WEEKLY RAIL REVIEW
FOR THE WEEK ENDING Friday, July 20,
2007
BY: DAVE MEARS
(Posted by permission)
WEEKLY RAIL REVIEW
FOR THE 7 DAYS ENDING FRI, JULY 20, 2007
BY DAVE MEARS
THE WEEK’S TOP RAIL AND TRANSIT
NEWS (in chronological order):
(MON) The New York state legislature declined to act on New York City Michael
Bloomberg’s plan to charge fees to drivers entering the most congested parts of
Manhattan, missing a deadline for the city to seek up to $500
million in federal aid for the plan. The State Senate, which had convened
a special session, adjourned without taking up the plan after it became
apparent that there were not enough votes for its passage. Mr. Bloomberg’s plan, which required state
approval, would have imposed fees of $8 on cars and $21 on trucks that enter Manhattan below 86th Street on workdays, with the proceeds going toward
regional mass transit and related transportation projects. (ffd: New York Times)
(MON) The Railroaders Memorial
Museum of Altoona, PA announced that it had suspended restoration work on
the museum’s K4 Class locomotive, PRR No. 1361.
A spokesman for the museum said that work was being suspended “due to
delays in expense reimbursement from [the state of] Pennsylvania and concerns regarding the structural integrity of No. 1361’s
boiler.” The spokesman added that, at
such time as work is resumed, it will be done at a new roundhouse facility now
under construction at the museum and no longer at the Steamtown
complex in Scranton, PA. Restoration work
has gone on at Steamtown for more than a decade and
is now considerably over the project’s original timeline and budget. (ffd: Trains)
(MON) Officials involved with Chicago, IL’s CREATE project announced the activation of a new and now
remotely controlled junction at Brighton Park on the city’s Southwest Side. The new installation, a $9.5 million
investment, allows trains to proceed through the junction at up to 30 mph
without having to first stop short of the diamond, unless there is conflicting
traffic. Previously, all trains had to
stop short and also operate approaching and through the diamond at restricted
speed. The junction sees approximately
70 train movements daily. (ffd:
Chicago Tribune)
(TUE) The National Carriers
Conference announced that five more unions had tentatively settled on a new
rail labor agreement. The unions are the
Transportation Communications International Union (TCU), the Brotherhood of
Railway Carmen (TCU-Carmen), the Transportation Workers Union (TWU), the International
Association of Machinists and Aerospace Workers (IAM&AW) and the
International Brotherhood of Electrical Workers (IBEW). The tentative agreement brings to 12 the
number of unions, bargaining as the National Railway Labor Conference, that have reached tentative settlement. The United Transportation Union, representing
the largest number of railroad workers, is now the only union without a
tentative agreement. The UTU
representatives about 81,000 rail employees. (ffd: Trains, wire services)
(TUE) CSX announced the formation
of a new “rail security partnership” with the states of New York and New Jersey. A CSX spokesman
said, “we are pleased to be the first railroad and among the first private
industries to formalize security partnerships with the states.” The spokesman added that the partnership
“provides New Jersey and New York security officials with access to CSX’s
Network Operations Workstation (NOW) System…This secure online system,
developed and used by CSX, allows New York and New Jersey security and law
enforcement officials to independently track the location of CSX trains and the
contents of rail cars being hauled by CSX in each state in a nearly real-time
environment.” (ffd: CSX
Corp.)
(TUE) The Surface Transportation
Board announced the establishment of a new committee, the Rail Energy
Transportation Advisory Committee (RETAC).
A STB spokesman said that the new committee would “provide advice and
guidance to the agency, and serve as a forum for the discussion of emerging
issues, regarding the railroad transportation of energy resources,
particularly, but not limited to, coal, ethanol and other biofuels. The spokesman said that the STB would now
solicit suggestions for candidates for RETAC membership. (ffd: STB)
(TUE) Officials in North Platte, NE announced that the long-planned Golden Spike Tower and Visitors Center was now under construction. The tower overlooks Union Pacific’s Bailey
Yard. A spokesman for the project said
that the 100-foot tower and the Visitors Center, the latter being built to resemble a historic train
depot, were scheduled for completion and opening in Spring,
2008. (ffd: North Platte
Telegraph)
(WED) The Toronto Globe & Mail
reported that a Toronto-based private equity firm, Brookfield Asset Management,
was seeking to acquire Canadian Pacific Railway, in partnership with Goldman
Sachs and another equity firm. The
reported bid follows an earlier offer to CPR made by the partnership in April,
after which CPR authorized a buyback of up to 10 percent of its stock, seemingly
in an effort to block any takeover attempt.
