Hot Railnews!

Midwest High-Speed Rail Association Proposes 220mph Chicago-to-St. Louis Trains
July 1, 2009

Operating 220 mph trains between Chicago and St. Louis is feasible and economically viable, according to a study issued yesterday by the Midwest High Speed Rail Association.

Conducted by transportation planning firm TranSystems, the study proposes operating the high-speed trains on a corridor serving Kankakee, Champaign-Urbana, Decatur and Springfield, Ill., complementing 110 mph train service already proposed in other parts of Illinois and the Midwest. Trains could make the trip between Chicago and St. Louis in a little more than two hours.

The current Amtrak service operated along the same right of way is limited to 79 mph, but the terrain and trajectories allow for higher speeds, the association said.

The association is urging the state of Illinois to request $10 million in American Recovery and Reinvestment Act dollars to conduct a detailed alternatives analysis and environmental study for the Chicago-to-St. Louis route. Any planning and construction funds should be allocated in addition to monies already planned for improvements to upgrade lines to 110 mph along several corridors throughout the country, the association said.

It would cost about $12 billion to upgrade the corridor to handle 220 mph trains, according to the study.

Colorado Railcar
Value Recovery Group Investors Acquire Former Colorado Railcar DMU
July 30, 2009

Private investors affiliated with asset management firm Value Recovery Group Inc. (VRG) recently acquired the former Colorado Railcar Manufacturing L.L.C. diesel multiple unit (DMU) and plan to resume manufacturing the self-propelled passenger cars in a new U.S. manufacturing facility to be established later this year.

VRG formed US Railcar L.L.C., which will retain the acquired Colorado Railcar DMU proprietary rights and information, manufacturing documentation, inventory, tooling, fixtures/jigs and other production equipment.

“There is a major commitment by the Obama Administration and Congress to make investments in intercity and high-speed rail to promote economic growth and mobility, create jobs, conserve energy and address climate change,” said VRG Chairman and Chief Executive Officer Barry Fromm in a prepared statement. “This opens a new era for passenger trains and rail-car manufacturing in the United States.”

VRG appointed Michael Pracht president and CEO of US Railcar. He previously held various key positions at Siemens and Ansaldo STS.

US Railcar plans to manufacture both single- and bi-level DMUs designed to operate in all mixed-mode U.S. freight corridors. US Railcar’s DMU is the only Federal Railroad Administration-compliant DMU operating in North American revenue service, according to VRG.

Keystone Corridor passengers who use the Lancaster train station will find it much improved and more accessible and comfortable as a result of a major $12 million renovation project now getting underway.

Representatives from the City of Lancaster, Lancaster County, the Pennsylvania Department of Transportation (PennDOT) and Amtrak today celebrated the start of the 18-month state and county-led project which has been in development for the past 10 years. The Lancaster station is served by Amtrak’s state-supported Keystone (Harrisburg - Philadelphia - New York) and Pennsylvanian (Pittsburgh - Harrisburg - Philadelphia - New York) routes.

The project includes a complete rehabilitation of the station's interior and exterior; a new heating, ventilation and air conditioning system; new restrooms; improved landscaping; and increased parking capacity (from 175 parking spaces to 237). A new taxi loading and unloading area will be provided as will a new waiting and ticketing area for the Trailways Bus Company. The station also will have retail space and meeting rooms.

"We've been working the past several years to improve the gateways into the City of Lancaster — with the Fruitville Pike bridge and in a few years with the Lititz Pike bridge. This renovated train station will be the gem of our efforts to improve the transportation gateways and augment the redevelopment happening both within and surrounding the city," said Toby Fauver, deputy secretary of local and area transportation for PennDOT.

Chairman of the Lancaster County Board of Commissioners Dennis P. Stuckey said, "The renovation and improvement of this important building and its grounds will provide a modern, intermodal transportation facility to serve the needs of travelers as well as restoring a Lancaster landmark to its original beauty and glory."

"Pennsylvania continues to be a leader in recognizing the benefits of rail and in providing its citizens with the stations and services that allow rail to be a viable transportation option," said Joe McHugh, Amtrak's vice president of government affairs and corporate communications, noting that last fiscal year over 484,000 passengers arrived or departed from the Lancaster station ranking it 22nd busiest out of the 525 stations served by Amtrak.

Funding for the renovation of the station, built by the Pennsylvania Railroad in 1929, was secured from county, state and federal sources — $9.6 million in federal funds, $2 million in state funds, and $400,000 in county funds.

During the 18-month construction period, the station will remain open and the impact on Amtrak and Trailways bus passengers who use the station daily should be minimal. The number of available parking spaces during construction will not change; however, part of the renovation calls for the creation of a taxi lane in front of the station which will eliminate parking there. To ensure they are not delayed as a result of the construction, passengers should allow extra time to reach the station.

For more information on the Lancaster Station Improvement Project, log onto www.lancasteramtrakstation.com.

BNSF Railway
BNSF Railway and Vehicle Projects Demonstrate Experimental Hydrogen-Fuel-Cell Switch Locomotive
June 29, 2009

BNSF and Vehicle Projects Inc. of Denver/Golden, Colo. unveiled an operational hydrogen-fuel-cell switch locomotive at BNSF's Topeka System Maintenance Terminal.

The experimental switch locomotive was introduced at a news conference. Sen. Sam Brownback (R-Kansas) and various representatives from BNSF, Vehicle Projects and the Department of the Army attended the introductory meeting.

Chris Roberts, vice president, Mechanical and Value Engineering, said BNSF and its predecessors have a proud tradition of developing new motive-power technologies, from the diesel-electric locomotive to AC traction. The hydrogen-fuel-cell demonstration is an important milestone in BNSF's testing of fuel-cell technology in a railroad application.

"We're proud to have reached this point in development of the hydrogen hybrid locomotive," Roberts said. "Exploring alternative energy sources is critical to achieving our nation's environmental and energy goals, and BNSF is pleased to be part of that process."

Arnold Miller, president, Vehicle Projects, and developer of the fuel cell powertrain, said the prototype addresses two overarching problems the world faces: global climate change and energy scarcity/insecurity.

"This technology, fueled by hydrogen, addresses both issues," he said. "The only effluent from this vehicle is water vapor."

Both BNSF and Vehicle Projects praised the support of Sen. Sam Brownback, who secured critical federal funding to help develop the prototype. Brownback called the project an example of the right way to address our energy and environmental problems by investing as opposed to increasing costs in those areas.

"BNSF operates through several locations that are in non-attainment areas for air quality as designated by the Environmental Protection Agency," said Mark Stehly, assistant vice president, Technical Research, Development and Environmental. "We are investigating and experimenting with this hydrogen-fuel-cell technology for its potential niche application in areas with air quality concerns."

After the June 29 demonstration, this locomotive will go to the Transportation Test Center in Pueblo, Colo., for additional testing, Roberts said. Then late this summer or early fall, depending on the outcome of the testing, the locomotive will go into service in the Los Angeles Basin, where it will face the test of actual service in the railroad environment.

