WEEKLY RAIL REVIEW

FOR THE WEEK ENDING Friday, June 8, 2007

BY: DAVE MEARS

(Posted by permission)

WEEKLY RAIL REVIEW

FOR THE 7 DAYS ENDING FRI, JUNE 8, 2007

BY DAVE MEARS

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

(SAT) The American Public Transportation Association held its 15^th annual Rail Rodeo at the Toronto Transit Commission’s Greenwood Yard. Philadelphia, PA’s SEPTA won the Operators’ Competition, which measures participants’ skills in the areas of train operation, safety regulation knowledge, train equipment, and track right-of-way rules and procedures. Los Angeles, CA’s Metropolitan Transportation Authority won the Maintainers’ Competition, which measures the ability to troubleshoot maintenance problems. A total of twenty transit agencies participated in the competition. (ffd: Progressive Railroading)

(SAT) A CSX freight train derailed 24 cars near Cross, SC, approximately 28 miles south of Raleigh, NC. The derailment caused the rerouting of other CSX freight trains and, also, the cancellation of several Amtrak trains operating on that route for the next few days. The derailment was cleared and the line restored to service later in the week. (ffd: wire services)

(MON) The ongoing melting of a record-high snow pack in the mountains of northwestern British Columbia caused notable flooding along the province’s Bulkley and Skeena Rivers. As a result of the flooding of its nearby tracks, Canadian National suspended freight train service to and from the province’s Port of Prince Rupert and Via Rail Canada also suspended its passenger train service through the area. Later in the week, CN advised its customers that service was still suspended due to the flooding and that they could not yet estimate when it would be restored. (ffd: wire services)

(MON) The internet search engine Google announced that its Google Maps would now also contain transit information for selected cities. “Depending on the data available for a given public transit system, Google Maps now shows the next departure times, what lines serve a specific station, and/or a link to the transit agency to get more details,” said a Google spokesman. The new information is available for selected transit systems in California, Florida, Hawaii, Pennsylvania, Minnesota, Nevada, Oregon, Texas and Washington State. (ffd: Information Week)

(TUE) Union Pacific confirmed an on-duty employee fatality the previous Tuesday. Arthur Mendoza, Age 49 and a 30-year UP employee, was fatally injured when the company truck he was driving ran off the road and flipped over. A spokesman for the Arizona Department of Motor Vehicles said that Mr. Mendoza did not possess the necessary commercial drivers license required by state law for the truck he was driving. (ffd: Arizona Range News)

(TUE) In what the National Association of Railroad Passengers called a potential “crack in the Great Wall at [Manhattan’s] Pennsylvania Station,” New York’s Metropolitan Transportation Authority said that they were working to provide special direct train service between Connecticut and New Jersey. A MTA spokesman said that Metro North was now working with Amtrak, New Jersey Transit and the New Jersey Sports and Exposition Authority to provide a single-seat train ride to and from New York Giant and Jet games. The spokesman added that the pilot program, targeted to begin with the start of the professional football season in Summer, 2009, would allow Metro North’s New Haven Line riders to board trains and remain on them until they reached Secaucus, NJ. Once in Secaucus, they would transfer to special NJ Transit shuttle trains to and from the Meadowlands Sports Complex. (ffd: NARP, Railway Age)

(TUE) Kansas City Southern announced that it had applied for a $100 million Railroad Rehabilitation and Improvement Financing (RRIF) loan. A KCS spokesman said that the loan proceeds would be used to finance the rehabilitation of its line between Victoria, TX and Rosenberg, TX, which he added would allow KCS to shorten its route into Mexico by approximately 70 miles and allow it to avoid operating over nearly 160 miles of Union Pacific track. The spokesman also noted that KCS’s Texas Mexican Railway subsidiary had earlier received a RRIF loan to rehabilitate its line in southern Texas. (ffd: KCS Corp., Railway Age)

(TUE) The Wall Street Journal reported that European Union nations would be investing the equivalent of $250 billion U.S. dollars to improve freight rail service between now and the Year 2020. The report noted that two major freight rail projects, the new 22-mile Loetschberg Tunnel under the Alps between Germany and Italy and a new 100-mile line connecting the Port of Rotterdam in Holland with Germany, would begin operation later this month. The report also noted that the nations of Spain and Portugal will be spending $25 billion to make the gauge of their track compatible with the European standard. (ffd: Wall Street Journal)

(WED) Canadian Pacific announced that it had reached a tentative settlement with its approximately 3,200 Canadian maintenance-of-way employees. The workers had been on strike since May 15, following the December 31, 2006 expiration of their last contract. A CPR spokesman said that details of the new agreement would be released following contract ratification. (ffd: Toronto Globe & Mail)

