WEEKLY RAIL REVIEW

FOR THE WEEK ENDING Friday, June 1, 2007

BY: DAVE MEARS

(Posted by permission)

WEEKLY RAIL REVIEW

FOR THE 7 DAYS ENDING FRI, JUNE 1, 2007

BY DAVE MEARS

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

(MON) The strike by the Maintenance of Way Employees Division of Teamsters Canada against Canadian Pacific continued into its third week. This date, a CPR spokesman said that the railroad may opt to contract out its major track maintenance work if the strike continues into the summer. The spokesman added that CPR is using management employees to try to cover routine track maintenance. Commented CPR President and CEO Fred Green, “The impact of the track workers’ strike against CPR has been neglible.” (ffd: Traffic World, wire services)

(TUE) A Norfolk Southern freight train derailed 27 cars near Waldo, OH. No crewmembers were injured in the accident and investigators are still working to determine its cause. (ffd: Bucyrus Telegraph-Forum)

(TUE) BNSF announced that it would discontinue freight service on its line between Albuquerque, NM and La Junta, CO later this year. The line operates over Raton Pass in New Mexico and is the route used by Amtrak’s “Southwest Chief” passenger train. However, an Amtrak spokesman noted that most of this line segment is now or will in the near future be owned by the State off New Mexico in support of current or planned commuter rail service. “We don’t see BNSF’s…plans as an imminent threat to our operations on this line,” added the spokesman. (ffd: Trains)

(WED) Canadian Transport Minister Lawrence Cannon proposed amending the country’s transportation regulations to give shippers more protection against “potential abuses of market power” by railroads. The proposed legislation would let the Canadian Transportation Agency “step in and protect shippers from unfair charges or other terms without first establishing that they’d suffer substantial commercial harm,” said Mr. Cannon. In response, a spokesman for Canadian National said that the proposed regulations were unneeded “because current rules were working and commercial forces should continue to rule the marketplace for transportation services.” (ffd: wire services)

(WED) The U.S. Federal Railroad Administration reportedly dismissed BNSF from participating in a special FRA-sponsored voluntary joint labor-management safety program. The report said that BNSF was dismissed from the program, the “Voluntary Confidential Close-Call Reporting System Demonstration Project,” because it couldn’t or wouldn’t meet a September 30 date for the start of voluntary compliance. The report noted that Canadian Pacific and Union Pacific remain engaged participants in the program and will likely be ready by September 30. (ffd: wire services)

(WED) Railpower Technologies recalled 59 of its Green Goat hybrid locomotives for engine modification. A Railpower spokesman said that the recall follows a fire on an engine on one of those locomotives. The spokesman added that it will do “what it takes to fix the problem” and that its new Road Switcher line of locomotives is unaffected by the recall. (ffd: Trains)

(WED) Amtrak announced that it would soon partner with a rail excursion operator to attach luxury sleeping cars to several of its trains. The cars will be added to Amtrak’s “Silver Meteor,” “Southwest Chief,” and “California Zephyr” passenger trains in a pilot program starting this October and running until January, 2008. The cars are owned and operated by GrandLuxe Rail Journeys, which is the former American Orient Express. A GrandLuxe spokesman said that accommodations in the cars would range from $789 to $2,000 per person for one to two-night trips. (ffd: Atlanta Journal-Constitution)

(THU) The U.S. Department of Transportation released statistics related to commerce between the U.S. and NAFTA partners Canada and Mexico. The report said that, in 2006, trucks moved freight between the countries valued at $534 billion, with rail moving freight valued at $129 billion. However in terms of total tonnage, trucks carried 26 percent of the freight between the countries, with rail carrying 21 percent. (ffd: Progressive Railroading, USDOT)

(THU) Following inspections by its T-18 track testing car, the Federal Railroad Administration severely slow ordered the CSX line between Cary, NC and just south of Sanford, NC. As a result of the slow orders, which limit trains on the line segment to 10 mph, Amtrak rerouted its “Silver Star” passenger train onto the CSX line between Selma, NC, Pembroke, NC and Hamlet, NC. An Amtrak spokesman said that it was uncertain how long the reroute would continue and that substitute bus service would cover the missed station stops. (ffd: NARP, Trains)

(FRI) A committee of the governing board of the New York State Metropolitan Transportation Authority recommended that alcoholic beverages continue to be served on Long Island Rail Road and Metro North commuter trains. Presently, carts selling alcoholic beverages are operated on two LIRR afternoon trains out of Pennsylvania Station and bar cars operate on 17 MNRR afternoon and evening trains out of Grand Central Terminal. A spokesman for the committee said that it had received “a thick sheaf of petitions” signed by what they estimated were thousands of commuters who supported continuing the beverage service. (ffd: New York Times)

(FRI) Norfolk Southern marked the 25^th anniversary of its formation. A NS spokesman recalled that the company had been formed June 1, 1982 from the merger of the former Norfolk & Western and Southern Railways. The spokesman further noted that, in 1982, NS operated an average of 1,066 daily freight trains and that, as a result of its 1999 purchase of 58 percent of the former Conrail as well as overall traffic growth, it now operates an average of about 1,800 daily freight trains. (ffd: NS Corp.)

STATS – TRAFFIC:

(NOTE: Canadian traffic includes that on U.S. operations of Canadian-headquartered railroads.)