The Golden Spike Tower and Visitor Center celebrates its first anniversary today. The attraction overlooking Union Pacific Railroad's Bailey Yard officially opened its doors on June 26, 2008.

"We had more than 3,300 visitors in May," said executive director JoAnne Hoatson. "We will be well over that number in June."

While few doubted the appeal of a tourist attraction tied in with the largest railroad switching yard in the world, the project was often controversial from its beginning in the late 1990s.

Finding a location to build it, financing it and designing it were all grist for the controversy mill.

Land was purchased from Hideo Kamino after the city council approved a 2 percent occupation tax on hotel and motel occupancy to repay a $4.1 million loan from a U.S. Department of Agriculture rural development loan. In January 2008, Shelly Harshaw, then executive director of Nebraska Operation Lifesaver was hired as director of the attraction. Groundbreaking ceremonies took place in May 2007.

Governor Dave Heineman and staff from Nebraska Economic Development were among the special guests at the grand opening ceremonies in June 2008. At that time, board president DiAnn Kolkman announced she was stepping down as president. City councilwoman Judy Pederson, who served on the board as a non-voting member during her term as city council president was named president. Current City Council president Don Kurre is the city's non-voting representative.

In July 2008, the Golden Spike received the "Rising Star" award from the Nebraskaland Foundation. The award recognizes outstanding tourism attractions that add value to tourism efforts of the local, area and state.

Harshaw resigned as director on Feb. 19, 2009, after a contentious relationship with some board members. In the wake of Harshaw's departure, Interim Director Cindie Kesler and volunteer coordination Stephanie Ward also submitted their resignations. Kesler cited a "lack of faith in the board's leadership" as her reason for resigning.

"It is extremely difficult to work in a situation when board members could come in at any time and decide to walk you off the property," she said at the time.

Pederson had said Harshaw had resigned. Kesler was Harshaw's assistant director and observed board members escort Harshaw off the premises.

Interim director JoAnne Hoatson was named executive director in March. Also in March, Deloyt Young resigned in protest, saying members of the board had treated Harshaw poorly. Young was one of the original members of a steering committee who first proposed utilizing Bailey Yard as a springboard for tourism 14 years ago. At the same board meeting, DiAnn Kolkman also resigned. Kolkman had steered the board from the Golden Spike concept to reality. At the time, Kolkman said she forfeited her position on the board as the result of pressure from the USDA to comply with terms of the loan.

As the dust settled following the personnel shake up, the Golden Spike got back to business as a destination for railroad fans from across the country and across the globe.

Phase II of the project has been slightly delayed by the rainy spring, Hoatson said. Phase II, construction on the north side of the attraction, includes a pavilion made with commemorative bricks and a line of flags featuring every state that the UPRR passes through.

"The Golden Spike is a good asset for North Platte and for Lincoln County," Hoatson said.

Hours for the Golden Spike are Monday through Saturday, 9 a.m. to 7 p.m. and Sundays 1-7 p.m. Tickets are $6 for adults, $5 for seniors and groups of more than 20 and $4 for students 16 and under.

Kansas City Southern
Kansas City Southern Invests in Green Locomotives; Repowers 27 Locomotives for Greater Fuel Efficiency, Reduced Emissions
June 22, 2009

Kansas City Southern (KCS) (NYSE: KSU) announced that it has accepted the first two of 27 locomotives to be repowered by Electro-Motive Diesel (EMD) this year. The 710ECO™ Repower allows KCS to leverage its existing locomotive fleet by updating older yard and road switchers with the latest microprocessor-controlled locomotive engine technology, for lower emissions, increased fuel economy, greater reliability, easier service ability and predictable maintenance costs.

The 27 locomotives are being converted from approximately 40-year old SD40 and GP40 units to SD22ECO units. Once converted, only the original body and frame remain. Eleven locomotives will be in service on The Kansas City Southern Railway Company (KCSR) and 16 locomotives will be in service on Kansas City Southern de Mexico, S.A. de C.V. (KCSM).

The SD22ECO locomotives minimize fuel consumption while maintaining emissions compliance, producing 25% fuel savings, 50% lube oil reductions and 70% reduction in greenhouse gas emissions, which makes them U.S. Environmental Protection Agency (EPA) Tier II compliant and eligible for both state and federal funding as clean air projects. KCS has received some funding and is seeking more for additional projects.

The 710ECO™ Repower solutions include eight cylinder, 2000thp and 12-cylinder, 3000thp EMD diesel engine options for both low and medium horsepower applications. This allows KCS to tailor performance to specific requirements—increasing availability, reliability and utilization. The EM2000 microprocessor control system compiles complete engine diagnostic information and significantly increases all weather adhesion with tractive effort up to 87,500 lbs.

The EMD 710 diesel engine has a 20 year record of reliability and service ability in rugged locomotive applications. The 710ECO™ Repower version operates all engine diagnostics and protects against excessive wheel slippage, to maximize tractive effort in all conditions. And the flexible software platform allows engines to be tuned for future emission compliance.

In addition to greener locomotives, freight rail is already the most efficient and environmentally-friendly way to transport goods. The EPA estimates that every ton-mile of freight that moves by rail instead of by highway reduces greenhouse emissions by two-thirds. A freight train can move a ton of freight 436 miles on a single gallon of fuel and a single intermodal train can haul the load of 280 trucks. Fewer trucks on the road means less congestion, less time in traffic and less money on fuel.

Canadian National
Historic CN locomotive Wheel Finds New Home in Fort Saskatchewan
June 22, 2009

CN has donated a former steam locomotive wheel to the City of Fort Saskatchewan, symbolizing its shared history in the development of the region.

CN officially presented the chrome-plated artifact today in a ceremony outside the former 1905 railway station in Fort Saskatchewan.

Tracy Miller, Alberta General Manager for CN, said the wheel was displayed for about 45 years at the railway's downtown Edmonton office building. He said when CN relocated to new offices last year, the wheel needed to move – and found an appropriate home in Fort Saskatchewan.

“CN's predecessor Canadian Northern Railway built its mainline through Fort Saskatchewan in 1905, allowing the community to grow with new settlers and new business. The railway also helped sew the seeds of future industrial development in the area,” Miller said.

“Today, the Fort Saskatchewan region and its significant industrial customer base remains critical to our company and our plans for the future.”

The wheel, which was reconditioned by the City of Fort Saskatchewan and installed on a new base, was once part of CN “Mikado”-class steam locomotive No. 3805. Built by the Canadian Locomotive Company in 1936, No. 3805 and its five sisters were specially designed to operate using the hard, high-alkaline water common on the Prairies.

These locomotives were used across Western Canada until the late 1950s, when they were replaced by diesel-electrics. CN preserved and reconditioned one of the main driving wheels from No. 3805 as a monument to the steam era.

