WEEKLY RAIL REVIEW

FOR THE WEEK ENDING Friday, July 27, 2007

BY: DAVE MEARS

(Posted by permission)

WEEKLY RAIL REVIEW

FOR THE 7 DAYS ENDING FRI, JULY 27, 2007

BY DAVE MEARS

(NOTE: A little late with this edition and the next, due to necessary traveling. I hope to be back on schedule by the week of August 13.  Dave M.)

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

(SAT) VIA Rail Canada reached tentative agreement on a new contract with the Canadian Auto Workers union. The agreement heads off a strike that could have begun the next day. The union represents selected VIA off-train, on-train, office and maintenance employees. Details of the agreement were being withheld pending ratification by union membership. (ffd: wire services, Railway Age)

(SAT) Amtrak’s “Sunset Limited” train was halted westbound due to flash flooding on the Union Pacific line near Knippa, TX. 17 inches of rain had fallen in the area over a 12-hour period. Amtrak later set up a bus service to ferry passengers off the train and to alternate transportation at El Paso, TX. (ffd: ABC News, NARP)

(MON) Two freight cars being loaded at the U.S. Army base at Fort Drum, NY rolled free and ran away eight miles, after which they collided with a CSX work train in Watertown, NY. The collision derailed a work crane, demolished two spike pullers and caused a container of propane to explode. One of about 40 CSX track workers fleeing the scene suffered a sprained ankle, but there were no other injuries. (ffd: Syracuse Post-Standard, Trains)

(MON) In the face of pending legal challenges, the Massachusetts Bay Transportation Authority became the latest railroad to rescind its post-9/11 limitations on photographing trains and stations.  Although MBTA did not have a written policy, it had been requiring railfans and others to wait two days for an approved permit to take photographs. A MBTA spokesman said that, under the new policy, photographers will need to state the purpose of their taking photos or be asked to leave, and journalists will need to present a valid media pass. (ffd: Trains)

(MON) The Alameda County Transportation Authority announced that the 20-mile Alameda Corridor rail line out of the Port of Los Angeles/Long Beach had been so successful that its debt may be retired five to ten years early. An ACTA spokesman said that rail traffic over the line had doubled over the last five years. The spokesman added that, when the corridor opened in 2002, repayment of its debt was expected to be completed by 2037, but that it was “…conceivable [they] could retire the debt a decade early.” (ffd: Journal of Commerce)

(MON) BNSF announced that it had placed 15 miles of new third main track in service between Donkey Creek Junction and Caballo Junction on the line out of Wyoming’s Powder River Basin coal fields. A BNSF spokesman said that work was continuing on 24 miles of new third main track between Caballo Junction and Reno Junction. After the latter trackage is completed later this year, added the BNSF spokesman, the entire joint BNSF-Union Pacific line out of Powder River will be triple-tracked, with 21 miles of quadruple-track main line over Logan Hill. (ffd: BNSF Corp., Trains)

(MON) The Northern New England Passenger Rail Authority announced that it and Amtrak would add a fifth daily “Downeaster” train between Boston, MA and Portland, ME effective August 17. A NEPRA spokesman said that, under the new schedule, “Downeaster” service will no longer run a bus for its late-night trip and will operate a train instead.  This new fifth daily trip follow completion of a $6 million track rehabilitation project that has been under way on the line the trains run on since last fall. (ffd: wire services)

(MON) The U.S. Government Accountability Office released a report suggesting that the U.S. Department of Transportation was not doing enough to promote a national intermodal transportation system. The GAO report cited three significant barriers to progress in developing such a system, as was called for by a 1991 congressional act. The barriers are: limited federal funding targeted to intermodal projects; limited collaboration among governmental agencies and administrations with DOT; and the limited ability to evaluate the benefits of intermodal projects. (ffd: Journal of Commerce)

(MON) PATCO, which operates subway service between Philadelphia, PA and Lindenwold, NJ, said that it planned to hire 19 uniformed “ambassadors” by early fall. A PATCO spokesman said that their duties would include assisting passengers, escorting them to parked cars, providing change, giving directions, and explaining train schedules. The spokesman added that the “…'ambassadors' will provide increased security and rider comfort at times when many [PATCO] passengers are occasional riders and might be unfamiliar with trains.” (ffd: Philadelphia Inquirer)

(TUE) The U.S. House of Representatives passed a $104.4 billion transportation and housing spending bill for Fiscal Year 2008. Included in the bill is about $1.5 billion for Amtrak for FY2008, with $925 million for capital and debt service. Also on Tuesday, House and Senate conferees reached agreement on legislation that will authorize separate grant programs for rail, transit and bus security totaling more than $4 billion over four years. (ffd: NARP, wire services)

