to the South Coast, moves a top priority, South Coast Rail, one step closer to reality.” “We salute the vision and perseverance of Massachusetts leaders at every level of government,” said Ward. “The entire nation is recognizing the benefits of freight railroads to the environment, the economy and traffic conditions on our highways. One train can carry the load of 280 trucks and is three to four times more fuel efficient. The Massachusetts plan turns existing freight rail infrastructure into a 21st century solution for both commuters and businesses.” The main elements of the plan are as follows:
VIRGINIA RAILWAY EXPRESS ORDERS ADDITIONAL BILEVEL PASSENGER CARS: Sumitomo Corporation of America in conjunction with its car builder partner Nippon Sharyo, Ltd. was awarded on August 27, 2008 the contract to supply 10 Gallery Type bi-level passenger rail cars to Virginia Railway Express (VRE). This contract is in addition to contract to supply 61 cars. Due to the expanding VRE system and increased ridership, these bi-level cars will have a much larger capacity for seating accommodating up to 144 passengers per car. "We are very excited about this new purchase," says Dennis Larson, manager of operations support at VRE. "Upon delivery of these cars, all VRE cars will be Gallery Type Bi-level cars. With this new procurement we will bring more safety and style and comfort to our riders." The contract price is $22 million. Delivery is scheduled in February and March 2010. Car body shells will be manufactured in Nippon Sharyo's Toyokawa plant in Japan and the final assembly will be done at Super Steel's plant in Milwaukee, Wisconsin using various components procured in the US. The new passenger cars will enhance the ridership of the commuter rail lines in the state of Virginia and will contribute greatly to reducing the heavy traffic in the surrounding urban and suburban areas. The Sumitomo and Nippon Sharyo team have already successfully delivered over 800 passenger cars in the US market since 1980's. The team is eager to expand their service and contribution to railway authorities throughout North America. (Sumitomo Corporation of America, Randy Kotuby - posted 10/02) STATEMENT OF FEDERAL RAILROAD ADMINISTRATOR JOSEPH BOARDMAN ON RESTRICTING IMPROPER USE OF ELECTRONIC DEVICES BY RAILROAD WORKERS: “Today’s announcement by the National Transportation Safety Board regarding the tragic Metrolink crash has made it clear that the use of cell phones and other personal electronic devices must be immediately addressed. The bottom line is railroad operating employees cannot focus on their critical safety functions while engaging in phone conversations, texting or any other form of unessential electronic communication, often in violation of railroad operating rules. “The consequences of inattentiveness and distraction are simply too catastrophic to be addressed at the operator or state level alone. As a result, we will issue an emergency order explicitly prohibiting the use of personal electronic devices by railroad employees while operating trains and in other settings. Everyone involved with rail travel deserves the full attention and focus of train operators, without exception and without excuse.” (FRA - posted 10/02) FREIGHT RAIL TRAFFIC DOWN IN SEPTEMBER: U.S. railroads originated 1,278,188 carloads of freight in September 2008, down 62,029 carloads (4.6 percent) from September 2007, the Association of American Railroads (AAR) reported today. U.S. railroads also originated 918,319 intermodal units in September 2008, a decrease of 44,959 trailers and containers (4.7 percent) from September 2007. Three of the 19 major commodity categories tracked by the AAR — coal, metallic ores, and the catch-all “all other” category — saw U.S. carload increases in September 2008 compared to September 2007. Coal was up 17,062 carloads (3.0 percent) to 592,306 carloads in September, while carloads of metallic ores were up 4,648 carloads (16.8 percent). Among other commodities, carloads of motor vehicles and equipment were down 19,756 carloads (24.7 percent); carloads of chemicals were down 14,716 carloads (12.1 percent); and carloads of crushed stone, sand, and gravel were down 14,221 carloads (16.1 percent). Carloads of grain were down 8.3 percent for the month (7,993 carloads). “September was not kind to U.S. freight railroads,” noted AAR Senior Vice President John T. Gray. “Hurricane Ike caused significant damage, both to rail infrastructure and to rail customer facilities on the Gulf Coast, including many chemical facilities. And, of course, railroads and their customers are not immune to the upheaval in the general economy due to the credit crunch.” In the third quarter, total carloads on U.S. railroads fell 1.2 percent (51,329 carloads) to 4,225,452 carloads. In the quarter, carloads of coal rose 4.1 percent (75,330 carloads), carloads of metallic ores rose 16.2 percent (15,474 carloads), and carloads of waste and scrap material rose 5.2 percent (6,754 carloads). Carloads of motor vehicles and equipment fell 26.7 percent (64,178 carloads) in the third quarter; carloads of crushed stone and gravel were down 9.1 percent (25,515 carloads); and carloads of coke were down 32.3 percent (23,751 carloads). “Coal was a bright spot in the third quarter,” Gray noted. “In fact, it’s likely that U.S. railroads moved more coal in the third quarter than in any quarter in history.” For the first nine months of 2008, total U.S. rail carloads were down 31,579 carloads (0.2 percent) to 12,677,188 carloads. U.S. intermodal traffic was down 86,644 trailers and containers (2.8 percent) in the third quarter and was down 278,002 trailers and containers (3.1 percent) for the first nine months of 2008 to 8,746,631. Total volume was estimated at 1.32 trillion ton-miles, up 0.9 percent from last year. Canadian rail carload traffic was down 21,195 carloads (6.6 percent) in September 2008 to 298,056 carloads; down 48,825 carloads (4.9 percent) in the third quarter; and down 131,433 carloads (4.3 percent) for the year to date to 2,894,725 carloads. In September, carload gains in metallic ores (up 3,308 carloads, or 6.3 percent) and farm products other than grain (up 1,789 carloads, or 14.8 percent), among other commodities, were not enough to offset declines in carloads of chemicals (down 8,328 carloads, or 14.0 percent), grain (down 8,273 carloads, or 20.0 percent), motor vehicles and equipment (down 6,229 carloads, or 23.7 percent), and others. Canadian intermodal traffic was up 9,053 units (4.6 percent) in September 2008 compared with September 2007 to 203,856 units; up 25,237 units (4.0 percent) in the third quarter; and up 75,813 units (4.2 percent) for the first nine months of 2008 to 1,882,300 units. Carloads carried on Kansas City Southern dé Mexico, a major Mexican railroad, were down 8,072 carloads (18.1 percent) in September 2008 to 36,498 carloads, while intermodal units carried totaled 22,696 units, up 1,973 units (9.5 percent). For the year-to-date, KCSM carloads carried were down 5.4 percent (22,822 carloads) to 401,069 carloads, while intermodal units carried were up 13.8 percent (14,995 units) to 192,194 trailers and containers. For just the week ended September 27, the AAR reported the following totals for U.S. railroads: 329,350 carloads, down 4.7 percent (16,148 carloads) from the corresponding week in 2007, with loadings down 4.6 percent in the East and down 4.7 percent in the West; intermodal volume of 246,280 trailers and containers, down 2.7 percent (6,964 units) but the highest weekly total so far in 2008; and total volume of an estimated 34.6 billion ton-miles, down 3.6 percent from the equivalent week last year. For Canadian railroads during the week ended September 27, the AAR reported volume of 77,988 carloads, down 6.2 percent from last year; and 52,058 trailers and containers, up 7.6 percent from the corresponding week in 2007. Combined cumulative rail volume for the first 39 weeks of 2008 on 12 reporting U.S. and Canadian railroads totaled 15,571,913 carloads, down 1.0 percent (163,012 carloads) from last year, and 10,628,931 trailers and containers, down 1.9 percent (202,189 units) from 2007’s first 39 weeks. (AAR - posted 10/02) NC TRANSPORTATION MUSEUM SENDING TWO LOCOMOTIVES AND TWO RAIL CARS TO WASHINGTON FOR THIS WEEKEND'S WUT ANNIVERSARY: The N.C. Transportation Museum is sending two locomotives and two rail cars to contribute to the Centennial Celebration of Washington D.C.'s Union Station. The Museum is very pleased to help represent Southern Railway and others in this monumental event. Amtrak will be taking those locomotives and rail cars to Washington D. C., leaving Thursday around 11:30am. The cars will be traveling a route that takes them through the cities of Lexington, Thomasville, High Point, Greensboro, and Reidsville, N.C., as well as as Danville, Lynchburg, and Charlottesville, Va. (Mark Brown - posted 10/01) GENESSEE & WYOMING COMPLETES ACQUISITION OF OHIO CENTRAL RAILROAD SYSTEM: Genesee & Wyoming Inc. (GWI) announced today that it has completed its acquisition of 10 short line railroads known as the Ohio Central Railroad System (OCR) for $234.3 million in cash, subject to adjustment for final working capital. The cash purchase price includes $7.5 million of contingent consideration that GWI has placed into escrow, which will be paid to the seller upon satisfaction of certain conditions. OCR has more than 170 employees, operates over 445 miles of track and owns 64 locomotives. The railroads handle approximately 140,000 annual carloads, primarily in the coal, steel and solid waste industries. GWI financed the cash purchase price for OCR by amending and expanding the size of its senior credit facility from $256 million to $570 million. The amended credit facility closed concurrent with the completion of the OCR acquisition. The amended credit facility is comprised of a US$300 million revolving loan, a US$240 million term loan and a Canadian dollar equivalent of a US$30 million Canadian term loan, all of which are due in 2013. Initial borrowings are priced at LIBOR plus 2.0%. Bank of America, N.A. acted as sole lead arranger and administrative agent for the previous credit facility and played the same role in the amended credit facility. Following the acquisitions of OCR and Georgia Southwestern Railroad, also announced today, GWI has approximately $200 million of available borrowing capacity under the amended credit facility, which is available for general corporate purposes, including acquisitions. (GWI - posted 10/01) US DOT FUNDING FOR INTERCITY RAIL PROJECTS: As Americans continue a historic cut back on driving and turn to other forms of transportation like rail and transit, a new approach to funding intercity passenger rail projects will lead to improved service and better on-time performance across the country, announced U.S. Transportation Secretary Mary E. Peters today. The Secretary released new data today indicating that Americans drove 3.6 percent less, or 9.6 billion miles fewer, in July 2008 than July 2007. Since last November, Americans have driven 62.6 billion miles less than they did over the same nine-month period last year. Meanwhile, she said, transit ridership is up 11 percent, and in July, Amtrak carried more passengers than in any single month in its history. “At a time when transit and rail are seeing record growth, the very way we finance these systems is at risk. That is because our transit investments come from the same source as our highway investments – federal gas taxes,” Secretary Peters said. “Federal transportation policies that rely almost exclusively on gas taxes are failing our state and local governments.” So as part of a new plan to improve intercity passenger rail service nationwide, the Secretary announced the Department is providing $30 million to match local investments in 15 rail capacity projects across the country. These federal-state partnerships will support projects designed to cut delays and expand capacity on existing intercity passenger rail routes and help provide new services where none exist today. Until now, she said, there has been no way for states to qualify for federal funds to match local investments in rail capacity as all federal funds have gone directly to Amtrak. “But, the Secretary warned, comprehensive reform is needed across the transportation system. In July, the Secretary unveiled a new proposal to reform and target transportation investments where they can best reduce congestion and improve infrastructure, while beginning to move away from relying exclusively on unstable gas taxes to finance transportation in the future. “A few weeks ago, we saw the folly of our antiquated federal transportation policies when the highway trust fund almost ran out of money. If we don’t evolve our policies, we will leave a sad legacy of old roads, crowded highways, and unfulfilled transit ambitions,” Secretary Peters said. To view more detail on the VMT data, please visit: http://www.fhwa.dot.gov/ohim/tvtw/tvtpage.htm. The 15 intercity passenger rail grants the Department is awarding will support planning and construction projects in Arizona, California, Illinois, Maine, Minnesota, Missouri, New York, Ohio, Vermont, Virginia, Washington, and Wisconsin. Projects include:
CANADIAN PACIFIC WELCOMES STB APPROVAL: Canadian Pacific Railway Limited (TSX/NYSE: CP) announced today that it has received regulatory approval from the US Surface Transportation Board (STB) to acquire control of the Dakota, Minnesota & Eastern Railroad Corporation and its subsidiaries: Iowa, Chicago & Eastern Railroad and Cedar American Rail Holdings. The STB denied all requests for conditions other than those agreed to voluntarily by CP. The official effective date of the final decision is October 30, 2008. "The DM&E is an excellent fit for Canadian Pacific making this a strategic end-to-end addition to our network," said Fred Green, President and Chief Executive Officer of CP. "This is also a positive development for CP, DM&E and IC&E customers. CP customers will have direct single line access to the Midwest US markets and the Kansas City gateway, which will improve fluidity to and from the Southwest US and Mexico. DM&E and IC&E customers will have access to single line haul opportunities to new markets and access to CP's car fleets." CP's ability to provide single line service between DM&E and IC&E served origins and CP destinations will enhance rail service, while its commitment to make infrastructure investments across the DM&E and IC&E network will improve safety and fluidity. "Together, we will build on the significant improvements the DM&E has made in operating efficiency and safety over the past several years and remain committed to our shareholders, our employees, our customers and the communities we serve," said Kathryn McQuade, CP's Executive Vice President and CFO. The DM&E is the largest regional railroad in the U.S. and the only Class II railroad that connects and interchanges traffic with all seven Class I railroads, connecting with Canadian Pacific at Minneapolis, Winona, MN and Chicago. The DM&E is expected to deliver double digit top-line revenue growth and EBITDA in 2008. It is headquartered in Sioux Falls, SD and has approximately 1,100 employees, 2,500 miles of track, including approximately 500 miles of trackage rights, and rolling stock that includes 7,200 rail cars and 150 locomotives. The DM&E serves eight states: Illinois, Iowa, Minnesota, Missouri, Nebraska, South Dakota, Wisconsin and Wyoming with access to Chicago, Minneapolis/St. Paul, Kansas City and key ports. "While this is a day to celebrate, it is also very important that the qualities that have made the DM&E, IC&E and Cedar American so successful stay as vibrant as they were before the acquisition," added Green. "I look forward to building and strengthening our company, together." (CP, Randy Kotuby - posted 9/30) SETPA TO DISPLAY MOCK-UP OF NEW SILVERLINER V: SEPTA General Manager Joseph Casey will personally welcome the public to get a glimpse of SEPTA's future regional rail cars with a display of a mock-up version of the new Silverliner V car at Suburban Station on Thursday, October 2 during a special ceremony beginning at noon. The mock-up of the Silverliner V car will remain on display at Suburban Station from October 2 through October 16 (weekdays only) from 11 a.m. to 6 p.m. to provide an extended opportunity for everyone to "steel" a peek into the future of SEPTA. The mock-up was built to help engineers in the design and manufacturing process for the fleet of commuter rail cars ordered by SEPTA from United Transit Systems, a consortium of Hyundai Rotem of South Korea and Sojitz Corporation of America. Scheduled to begin delivery next year, the new rail cars will help SEPTA provide an improved, more comfortable experience for riders by incorporating advanced elements into the design and adding much-needed capacity to accommodate SEPTA's ever-growing ridership. In addition, while the mock-up itself will not carry passengers, it plays a critical role in development of the pilot car, a working rail car that will undergo extensive testing to ensure the safest, most comfortable ride for SEPTA passengers possible. The fleet of 120 Silverliner V rail cars is being specially designed to meet the needs of the SEPTA system and its ridership, so careful planning, analysis and testing are essential to the success of the project. SEPTA expects the Silverliner V pilot car to arrive in Philadelphia in the spring, when SEPTA engineers will thoroughly inspect and test the car before approving final production of the full fleet. (SEPTA, Randy Kotuby - posted 9/30) METRO NORTH CROTON-HARMON OPEN HOUSE: MTA Metro-North Railroad welcomes you to join us for our most festive occasion of the year. On Saturday, October 11th, from 10 a.m. to 3 p.m., bring family and friends to Metro-North Railroad's Annual Harmon Open House in Croton, New York. Metro-North's friendly