Fort Saskatchewan Mayor Jim Sheasgreen thanked CN for its generous donation, saying the wheel is an important historic addition to displays that include a former CN caboose and the CN station, which was designated as a heritage building by the Province of Alberta in 2008. The station is today used by the Fort Saskatchewan Chamber of Commerce.

“Today is a great day for Fort Saskatchewan and the Historical Society. We are so proud to be connected with this piece of Alberta's heritage and I think we have found the perfect home for the wheel here in our city,” stated Mayor Sheasgreen.

As an Imagine Caring Company, CN is committed to contributing one per cent of pre-tax profit to registered, non-profit organizations in communities where our employees work and where we operate our business. Through the CN Stronger Communities Fund, the company supports health and safety programs for young people, transportation education, the CN Railroaders in the Community employee volunteer grant program, and United Way.

Union Pacific
Union Pacific the Only Railroad Recognized by General Motors as a Supplier of the Year
June 19, 2009

Union Pacific is the only railroad named by General Motors as one of its suppliers of the year. The award recognizes the significant contributions of GM's suppliers in 2008 as part of the company's global product and performance achievements.

Each year, a team of GM purchasing, engineering, quality, manufacturing and logistics executives determines the winners. Decisions are based on supplier performance in the areas of quality, service, technology and price.

"Earning this award from General Motors highlights the commitment we make to providing value, building and maintaining a strong relationship, and delivering quality products and services," said Jim Young, Union Pacific chairman and CEO. "The fact that Union Pacific is the only railroad recognized by General Motors shows the commitment to and strength of our relationship, and the value it can bring to consumers."

"GM is proud to honor our best suppliers, including Union Pacific, with the Supplier of the Year award," said Bo Andersson, GM group vice president, Global Purchasing and Supply Chain. "We believe this award is the most meaningful honor in the supplier industry. During these difficult economic times, it is more important than ever to recognize performance in our supply base."

Federal Railroad Administration
U.S. Transportation Secretary LaHood Announces Guidelines for Receiving Economic Recovery Funds for High-Speed Rail
June 17, 2009

The Department of Transportation moved another step closer to realizing President Obama’s vision for high-speed rail in America, publishing guidelines for states and regions to apply for federal funds as part of the American Recovery and Reinvestment Act.

“The time has finally come for the United States to get serious about building a national network of high-speed rail corridors we can all be proud of,” Secretary Ray LaHood said. “High-speed rail can reduce traffic congestion and link up with light rail, subways and buses to make travel more convenient and our communities more livable.”

The historic commitment to revitalizing the nation’s rail lines by creating high- speed corridors and improving existing service between cities includes an $8 billion competitive grant program and a continuing $1 billion annual investment proposed in the President’s budget.

“Rail travel will encourage economic growth and create new domestic manufacturing jobs, while reducing pressure on our highways and airways,” said Federal Railroad Administrator Joseph Szabo. “In addition to the economic advantages, trains are energy-efficient, capable of reducing billions of pounds of carbons each year from being released into our atmosphere and reducing our country’s reliance on oil.”

Officials from the USDOT and Federal Railroad Administration met with more than 1,000 people across the country to receive input in preparation for developing the program’s grant application guidelines. Vice President Biden and Secretary LaHood also heard from governors and state transportation chiefs at the White House on June 3 about how they hoped to boost their economies with improved passenger rail service.

The guidelines, which can be found at http://www.fra.dot.gov/us/content/2243, require rigorous financial and environmental planning to make sure projects are worthy of investment and likely to be successful. The program will offer grants for both planning and construction so that states can apply for funds no matter what stage of development their project is in.

The guidance states that proposals will be considered on the merits for their ability to make trips quicker and more convenient reduce congestion on highways and at airports and meet other environmental, energy and safety goals. And it allows the USDOT to actively promote standard specifications for rail cars and other equipment.

The Federal Railroad Administration will award the first round of grants by mid-September.

R.J. Corman Railroad Group
R.J. Corman Completes Railpower Corp. Acquisition
June 17, 2009

Nicholasville, Ky.-based R.J. Corman Railroad Group, LLC Thursday announced it had finalized its acquisitionof Railpower Technologies Corp., based in Brossard, Quebec, and its wholly owned U.S. subsidiary Railpower Hybrid Technologies, based in Erie, Pa.

“We are pleased and honored to be able to continue the development and production of the Railpower Gen-Set locomotives for the railroad industry,” said owner Rick Corman in a statement. “The combination of the R.J. Corman Railroad Group service orientation and the demonstrated technical leadership of the Railpower team will result in Gen-Set locomotives being designed and built by a company that operates railroads.”

“With the state-of-the-art technology on board the Railpower Gen-Set locomotives, we are excited about buildingthem for the future and appreciate all the support we received during the acquisition process,” said Bruce Greinke, executive vice president and chief operating officer for Railpower, LLC.

Huron Central Railway
Genesee & Wyoming Inc. Announces Intent to Discontinue Operations of Huron Central Railway
June 15, 2009

Genesee & Wyoming Inc. (GWI) (NYSE: GWR) announced that its subsidiary Huron Central Railway Inc. (HCRY) intends to discontinue operations. The downturn in the economy has caused the Huron Central's traffic to decline substantially over the last 12 months, to the point that the railroad is not economically viable to operate for the long term.

GWI expects to record charges in the second quarter of up to approximately $5.3 million after tax, or $0.15 per share, reflecting the non-cash write-down of non-current assets of approximately $7.1 million and cash costs associated with the cessation of HCRY operations ranging from $0.4 million to $1.9 million, which GWI expects to be partially offset by cash tax benefits of approximately $3.7 million. In the year ended December 31, 2008, HCRY handled approximately 16,000 carloads, generated revenues of $7.4 million and incurred a $2.1 million operating loss, thereby reducing GWI's diluted earnings per share by approximately $0.04.

HCRY has operated the 173-mile railroad from Sudbury to Sault Ste. Marie, Ontario, under a lease agreement with Canadian Pacific Railway since 1997. The companies are working closely together and with customers to effect an orderly cessation of operations.

HCRY will cease operations between McKerrow and Sault Ste. Marie on August 15, 2009. It will continue operation of the eastern segment of the railroad from Sudbury to McKerrow and Espanola until October 31, 2009. The closure will ultimately eliminate 45 jobs at HCRY.

GWI owns and operates short line and regional freight railroads in the United States, Canada, Australia and the Netherlands and owns a minority interest in a railroad in Bolivia. Operations currently include 63 railroads organized in nine regions, with more than 6,800 miles of owned and leased track and approximately 3,100 additional miles under track access arrangements. GWI provides rail service at 16 ports in North America and Europe and performs contract coal loading and railcar switching for industrial customers.

Children age 12 and under who ride Amtrak's western trains can win a Lionel toy train set by describing what they like about riding on the train as part of the 10th annual Amtrak Lionel Kid's Essay Contest.

From the inception of the essay contest, the Amtrak and Lionel partnership has been designed to inspire interest in trains and passenger train travel among children. Over 3,000 children have entered the essay contest in the past 10 years.