(WED) The board of directors of New York State’s Metropolitan Transportation Authority approved plans to hike bus, subway and commuter rail fares next year by approximately 6.5 percent. The board also announced its planned capital improvements for Fiscal Year 2008. For MTA's Metro North Railroad, those plans include beginning construction of new locomotive and car shops at Croton-Harmon; starting installation of new signal systems on MNRR’s Hudson, Harlem and New Haven Lines; and starting construction of a new Operations Control Center. The board also approved one of its largest-ever order of subway cars: 620 cars at a cost of $686 million. 360 of the new cars will be built by Alstom and 260 cars will be built by Kawasaki. (ffd: Newark Times-Ledger, Progressive Railroading)

(WED) Amtrak announced that they had established new website dedicated to their train stations, www.greatamericanstations.com. An Amtrak spokesman said that the new site will allows visitors to learn about “…the history, ownership, ridership, and services offered at stations served by Amtrak.” The site presently features descriptions on the routes of Amtrak’s “California Zephyr” and “Empire Builder” trains, and an Amtrak spokesman said that more routes and stations will be added in the near future. (ffd: Amtrak, Trains)

(WED) CSX announced a pilot project to plant rosebushes along a portion of its right-of-way in Louisville, KY to discourage trespassers. The new rosebushes are being planted along CSX tracks in the city’s Crescent Hill section, where trespassing has been an ongoing problem. CSX has provided a grant to a Louisville city agency to fund the planting. (ffd: Railway Age)

(THU) Steam locomotive enthusiast Ross Rowland proposed the operation of a new steam-powered passenger train. Once funded and permitted, the new train would be called the “Yellow Ribbon Express” and would travel the country on a three-year, 25,000-mile journey in commemoration of America and those who have served in the American military. Mr. Rowland was involved in the operation of the American Freedom Train in the 1970s and the Chessie Steam Express in the 1980s. (ffd: Trains)

(THU) The International Union of Railways reported that the Swiss are the world’s most prolific users of passenger rail. The report said that, in 2005, the Swiss rode trains at a rate of approximately 1,267 miles per citizen. By contrast, Americans that year rode trains at a rate of approximately 19 miles per citizen. The IUR analysis examined passenger rail statistics in 87 countries and noted that passenger rail use was the heaviest where there was “good rail coverage, efficient systems, and less appealing alternatives.” (ffd: The Economist)

(FRI) Results of a new survey of rail shippers noted their collective belief that the national freight rail network is already short of capacity and getting worse. The survey had 92 percent of respondents complaining that rail capacity problems will only get worse without new actions to augment those already being taken by rail carriers. 79 percent of respondents said they thought railroads should be spending at least $2 billion more as an industry each year to boost capacity and 34 percent said they should spent at least $4 billion more. The survey was conducted by Traffic World Magazine and the Booz Allen Hamilton consulting firm. (ffd: Traffic World)

(FRI) Amtrak confirmed that, as Superliner coaches are cycled through their four-year overhauls, they will be outfitted with electrical outlets at each seat pair. An Amtrak spokesman noted that the increase in portable consumer electronic devices has created a greater demand for onboard outlets. (Note: This action on the part of Amtrak will help alleviate confrontations such as was witnessed by this writer who, on an otherwise very pleasant trip aboard the “Empire Builder” last May, saw a near fight break out as three young adults tied up the few available electric outlets on that train for nearly the entire trip.)

STATS – TRAFFIC:

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

(THU) For the week ending July 21, 2007, U.S. carload rail volume grand totaled 33.4 billion ton-miles, down 1.3 percent from the comparable week last year. U.S. carload rail traffic was down 2.2 percent, up 4.1 percent in the East, but down 6.5 percent in the West. Notable traffic increases included grain up 8.7 percent, metallic ores up 8.2 percent, and motor vehicles and equipment up 7.4 percent; notable traffic decreases included non-grain farm products down 29.2 percent, metals down 17.8 percent, and lumber and wood traffic down 14.0 percent. Also for the week, U.S. intermodal rail traffic was down 3.2 percent, Canadian carload rail traffic was up 2.2 percent, Canadian intermodal rail traffic was up 9.3 percent, Mexico’s Kansas City Southern de Mexico’s carload rail traffic was up 4.9 percent, and KCSM’s intermodal rail traffic was up 37.1 percent.