and knowledgeable staff will be on hand to answer questions as you tour the railroad's largest maintenance facility, take a fall foliage train ride, and watch Metro-North workers show off their mechanical and technical abilities during an ongoing series of informative demonstrations. It's all fun, all free, and never fails to impress! Maps will be given to visitors to help guide them through the various exhibits in the 275,000-square-foot shop. Get up close to a wide variety of passenger coaches, locomotives and specialized track equipment. Operate a track switch with the click of a computer mouse and watch the rails move into position, then get onboard a diesel train for a 50-minute fall foliage train trip through the majestic Hudson Highlands right at the peak of leaf season. The best way to get to Harmon Shop is to take a Hudson Line train to Croton-Harmon Station, where free shuttle buses will be running all day long to take you to the shop. Or, if you are driving from New York City, take the New York State Thruway to Exit 9, Tarrytown. Go left onto Route 119 for 2/10ths of a mile. Make a right onto Route 9, and continue north for 14 miles. After crossing the Croton River Bridge, take the first exit to Croton Point Avenue and look for directional signs to the free parking. If you're driving from Stamford or White Plains, take I-287 to the New York State Thruway entrance at Elmsford, and follow the directions above. Mark your calendar because it is a great way to spend a fall day with the family. For Hudson Line train schedule information, call Metro-North in NYC at (212) 532-4900, outside of NYC at 800-METRO-INFO. The hearing impaired can (via teleprinter) call 800-724-3322. Or you can visit Metro-North on the web at www.mta.info. In addition, train schedules are posted at all Metro-North stations. We look forward to seeing you there (MTA - posted 9/29) NEGOTIATIONS WITH CP RAIL AND CN TO START SOON: Negotiations aiming at renewing collective agreements for CN locomotive engineers and rail traffic controllers are to start within the next few weeks. In addition, CP rail traffic controllers will also be negotiating at the same time. "Workers at CN and CP have made it possible for these companies to haul in record profits over the past few years thanks to their efficiency and professionalism," explained Dan Shewchuk, President of the Teamsters Canada Rail Conference. "Companies must recognize this and compensate them for their good work." The contracts will end on the coming 31st of December. Negotiations will affect more than 2500 employees of Canadian National and Canadian Pacific. The Teamsters Union represents more than 15 000 workers in the railroad industry. (posted 9/29) VINTAGE NEW YORK CITY SUBWAY TRAIN TO MARK LAST DAY OF REGULAR SEASON PLAY A SHEA STADIUM: From the opening day of Shea Stadium back in 1964, the smartest way to get there was the 7 Flushing Line to Willets Point. And for the last regular-season home game, 44 years later, the subway is still the smart way to go. To celebrate the event, NYC Transit will run a special ten-car "Nostalgia Special." The train is scheduled to leave Times Square-42nd Street at approximately 11 a.m., arriving at Willet's Point-Shea Stadium at noon. The subway cars, ranging in age from a 50-year old R12 to the 1964 World's Fair Car, are representative of the equipment used on the IRT Lines from the late 1940s to 2002.
FEDERAL RAILROAD ADMINSTRATION ANNOUNCES GRANTS:
"GREAT DOME" CAR RETURNING TO ADIRONDACK SERVICE: Beginning Thursday, October 2, 2008, through Tuesday, November 11, 2008, passengers riding Amtrak's Adirondack train, which operates between New York City and Montreal, will once again have the unique opportunity to experience the spectacular view afforded by the historic "Great Dome" car between Albany and Montreal. Named for their design that features an upper level with windows on all sides as well as overhead, dome cars provide passengers with panoramic views of passing scenery. The dome car is temporarily assigned to the Adirondack, and provides views of fall foliage and Lake Champlain as the train travels through upstate New York and across the border into Canada. The refurbished vintage "Great Dome" car seats 90 passengers and is 85 feet long. The dome section runs the full length of the car, an unusual feature, since the more common type of dome encompassed less than half the length of the car. "The arrival of the "Great Dome" car into New York State is certainly welcome news for our passengers who plan to travel through the Empire region," said Mike DeCataldo, Amtrak's General Superintendent, Northeast Division. "I encourage all New York residents and our friends in Canada to take advantage of this rare opportunity to witness and experience train travel in a unique and breathtaking manner," he added. The car will operate northbound from Albany to Montreal on Thursdays, Saturdays and Mondays. It returns south from Montreal on Fridays, Sundays, and Tuesdays. No trips are made on Wednesdays. All passengers traveling on the Albany-Montreal segment of the route are welcome to enter the dome car to enjoy the view. Seats in the dome car are not reserved and are available on a first-come, first-served basis. About the "Great Dome Car The only remaining dome car in Amtrak service, car number 10031, which is a Great Dome car previously used on the Chicago-Seattle Empire Builder when the train was operated by the Great Northern Railway and the Chicago Burlington & Quincy Railroad (later the Burlington Northern Railroad). It was among six similar Great Dome cars built in 1955 by the Budd Company for the Great Northern and carried the name "Ocean View," car number 1391. All six of the cars were conveyed to Amtrak in 1971, with this car first being given the number 9361. It was renovated in 1985, renumbered 9300, and used in daily service on the Amtrak Auto Train to and from the Washington, D.C., and Orlando, Fla., areas through 1994. According to a website hosted at www.trainweb.org, four others of this series of Great Domes survive. The "Glacier View" is in use by the Burlington Northern Santa Fe Railway (the successor to the Burlington Northern and the Atchison, Topeka and Santa Fe Railway) as an inspection and theatre car; Grand Luxe Rail Tours owns the former "Mountain View" and "River View" cars and has renamed them "New Orleans" and "Copper Canyon" for their nationwide tours, frequently using Amtrak crews and locomotives. The former "Prairie View" is owned by Holland America Westours and has been renamed "Deshka" for use in Alaska. Great Dome 10031 is usually used in charter service on the West Coast and rarely operates east of the Rocky Mountains. (Amtrak - posted 9/26) U.S. DOT REPORT IDENTIFIES FREIGHT RAILROADS' ROLE IN AMTRAK TRAIN DELAYS: In response to a request from the Senate Transportation Appropriations Subcommittee, the U.S. Department of Transportation Office of Inspector General (DOT IG) issued a report Monday entitled, "Root Causes of Amtrak Train Delays." The report affirms that improper dispatching practices and poor operating discipline by freight railroads are among the key reasons why Amtrak trains suffer poor on-time performance on tracks operated by those host freight railroads. Over 70 percent of the miles traveled by Amtrak trains are operated over tracks owned by other railroads. Federal law requires that, except in emergencies or as otherwise ordered by the Secretary of Transportation, passenger trains must be given "preference over freight transportation in using a rail line, junction or crossing." In testimony before the House Transportation and Infrastructure Committee in April, Amtrak President and CEO Alex Kummant said, "Poor on-time performance translates directly into greater operating costs and lost revenues for Amtrak." He added, "Freight train interference delays and slow orders are the two biggest components of all delay minutes to Amtrak trains in FY 2007." With respect to the host railroads, the report concludes, "We found several root causes of Amtrak train delays that, if addressed, would improve Amtrak's OTP [on-time performance] and financial viability." The report further noted that major performance improvements to passenger rail could be achieved almost immediately through improved host-railroad dispatching management and operating discipline, recommendations that would benefit passenger rail as well as freight shippers. Kummant said in April, "Good on-time performance is possible when host railroads use targeted operating and maintenance practices and give appropriate attention to the timely delivery of Amtrak trains." Kummant also said, "The operating discipline of all trains on a route improves, because a well run railroad naturally expedites its own trains, as well as ours." A DOT IG report released earlier this year confirmed the importance of on-time performance to Amtrak, finding that poor performance on host railroads costs Amtrak in excess of $100 million