WEEKLY RAIL REVIEW

FOR THE WEEK ENDING SATURDAY, Feb. 09, 2007

BY: DAVE MEARS

(Posted by permission)

 

(NOTE: As mentioned last week and from now on, Weekly Rail Review will sum the news for the 7 days ending Friday instead of for the 7 days ending Saturday. I am making this change because I have found that there is often more news about weekend occurrences the next business day, usually Monday, than there is during the weekend itself. Dave M.)

THE WEEK’S TOP RAIL AND TRANSIT NEWS (in chronological order):

(MON) The New York Observer reported that the long-proposed plan to convert Manhattan’s Farley Post Office Building into the Moynihan Rail Station has gained new momentum. The effort was halted in October, 2006 when New York State Assembly Speaker Sheldon Silver worked to deny state funding for the project. According to the Observer, current efforts are focused on much broader plans, first floated by project developers more than a year ago, in which a new Madison Square Garden would be built at the west end of the Farley Building and Pennsylvania Station would be rebuilt, including opening it up to sky views. Also reported was that the Empire State Development Corporation, which is overseeing the project, has signed a memorandum of understanding that extends the time to purchase the Farley Building from the U.S. Postal Service until the end of March, 2007. (ffd: New York Observer, Trains)

(MON) A wave of extreme cold weather and substantial snowfalls covered portions of the Midwest and Northeast U.S., especially in states near the Great Lakes. CSX declared a Level 2 alert, during which freight train service may be delayed, on its main and branch lines between Cleveland, OH and Syracuse, NY. Amtrak temporarily curtailed its Empire Corridor trains west of Albany, NY and on some of its short-haul routes out of Chicago, IL. Those short-haul services continued to be affected through the week, which Trains Magazine reported was in part due to freeze-ups of the Horizon-Class passenger cars used on these services, which have water supply and toilet configurations that, even after remanufacturing, have continued to freeze in very cold weather. (ffd: Amtrak, Trains)

(MON) The Bush Administration proposed a preliminary federal budget for Fiscal Year 2008. The budget includes $1.4 billion in contributions for more than 30 current or proposed commuter rail and transit projects. The budget further proposes $800 million in federal subsidies for Amtrak, about $500 million less than Congress appropriated Amtrak for Fiscal Year 2006 and will likely appropriate for Fiscal Year 2007. Several bills are pending in the Democrat-controlled Congress that would increase Amtrak funding to several times that amount over a multi-year period. (ffd: Progressive Railroading, Railway Age)

(TUE) The Massachusetts Bay Transportation Authority marked the completion of two notable commuter rail projects. Massachusetts Transportation Secretary Bernard Cohen drove a ceremonial golden spike in Braintree, MA connecting the Greenbush Line, which is being rebuilt for commuter rail service, to the MBTA’s Plymouth and Middleboro commuter rail lines. Revenue service on the Greenbush Line, which will run from Boston’s South Station to communities on the South Shore of the greater Boston area, is expected to begin in October. Also on Tuesday, MBTA General Manager Daniel Grabauskas official opened the newly expanded concourse at Boston’s North Station. Under a seven-month, $5 million project, MBTA added 20,000 square feet of space in the concourse area, which now includes a larger customer waiting area, larger restrooms, and an overhead electronic board to provide schedule and track information. As part of the renovation, MBTA moved tracks and platforms back almost 80 feet to relieve station congestion. (ffd: NARP, Progressive Railroading, Trains)

(TUE) A CSX freight train derailed 18 cars near Handley, WV. Including in the derailed cars were several carrying toxic inhalation hazard (TIH) commodities, which resulted in about 300 residents near the derailment being evacuated as a precaution. However, none of the derailed cars leaked any chemicals and the residents were allowed to return to their homes later in the day. (ffd: wire services)

(TUE) The Federal Railroad Administration announced the start of a pilot project whereby rail workers at Union Pacific’s Bailey Yard in North Platte, NE “can now voluntarily and anonymously report ‘close-call’ incidents that did not but could have resulted in an accident, and [do so] without fear of sanction or penalty from their employer or the federal government.” A FRA spokesman said that the UP, the United Transportation Union and the Brotherhood of Locomotive Engineers & Trainmen all agreed to the project. The spokesman added that the project will be extended to BNSF’s yard in Lincoln, NE and Canadian Pacific Railway’s yard in Portage, WI in the coming months, as well as to a to-be-determined location on a commuter railroad. (ffd: FRA, Railway Age)

(TUE) Four Midwestern universities announced completion of a project to move a large collection of endangered paper copies of railroad journals and books to archival-quality microfilm. The 46 journal titles (totaling 1,319 volumes) and 217 books, all of which were becoming too fragile to be circulated, chronicle activity on U.S. railroads from 1832 to 1975. The universities participating in the project were the University of Illinois at Champaign-Urbana, the University of Iowa, Northwestern University, and the University of Wisconsin at Madison. (ffd: Trains)

