WEEKLY RAIL REVIEW

FOR THE WEEK ENDING Friday, Aug 3, 2007

BY: DAVE MEARS

(Posted by permission)

 

 

WEEKLY RAIL REVIEW

FOR THE 7 DAYS ENDING FRI, AUGUST 3, 2007

BY DAVE MEARS

 

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

 

(SUN) Extreme high temperatures were experienced in many parts of the U.S., with some railroads again effecting heat restrictions for passenger trains operating over their lines.  In a story about such heat restrictions, the New York Times reported that, when the temperature reached 95 degrees in Manhattan’s Central Park, the deputy chief engineer of Amtrak’s New York Division orders Northeast Corridor trains to operate no faster than 80 mph.  The newspaper noted that heat restrictions are not only a precaution against heat kinks in the rails, but also against damaging sagging catenary. (ffd: New York Times)

 

(MON) Canadian National suffered an on-duty employee fatality.  Daniel Riels, Age 46 and a train conductor with five years' service, was crushed when he was run over and pinned beneath a rail car he was switching.  The accident happened in Jackson, TN on CN’s former Illinois Central lines. (ffd: wire services)

 

(MON) Congress passed the “Improving America’s Security Act of 2007.”  The act, which was expected to be signed by President Bush, includes a provision potentially allowing the U.S. Department of Transportation to order the rerouting of rail cars loaded with toxic inhalation materials (TIH).  USDOT is expected to work with stakeholders to weight the risks of each TIH route, first issuing a rule to direct railroads to conduct their own analyses of possible routes.  NARP reported that any rerouting orders may face legal challenges, but could potentially begin by April, 2009. (ffd: NARP, Washington Post)

 

(MON) VIA Rail Canada issued a notable statement against Hudson Bay Railway, which operates the line over which VIA run its passenger trains between Winnipeg, MB and Churchill, MB.  Deteriorating track conditions and a freight train derailment led VIA to indefinitely suspend operation of those trains.  In a statement, VIA President Paul Cote said in part, “The management of HBR is failing to meet its responsibilities to deliver VIA, its passengers and employees to their destinations safely…We are tired of the apparent disregard of operating host railways in this country for the important public responsibility with which they have been entrusted.  HBR did not immediately comment on Mr. Cote’s statement. (ffd: NARP, Trains)

 

(MON) Economic Planning Associates, a forecasting firm, predicted a slight decline in rail car deliveries this year.  The decline was explained as being the result of a “soft economy, rising interest rates, and declining rail traffic.”  EPA projected a total of 66,500 deliveries by year’s end.  EPA further predicted approximately 63,000 deliveries next year, as “box car and centerbeam [car] demand remains lackluster, coal car deliveries flatten and small-cube covered hopper assemblies ease.” (ffd: EPA, Progressive Railroading)

 

(TUE) Volusia County, Florida agreed to co-fund the construction of a 61-mile, $615 million commuter rail system serving the greater Orlando, FL area.  The county was the last local signatory needed to help pay for the rail system, which will be financed through 30-year fixed guideway bonds issued through the state of Florida.  A state spokesman said that work on the line, which has already been purchased from CSX, will begin shortly and that trains are “expected to roll” by mid-2010. (ffd: RT&S)

 

(WED) The I-35 highway bridge across the Mississippi River in Minneapolis, MN collapsed into the river, which is shallow at that crossing.  The collapse killed at least five persons, with several others still missing.  The collapse also blocked a line of the Minnesota Commercial Railroad running alongside the river at that point and crushed three rail cars of plastic pellets sitting on a siding underneath the bridge. (ffd: Trains)

 

(WED) New passenger rail car crash strength standards were proposed by the Federal Railroad Administration.  Under the proposed new standards, cars that feature both passenger seating and a cab from which the train is operated would have to withstand 300,000 pounds of force, an amount double the current federal requirement.  If approved, the new standards would apply to such cars ordered after October, 2009.  An FRA spokesman said that it is accepting public comment on the new standards through October 1. (ffd: Progressive Railroading)

 

(WED) The Associated Press erroneously reported that Amtrak would offer $100 in free alcoholic beverages to passengers on some of its overnight trains.  Later in the week, Amtrak issued a statement clarifying that this credit, which would be for all kinds of beverages, would only be offered to those Amtrak Guest Reward members who purchase accommodations on GrandLuxe luxury passenger cars, which will soon be added to the rear of selected Amtrak trains.  NARP noted that this credit “was a common incentive to fill premium space in the cruise and hospitality industries.” (ffd: Amtrak, NARP, wire services)

 