annually. Amtrak applauds both the congressional interest in this serious problem and the DOT IG's attention to these issues and hopes that this report and its recommendations will lead host railroads to work collaboratively with Amtrak to improve the on-time performance of passenger trains. In a related development, members of the Illinois Congressional delegation sent a letter to the CEO's of three major freight railroads, BNSF, Canadian National and Union Pacific, requesting that they prepare and deliver a plan to achieve on-time performance of passenger trains on their tracks of at least 85 percent. Citing poor on-time performance on Illinois-supported Amtrak trains, the letter also asks that the railroads identify what actions can be taken to create an immediate improvement in on-time performance. (Amtrak - posted 9/26) HURRICANE IKE CAUSES RAIL FREIGHT DOWNTURN: Freight traffic on U.S. railroads was off sharply during the week ended September 20 in comparison with the same week last year, the Association of American Railroads (AAR) reported today. Much of the decline can be attributed to disruptions caused by Hurricane Ike which struck the Gulf Coast September 13. Total volume was estimated at 32.8 billion ton-miles, down 6.8 percent from the comparable week last year. Carload freight in the week totaled 312,662 cars, off 7.8 percent from last year. Volume was down 10.4 percent in the West and 4.3 percent in the East. Intermodal volume, which is not included in the carload data, totaled 234,286 trailers or containers, down 6.2 percent from a year ago. Trailer volume was off 6.6 percent while container traffic was down 6.1 percent. Eighteen of 21 carload commodity groups were down from a year ago. Chemical loadings were down 21.7 percent while grain was off 22.6 percent and lumber and wood products fell by 25.0 percent. Coal volume was up 2.2 percent from a year ago while metallic ores rose 16.6 percent. Cumulative volume for the first 38 weeks of 2008 totaled 12,347,838 carloads, down 0.1 percent from 2007; 8,500,351 trailers or containers, down 3.1 percent; and total volume of an estimated 1.28 trillion ton-miles, up 1.0 percent from last year. On Canadian railroads, during the week ended September 20 carload traffic totaled 71,794 cars, down 13.9 percent from last year while intermodal volume totaled 51,805 trailers or containers, up 2.1 percent from last year. Cumulative originations for the first 38 weeks of 2008 on the Canadian railroads totaled 2,816,737 carloads, down 4.3 percent from last year, and 1,830,242 trailers and containers, an increase of 4.1 percent from last year. Combined cumulative volume for the first 38 weeks of 2008 on U.S. and Canadian railroads totaled 15,164,575 carloads, down 0.9 percent from last year, and 10,330,593 trailers and containers, a 1.9 percent decrease from last year. The AAR also reported that carload freight on the Mexican railroad Kansas City Southern de Mexico (KCSM) during the week ended September 20 totaled 7,927 cars, down 28.2 percent from last year. KCSM reported intermodal volume of 5,592 trailers or containers, up 8.0 percent from the 38th week of 2007. For the first 38 weeks of 2008, KCSM reported cumulative volume of 391,399 cars, down 5.0 percent from last year, and 186,187 trailers or containers, up 8.5 percent. (AAR - posted 9/25) WASHINGTON UNION STATION ANNIVERSARY CELEBRATION: GG-1 #4935 is today, September 24th, moving from the Pennsylvania RR Museum in Strasburg to Washington DC. It, along with several other historic locomotives, will be displayed for a celebration of the 100th Anniversary of the opening of Washington Union Station and Washington Terminal. It appears that a number of cab units are also coming including Potomac Eagle's F3 and GP9, Bennett Levin's E8, Spencer's Southern Railway E8 No. 6900 and ex-ACL E3 No. 501and a number of Private Cars. The public dates for this celebration are Oct. 4 - 5th from 10am to 5pm. Plans are still being made for this event. (posted 9/24) FRA AND RAILROADS TAKE ACTION TO STRENGHEN BRIDGE SAFETY POLICY: Enhanced bridge safety will be the result of the first standard railroad bridge inspection and maintenance agreement between railroads and the Federal Railroad Administration (FRA), announced FRA Administrator Joseph H. Boardman. “Having a common set of baseline inspection and maintenance practices against which all railroads are measured will help ensure the structural integrity and safety of the nation’s rail bridges for years to come,” Boardman said. He added that the agreement is a major step forward in providing transparency within the industry and for the public about how the safety of railroad bridges is managed. Boardman explained that the new agreement called The Essential Elements of a Railroad Bridge Management Program was developed and approved by the FRA Railroad Safety Advisory Committee comprised of representatives from the FRA, rail management, rail labor, and other industry stakeholders. The nine essential elements, which apply to both large and small railroads, include: maintaining a detailed bridge inventory; having procedures for the design and safety rating of bridges; ensuring bridge inspectors are properly qualified; establishing procedures for performing bridge inspections; and having a plan to protect train operations following discovery of a critical bridge problem. The FRA intends to formally incorporate the Essential Elements into the existing FRA bridge safety policy by the end of 2008, Boardman stated. He added that the new policy will be an integral part of a railroad’s bridge management evaluation. Actions to improve rail bridge safety are moving on several other fronts as well. The FRA is working to generate risk-based criteria used to select which smaller railroads will receive a federal bridge program review. Additionally, the American Railway Engineers and Maintenance of Way Association developed and recently published the first-ever railroad bridge inspection handbook. In August, FRA purchased and distributed copies of this important new reference guide to each of the more than 700 railroads in the U.S. The American Short Line and Regional Railroad Association is also creating a model rail bridge management program for use by railroads of various sizes based upon the Essential Elements and the FRA bridge safety policy. (US DOT - posted 9/24) MTA NEW YORK CITY TRANSIT REORGANIZES DEPARTMENT OF SUBWAYS FOR IMPROVED SERVICE: Following the successful introduction of the Line General Manager program on the 7 and L lines late last year, MTA New York City Transit is continuing the move toward decentralization with the implementation of the first major managerial reorganization of the Department of Subways since the creation of the agency more than 50 years ago. The current structure of centralized leadership is being replaced by a far more localized operation aimed at cutting through the red tape and inertia that can often affect large organizations. The reorganization creates a more direct system of responsibility designed to be immediately responsive to both customers and employees. "The prime focus of the reorganization of the Department of Subways is to move the area of responsibility closer to the employees who provide the services and to the customers – who are the end users of those services," said NYC Transit President Howard H. Roberts, Jr. "Our Line General Managers will be expected to take a hands-on approach to addressing everything their customers experience from service to the cleanliness of trains and stations. Our experience with the 7 and L demonstrates that services are more efficiently delivered when they aren't filtered through a large, unwieldy bureaucracy." The 7 and L lines have been part of the Line general Manager program since December 2007. At that time a Line General Manager and a Deputy were installed on both lines. Since then this approach has been a success in several areas, outperforming other lines even though operating personnel remained in their divisions. When the roll-out is complete, approximately 19,000 employees will be moved from the central divisions into the lines themselves and a budget savings of more than $7 million is expected. Full program implementation will see 18 Line General Managers covering the system's 26 individual subway lines. While the majority of the Line General Managers will be responsible for a single line, in some cases a manager will be assigned to cover more than one line. This will be the case along lines where ridership is relatively low or share the same track. As examples, the N and W are grouped together as are the J, M, and Z. The 18 Line General Managers would in turn report to five Group General Managers. Decisions regarding which lines were combined to create a group were based on a number of criteria, including service corridor, service level, route and track miles, and the number of employees. The New York City subway system is one of the largest and most