(TUE) Union Pacific, which has aggressively been addressing an impending worker shortage, opened a storefront hiring office in North Platte, NE where applicants may apply for jobs, print off completed applications and check application status. The new office was opened in partnership with the North Platte Career Center, which is next door to it. UP has said that nearly 100 percent of its workforce will turn over by 2012 and that it is presently hiring about 20 new employees a month for train service and about five a month in each of several other departments. (ffd: North Platte Telegraph)

(WED) U.S. Representative Henry Waxman (D-CA) endorsed the repeal of a law he had written in 1985 banning further subway construction in and near Los Angeles, CA. Mr. Waxman had authored the law after more than 20 persons were injured in a methane gas explosion that year related to subway digging. The House subsequently passed the repeal and the Senate is expected to pass it shortly. Los Angeles is looking to expand its subway line from its present western terminus at Wilshire Boulevard and Western Avenue to the ocean about 13 miles away over the next decade or so. (ffd: Los Angeles Times)

(WED) The U.S. Department of Transportation released approximately $25 million of an intended $100 million in funding for the Chicago, IL area CREATE project. The project looks to relieve rail bottlenecks in and around the city with a planned total of $1.5 billion in improvements over several years. A CREATE spokesman said that the $25 million will go toward several needs, including crossing improvements and installation of reverse signaling on the commuter rail line between Chicago and Joliet, IL. (ffd: NARP, Railway Age)

(WED) CSX announced that it would spend $8 million this year to double capacity at its Charlotte, NC intermodal terminal. A CSX spokesman said that planned improvements to the terminal will double its lift capacity from 80,000 units to 160,000 annually. The spokesman added that CSX has already announced plans to expand or upgrade intermodal terminals in Chicago-Bedford Park, IL, Buffalo, NY and Tampa, FL and will, this coming September, also open a new facility in Chambersburg, PA, the first new CSX intermodal terminal in nearly a decade. (ffd: CSX Corp., Progressive Railroading)

(THU) Civil rights activist Jesse Jackson and House Judiciary Chairman John Conyers (D-MI) announced that they would launch an investigation to try and determine why at least three dozen rail workers were dismissed due to directives from the U.S. Transportation Security Administration. “We want to determine whether these TSA policies are being imposed properly,” said Mr. Conyers. Mr. Jackson said that the workers, all of whom he said had clean employment records, appear to have been fired after background checks of them were provided to TSA. (ffd: wire services)

(THU) Philadelphia, PA commuter rail operator SEPTA said that it was scrapping its commuter rail ticketing machines because they could not be converted to accept new dollar bill designs. “They were antiquated and could not accept the new paper currency,” said a SEPTA spokesman. “Because of that, they were essentially useless.” The spokesman added that, at some stations where the machines had been in service, ticket office hours will be lengthened or riders will be able to buy tickets aboard trains without penalty. (ffd: Philadelphia Inquirer)

(FRI) Amtrak debuted new advertising artwork for its Acela Express and long-distance services. An Amtrak spokesman said that, for Acela Express, the artwork “becomes a visual metaphor for the many amenities Acela Express provides” and that, for long-distance trains, the artwork “will transport the audience from landscapes seen from the train to the unique experiences on board the train.” The spokesman added that the Acela Express artwork was created by Christoph Niemann, whose work has included New Yorker Magazine covers, and the long-distance train artwork was created by San Francisco-based Michael Schwab, who has done previous advertising artwork for Amtrak. (ffd: Amtrak)

(LATE FRI NIGHT): Canadian National was struck at 12:01AM Saturday by the United Transportation Union, which represents approximately 2,800 CN train and yard service employees in Canada. A CN spokesman said that the strike is only against CN’s Canadian operations and that CN’s U.S. operations should not be affected, and that CN and UTU have agreed to operate commuter rail services out of Toronto, ON and Montreal, PQ during the strike. The spokesman added that CN will put management personnel in place of UTU personnel to try to operate during the strike. (ffd: Canadian National Corp.)

STATS – TRAFFIC:

(THU) For the week ending February 3, 2007, U.S. rail volume grand totaled 32.3 billion ton-miles, down 6.1 percent from the comparable week last year. U.S. carload rail traffic was down 7.2 percent, down 9.7 percent in the East and down 5.3 percent in the West. Also for the week, U.S. intermodal rail traffic was down 2.4 percent, Canadian carload rail traffic was down 1.6 percent, and Canadian intermodal rail traffic was up 2.1 percent.

For the month of January, 2007, U.S. rail volume grand totaled 157.6 billion ton-miles, down 5.6 percent from the month of January, 2006. U.S. carload rail traffic was down 6.8 percent. There were no notable traffic increases; notable traffic decreases included motor vehicles and equipment down 21.8 percent, crushed stone, sand and gravel down 18.7 percent, and coal down 2.3 percent. Also for the month, U.S. intermodal rail traffic was down 1.6 percent, Canadian carload rail traffic was down 3.9 percent, Canadian intermodal rail traffic was down 0.5 percent, Mexico’s Kansas City Southern de Mexico’s carload rail traffic was down 12.8 percent, and KCSM’s intermodal rail traffic was up 9.3 percent. (ffd: AAR)

MORE STATS – OPERATING PERFORMANCE:

(NOTE: Effective October 1, 2005, railroads that had been furnished operating performance statistics to the Association of American Railroads began applying a new standardized definitional framework, aimed at eliminating differences in calculation methodology. Concurrent with but unrelated to these changes, Canadian National elected to no longer furnish these statistics.)