(WED) CSX announced that another state, Kentucky, would be participating in its new “rail security partnership.”  The new security initiative gives the state access to CSX’s Network Operations Workstation (NOW) System for tracking the location of CSX trains and the contents of these trains’ rail cars.  New York and New Jersey announced their participation in the program the previous week. (ffd: CSX Corp., Lexington Herald-Leader)

 

(WED) Canadian Pacific Railway announced that it would sell its Windsor Station in Montreal, PQ for future development.  A CPR spokesman said that the station building would continue as it now is and that the railroad “expected to remain as a long-term lead tenant” there.  Later in the week, CPR announced that it would outsource part of its Information Technology Department.  Another CPR spokesman said that the outsourcing was to IBM and Infosys Technologies, and that they would assist the railroad in “managing IT application development and [provide] application development and support associated with overseeing and maintaining CPR’s operations.” (ffd: Progressive Railroading, wire services)

 

(THU) Amtrak temporarily removed from service all Talgo-type trainsets used to operate its Cascades services in Washington and Oregon.  An Amtrak spokesman said that the decision was made as a result of finding cracks in the suspension systems of some Talgo cars.  The spokesman added that further inspections and any necessary repairs would be undertaken, but that the trainsets would likely be out of service through the weekend. (ffd: Amtrak, NARP)

 

(THU) Virginia Railway Express, which operates commuter rail services between Washington, DC and Northern Virginia, announced that its on-time performance during the current summer had improved notably compared with previous summers.  A VRE spokesman said that one factor in the improvement is a new heat restriction agreement with CSX, over which VRE operates its Fredericksburg Line.  In the past, CSX had a blanket policy to slow all passenger and freight traffic by 20 mph whenever the temperatures reached 85 degrees or higher.  Now, according to the spokesman, CSX “achieves the same safety goals by sending inspectors to check specific track segments, ordering slower speeds only when necessary.” (ffd: Washington Post)

 

(FRI) In spite of the Talgo trainsets having been temporarily taken out of service earlier in the week, the Oregon state legislature passed what one news report called an “innovative solution” to funding its portion of Amtrak Cascades services.  Under a new Oregon law, personalized license plates costing $50 each will provide funding and are expected to generate $8.6 million of the $9 million Oregon pays for Cascades services.  The balance due will come from the state's general fund, which will also fund litter removal previously covered by the personalized plates. (ffd: NARP)

 

STATS – TRAFFIC:

 

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

 

(THU) For the week ending July 28, 2007, U.S. rail volume grand totaled 35.1 billion ton-miles, up 0.3 percent from the comparable week last year.  U.S. carload rail traffic was down 0.9 percent, down 1.7 percent in the East and down 0.2 percent in the West.  Also for the week, U.S. intermodal rail traffic was down 3.1 percent, Canadian carload rail traffic was up 2.0 percent, and Canadian intermodal rail traffic was up 4.7 percent.

 

For the month of July, 2007 and compared with July, 2006, U.S. carload rail traffic was down 3.0 percent.  Notable traffic increases included food products up 4.8 percent, motor vehicles and equipment up 4.0 percent, and chemicals up 3.0 percent; notable traffic decreases included metals and metal products down 11.9 percent, crushed stone, sand and gravel down 10.1 percent, and coal down 2.9 percent.  Also for the month, U.S. intermodal rail traffic was down 2.6 percent, Canadian carload rail traffic was down 0.6 percent, Canadian intermodal rail traffic was up 5.4 percent, Mexico’s Kansas City Southern de Mexico’s carload rail traffic was up 2.1 percent, and KCSM’s intermodal rail traffic was up 28.3 percent.

 

For the first seven months of 2007 and compared with the first seven months of 2006, U.S. rail volume grand totaled 988.5 billion ton-miles, down 2.7 percent.  Also for this period, U.S. carload rail traffic was down 3.9 percent, U.S. intermodal rail traffic was down 1.5 percent, Canadian carload rail traffic was down 0.5 percent, Canadian intermodal rail traffic was up 2.1 percent, KCSM’s carload rail traffic was down 3.9 percent, and KCSM’s intermodal rail traffic was up 12.5 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 27, 2007 and versus the comparable week last year, average total cars on line was as follows:  BNSF, 234,082 cars versus 225,136 cars; Canadian Pacific, 81,329 cars versus 79,831 cars; CSX, 221,936 cars versus 226,534 cars; Kansas City Southern, 27,818 cars versus 26,751 cars; Norfolk Southern, 200,758 cars versus 201,299 cars; and Union Pacific, 310,898 cars versus 318,460 cars.

 

Also for the week ending July 27, 2007 and versus the comparable week last year, average train speed was as follows: BNSF, 22.7 mph versus 22.5 mph; Canadian Pacific Railway, 25.0 mph versus 24.8 mph; CSX, 21.5 mph versus 19.1 mph; Kansas City Southern, 24.1 mph versus 23.8 mph; Norfolk Southern, 22.5 mph versus 21.9 mph; and Union Pacific, 21.6 mph versus 21.4 mph.