Spokesmen for Brookfield and CPR both declined to comment on the report. (ffd: Toronto Globe & Mail, Railway Age, wire services)
(WED) VIA Rail workers represented
by the Canadian Auto Workers voted 93 percent to strike if negotiators failed
to reach tentative agreements by the coming Sunday. A VIA spokesman said that three separate
agreements were being negotiated: the first for clerks and ticket-sellers, the
second for meal and drink serviers, and the third for
those servicing locomotives and cars.
Approximately 2,600 VIA workers are represented by the CAW. (ffd: Toronto Star, Trains)
(WED) What some weather reports
referred to as a “freak downpour” hampered rail operations on Long Island. The Long Island Rail Road reported that severe flooding on its main line
around Mineola resulted in having to suspend service on its Port
Jefferson, Ronkonkoma, Oyster Bay and Montauk branches, and that all train service on its
Port Washington Branch had been suspended due to “weather-related high
water.” Flooding on the New York City subway system in Queens necessitated the suspension of all Manhattan-bound service
on the E, F, V and R Lines. Most rail
and transit service was restored the following day. (ffd: Newsday)
(WED) The Surface Transportation
Board convened in Kansas City, MO to hear testimony related to rail rates and service. As in other similar hearings, utility company
representatives asserted that rail rates for shipping coal had nearly doubled
in the past two years, while rail deliveries of coal had become increasing
erratic and unreliable. The utilities
urged the STB to set service standards, which railroads oppose. Rail representatives testifying at the
hearing highlighted the capital investments being made to handle the greater
volumes of traffic the industry has experience in the past several years. (ffd: Kansas City Star, Railway Age)
(WED) Massachusetts Governor Deval Patrick signed into law the Massachusetts Mobility
Compact. The Compact directs nine state
transportation or transportation-related agencies to work more closely together
to better coordinate transportation planning, design, construction and
operations. The nine agencies are to
meet monthly for these purposes and the Compact will issue a progress report
twice a year. (ffd:
Progressive Railroading)
(WED) The Sacramento, CA Regional Transit District announced that it will construct
a stationary energy storage system connected to the city’s light rail
system. The $400,000 installation, using
technology developed by Siemens, will store energy released during regenerative
braking and then feed it to accelerating light rail vehicles. A Siemens spokesman said that this will
result in peak power demand reduction, energy savings, and a boost to line
voltage. The spokesman added that this
would be the first such use of its system in the U.S., although the energy storage technology is already in use
in Europe and China. (ffd:
Railway Age)
STATS – TRAFFIC:
(NOTE: Canadian traffic includes
that on U.S. operations of Canadian-headquartered railroads.)
(THU) For the week ending July 14, 2007, U.S. rail volume grand totaled 32.5 billion ton-miles, down 4.1
percent from the comparable week last year. U.S. carload rail traffic was down 5.5 percent, down 4.1
percent in the East and down 6.5 percent in the West. Notable traffic increases included petroleum
products up 9.4 percent, motor vehicles and equipment up 7.5 percent, and food
products up 5.8 percent; notable traffic decreases included lumber and wood
products down 24.0 percent, non-grain farm products down 22.8 percent, and
stone, clay and glass products down 17.7 percent. Also for the week, U.S. intermodal rail traffic was down
3.0 percent, Canadian carload rail traffic was down 0.8 percent, Canadian intermodal rail traffic was down 4.3 percent, Mexico’s Kansas City Southern de Mexico’s carload rail traffic
was up 18.2 percent, and KCSM’s intermodal
rail traffic was up 27.8 percent.