Entry forms are now available onboard 11 of Amtrak's western trains including the California Zephyr, Amtrak Cascades, the Coast Starlight, the Capitol Corridor, the Empire Builder, the Heartland Flyer, the Southwest Chief, the Pacific Surfliner, the Sunset Limited, the San Joaquin and the Texas Eagle. The trains carrying the entry forms will pass through 14 states from California to Illinois and are available to all riders under the age of 12. Entries may be submitted through August 31, 2009.

The Santa Fe El Capitan(TM) train set valued at $370 will be awarded to the grand prize winner and a Polar Express(TM) train set valued at $330 will be distributed to 14 lucky first place prize winners. Essays will be judged on content and originality. Prizes will be awarded in the fall.

Kansas City Southern
KCS Announces the Start of Rail Operations on Victoria to Rosenberg Rail Line; Partners with Texas Operation Lifesaver and TxDOT to Promote Rail Crossing Safety
June 10, 2009

The Kansas City Southern Railway Company (KCSR) announced today that it will begin operating freight trains on its newly rehabilitated line from Victoria to Rosenberg, Texas on June 17. This renewed operation restores rail service to communities along the line and brings needed rail capacity to south Texas to reduce highway congestion and the number of trucks on Texas highways. As an important part of a transcontinental main line that connects the heartland of the United States with the heartland of Mexico and as an important part of a rail network that connects with every other major rail carrier in North America, the restoration of the line will also make this part of the state more economically competitive, leading to future economic opportunity and jobs.

Safe operations are paramount as train operations begin. As designated by the Texas Department of Transportation (TxDOT) and as part of the joint TxDOT/KCSR corridor plan:

- Fifty-two sets of flashers/gates and KCSR emergency notification signs have been installed at public at-grade crossings. One more set of flashers/gates will be installed at the intermodal shipper facility near Kendleton.

- Crossbucks with a STOP or YIELD sign, reflective striping and KCSR emergency notification signs have been installed at the remaining public at-grade crossings.

- In advance of each public, at-grade crossing is an Advance Warning sign with pavement markings and stop bar markings applied on paved roads.

- In addition to these warning devices, signs and markings, all trains approaching public at-grade crossings are required by federal regulation to sound their horn a minimum of fifteen seconds before reaching the crossing, regardless of the time of day.

Train operations will begin gradually in order to allow motorists to adjust to the restored service. In the first few days of operations, trains will run a maximum speed of 10 miles per hour over all public crossings. The maximum authorized speed will increase to 25 miles per hour beginning June 29. Except for segments of the line where there will be speed restrictions, maximum train speeds will increase to 40 miles per hour beginning July 13. Beginning August 1, the maximum authorized speed will increase to and remain at 49 miles per hour.

To help prepare the community for the restoration of rail service, KCSR has partnered with Texas Operation Lifesaver (TXOL) to promote rail grade crossing safety with a multi-media advertising campaign and presentations throughout the Victoria to Rosenberg corridor. TXOL educates drivers and pedestrians to make safe decisions at rail crossings and around railroad tracks.

TXOL has trained several volunteer presenters to carry its safety message to schools, trucking companies and local industries. Several schools and civic groups have already scheduled presentations. KCSR will also promote public safety in other public forums. To schedule a presentation, please contact Texas Operation Lifesaver at 800-362-2210 or txol@hot.rr.com.

TXOL and KCSR support active enforcement of traffic laws relating to crossing signs and signals and private property laws related to trespassing. TXOL and KCSR are contacting area law enforcement and emergency responders to offer free Rail Safety for Emergency Responder training and Grade Crossing Collision and Trespass prevention training.

As train operations begin, regardless of whether the crossing is public or private or what type of warning is in place, motorists and pedestrians are urged to always expect a train. In addition, pedestrians are urged to stay off railroad rights-of-way. Do not walk along the track or trespass on railroad rights-of-way and only cross the tracks at designated crossings.

The Surface Transportation Board announced Monday that it had authorized 135-mile Arizona Eastern Railway to construct a 12.1-mile, single-track line to serve Phelps Dodge Mining Company mines in Safford, Ariz., as well as the Safford Regional Airport and a contemplated industrial park adjoining the airport. The board's approval is subject to certain environmental mitigation measures.

The Arizona Eastern is a Class III short line controlled by Iowa Pacific Holdings, Inc. AZER’s operations currently extend between Union Pacific’s Sunset Route at Bowie and the end of the line at Miami, Ariz. The new line would diverge from the existing AZER line east of Safford, Ariz., cross the Gila River on a new 500-foot bridge, pass the Safford airport industrial park site and end at a new Phelps Dodge Mining Company copper mine complex.

The new line is expected to operate one round trip a day consisting of 20 to 25 cars hauled by two locomotives. Inbound traffic would consist of tank cars carrying sulfuric acid from a processing plant at Miami to the Safford mine; the return trip would consist of empty and outbound tank card and copper cathodes.

American Railcar Co.
American Railcar Co. Acquires Design Rights to DMU
June 15, 2009

Columbus, Ohio-based American Railcar Co. LLC, has acquired the rights to build diesel multiple-unit (DMU) trains based on the designs of Colorado Railcar Corp., which sought to establish itself as a primary source for DMU production in North America. Fort Lupton, Colo.-based Colorado Railcar closed its doors Dec. 23 and terminated all operations Dec. 31.

American Railcar already is touting its newly acquired DMU design, completed with retouched photographs, on its website, http://www.amrailco.com/documents/ARC-Brochure.pdf. The company touts its mission in "Bringing the former Colorado Railcar DMU back to life."

New Jersey Transit
Power Needs Spur NJ Transit’s Order for ALP-46A Engines
June 11, 2009

New Jersey Transit's need to provide enough power to haul 10-car bilevel trains spurred the corporation to approve a $72 million contract with Bombardier Transportation for nine ALP-46A electric engines. The order supplements NJT’s current fleet of 27 ALP-46 units, and will help replace 32 older ALP-44 engines ordered as early as 1990.

“It’s more cost-effective than rehabilitating the old ALP-44s and the first ALP-46A will be delivered by next year and the order filled by 2011,” said NJT Executive Director Richard Sarles.

NJT’s increasing use of Bombardier multilevel equipment on its three primary electric lines—the Northeast Corridor, North Jersey Coast Line and Morris & Essex Lines—has increased passenger capacity, but at times prompted the need for the company to use two electric engines to ensure prompt performance of 10-car trains.

The ALP-46A units are each rated to sufficiently power a 10-car consist; in addition, the ALP-46A units are expected to provide more rapid acceleration, reducing potential dwell time issues, particularly on the Northeast Corridor.

Federal Railroad Administration
FRA grants help two RailAmerica short lines shore up flood-damaged track
June 10, 2009

Two RailAmerica Inc. short lines are beginning to repair flood-damaged infrastructure thanks to Federal Railroad Administration (FRA) grants.