(THU) For the week ending May 26, 2007, U.S. rail volume grand totaled 34.3 billion ton-miles, down 2.8 percent from the comparable week last year. U.S. carload rail traffic was down 4.7 percent, down 4.0 percent in the East and down 5.3 percent in the West. Also for the week, U.S. intermodal rail traffic was down 1.0 percent, Canadian carload rail traffic was down 0.3 percent, Canadian intermodal rail traffic was unchanged, Mexico’s Kansas City Southern de Mexico’s carload rail traffic was down 6.6 percent, and KCSM’s intermodal rail traffic was up 15.6 percent.

For the period January 1 through May 26, 2007, U.S. rail volume grand totaled 688.7 billion ton-miles, down 3.1 percent from the comparable period last year. Also for this period, U.S. carload rail traffic was down 4.5 percent, U.S. intermodal rail traffic was down 1.2 percent, Canadian carload rail traffic was down 1.5 percent, Canadian intermodal rail traffic was up 1.6 percent, KCSM’s carload rail traffic was down 5.0 percent, and KCSM’s intermodal rail traffic was up 11.1 percent. (ffd: AAR)

MORE STATS – OPERATING PERFORMANCE:

(NOTE: Effective October 1, 2005, railroads that had been furnishing 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 May 25, 2007 and versus the comparable week last year, average total cars on line was as follows: BNSF, 225,584 cars versus 222,390 cars; Canadian Pacific, 82,051 cars versus 84,047 cars; CSX, 221,315 cars versus 222,104 cars; Kansas City Southern, 28,032 cars versus 26,703 cars; Norfolk Southern, 205,098 cars versus 201,370 cars; and Union Pacific, 313,764 cars versus 323,706 cars.

Also for the week ending May 25, 2007 and versus the comparable week last year, average train speed was as follows: BNSF, 23.9 mph versus 22.3 mph; Canadian Pacific Railway, 24.1 mph versus 23.8 mph; CSX, 20.3 mph versus 19.9 mph; Kansas City Southern, 23.6 mph versus 24.2 mph; Norfolk Southern, 21.1 mph versus 21.6 mph; and Union Pacific, 20.7 mph versus 21.2 mph.

Finally for the week ending May 25, 2007 and versus the comparable week last year, average terminal dwell time was as follows: BNSF, 23.5 hrs versus 23.5 hrs; Canadian Pacific Railway, 20.8 hrs versus 20.9 hrs; CSX, 23.5 hrs versus 24.7 hrs; Kansas City Southern, 21.8 hrs versus 20.4 hrs; Norfolk Southern, 21.4 hrs versus 21.2 hrs; and Union Pacific, 24.8 hrs versus 27.4 hrs. (ffd: AAR)

EXPANSIONS, CONTRACTIONS AND ALIKE:

(MON) Canadian Pacific filed for Canadian regulatory approval to construct a new 16-mile rail line serving new and planned oil sands industry plants located near Edmonton, AB. A CPR spokesman said that it has filed a project description, the first step in the regulatory process, with the Canadian Transportation Agency. (ffd: Railway Age, RT&S, Trains)

(TUE) URS Corporation announced that it had reached agreement to acquire Washington Group International for approximately $2.6 billion. Both firms provide engineering and construction services to the transportation industry. A URS spokesman said that the new company, which will still be called URS Corporation, will employ more than 54,000 persons, with projects ongoing in more than 50 countries. (ffd: URS Corp., Progressive Railroading)

(THU) BNSF filed to abandon approximately one-fifth of a mile of line in Seattle, WA. (ffd: STB)

(THU) The Napa-Platte Regional Railroad Authority, filed to lease, from the State of South Dakota, and operate approximately 14 miles of line between near Napa, SD and near Tabor, SD. In its filing, NPRRA said that it would provide rail service through a third-party rail operator. (ffd: STB)

(THU) Norfolk Southern filed to abandon approximately 2 miles of line between Rutherford, NJ and Carlton Hill, NJ. (ffd: STB)

(FRI) Canadian Pacific’s Delaware & Hudson subsidiary filed to abandon approximately 2 miles of line between Colonie, NY and Green Island, NY. (ffd: STB)

(FRI) Western New York & Pennsylvania Railroad filed to lease, from Norfolk Southern Railway and the Chautauqua, Cattaraugus, Allegany and Steuben Southern Tier Extension Railroad Authority, and operate approximately 99 miles of line between Machius Junction, NY and Driftwood, PA. (ffd: STB)

APPOINTMENTS, ACHIEVEMENTS AND MILESTONES:

(TUE) Former Brotherhood of Locomotive Engineers President John Sytsma passed away at Age 85. Mr. Sytsma was BofLE head from 1976 until his retirement in 1986. (ffd: Trains)

(THU) BNSF appointed Sarah Bailiff its AVP-Joint Facilities & Contracts. Ms. Bailiff succeeds Debbie Valentine, who is retiring. (ffd: BNSF Corp.)

(FRI) The National Mediation Board appointed Zachery Jones it Senior Mediator. A NMB spokesman said that Mr. Jones, who joined the NMB is 2000, will work “to resolve rail and airline industry contract disputes.” (ffd: Progressive Railroading)

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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 receive it, with my compliments. (Note: If you work in rail or transit and are receiving it from another, please send me an email letting me know, so that I can work to estimate overall readership; thanks to those of you who have already done this.)

BE SAFE AND PROSPER,

Dave Mears

Cherry Hill, New Jersey, USA

Posted: 06/07/07