(WED) A new study suggested that a terrorist attack against the nation's freight rail network was a less than likely possibility. The study, prepared by Toffer Associates, stated that “well-meaning concern about the potential consequences of an attack is obscuring some important facts about the threat and painting a picture that…does not conform to reality.” The report went on to state that the complexity of the U.S. freight rail system and certain attributes of freight operations “make successful attacks against toxic inhalation hazard (TIH) cargoes considerably less of a risk than some observes believe,” adding that few terrorist organizations possess the necessary capabilities to successfully mount such attacks. (ffd: Progressive Railroading)

(WED) In a possible counter to CSX’s recently proposed “corridor of the future” between Washington, DC and Miami, FL, Norfolk Southern proposed a $2 billion expanded rail corridor through western and central Virginia. The proposed “Crescent Corridor” involves adding additional capacity, such as a second main track, to two NS lines through the state, one between Roanoke and Front Royal and the other between Lynchburg and Manassas, along with new terminals in Maryland and Tennessee. A NS spokesman said that the project would cost approximately $2 billion, with NS “fully prepared to invest a lot of money” in the project, but noting that much of the cost would need to be covered by public funding. (ffd: Virginian-Pilot)

(WED) Washington, DC’s Metropolitan Washington Airports Authority approved a $1.6 billion contract to start work on the first half of the new Metrorail subway line serving Tysons Corner, Reston and Dulles Airport. The contract was let to Bechtel Infrastructure and Washington Group International, which are together organized as Dulles Transit Partners. The first half of the line will extend approximately 12 miles west from Metrorail’s existing West Falls Church station and is expected to be operational by 2013. (ffd: wire services)

(THU) A survey of U.S. ports predicted record container traffic through the ports this coming August. The survey, conducted by the National Retail Federation and Global Insight, forecast a record 1.53 million twenty-foot equivalent units (TEUs) in August, this despite a slowed U.S. economy this year. The survey included the ports of Los Angeles/Long Beach, Oakland, Tacoma, Seattle, New York/New Jersey, Hampton Roads, Charleston and Savannah. (ffd: Port Tracker, wire services)

(THU) The Surface Transportation Board announced that it would hold a public forum in Kansas City, MO this July “to examine issues related to the efficiency and reliability of railroad transportation of resources critical to the nation’s energy supply, including coal, ethanol and biofuels.” A STB spokesman said that the public forum would be held on July 18 at the Richard Bolling Federal Building in Kansas City. (ffd: STB)

(THU) British passenger rail operator Virgin Trains began operating what it said was the world’s first biofueled passenger trains. A Virgin spokesman said that diesel-powered trains would use a blended fuel made up of 20 percent biodiesel and that they would be tested over the next six months. The spokesman added that, if tests are successful, it would likely switch all its diesel-powered trains to biodiesel, adding that this could cut train exhaust emissions by 14 percent. (ffd: wire services)

(FRI) U.S. Secretary of Transportation Mary Peters announced nine metropolitan areas as finalists for approximately $1.1 billion in federal funding under the USDOT Urban Partnership program. Ms. Peters said that finalists are the cities of Atlanta GA, Dallas TX, Denver CO, Minneapolis-St. Paul MN, Miami FL, New York NY, San Diego and San Francisco CA, and Seattle WA. Ms. Peters said all “had submitted proposals that including levying tolls on vehicular traffic and offering more transit options to the public,” and that the winners of the funding competition would be announced by mid-August. (ffd: Railway Age)

(FRI) Variety reported that a 20^th Century Fox is pre-production for a new railroad-themed film, “Unstoppable.” The film is about a runaway train carrying a cargo of toxic materials. According to Variety, the film “…pits and engineer and his conductor in a race against time. They’re chasing the runaway train in a separate locomotive and need to bring it under control before it derails and causes a toxic spill that will decimate a town.” The film is scripted by “Live Free or Die Hard” writer Mark Bomback. (ffd: Variety)

STATS – TRAFFIC:

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

(THU) For the week ending June 2, 2007, U.S. rail volume grand totaled 32.7 billion ton-miles, up 0.3 percent from the comparable week last year. U.S. carload rail traffic was down 1.2 percent, down 3.0 percent in the East, but up 0.1 percent in the West. Also for the week, U.S. intermodal rail traffic was down 0.7 percent, Canadian carload rail traffic was up 5.9 percent, and Canadian intermodal rail traffic was up 0.4 percent.

For the month of May, 2007 and comparing with May, 2006, U.S. carload rail traffic was down 4.6 percent. Notable traffic increases included petroleum products up 5.5 percent and chemicals up 1.4 percent; notable traffic decreases included crushed stone and gravel down 10.3 percent, grain down 9.4 percent and coal down 3.9 percent. Also for the month, U.S. intermodal rail traffic was down 2.0 percent, Canadian carload rail traffic was up 1.6 percent, Canadian intermodal rail traffic was up 1.8 percent, Mexico’s Kansas City Southern de Mexico’s carload rail traffic was down 5.0 percent, and KCSM’s intermodal rail traffic was up 10.4 percent.