The administration recently awarded $15 million to nine states for emergency repairs to short-line infrastructure damaged by severe weather — the first time the short-line industry has received federal disaster-relief funds.

The Indiana Southern Railroad, whose track was damaged last year by 100-year floods, is spending $1.5 million on repairs. Likewise, the Missouri & Northern Arkansas Railroad is recovering from 10 track washouts and a total of $1.9 million in infrastructure damage caused by storms and subsequent flash flooding last year.

Under the Consolidated Security, Disaster Assistance and Continuing Appropriations Act of 2009, the FRA is authorized to provide $20 million for the repair and rehabilitation of rail infrastructure — such as bridges, track and signals — in federal disaster areas. The FRA plans to issue another solicitation for the remaining $5 million.

After the New York Daily News published a story saying that Joe Boardman was on the short list for the New York Metroplitan Transportation Authority chief executive post, Amtrak's recently appointed president and CEO assured his employees that he has no intention of leaving.

In a letter, Boardman said, "I have not been approached about the job, and I have no interest in the job. I have a committment here at Amtrak and I would appreciate it that if my name is listed that you answer anyone quickly that I continue to have my committment to Amtrak. It is not surprising that someone might use my name with my roots from New York and my experience, but I like it here and I would like to see some stability in the President's office for awhile. I think most people agree with me on that. Thank you for everything you do, and please feel free to speak confidently about this."

CSX
CSX Transportation and PSEG Power Bring Ultra-Low Emission Locomotives to New Jersey
Released: June 9, 2009

CSX Transportation (CSXT) and PSEG Power met with state and local officials at the Trenton Transit Center to unveil new ultra-low emission GenSet locomotives to be operated in New Jersey.

The GenSet locomotives, manufactured by National Railway Equipment Company, reduce nitrous oxide and particulate matter emissions by 80 percent and can create carbon dioxide emissions savings of approximately 50 percent by monitoring engine idling and switching to "sleep" mode after a period of inactivity.

"Clean air is good for New Jersey, it's good for our company and employees, and it's good for America," said Skip Elliott, vice president of public safety and environment, CSXT. "We are proud to operate this GenSet switching locomotive, the first of its kind to be based permanently in New Jersey."

A total of three GenSet locomotives will be purchased in partnership by PSEG Power and CSXT. Instead of a large, single diesel engine and generator, the units have two smaller, EPA certified, ultra-clean diesel generators which automatically power up to produce only the force needed to pull the required load.

"PSEG Power is always seeking opportunities to bring environmentally responsible, cost-effective technologies to New Jersey," said Eric Svenson, Jr., the company's vice president for environment, health and safety. "Through our partnership with CSXT, we will be able to tangibly improve New Jersey's air quality for years to come."

The GenSet locomotives will be used to switch cars within CSXT's yards in New Jersey and can also be utilized for road switching service. GenSet locomotives are significantly quieter than existing locomotives; they achieve the most stringent noise level requirements for off-road capital equipment.

CSXT has invested more than $1 billion to upgrade its locomotive fleet with technology that reduces fuel consumption and air pollutant emissions. Through these efforts, the company has improved its fuel efficiency by approximately 80 percent since 1980.

CSXT is a member of the EPA's Climate Leaders program. As a member, the company has committed to reducing its emissions and leveraging other means for environmental benefits. CSXT is also an award-winning and charter member of the EPA SmartWay Transport Partnership. This partnership was designed to promote voluntary reductions in fuel consumption and emissions. CSXT's fuel conservation measures and improved management of its waste stream have already contributed to that goal.

Keewatin Railway
Canada's Keewatin Railway Obtains Federal Funds to Upgrade Passenger Service
June 8, 2009

The Canadian government recently announced it will provide $5.2 million in federal funding for the Keewatin Railway Co., a passenger and freight railroad owned and operated by three First Nations communities. The railroad will use the funds to improve passenger-rail service between The Pas and Pukatawagan, Manitoba.

Keewatin Railway will use $4.1 million in Economic Action Plan funds to rehabilitate track, acquire a locomotive and other rail equipment, and construct a locomotive repair facility in The Pas and a new station in Pukatawagan. The railroad also will use $1.1 million from Transport Canada's Regional and Remote Passenger Rail Service Class Contribution Program to replace ties and culverts.

Tshiuetin Rail Transportation
Canada's First Nations Railroad Obtains Federal Capital Improvement Funds
June 8, 2009

The Canadian government recently announced it allocated $5.8 million to Tshiuetin Rail Transportation, a passenger and freight railroad owned and operated by three First Nations communities.

Proceeds will be used to upgrade the line and improve passenger-rail service between Sept-Iles and Schefferville, Quebec.

Tshiuetin Rail Transportation will use $3.8 million in Economic Action Plan funds to replace and repair track, construct two sheds and a turning track, improve electrical and telecommunications systems, and acquire maintenance equipment. The railroad will use another $2 million from Transport Canada's Regional and Remote Passenger Rail Services Class Contribution Program to purchase two service vehicles and safety equipment, upgrade passenger cars, and replace ties, rail and culverts.

Toronto-based GO Transit will commence summer weekend and holiday rail service to Ontario’s Niagara Region beginning June 27. The service will offer four train trips daily in each direction on Saturdays, Sundays, and holidays from June 27 through through Canadian Thanksgiving weekend, October 12.

The two-hour trip will link Toronto’s Union Station with Port Credit GO Station, Oakville GO Station, Burlington GO Station, St. Catharines VIA Rail Station, and Niagara Falls VIA Rail Station.

"This new GO rail service will bring tourists to Niagara's wineries, restaurants, and attractions such as the incomparable Niagara Falls. Our government is expanding public transit across the province, making investments that build our economic infrastructure and put people to work," said Ontario Minister of Transportation Jim Bradley in a statement.

U.S. senators from Pennsylvania, New Jersey, and New York are vocally backing a 20-year effort to restore passenger rail service along the Lackawanna Cut-Off, a famed rail right-of-way that last saw active rail service in 1981. The Cut-Off this week received a “finding of no significant impact,” or FONSI, from the Environmental Protection Agency, clearing the way for the states to seek funding.

Recent media attention has focused on support from Pennsylvania’s two senators, Arlen Specter and Bob Casey (both Democrats), but any service introduction likely will begin in New Jersey, with New Jersey Transit extending its existing operations west of Port Morris, N.J. New Jersey’s U.S. Senate contingent ,Robert Menendez and Frank R. Lautenberg (also both Democrats), have supported the line’s resumption for many years.

A relative newcomer is U.S. Sen. Charles Schumer (D-N.Y.), who has voiced support for efforts to extend the Cut-Off project north of Scranton, Pa., across the state border to Binghamton, NY in New York State’s Southern Tier region.

For New Jersey, one factor driving the project is the potential loss of federal highway funds if the state fails to improve air quality under the Clean Air Act. Service on the Cut-Off route would offer a travel alternative to citizens in northwest New Jersey and northeast Pennsylvania who now use Interstate 80 as the primary travel option.