 

Finally for the week ending July 27, 2007 and versus the comparable week last year, average terminal dwell time was as follows: BNSF, 24.8 hrs versus 24.7 hrs; Canadian Pacific Railway, 18.4 hrs versus 18.9 hrs; CSX, 22.8 hrs versus 25.3 hrs; Kansas City Southern, 22.6 hrs versus 20.8 hrs; Norfolk Southern, 20.7 hrs versus 21.3 hrs; and Union Pacific, 24.6 hrs versus 26.0 hrs. (ffd: AAR)

 

EXPANSIONS, CONTRACTIONS AND ALIKE:

 

(TUE) BNSF filed to abandon approximately nine miles of line near Red Cloud, NE. (ffd: STB)

 

(TUE) Global Railway Industries announced that it would acquire “most of the working capital and other assets" of Canada Allied Diesel and its affiliates.  A Global spokesman said that the acquisition would double to company’s revenue base to more than $65 million. (ffd: Railway Age)

 

(WED) The Surface Transportation Board granted Central Railroad Company of Indianapolis’s earlier request to discontinue service over approximately three miles of line between Marion, IN and West Marion Belt, IN. (ffd: STB)

 

(THU) Canadian National filed to discontinue the automatic block signal system on about three miles of its Illinois Central-Memphis Subdivision and about one mile of its Illinois Central-Grenada Subdivision.  In its filing, CN said that ABS is no longer necessary because these line segments are now located entirely within the Memphis Terminal yard limits, where all movements are coordinated by the person in charge of the yard there. (ffd: USDOT)

 

(THU) CSX announced that it would convert Seneca Yard in Lackawanna, NY to an intermodal terminal.  A CSX spokesman said that the project, costing approximately $8.5 million, would see the new terminal in operation by this fall. (ffd: Buffalo News)

 

(FRI) Canadian National said that it would build a $5 million customs facility in Ranier, MN, at the northern end of CN’s former Duluth, Winnipeg & Pacific line.  A CN spokesman said that the new facility would provide for improved customs handling.  The spokesman added that Rainer manages the second-highest volume of cross-border rail traffic into the U.S., after Port Huron, MI and followed by Laredo, TX. (ffd: Trains)

 

(FRI) CSX filed to discontinue an interlocking, control system signals, and power-operated switches at various locations on its 110-mile line between Gladstone, VA and Clifton Forge, VA.  In its filing CSX said that “pole line elimination and the installation of a microprocessor-based signal system” allow for the proposed changes and also that “present-day operations do not warrant retaining the power-operated switches and controlled signals.” (ffd: USDOT)

 

(FRI) New Jersey Transit announced that it had awarded the contract for the first phase of the forthcoming Trans-Hudson Express (THE) Tunnel project.  The award was to a joint venture comprising Parsons, Tishman Construction, and Arup.  The $7.5 billion THE project will build two additional single-track rail tunnels beneath the Hudson River and a new station below 34th Street in Manhattan connecting with Penn Station.  Construction is scheduled to start in 2009. (ffd: Progressive Railroading)

 

 

APPOINTMENTS, ACHIEVEMENTS AND MILESTONES:

 

(MON) The Indiana Rail Road appointed Jacklyn Hardy its Director-Human Resources and Chief Administrative Officer.  Ms. Hardy was earlier GM of RailAmerica’s Pacific Region. (ffd: Progressive Railroading)

 

(MON) Family announced the passing of Doug Hagestad at Age 63.  Mr. Hagestad was earlier a SVP-Marketing at the former Illinois Central and later taught transportation and management subjects at the University of Denver and Northwestern University. (ffd: Trains)

 

(TUE) Simmons-Boardman Publishing appointed Douglas Bowen as Railway Age’s managing editor.  Mr. Bowen has been a business journalist and is also the president of the New Jersey Association of Railroad Passengers.  Mr. Bowen succeeds Marybeth Luczak, who has left rail journalism to start a family. (ffd:

Railway Age)

 

(WED) Montreal, Maine & Atlantic Railway appointed Stephen Greene its VP-Mechanical.  Mr. Greene was most recently a service area coordinator for shortline holding company OmniTrax. (ffd: Progressive Railroading)

 

(THU) Union Pacific announced the reorganization of its regional public affairs offices such that they will now be collocated with UP’s existing three operating regions.  Related to this change, UP appointed Joe Adams, Joe Bateman and Scott Moore vice presidents of public affairs for its Southern, Northern and Western Regions, respectively. (ffd: UP Corp.)

 

*   *   *

 

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:  08/10/07