For the period January 1 through May 31, 2007 and comparing with the first five months last year, U.S. rail volume grand totaled 721.4 billion ton-miles, down 3.0 percent from the comparable period last year. Also for this period, U.S. carload rail traffic was down 4.3 percent, U.S. intermodal rail traffic was down 1.2 percent, Canadian carload rail traffic was down 1.1 percent, Canadian intermodal rail traffic was up 1.5 percent, KCSM’s carload rail traffic was down 4.8 percent, and KCSM’s intermodal rail traffic was up 10.9 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 June 1, 2007 and versus the comparable week last year, average total cars on line was as follows: BNSF, 225,632 cars versus 220,605 cars; Canadian Pacific, 81,595 cars versus 83,659 cars; CSX, 219,945 cars versus 220,938 cars; Kansas City Southern, 27,766 cars versus 26,917 cars; Norfolk Southern, 204,445 cars versus 202,186 cars; and Union Pacific, 311,505 cars versus 321,244 cars.

Also for the week ending June 1, 2007 and versus the comparable week last year, average train speed was as follows: BNSF, 24.1 mph versus 23.3 mph; Canadian Pacific Railway, 24.2 mph versus 24.4 mph; CSX, 21.3 mph versus 19.7 mph; Kansas City Southern, 25.3 mph versus 24.3 mph; Norfolk Southern, 22.2 mph versus 21.4 mph; and Union Pacific, 21.9 mph versus 21.1 mph.

Finally for the week ending June 1, 2007 and versus the comparable week last year, average terminal dwell time was as follows: BNSF, 23.1 hrs versus 23.0 hrs; Canadian Pacific Railway, 20.7 hrs versus 20.2 hrs; CSX, 23.3 hrs versus 25.8 hrs; Kansas City Southern, 21.2 hrs versus 21.8 hrs; Norfolk Southern, 22.2 hrs versus 22.8 hrs; and Union Pacific, 25.0 hrs versus 27.7 hrs. (ffd: AAR)

EXPANSIONS, CONTRACTIONS AND ALIKE:

(MON) Private equity firm The Caryle Group announced that it had acquired a majority stake in RMI, which provides Web-based transportation and logistics management products, especially to shortline and regional railroads. A spokesman said that the transaction won’t affect RMI’s internal operating structure and that the company’s executive management team will remain in place. (ffd: Progressive Railroading)

(TUE) The transportation consulting firm TranSystems, based in Kansas City, MO, announced that it was merging with Lichtenstein Consulting Engineers, based in Paramus, NJ. Lichtenstein offers consulting services, specializing in bridge, highway and railroad engineering. A spokesman said that the combined company will employee approximately 1,300 at a total of 45 U.S.-based offices. (ffd: Railway Age)

(WED) Carolina Coastal Railway filed to lease, from Norfolk Southern, and operate the former Raleigh-Plymouth line between Chocowinity, NC and Raleigh, NC and between Phosphate Junction, NC and Plymouth, NC, totaling approximately 134 miles. (ffd: STB)

(WED) Northern Lines Railway filed to discontinue service over approximately 1 mile of line near Cold Spring, MN. (ffd: STB)

(THU) The Denver Regional Transportation District filed to abandon approximately 6 miles of line in Denver and Jefferson Counties, CO. (ffd: STB)

(FRI) The Ozark Valley Railroad filed to 1) acquire, from Kansas City Southern, and operate approximately 22 miles of the former Fulton Branch between Mexico, MO and Fulton, MO, 2) lease, also from KCS, approximately 3 miles of the former Fulton Branch near Mexico, MO, and 3) gain, also from KCS, approximately 8 miles of overhead trackage rights on KCS between Arthur, MO and near Mexico, MO. (ffd: STB)

APPOINTMENTS, ACHIEVEMENTS AND MILESTONES:

(MON) New York State’s Metropolitan Transportation Authority announced the appointment of Helena Williams as president of the Long Island Rail Road. Ms. Williams, who is the railroad’s first female president, was most recently senior counsel of Cablevision and was earlier president of MTA’s Long Island Bus Corporation. (ffd: Newsday, Railway Age)

(THU) BNSF appointed Mark Kirschinger General Manager of its California Division. Mr. Kirschinger succeeds Michael Shircliff, who was recently named BNSF’s AVP-Locomotive Utilization. (ffd: BNSF Corp.)

CORRECTION:

In my May 18 edition, I reported on BNSF having operated what was promoted as the nation’s first intermodal train at least 10,000 feet long. In response, WRR Reader and ex-Conrailer John Lassahn writes, “This [statement] is inaccurate. Conrail operated thousands of intermodal, including double stack, trains over 10,000 feet. Some were over 12,000 feet…Now, if they [BNSF] said that they had operated the first 10,000 foot intermodal train on their system between end terminals on their Transcon (ex-ATSF) line, that is probably true. But it is certainly not the first in the nation. CSX, and Chessie System before it, often ran intermodal trains over 10,000 feet east of Chicago. Both CSX and NS run some intermodal trains over 10,000 feet regularly now.”

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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 <mailto:weeklyrailreview@aol.com>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: 06/13/07