complex rapid rail systems in the world. The workforce alone totals more than 28,000 individuals. Trains travel over 231 route miles and either stop or pass through 468 stations. The car fleet of 6,400 is supported by 14 car maintenance facilities, two overhaul shops, and 23 subway yards. Train movements are guided by 118 towers. The 7 line alone, which is the 7th largest NYCT line in terms of ridership, is equivalent to the fourth largest transit system in the United States. Only Washington D.C., Chicago, and Boston surpass the Flushing Line. The current plan to reorganize the Department of Subways reflects the successful reorganization of the Department of Buses almost 25 years ago, when that department was reorganized with a borough focus. The managers are being required to take a hands-on approach to running "their railroads." The Line General Managers will be able to direct staff as necessary to address priority issues, responding to contacts with customers and the results of the Rider Report Cards. Their duties also include making regular visits to their line's stations, maintenance facilities, and crew quarters; making decisions concerning the best way to deliver service; and investing time each day engaging their employees and customers. The Line General Managers will be evaluated in a number of areas, including safety, customer service, and employee morale. They will also be responsible for line performance indicators, such as On-Time Performance and Mean Distance Between Failures. The groups will be held firmly accountable for the quality of service on their lines. The customer service rating will originate with the customers themselves through the ratings provided by the Rider Report Card. The reorganization will be rolled out in two phases. Initially, two groups will be created: IRT West, which incorporates the 1 2 3 and 7 lines, and IRT East, comprised of the 4 5 6 and 42nd Street Shuttle S. With these two groups, there are distinct lines of responsibility for the two corridors. Phase Two will see the creation of three additional groups: the BMT Group, which would include the B D N Q W and Franklin Shuttle S; the BMT/IND group, consisting of the A C J L M Z and Rockaway Shuttle S; and the IND group, with the E F G R V. The majority of personnel (MTA - posted 9/24) PASSENGERS CAN NOW GOOGLE TRIPS ACROSS TRANSIT AGENCIES Planning trips between the largest public transportation agencies in New Jersey and New York is now just a few mouse-clicks away—and easier than ever—thanks to a beefed-up Google Maps website that integrates NJ TRANSIT, PATH and Metropolitan Transportation Authority (MTA) bus, rail and light rail service schedules. The Google trip planning tool, which was introduced to NJ TRANSIT rail and light rail customers in March, is now available for trips that include all 240 NJ TRANSIT bus routes as well MTA and PATH transit services. “We are pleased the MTA and PATH are working with us to provide the same access to trip information that has proven to be so popular with our customers,” said NJ TRANSIT Executive Director Richard Sarles, who joined New York officials this morning at Grand Central Terminal for the announcement of the MTA/PATH launch of Google Transit. “Now, New Yorkers visiting New Jersey can effortlessly plan their trip using mass transit to get to a number of great destinations in the state, like the Yankees AA team in Trenton and the circus at the Prudential Center in Newark.” Google Maps provides written directions and maps to stations, schedule information, transfer times, reverse trip directions, an ability to search for nearby businesses and a link to www.njtransit.com for customized planning tools and fare information. (NJ Transit - posted 9/23) CSX PROVIDERS INFORMATION ON IMPACT OF RECENT STORMS: CSX Corporation ) today said that the financial impact of recent storms in the Gulf Coast and Midwest is now expected to reduce third quarter operating income by $40 million to $50 million and earnings per share by six to eight cents. The impact is primarily related to asset write downs, business interruption and reroute expenses.The company did not change its 2008 or long-term financial guidance. (CSXT - posted 9/23) MICHEAL D. LOCKHART ELECTED TO NORFOLK SOUTHERN BOARD: Michael D. Lockhart, chairman, president, and chief executive officer of Armstrong World Industries Inc., has been elected a director of Norfolk Southern Corporation , Chairman and CEO Wick Moorman announced today. Lockhart joined Armstrong in 2000. Prior to that, he was chairman and chief executive officer of General Signal Corporation from 1995 until it was acquired in 1998. He joined General Signal as president and chief operating officer in 1994. From 1981 until 1994, Lockhart worked for General Electric Company in various executive capacities in GE Capital, GE Transportation Systems, and GE Aircraft Engines. Lockhart holds a master’s degree from the University of Chicago, Graduate School of Business. Norfolk Southern Corporation - posted 9/22) NJ TRANSIT WEEKEND GLADSTONE BRANCH SERVICE TO RETURN THIS WEEKEND: NJ Transit will renew weekend Gladstone Branch service effective September 28. Weekend train service had been suspended this past summer due to catenary related improvements. The subsitute Lakeland buses will return to their garage, and the shiny Arrow MUs will return to their weekend haunt. (posted 9/22) GENESEE& WYOMING REPORTS AUGUST 2008 TRAFFIC LEVELS: Genesee & Wyoming Inc. (GWI) today reported traffic volumes for August 2008. GWI's traffic in August 2008 from continuing operations was 69,809 carloads, a decrease of 519 carloads, or 0.7 percent, compared with August 2007. GWI's traffic in the third quarter of 2008 through August was 138,054 carloads, a decrease of 2,859 carloads, or 2.0 percent, compared with the third quarter of 2007 through August. The Maryland Midland Railway, which GWI started operating January 1, 2008, and CAGY Industries, Inc., which GWI started operating May 31, 2008, shipped a combined 4,380 carloads in August 2008. Same-railroad traffic in August 2008 decreased by 4,899 carloads, or 7.0 percent, compared with August 2007. Excluding haulage traffic on GWI's Meridian & Bigbee Railroad, which shipped 3,134 carloads in August 2007, GWI's same-railroad traffic in August 2008 decreased by 1,765 carloads, or 2.6 percent. The decrease was principally due to a decline in farm & food products traffic of 1,779 carloads primarily due to reduced grain shipments in GWI's Australia Region. This expected decrease was due to drought conditions in Australia. All other same-railroad traffic increased by a net 14 carloads. The Maryland Midland Railway, which GWI started operating January 1, 2008, and CAGY Industries, Inc., which GWI started operating May 31, 2008, shipped 8,918 total carloads in the third quarter of 2008 through August. Same-railroad traffic in the third quarter of 2008 through August decreased by 11,777 carloads, or 8.4 percent, compared with the third quarter of 2007 through August. Excluding haulage traffic on GWI's Meridian & Bigbee Railroad, which shipped 6,349 carloads in the third quarter of 2008 through August, GWI's same-railroad traffic in the third quarter of 2008 through August decreased by 5,428 carloads, or 4.0 percent. The decrease was principally due to declines of 3,268 carloads of farm & food products traffic, 1,531 carloads of lumber & forest products traffic and 1,372 carloads of coal, coke & ores traffic. All other same-railroad traffic increased by a net 743 carloads. As previously reported, GWI initiated the liquidation of its hurricane-damaged operations in Mexico on June 25, 2007, and had no remaining employees in Mexico as of September 30, 2007. GWI's Mexican operations had zero carloads in August 2007 and 1,339 carloads for the third quarter of 2007 through August. GWI's former Mexican operations are accounted for as discontinued operations and are not included in this report. Historically, GWI has found that carload information may be indicative of freight revenues on its railroads, but may not be indicative of total revenues, operating expenses, operating income or net income. GWI owns and operates short line and regional freight railroads in the United States, Canada, Australia and the Netherlands and owns a minority interest in a railroad in Bolivia. Operations currently include 52 railroads organized in nine regions, with more than 6,000 miles of owned and leased track and approximately 3,000 additional miles under track access arrangements. GWI provides rail service at 16 ports in North America and Europe and performs contract coal loading and railcar switching for industrial customers. (G&W - posted 9/19) YORK RAIL TO SERVICE NEW DETERGENT PLANT: Church & Dwight Co. Inc. recently launched construction on an Arm & Hammer laundry detergent manufacturing facility and distribution center in Jackson Township, Pa., about 100 miles from Philadelphia. To be completed by 2009's end, the 1.1 million-square-foot