Most involved with the project at present presume that New Jersey Transit would be the initial operator of any service, though some have argued that the tristate nature of the larger plan requires Amtrak to play an eventual role.

Lawrence Malski, chairman of the Northeast Pennsylvania Regional Railroad Authority, said the project will be completed in phases to allow for lower funding requests. Though Malski and others suggest that the initial Pennsylvania service from Delaware Water Gap could be up and running in four years, many industry observers, citing the 20 years already logged by project proponents, say such a timetable is optimistic at best.

OMERS Private Equity of Toronto, Ontario, has acquired Nordco, Inc. from The Riverside Co, Nordo announced Monday. Terms and amount of the sale were not disclosed, though a Riverside Co. spokesman allowed that the deal was “extraordinary,” and “a wonderful return for our investors.”

Oak Creek, Wis.-based Nordco Inc. has about 330 employees in several subsidiaries, including: Dapco Industries , Ridgefield, Conn.; Nordco Rail Services of Lee’s Summit, Mo.; Shuttlewagon of Grandview, Mo., and J.E.R. Overhaul of Arcola, Ill. Nordco manufacturing facilities are located in Oak Creek and in Oshawa, Ontario.

The Riverside Co. purchased Nordco as part of a management-backed buyout in 2003. The firm moved Nordco into a larger facility, launched a rebuild and repair division, and added the other companies during its parental tenure.

The Ramsey County (Minn.) Board Tuesday unanimously approved purchasing St. Paul’s Union Depot main building for $8.2 million, to facilitate use by the planned 11-mile, $914 million Central Corridor light rail transit project and for future passenger intermodal options as well. The board serves as the Regional Rail Authority overseeing the matter.

The purchase includes the head house and the parking structure and the land that the building sits on. Thirty-nine condo units built by the current owner will remain in private hands.

Union Depot is scheduled to reopen in 2012, two years ahead of the planned debut of the Central Corridor. The depot was built from 1918 to 1923.

"Today marks the official start of the project to return the Union Depot to what it once was: a transportation hub for Ramsey County, the state of Minnesota, and the entire upper Midwest," Commissioner Jim McDonough, chair of the Regional Rail Authority, said. The site would facilitate Amtrak and/or Midwest high speed rail service, Greyhouse and Jefferson Lines buses, Metro Transit, and bicycle transit options under current plans.

Amtrak
Amtrak Signs Agreement with Virginia to Provide New Passenger Rail Service
June 3, 2009

With a new agreement signed with Virginia, Amtrak is now the choice of 15 states to operate their state-funded passenger rail service and is uniquely positioned to develop partnerships with other states, said Amtrak President and CEO Joseph Boardman.

"Amtrak is excited to establish new passenger rail service for Virginia and is seeking opportunities to partner with other states to provide additional rail transportation options," Boardman stated, highlighting the national reach of the railroad's extensive network of stations and mechanical and operational facilities as well as its equipment fleet and reservations system.

Boardman stressed that a primary objective of Amtrak is to be the operator of the national high speed rail system being developed by states with new federal funding provided in the American Recovery and Reinvestment Act. Amtrak understands the needs, opportunities and challenges associated with creating and operating new passenger rail service and is able to provide the leadership and technical assistance necessary to successfully help states reach that goal, he said.

Under the Virginia agreement, Amtrak will receive $17.2 million from Virginia over a three-year demonstration period to provide new daily service to Washington, D.C. from Lynchburg beginning in October 2009 and from Richmond beginning in December 2009. Detailed schedules and fares will be finalized by the Virginia Department of Rail and Public Transportation and Amtrak in the coming months.

In addition to Virginia, Amtrak currently has partnership agreements with the following states to operate state-funded passenger rail services: California, Illinois, Maine, Michigan, Missouri, New York, North Carolina, Oklahoma, Oregon, Pennsylvania, Texas, Vermont, Washington, and Wisconsin.

Union Pacific
Union Pacific's Historic Steam Locomotive No. 844 Coming to Omaha/ Council Bluffs for Railroad Days Celebration
June 01, 2009

Union Pacific Railroad's historic steam locomotive, No. 844, will be coming to Omaha and Council Bluffs, Iowa, in June to celebrate the Railroad's history and heritage as part of the community's Railroad Days celebration.

"Union Pacific's historical ties run so deep in Omaha and Council Bluffs that it is only fitting we display such a historically significant steam locomotive during Railroad Days," said Brenda Mainwaring, Union Pacific's director – public affairs for Nebraska and Iowa.

"We are proud to have No. 844 on display during the weekend when the Omaha/Council Bluffs area takes time out to celebrate the impact the rail industry has on the community now and in our past," said Steve Lee, UP's manager – operating practices and steam locomotive engineer.

In Omaha and Council Bluffs, Lauritzen Gardens, the Durham Museum, the Union Pacific Railroad Museum, RailsWest Railroad Museum and the Historic General Dodge House have teamed up to showcase the rich railroad heritage the area has during Railroad Days 2009. More information about Railroad Days is at http://www.omaharailroaddays.com

The steam locomotive will be on public display at the Durham Museum for Railroad Days on Saturday, June 20 and Sunday, June 21. Guest will have an opportunity to look inside the cab of the legendary locomotive from a viewing platform alongside the locomotive.

The locomotive will be moved and on display at Golden Spike Park in Council Bluffs on Monday, June 22 and Tuesday, June 23 before heading back to its home base in Cheyenne, Wyo., on Wednesday, June 24.

No. 844, also known as Union Pacific's "Living Legend," returned to service in 2005 after one of the most extensive steam locomotive overhauls in the United States since the 1950s. The overhaul began in 2000 and included extensive overhauls of its running gear, pumps, piping, valves and springs, along with replacement of its firebox and extensive boiler work. Even the cab interior has been refurbished. No. 844 was the last steam locomotive built for Union Pacific Railroad and was delivered in 1944. A high-speed passenger engine, it pulled such widely known trains as the Overland Limited, Los Angeles Limited, Portland Rose and Challenger.

When diesels took over all passenger train duties, No. 844 was placed in freight service in Nebraska between 1957 and 1959. It was saved from being scrapped in 1960 and held for special service.

No. 844 has run hundreds of thousands of miles for UP's Heritage program. It has made appearances at Expo '74 in Spokane, the 1981 opening of the California State Railroad Museum in Sacramento, the 1984 World's Fair in New Orleans and the 50th Anniversary Celebration of Los Angeles Union Station in 1989. It is based in Cheyenne, Wyoming.

A Global Positioning Satellite (GPS) transmitter was installed on one of the rail cars that will travel with No. 844. The GPS system has been integrated with a map on UP's Web site. Enter the word "Steam" in the search box on the homepage for a shortcut to the map. Click here.

Web site visitors will be able to access route maps with varying amounts of detail. The GPS system will update the map every five minutes showing No. 844's location.

Twitter users will be able "follow" the 844 at twitter.com/up_steam. Tweets will include the 844's latest GPS location as well as brief reports from along the route.