(WED) For the week ending February 2, 2007 and versus the comparable week last year, average total cars on line was as follows: BNSF, 228,069 cars versus 219,585 cars; Canadian Pacific, 80,311 cars versus 79,716 cars; CSX, 223,735 cars versus 223,971 cars; Kansas City Southern, 28,866 cars versus 29,303 cars; Norfolk Southern, 202,324 cars versus 207,263 cars; and Union Pacific 312,666 cars versus 327,964 cars.

Also for the week ending February 2, 2007 and versus the comparable week last year, average train speed was as follows: BNSF, 23.4 mph versus 22.6 mph; Canadian Pacific Railway, 23.9 mph versus 25.7 mph; CSX, 20.3 mph versus 20.3 mph; Kansas City Southern, 23.8 mph versus 20.0 mph; Norfolk Southern, 21.8 mph versus 21.3 mph; and Union Pacific, 21.3 mph versus 20.9 mph.

Finally for the week ending February 2, 2007 and versus the comparable week last year, average terminal dwell time was as follows: BNSF, 24.4 hrs versus 25.0 hrs; Canadian Pacific Railway, 22.5 hrs versus 21.1 hrs; CSX, 23.7 hrs versus 26.0 hrs; Kansas City Southern, 24.4 hrs versus 29.8 hrs; Norfolk Southern, 20.8 hrs versus 24.3 hrs; and Union Pacific, 25.2 hrs versus 28.4 hrs. (ffd: AAR)

STILL MORE STATS – 4TH QTR AND FULL YEAR 2006 RESULTS:

(WED) For the fourth quarter of 2006, Kansas City Southern Railway reported net income of $35.7 million, compared with $2.3 million in the fourth quarter of 2005. Revenues were $442.4 million, compared with $388.1 million in the fourth quarter of 2005. KCSR’s operating ratio was 80.1 percent, improved from 87.7 percent in the fourth quarter of 2005. (ffd: KCSR Corp.)

For the full year 2006, KCSR’s net income totaled $89.4 million, compared with 2005’s total of $91.4 million. Revenues totaled $1.659 billion, compared with 2005’s total of $1.352 billion. KCSR’s 2006 operating ratio was 81.7 percent, improved from its 2005 operating ratio of 88.3 percent. (ffd: KCSR Corp.)

EXPANSIONS, CONTRACTIONS AND ALIKE:

(TUE) Birmingham, AL-based Boatright Enterprises announced that it was purchasing the St. Marys Railroad. The railroad, which operates between St. Marys, FL and Kingsland, FL, was purchased from LandMar Group, which had purchased it from Durango-Georgia Paper Company just 6 weeks earlier. (ffd: Florida Times-Union)

(THU) The State of Washington announced that it was purchasing, from shortline holding company Watco, the “third branch” of the Palouse River & Coulee City Railroad, which runs from Coulee City, WA to Cheney, WA and Spokane, WA. The state had purchased the railroad’s other two branches in 2004. A state spokesman said that operation of two of the branches will be put out to bid and that the branch running from Hooper, WA to Thornton, WA will continue to be operated by Watco. (ffd: State of Washington)

APPOINTMENTS, ACHIEVEMENTS AND MILESTONES:

(MON) Norfolk Southern announced that its VP-Human Resources, Thomas Mullenix, would retire on March 1. Succeeding Mr. Mullenix will be Cindy Earhart, NS’s current VP-Information Technology. Succeeding Ms. Earhart will be Tom Werner, NS’s current AVP-Technology. (NOTE: We congratulate Ms. Earhart and Mr. Werner, the latter a Weekly Rail Review reader since its 1999 startup.)

(WED) Kansas City Southern Railway appointed Scott Mylin AVP-Revenue Accounting & Disbursement. Mr. Myline was most recently with DST Output. (ffd: KCSR Corp.)

(THU) Kansas City Southern Railway appointed Steve Evans AVP-Sales & Marketing-U.S. Carload Business Unit. KCSR also appointed Matthew Franko AVP-Sales & Marketing-International Agriculture & Minerals Business Unit. (ffd: KCSR Corp.)

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Weekly Rail Review is edited from public news sources and published weekly to those working in, or interested in, rail and transit. Send an e-mail to weeklyrailreview@aol.com <mailto:weeklyrailreview@aol.com> to receive it, with my compliments.

BE SAFE AND PROSPER,

Dave Mears

Cherry Hill, New Jersey, USA

 

 

Posted:  02/19/07