plant will be served by York Railway Co., which is owned by Genesee & Wyoming Inc. (Alex Mayes - posted 9/19) CN PETITIONS U.S. COURT OF APPEALS TO ORDER FINAL STB DECISION ON TRANSPORTATION MERITS OF PROPOSED EJ&E ACQUISITION: CN today petitioned the United States Court of Appeals for the District of Columbia Circuit for an expedited ruling ordering the Surface Transportation Board (STB) to render a final decision on the transportation merits of CN’s proposed acquisition of the principal lines of the Elgin, Joliet & Eastern Railway Company (EJ&E), to allow the transaction to close by the parties’ Dec. 31, 2008, deadline. “Given the substantial, wide-ranging public interest benefits of our planned acquisition of the EJ&E, we cannot permit regulatory delay to imperil this transaction,” said CN President and Chief Executive Officer E. Hunter Harrison. “We are convinced - and many business and community leaders agree - that the transaction will be good for the Chicago region as a whole. It would ease rail congestion, which is critically important to the region’s economy and its continued role as one of America’s most important transportation hubs. If unaddressed, rail congestion threatens $2 billion of dollars of production and 17,000 jobs in the Chicago region over the next 20 years. “Second, the transaction would benefit the environment of the overall Chicago region. For every community along the EJ&E line in the suburbs of Chicago that would see increased train traffic as a result of the transaction, nearly double that number along CN lines in inner Chicago would see decreased rail operations. In fact, roughly 60 communities inside the EJ&E arc would benefit from reduced train traffic as a result of the transaction. That would mean a better quality of life for residents of the Chicago region, with less pollution, fewer idling trains and fewer blocked crossings.” Faced with a Dec. 31, 2008, deadline for completing its purchase of the EJ&E, CN last month proposed a reasonable compromise to the STB that would have allowed the agency to rule on the transportation merits of the EJ&E acquisition while completing its environmental review of the transaction. During this environmental review, CN proposed to maintain an “environmental status quo” by which CN would not shift any of its trains to the EJ&E until that review had been completed. But the agency last week denied CN’s petition. “It is truly unfortunate that the STB rejected CN’s compromise solution given the impending deadline on our transaction,” Harrison said. “The agency’s decision - and continuing uncertainty about the timing of the STB’s final decision on the transaction - leave us no option but to ask the court to compel a final STB decision on the transportation merits of the acquisition. We need the STB ruling soon so that we will be in a position to close the transaction before year-end.” CN’s petition need not preclude full environmental review of the transaction. If it is granted, that will be a choice for the agency. The STB would have options to assure that if CN’s petition is granted, the agency can complete its environmental review of the transaction, including its consideration of the comments of all interested parties and its imposition of lawful mitigation before the transaction would be able to have any adverse environmental effects. “The bottom line is that the benefits to Chicago’s rail network and environment from rerouting trains off congested city and inner Chicago lines onto the underused EJ&E are too great to see this transaction derailed,” Harrison said. “We cannot allow controversy created in some Chicago suburbs - and the regulatory delay it has created - to jeopardize the transaction. “CN appreciates the concerns of suburban communities, and it continues to make substantial efforts to address potential adverse impacts of the acquisition. But in the end we do not believe that concerns from a small but vocal minority of residents should take precedence over the broad public interest and the needs of a far greater number of communities that would benefit from the transaction. “The transaction is not just about CN - it’s also about an efficient Chicago rail network, a sound regional economy, and a better quality of life for more than four million Chicago-area residents.” The STB designated the transaction as “minor” in November 2007 because CN’s application did not pose anti-competitive issues. By statute, the STB is required to issue a final decision on minor transactions within 180 days of accepting an application for consideration. In its November decision, however, the STB said it would prepare an Environmental Impact Statement (EIS) on the transaction and that its final decision would be extended beyond the 180 days until the completion of the EIS. The agency’s Section of Environmental Analysis began its extensive environmental review of this transaction in December 2007. After 10 months of review, few competition issues have been raised, yet the STB still has not made a final determination as to whether the transaction passes the statutory competition test. Other, more complicated transactions reviewed by the STB have closed within a time period comparable to what CN seeks here. In the case of the $10-billion Conrail merger in 1997 – a transaction that traversed 24 states and the District of Columbia, 10,500 miles of rail lines and 2,070 grade crossings – the STB finalized its environmental review in 11 months and issued a decision on the transaction two months later. By contrast, CN’s $300-million transaction involves small portions of only two states, 158 miles of rail line and a total of 99 grade crossings. (CN - posted 9/18) RAIL FREIGHT TRAFFIC OFF DURING MOST RECENT WEEK: Freight traffic on U.S. railroads was off during the week ended September 13 in comparison with the same week last year, the Association of American Railroads (AAR) reported today. Total volume was estimated at 34.6 billion ton-miles, down 1.7 percent from the comparable week last year. Carload freight in the week totaled 329,836 cars, off 2.4 percent from last year. Volume was down 0.6 percent in the West and 5.0 percent in the East. Intermodal volume, which is not included in the carload data, totaled 236,877 trailers or containers, down 6.1 percent from a year ago. Trailer volume was off 5.4 percent while container traffic was down 6.3 percent. Eighteen of 21 carload commodity groups were down from a year ago. Loadings of motor vehicles and equipment fell 25.1 percent while lumber and wood products were down 18.4 percent and primary forest products were off 16.2 percent. On the upside, metallic ores gained 20.1 percent from last year while coal rose 7.0 percent. Cumulative volume for the first 37 weeks of 2008 totaled 12,035,176 carloads, up 0.1 percent from 2007; 8,266,065 trailers or containers, down 2.0 percent; and total volume of an estimated 1.25 trillion ton-miles, up 1.2 percent from last year. On Canadian railroads, during the week ended September 13 carload traffic totaled 76,544 cars, down 3.0 percent from last year while intermodal volume totaled 53,006 trailers or containers, up 4.6 percent from last year and the highest weekly total since AAR began reporting Canadian data in 1996. Cumulative originations for the first 37 weeks of 2008 on the Canadian railroads totaled 2,744,943 carloads, down 4.0 percent from last year, and 1,778,437 trailers and containers, an increase of 4.2 percent from last year.hr> Combined cumulative volume for the first 37 weeks of 2008 on U.S. and Canadian railroads totaled 14,780,119 carloads, down 0.7 percent from last year, and 10,044,502 trailers and containers, a 1.8 percent decrease from last year. The AAR also reported that carload freight on the Mexican railroad Kansas City Southern de Mexico (KCSM) during the week ended September 13 totaled 9,064 cars, down 12.3 percent from last year. KCSM reported intermodal volume of 5,401 trailers or containers, up 11.7 percent from the 37th week of 2007. For the first 37 weeks of 2008, KCSM reported cumulative volume of 383,472 cars, down 4.4 percent from last year, and 180,595 trailers or containers, up 8.5 percent. Railroads reporting to AAR account for 89 percent of U.S. carload freight and 98 percent of rail intermodal volume. When the U.S. operations of Canadian railroads are included, the figures increase to 96 percent and 100 percent. The Canadian railroads reporting to the AAR account for 91 percent of Canadian rail traffic. Railroads provide more than 40 percent of U.S. intercity freight transportation, more than any other mode, and rail traffic figures are regarded as an important economic indicator. AAR - posted 9/18) GRANDLUXE TRAIN SET FOR SALE: GrandLuxe Rail Journeys, LLC and its affiliates today announced that they have retained Libra Securities, LLC to sell the luxury train recently operated as GrandLuxe Express. The train consists of 20 fully-operational cars and an additional 11 cars not currently in