Norfolk Southern
Norfolk Southern: A Decade of Growth – and a Vision for Tomorrow
June 1, 2009

On the 10th anniversary of Norfolk Southern Corporation’s acquisition of nearly 60 percent of Conrail, CEO Wick Moorman today thanked customers, suppliers, stockholders, communities, and employees for their hard work and support.

“On Day One – June 1, 1999 – we set out to build the best freight transportation system in the world,” Moorman said. “We have made steady progress toward that goal, and together we have enjoyed a decade of growth and financial success. All of us at Norfolk Southern are grateful to everyone who has played a part in this success, and we look forward to what the next decade brings.”

Since Day One, when Norfolk Southern added 7,200 miles of Conrail routes and 10,000 former Conrail employees to its system, the railroad has moved 3.5 trillion gross ton-miles of freight. A single train of every carload NS hauled in the last decade could stretch to the moon and back twice – and then some.

In order to meet increased demand and better serve customers, NS over that period has invested nearly $10 billion in capital expenditures to improve track, equipment, facilities, and technology. In new rail alone, NS installed the equivalent of a brand new transcontinental railroad.

NS’ industrial development activities since Day One resulted in the location or expansion of 1,115 industries along the railroad’s lines, representing customer investments of $23.6 billion and creating nearly 55,000 customer jobs in the territory served by the railroad.

The Conrail transaction returned competitive rail service to the Northeast for the first time in 20 years. NS sharpened its focus on customer service markedly following the transaction – especially through its Thoroughbred Operating Plan – and today is the industry’s service benchmark.

Most important, it all has been done safely. NS employees have earned the E.H. Harriman Memorial Gold Medal as the safest railroad workers in the U.S. for each of the last 20 years.

“The numbers tell an impressive story, but as satisfying as it is to see how far we’ve come, it’s more exciting to look ahead,” Moorman said. “Our progress has given us the strength to weather the current economic storm. This recession will pass, and the long-term future for rail as the safe, clean, and fuel-efficient transportation alternative has never been brighter. NS is ready to take advantage of the opportunities that a recovering economy will bring. Ten years from now, along with our partners, we will look back again with amazement at how far we’ve come together.”

Traveling to Baltimore on business, or to see the Birds play at Oriole Park at Camden Yards? Bethesda, Md.-based developer Hospitality Partners has signed a contract with Amtrak to construct and manage a hotel on the upper three levels at the city’s Pennsylvania Station, located on Amtrak’s Northeast Corridor.

The 77-room, $9 million hotel, to be called The Inn at Penn Station, reportedly would be the first such hotel at a rail station in the Northeast that also continues to serve rail passengers. Hotel rooms will line the station's perimeter and will be reached from corridors overlooking the main concourse below. Construction is expected to begin this year and be completed by late 2010.

Amtrak currently commands roughly 61% of the combined air/rail travel market between New York and Washington, making the hotel’s location potentially lucrative for the national rail passenger carrier. Amtrak spokesman Cliff Black says that, in addition, the city is pinning much of its redevelopment efforts for the neighborhood, dubbed the Charles North renewal area, using Penn Station as a central focus.

The station is also served by Baltimore’s light rail system, operated by the Maryland Transit Administration, bolstering intracity access.

Tucson, Arizona Light Rail
Tucson, Ariz., orders streetcars from Oregon Iron Works
May 28, 2009

Tucson, Ariz. Wednesday became the second U.S. city awarding a contract to United Streetcar LLC, a subsidiary of Clackamas, Ore.-based Oregon Iron Works, Inc.

Tucson’s $26 million order, for seven streetcars, follows an earlier order by Portland, Ore., for six streetcars, which itself followed United Streetcar’s production of a prototype car now being tested in Portland.

Carsbuilt by United Streetcar are similar in design to those of Plzen, Czech Republic-based Skoda Transportation a.s., under a technology transfer agreement signed by the two companies in 2006.

Federal Railroad Administration
Disaster Assistance Grants Awarded to States to Cover Costs of Railroad Emergency Repairs Following Natural Disasters
May 27, 2009

Federal Railroad Administrator Joseph C. Szabo today announced the award of $15 million to nine states for emergency repairs to damaged railroad infrastructure resulting from natural disasters.

Funding from the Federal Railroad Administrations (FRA) Railroad Rehabilitation and Repair Program (RRRP) will go to state Departments of Transportation to reimburse short line and regional railroads for the cost of repairs.

"Freight railroads are critical to local economies and we are committed to helping them restore rail service after a major disruption," said Szabo. "This funding will help the carriers defray repair costs and keep the trains running."

Funds awarded under the RRRP can cover up to 80 percent of the total cost of a selected project, with the remainder to be provided from non-federal sources. Grants may be used to repair bridges, signals and other infrastructure which are part of the general rail transportation system. The grant recipients are as follows:

• Alaska Department of Transportation and Public Facilities
Flood repair for the Alaska Railroad $637,440
Flood repair for the Alaska Railroad $945,680

• Arkansas State Highway and Transportation Department
Emergency repairs to Missouri and Northern Arkansas Railroad $737,292

• Illinois Department of Transportation
Flood control on the Indiana Harbor Belt Railroad $569,700

• Kansas Department of Transportation
Repair of flood damage to the Gorilla Subdivision on the South Kansas & Oklahoma Railroad $405,702

• Indiana Department of Transportation
Flood damage repair on the Indiana Southern Railroad $1,244,217

• Iowa Department of Transportation
Flood damage restoration to rebuild a bridge and repair signals on the Cedar Rapids and Iowa City Railway            $6,965,163
Flood damage restoration for the Keokuk Junction Railway Yard   $459,200
Replacement of the Waterloo Bridge over the Cedar River for the Iowa Northern Railway            $2,174,880

• Missouri Department of Transportation
Flood damage repair on Missouri & Northern Arkansas Railroad $353,600

• North Carolina Department of Transportation
Repair of washouts and debris removal On the Carolina Coastal Railway $11,101

• Wisconsin Department of Transportation
Repair of flood damage and washouts on the Wisconsin & Southern Railroad $354,006

Under the Consolidated Security, Disaster Assistance, and Continuing Appropriations Act, 2009, FRA was authorized to make $20 million available for grants to repair and rehabilitate railroad infrastructure damaged in areas declared by the President as a major disaster.

The FRA intends to issue another solicitation for the remaining $5 million in funds through a Notice of Funding Availability to be published in the Federal Register that will be available on a competitive basis.

BNSF Railway
BNSF to Replace More Than 70 Track Miles of Rail in South Dakota
May 26, 2009:

In June, BNSF Railway Company will begin the first of five maintenance-of-way projects in South Dakota that will replace approximately 73 track miles of rail along its system. BNSF crews will conduct track work between Glenham and Morristown; Alpena and Wolsey; Alexandria and Canton; Crooks and Lyons; and Harrisburg and Sioux Falls. The last of the projects is expected to end in September for a total cost of almost $11 million.