For the period January 1 through July 21, 2007, U.S. rail volume grand totaled 933.4 billion ton-miles, down 2.8 percent from the comparable period last year. Also for this period, U.S. carload rail traffic was down 4.1 percent, U.S. intermodal rail traffic was down 1.4 percent, Canadian carload rail traffic was down 0.6 percent, Canadian intermodal rail traffic was up 2.0 percent, KCSM’s carload rail traffic was down 3.9 percent, and KCSM’s intermodal rail traffic was up 11.9 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 July 20, 2007 and versus the comparable week last year, average total cars on line was as follows: BNSF, 233,222 cars versus 224,265 cars; Canadian Pacific, 82,212 cars versus 80,071 cars; CSX, 222,210 cars versus 227,182 cars; Kansas City Southern, 27,862 cars versus 26,723 cars; Norfolk Southern, 200,726 cars versus 202,343 cars; and Union Pacific, 308,039 cars versus 318,033 cars.

Also for the week ending July 20, 2007 and versus the comparable week last year, average train speed was as follows: BNSF, 22.9 mph versus 22.3 mph; Canadian Pacific Railway, 23.9 mph versus 24.9 mph; CSX, 21.6 mph versus 19.8 mph; Kansas City Southern, 23.1 mph versus 23.5 mph; Norfolk Southern, 22.6 mph versus 22.0 mph; and Union Pacific, 21.8 mph versus 22.0 mph.

Finally for the week ending July 20, 2007 and versus the comparable week last year, average terminal dwell time was as follows: BNSF, 24.5 hrs versus 23.8 hrs; Canadian Pacific Railway, 20.0 hrs versus 18.7 hrs; CSX, 23.1 hrs versus 25.2 hrs; Kansas City Southern, 22.6 hrs versus 21.3 hrs; Norfolk Southern, 21.1 hrs versus 21.5 hrs; and Union Pacific, 24.3 hrs versus 26.5 hrs. (ffd: AAR)

STILL MORE STATS – SECOND QUARTER, 2007 RESULTS:

(MON) Canadian National reported second quarter net income of C$516 million, down from C$729 million the second quarter last year. Revenues were C$2.027 billion, up from C$2.000 billion the previous second quarter. CN’s operating ratio worsened slightly to 60.0 percent, compared with 59.8 percent the second quarter last year. (ffd: CN Corp.)

(TUE) BNSF reported second quarter net income of $433 million, down from $471 million the second quarter last year. Revenues were $3.843 billion, up from $3.701 billion the previous second quarter. BNSF’s operating ratio worsened slightly to 77.5 percent, compared with 75.9 percent the second quarter last year. (ffd: BNSF Corp.)

(TUE) Canadian Pacific reported second quarter net income of C$256.7 million, down from C$378.1 million the second quarter last year. Revenues were $1.216 billion, up from $1.131 billion the previous second quarter. CPR’s operating ratio improved to 74.7 percent, compared with 75.0 percent in the second quarter last year. (ffd: CPR Corp.)

(WED) Norfolk Southern reported second quarter net income of $394 million, up from $375 million in the second quarter last year. Revenues were $2.378 billion, down from $2.392 billion the previous second quarter. NS’s operating ratio improved to 71.0 percent, compared with 71.7 percent in the second quarter last year. (ffd: NS Corp.)

(THU) Kansas City Southern reported second quarter net income of $25.3 million, up from $19.2 million in the second quarter last year. Revenues were $427.1 million, up from $413.1 million the previous second quarter. KCSR’s operating ratio improved to 80.5 percent, compared with 81.2 percent in the second quarter last year. (ffd: KCS Corp.)

EXPANSIONS, CONTRACTIONS AND ALIKE:

(MON) GE Equipment Services announced that it had entered into a “strategic partnership” with Indiana rail car manufacturer Titagarh Wagons. Under the agreement, GE Equipment Services and GE Commercial Finance will acquire 15 percent of Titagarh, and GE Equipment Services will obtained preferred access to rail cars built by Titagarh. (ffd: Progressive Railroading)

(WED) The Alabama State Port Authority dedicated the new $27 million rail dock facility operated by CG Railway at the Port of Mobile, AL. The new facility features a dual-ramp ferry slip that can load rail cars to two decks of a ship. An ASPA spokesman said that rail ferry services operating between the Port of Mobile and the Port of Catzacoalcos, Mexico provide “quicker and more cost-effective shipping services to Mexico than land-based rail movement.” (ffd: Mobile Register, Railway Age)

(WED) The Surface Transportation Board granted CSX’s earlier application to abandon approximately 2 miles of CSX’s Saginaw Subdivision between Flint, MI and Burton, MI. (ffd: STB)

(FRI) CSX filed to abandon approximately 1 mile of its Mills & Nebraska Lead Track in Orlando, FL. (ffd: STB)

APPOINTMENTS, ACHIEVEMENTS AND MILESTONES:

(MON) Shortline conglomerate RailAmerica appointed Harold Tynes its VP and Controller. Mr. Tynes was most recently CFO for QualServ Corporation and was earlier a corporate controller for Great Lakes Transportation. (ffd: Progressive Railroading)

* * *

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: 08/09/07