service. Prior to 2006, the train was operated under the name American Orient Express. The train will be available for viewing in Napa Valley, California later this month. "This is a unique opportunity for a sophisticated investor to acquire a train comprised of restored, 1940's and 50's-era luxury train cars," says Thomas M. Kim, Manager of GrandLuxe Rail Journeys, LLC. "We retained Frank Sena and Libra Securities because of their strong capabilities in the travel and leisure industry, and selected Napa Valley, California to showcase the GrandLuxe Express because we believe it is a destination of great interest to the discerning traveler and those interested in operating a luxury train." Interested parties are encouraged to visit http://www.luxuryrailcars.com and qualified buyers should contact Frank Sena, Libra Securities Managing Director, at 212-332-4150 for additional information on the train, viewing events and the sale process. GrandLuxe Rail Journeys, a company operating luxury private train journeys in North America, ceased train operations in August 2008. The company's GrandLuxe Express, once known as the American Orient Express, was named one of the 'World's Top 25 Trains' by the Society of International Railway Travelers and the 'Number 1 Railway Excursion in the USA' by America's Best and Top Ten website (GrandLuxe Rail Journeys, LLC - updated 9/17) VIA'S CHALEUR SERVICE SET TO RESUME ON SEPTEMBER 21: VIA Rail Canada has been advised by the Société du chemin de fer de la Gaspésie that work to replace a rail bridge that had been washed out near Pointe à la Croix, Québec (near Matapédia) is nearing completion. As a result, regular thru-service on VIA's Chaleur from Montréal to Gaspé is expected to resume on Sunday, September 21. Regular service on VIA's Chaleur between Montréal and Matapédia will resume on Wednesday, September 17. Alternate transportation for passengers travelling between Matapédia and Gaspé in both directions has been arranged from Wednesday, September 17 to Saturday, September 20. Regular service on VIA's Ocean, which was rerouted via Edmundston for the past couple of weeks, resumed earlier this week following the completion of repairs to another bridge, this one near Causapscal. The Chaleur operates from Montréal to Gaspé every Wednesday, Friday and Sunday and from Gaspé to Montréal every Monday, Thursday and Saturday. The Ocean operates between Montréal and Halifax in both directions, daily except Tuesday. VIA anticipates that these trains will continue to experience delays, occasionally significant, as track repairs and upgrades continue over the coming weeks. This may occasionally affect passengers transferring to/from other VIA trains. VIA undertakes to do everything possible to minimize any inconvenience to its customers. Customers wishing further information may visit viarail.ca or call 1 888-VIA RAIL (842-7245) or TTY 1 800 268-9503 (hearing impaired). (VIA Rail Canada - updated 9/17) NORFOLK SOUTHERN AND BLET REACH NEW AGREEMENT: Norfolk Southern Railway Company and the Brotherhood of Locomotive Engineers and Trainmen (BLET) have reached a new agreement that will continue to link engineer compensation to company performance through 2014. The BLET has participated in such a bonus program since 1996. The new agreement covers approximately 5,000 engineers and provides each engineer the opportunity for an annual bonus payment based on company financial and service performance metrics and, for the first time, his or her work availability in the previous year. Other highlights of the agreement include annual wage increases totaling 19 percent from 2009 through 2014, enhancements to the BLET’s 401k plan, increased incentive pay for weekend/holiday work, reduced employee costs for the BLET disability plan, and increased pay for engineers who assist in training new engineers. The annual wage increases average approximately 3.2 percent per year. Eligible engineers will receive up to two lump-sum payments: a signing bonus of $1,200 by Dec. 1, 2008, and a lump-sum bonus payment of $3,500 by Jan. 1, 2009. BLET General Chairman Ray Wallace said, “The BLET has enjoyed a strong partnership with Norfolk Southern over the years. This agreement ensures that Norfolk Southern’s success will continue to be financially beneficial to our members.” BLET General Chairman Cole Davis added, “Engineers are an integral part of Norfolk Southern operations. The financial package in this agreement ensures that our members are compensated for their contributions to the company’s performance.” BLET General Chairman Willard Knight concluded, “This agreement recognizes and rewards the hard work that our members perform each day to improve Norfolk Southern’s prosperity.” Norfolk Southern Vice President Labor Relations Harold Mobley said, “Reaching a long term agreement that links engineer compensation to our corporate goals will allow all of us to continue to focus on the railroad’s safety, operating efficiency, and customer service.” (Norfolk Southern Corporation updated 9/16) FRA ANNOUNCES ELEVEN RESEARCH AND INFRASTRUCTURE GRANTS: DOT Agency Awards Contract to Battle Invasive Species. The Department of Transportation’s Maritime Administration has awarded a $350,000 contract to the Northwest-Midwest Institute’s Great Ships Initiative. The requirements of the contract are to design and validate a ballast sampling method that is reliable, replicable, and cost-effective for both ship owner and the regulatory community. It will also be used to develop appropriate protocols for ballast water discharge sampling. The Great Ships Initiative is a collaborative effort to end the problem of ship-mediated introductions of invasive species in the Great Lakes-St. Lawrence Seaway System. Contact: Susan Clark (202) 366-5807. .
VENTURA COUNTY LINE FREIGHT TRAIN/METROLINK COLLISION: The Board of Directors, executive management and staff of Metrolink extend their prayers and condolences to the families and loved ones of the 17 passengers and train crew members who perished in the September 12th train collision in Chatsworth. Many of us ride our own trains every day and we feel that everyone who uses Metrolink is a member of a unique family, the Metrolink family. And like with any other family, when a member is lost, even just one, the pain is indescribable. Metrolink also extends its prayers for the speedy recovery of the over 130 of our passengers and crew members who were injured yesterday. Our number one priority is the safety of our passengers and when we complete our work with the emergency response agencies on site, we will be working closely with the National Transportation Safety Board and other agencies to determine the cause of the collision and to ensure that everything possible is done to prevent a tragedy of this type from occurring again. --------------------------------------------------------------------------------------------------------------------------------- At this time, Metrolink's preliminary investigation has revealed that yesterday's incident may have been the result of human factors and/or the railroad signal system on Metrolink's part. We will be working with the NTSB to complete a thorough investigation as to the exact cause of yesterday's collision. NTSB TO TAKE OVER INVESTIGATION OF RAIL COLLISION: Railroad Investigator Wayne Workman will serve as Investigator-in-Charge and lead the NTSB team. NTSB Board Member Kitty Higgins will serve as principal spokesman during the on-scene investigation. Terry Williams will accompany the team as press officer. All media inquiries regarding the investigation of the September 12th collision should be directed to Mr. Williams. He may be reached on his cell phone (202-557-1350). --------------------------------------------------------------------------------------------------------------------------------- As of Saturday Sept. 13, 2008, Amtrak Pacific Surfliner service is cancelled between Los Angeles and San Luis Obispo. No alternate transportation is being offered. In addition, Amtrak Coast Starlight service will only operate into and out of Santa Barbara. Alternate transportation WILL be provided for Coast Starlight passengers between Santa Barbara and Los Angeles. Visit amtrak.com for more information. Recovery operations are continuing at the train collision site in Chatsworth. At this time we understand that there are 135 reported injured, some critically, and at least 18 fatalities. L.A. Fire Dept. has released the following two numbers to call for information on hospital patients: (213) 847-2117 and (213) 847-2118 NTSB TO TAKE OVER INVESTIGATION OF RAIL COLLISION: Railroad Investigator Wayne Workman will serve as Investigator-in-Charge and lead the NTSB team. NTSB Board Member Kitty Higgins will serve as principal spokesman during the on-scene investigation. Terry Williams will accompany the team as press officer. All media inquiries regarding the investigation of the September 12th collision should be directed to