For the period January 1 through July 14, 2007, U.S. rail volume grand totaled 920.0 billion ton-miles, down
2.9 percent from the comparable period last year. Also for the week, U.S. carload rail traffic was down 4.1 percent, U.S. intermodal rail traffic was down
1.3 percent, Canadian carload rail traffic was down 0.7 percent, Canadian intermodal rail traffic was up 1.8 percent, KCSM’s carload rail traffic was down 4.2 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 July 13,
2007 and versus the comparable week last year, average total cars on line was
as follows: BNSF, 231,877 cars versus
222,067 cars; Canadian Pacific, 81,997 cars versus 80,936 cars; CSX, 220,930
cars versus 224,534 cars; Kansas City Southern, 28,436 cars versus 26,340 cars;
Norfolk Southern, 200,552 cars versus 203,112 cars; and Union Pacific, 319,846
cars versus 319,624 cars.
Also for the week ending July 13,
2007 and versus the comparable week last year, average train speed was as
follows: BNSF, 22.7 mph versus 22.9 mph; Canadian Pacific Railway, 23.5 mph
versus 25.6 mph; CSX, 22.2 mph versus 20.9 mph; Kansas City Southern, 23.2 mph
versus 24.3 mph; Norfolk Southern, 23.2 mph versus 22.7 mph; and Union Pacific,
21.3 mph versus 21.8 mph.
Finally for the week ending July
13, 2007 and versus the comparable week last year, average terminal dwell time
was as follows: BNSF, 24.6 hrs versus 23.4 hrs; Canadian Pacific Railway, 19.7
hrs versus 19.4 hrs; CSX, 23.3 hrs versus 25.6 hrs; Kansas City Southern, 22.8
hrs versus 21.0 hrs; Norfolk Southern, 21.6 hrs versus 23.0 hrs; and Union
Pacific, 26.2 hrs versus 25.6 hrs. (ffd:
AAR)
STILL MORE STATS – SECOND QUARTER,
2007 RESULTS:
(TUE) CSX reported second quarter
net income of $324 million, down from $390 million from the second quarter last
year. Revenues were $2.530 billion, up
from $2.421 billion the previous second quarter. CSX’s operating ratio worsened slightly to
76.2 percent, compared with 73.4 percent in the second quarter last year. (ffd: CSX Corp.)
(THU) Union Pacific reported
second quarter net income of $446 million, up from $390 million in the second
quarter last year. Revenues were $4.046
billion, up from $3.923 billion the previous second quarter. A UP spokesman noted that this was the first
quarter in the company’s history in which revenues had topped $4 billion. UP’s operating ratio improved slightly to
80.5 percent, compared with 81.7 percent in the second quarter last year. (ffd: UP Corp.)
EXPANSIONS, CONTRACTIONS AND
ALIKE:
(MON) The Surface Transportation
Board denied Lake State Railway’s earlier request to abandon the northernmost 5
miles of its Mackinaw Subdivision in Michigan. In its denial, the
STB stated that “the record is inadequate for the board to determine that an abandonment is warranted.” (ffd: STB)
(WED) National Steel Car announced
that it would build a new $350 million manufacturing facility in northwestern Alabama. A NSC spokesman
said that the new plant, which is expected to open in early 2009, would be able
to manufacture approximately 8,000-to-10,000 freight cars annually and employ
up to 1,800 persons. (ffd:
Railway Age, wire services)
(THU) The shortline
holding company Patriot Rail announced that it was changing the name of its Rarus Railway to the Butte, Anaconda & Pacific Railway. The railway, which operates over 163 miles of
line in Montana, was originally built to serve the Anaconda Copper Mining
Company. (ffd: Progressive
Railroading)
(THU) Union Pacific Distribution
Services, a UP subsidiary, announced that it had integrated two former groups, OnePlus Transload Services and
Rail Shipment Management Services, into a new Carload Solutions Group. Union Pacific Distribution Services provides
rail-based logistics and transportation management services. (ffd: Railway Age)
(FRI) Canadian National announced
that it had filed to abandon approximately 3 miles of Illinois Central line in Flowood, MS. (ffd: STB)
APPOINTMENTS, ACHIEVEMENTS AND
MILESTONES:
(SUN) Stan Bagley died at Age
61. Mr. Bagley worked at Amtrak from
1974 to 2002 and was lastly their Chief Operating Officer. (ffd: Amtrak)
*
* *
Weekly Rail Review (WRR) 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 to receive it, with my compliments.
BE SAFE AND PROSPER,
Dave Mears
Cherry Hill, New Jersey, USA
Posted: 0726/07