Mr. Williams. He may be reached on his cell phone (202-557-1350). TELECONFERENCE MEETING NOTICE - SOUTHERN CALIFORNIA REGIONAL RAIL AUTHORITY BOARD OF DIRECTORS 10:00 A.M., SATURDAY SEPTEMBER 13, 2008 An emergency meeting/closed session of the Southern California Regional Rail Authority Board of Directors by teleconference call to discuss a threat to public services and facilities will be held at 10:00 a.m. on Saturday September 13, 2008 pursuant to California Government Code Sections 54956.5 and 54957 (Metrolink - updated 9/13) BEVERLY DRAW BRIDGE MODERNIZATION PROJECT ADVANCES: MBTA General Manager Daniel Grabauskas has announced that the T’s Board of Directors has authorized the expenditure of up to $1,600,000 for a new hydraulic system and other upgrades for the Beverly Draw Bridge on the Newburyport/Rockport Commuter Rail Line in Massachusetts. The main span, originally built in 1886, is a navigational channel swing bridge with a symmetrical swing span consisting of four girders with an open deck and timber ties. The MBTA is required to open this bridge within ten minutes of a request from a marine vessel in adherence to federal regulations. The U.S. Coast Guard closely monitors bridge activity and strictly enforces non-compliance with significant penalties. On December 21, 2007, a barge operating in the northern-most Danvers River navigational channel struck the swing span of the bridge while it was in the “open position”. The rear of the barge collided with the northeast corner of the east most outside girder of the swing span. A non-MBTA contractor was operating the barge as part of the Danvers River dredging project upriver from Beverly Draw. The MBTA immediately notified its engineering consultant, HNTB, and requested the bridge engineers who had participated in the recently completed bridge inspection and recommendation report to inspect the bridge to determine structural damage resulting from the barge collision. Damage was noted to the exterior turnbuckle that is associated with the linkage for the northeast wedge assembly that “seats” the bridge into the closed position. The force of the barge collision sheared the northeast wedge turnbuckle on the interior side of the east girder and distorted the exterior wedge turnbuckle. As a result of the barge collision, the swing span was not able to return to a closed position under its own power. MBCR maintenance crews installed a replacement wedge guide/linkage assembly, restoring the bridge to full operation. Immediately following the barge impact event, HNTB was authorized by the MBTA to prepare final engineering design and construction documents for a new wedge drive hydraulic system installation. The new hydraulic system upgrades the swing span’s mechanical system from the existing “gear driven” system to a more reliable hydraulic system. The MBTA Board’s approval allows the MBCR to solicit bids and retain a General Contractor to utilize the HNTB final engineering design and construction documents to install a new wedge drive hydraulic system and associated upgrades. MBTA General Manager Daniel Grabauskas said this project will significantly extend and preserve the life of the bridge’s infrastructure and improve service reliability for thousands of daily customers. (MBTA - posted 9/12) SEPTA WELCOMES MOCK-UP OF SILVERLINER V RAILCAR: SEPTA has taken an important step toward putting 120 new rail cars on Regional Rail tracks with the recent receipt of a “mock-up” of its new commuter rail car, the Silverliner V. The mock-up was built to help engineers in the design and manufacturing process for the fleet of commuter rail cars ordered by SEPTA from United Transit Systems, a consortium of Hyundai Rotem of South Korea and Sojitz Corporation of America. Scheduled to begin delivery next year, the new rail cars will help SEPTA provide an improved, more comfortable experience for riders by incorporating advanced elements into the design and adding much-needed capacity to accommodate SEPTA’s ever-growing ridership. Final assembly of the new rail cars will be completed by Hyundai Rotem USA at its facility in South Philadelphia. To build the fleet, the company has announced plans to create hundreds of jobs at the site. In addition to Hyundai Rotem USA, dozens of companies throughout Greater Philadelphia, as well as Pennsylvania, New Jersey and Delaware were awarded manufacturing contracts to build parts of the rail cars. Local companies will supply parts such as the HVAC systems, gear units, propulsion systems and door systems, infusing important dollars into the economy. “Seeing a model of our new rail cars really brings to life our vision for improved service and a better experience for all riders,” said Joseph M. Casey, SEPTA General Manager. “The addition of the Silverliner V, introduction of the new hybrid bus fleet and our recently announced service expansion are all important steps in the right direction for SEPTA and our region as a whole.” About the Silverliner V Rail Car and Mock-Up Although the mock-up itself will not carry passengers, it plays a critical role in development of the pilot car, a working rail car that will undergo extensive testing to ensure the safest, most comfortable ride for SEPTA passengers possible. The fleet of 120 Silverliner V rail cars is being specially designed to meet the needs of the SEPTA system and its ridership, so careful planning, analysis and testing are essential to the success of the project. The mock-up is currently undergoing inspection at SEPTA’s Wayne Junction Car Shop. From there, SEPTA will transport it to Suburban Station where it will be on display for the public for a period of time this fall.There, visitors will have the opportunity to go inside the car and see examples of what the finished car will look like. It will include working electricity and lighting, signage and design elements, as well as exhibits to show the origin of various parts manufactured in the region. While specific design features are still being finalized, the completed Silverliner V rail cars will provide a new experience for riders through a number of features designed with specific goals in mind.
PANHANDLE LINE TRANSFER: The Ohio Rail Development Commission today approved the formal transfer of the operating lease for the state-owned Panhandle Line railroad to the soon-to-be owners of the Ohio Central Railroad, Genesee & Wyoming Inc. The vote was 9 to 0 with little discussion. This simply transfers the existing 5-year operating lease from Ohio Central to the G&W. (Ohio Rail Development Commission - posted 9/11) WEATHER IMPACTS RAIL FREIGHT TRAFFIC TO START SEPTEMBER: At least partly because of weather-related issues (Hurricane Gustav at the beginning of the week and Tropical Storm Hanna later in the week), freight traffic on U.S. railroads was off during the first week of September in comparison with the corresponding week last year, the Association of American Railroads (AAR) reported today. Both this year's week and the comparison week from last year included the Labor Day holiday. Total volume was estimated 32.0 billion ton-miles, down 3.3 percent from the comparable week last year. Carload freight in the week totaled 306,340 cars, off 3.5 percent from last year. Volume was down 1.7 percent in the West and 6.1 percent in the East. Intermodal volume, which is not included in the carload data, totaled 200,876 trailers or containers, down 3.4 percent from a year ago. Trailer volume was off 2.8 percent while container traffic was down 3.5 percent. Cumulative volume for the first 36 weeks of 2008 totaled 11,705,340 carloads, up 0.2 percent from 2007; 8,029,188 trailers or containers, down 2.9 percent; and total volume of an estimated 1.2 trillion ton-miles, up 1.3 percent from last year. On Canadian railroads, during the week ended September 6 carload traffic totaled 71,730 cars, down 2.9 percent from last year while intermodal volume totaled 46,987 trailers or containers, up 4.4 percent from last year. Cumulative originations for the first 36 weeks of 2008 on the Canadian railroads totaled 2,668,399 carloads, down 4.0 percent from last year, and 1,725,431 trailers and containers, an increase of 4.1 percent from last year. Combined cumulative volume for the first 36 weeks of 2008 on U.S. and Canadian railroads totaled 14,373,739 carloads, down 0.6 percent from last year, and 9,754,619 trailers and containers, a 1.7 percent decrease from last year. The AAR also reported that carload freight on the Mexican railroad Kansas City Southern de Mexico (KCSM) during the week ended September 6 totaled 9,837 cars, down 12.9 percent from last year. KCSM reported intermodal volume of 5,766 trailers or containers, up 12.1 percent from the 36th week of 2007. For the first 36 weeks of 2008, KCSM reported cumulative volume of 374,408 cars, down 4.1 percent from last year, and 175,194 trailers or containers, up 8.4 percent. Railroads reporting to AAR account for 89 percent of U.S. carload freight and 98 percent of |