"Expanding and maintaining our infrastructure in South Dakota and throughout the system not only allows us to provide customers with efficient and reliable rail service but it also benefits the overall efficiency of America's supply chain," said Dave Freeman, BNSF vice president, Engineering.

BNSF expects to spend about $2 billion this year to keep the railway's infrastructure strong by upgrading technologies and refreshing track, signal systems, structures and freight cars.

Union Pacific and Progress Rail Services to Launch Initial Operation of Ultra Clean Diesel Locomotive for Intermediate Line Haul Service
May 21, 2009

Union Pacific Railroad and Progress Rail Services announced their plan to launch the initial operation of an ultra clean diesel SD40-2 locomotive equipped for intermediate line haul service. Equipped with state-of-the-art after-treatment, this customer evaluation unit will begin Union Pacific operations this month with an initial revenue-service run between the railroad's San Antonio and Fort Worth service units, respectively.

"We are excited about the prospects of bringing more environmentally friendly locomotives into service while still meeting our operational needs," said Bob Grimaila, Union Pacific senior assistant vice president, Safety and Environment. "We know there are challenges ahead as we evaluate performance under demanding rail operations, but we remain committed to support this project and commend our partners, Caterpillar and Progress Rail Services, for their collaborative efforts in developing this promising technology."

The Progress Rail PR30C-LoNOx Locomotive has been re-powered with a single 3,005 horsepower, low-emission, Caterpillar clean-diesel engine. It meets EPA's Tier 2 standards and is retrofitted with an advanced emission control technology. That technology routes the exhaust through a diesel oxidation catalyst prior to entering the selective catalytic reduction (SCR) chamber, where oxides of nitrogen (NOx) emissions are reduced by more than 90 percent from the original 1970s vintage engine.

"The use of after treatment to reach these levels of emissions is new territory for the rail industry and we are pleased to be the first with SCR for large mobile engine applications," said Billy Ainsworth, CEO, Progress Rail Services. "By leveraging the expertise of Caterpillar, an established leader in clean diesel technology, we are confident we can bring this cutting-edge technology to the railroad industry just as we have been providing it in other applications. Additional prototypes, all powered by Caterpillar model 3516, 3005 horsepower diesel engines, will be retrofitted and tested with this system, making them among the cleanest locomotives in America. The durability and performance of the unit will be closely monitored and evaluated over a six-month period to ensure safe and dependable operations."

Amtrak
Amtrak Celebrates Groundbreaking For New Auto Train Station In Sanford, Fla.
May 18, 2009

Today Amtrak is beginning to put into place the last piece of a multi-year plan to bring increased convenience, improved service and more station amenities to passengers who ride our popular Auto Train.

The new, larger and up-to-date passenger station being built in Sanford, Fla., fulfills our vision for the Auto Train which added new passenger equipment in the 1990s, new car carriers in July 2005 and built a new station and mechanical facility at the northern end of the route near Washington, D.C., in 2000. It’s a plan that is working. During fiscal year 2008, ridership on the Auto Train increased 7.8 percent over the previous year.

As Americans have sought alternatives to crowded highways, Amtrak is — and has been — providing another way. The success of the Auto Train shows in a very direct manner that Amtrak is part of the travel solution and is taking cars off the road every day of the year.

As Amtrak actively moves forward with plans for a greener, safer and healthier future, we will be looking for other places around the country where an Auto Train service can be started.

The Sanford Auto Train Station serves as the southernmost terminus of Amtrak's Auto Train, a unique service that allows passengers to travel with their personal vehicles between Lorton, Va. (near Washington, D.C.) and Sanford, Fla.

The station was built in 1971 when the Auto Train operation was a private enterprise. Amtrak began operating the service in October, 1983 and renovated the station in 1995.

In addition to cars, vans and SUVs, the Auto Train also transports motorcycles, small boats, U-haul trailers and jet-skis.

In fiscal year 2008, 234,839 passengers traveled on the Auto Train, an increase of 7.8 percent over the previous year.

Last fiscal year, the Auto Train carried 112,188 cars and 1,757 motorcycles, resulting in a gasoline savings of about 5,048,460 gallons (20 mpg at 900 miles)

With more than 40 passenger rail cars and auto carriers, the Auto Train is the longest passenger train in the world.

The $10 million renovation of Amtrak's Sanford Auto Train Station will be funded by the American Recovery and Reinvestment Act.

The current 2,500 sq. ft. station configuration of three separate structures will be replaced with a 10,000 sq. ft. facility with a passenger waiting area, ticket counter, gift shop, café and restrooms.

The new, larger station will include a waiting area with seating for 600, an increase of 370 over the current waiting area, which is partially housed in a tent.

A new traffic flow will provide easier access for passengers as they drop off their vehicles under a large canopy prior to boarding the train.

The current tented waiting area will be relocated from the north end of the station to the south end to make way for the new building.

The existing gift shop will be demolished and the current station will be renovated to accommodate administration offices.

The renovation project is scheduled to begin in mid-June 2009 and is targeted for completion in the fall of 2010.

Metrolink's Board of Directors has approved a $975,000 contract with Chicago-based Railhead Vision Systems to install video cameras in its locomotive fleet. The board hopes the move will prevent any recurrence of accidents such as the one last September in Chatsworth, Calif., that killed 25; a Metrolink train ran a red signal and collided with a Union Pacific freight train.

Los Angeles Mayor Antonio Villaraigosa claims Metrolink will be the first commuter rail agency in the country to install video cameras that will record all engineer and other staff activity.

Cameras will record activity both ahead of the train and inside the cabs for forensic and investigative purposes.

U.S. Department of Transportation
USDOT Awards $742.5 Million in Stimulus Funds for 10 Passenger-Rail Projects
May 8, 2009

On May 7th, the U.S. Department of Transportation (USDOT) announced it will award $742.5 million in American Recovery and Reinvestment Act (ARRA) funds for 10 transit-rail projects that already have entered into Full Funding Grant Agreements with the Federal Transit Administration.

The ARRA grants do not increase the federal commitment to the projects, but will expedite the funds that have been committed, according to the USDOT. The proceeds will enable the transit agencies to reduce financing costs and speed project investments.

• Dallas Area Rapid Transit’s Northwest/Southeast light-rail line, $78.4 million;

• Metropolitan Washington Airports Authority’s Dulles Corridor Metrorail extension, $77.3 million;

• Los Angeles County Metropolitan Transportation Authority’s Metro Gold Line Eastside extension, $66.7 million;

• Regional Transportation District of Denver’s West Corridor light-rail line, $40 million;

• Valley Metro’s Phoenix-Central Phoenix/East Valley light-rail line, $36 million; and

• Tri-County Metropolitan Transportation District of Oregon’s South Corridor I-205/Portland Mall light-rail line, $32 million.

New Mexico Rail Runner Express
Rail Runner Heads to El Paso, Las Cruces
May 5, 2009

The New Mexico Rail Runner Express will head south this week to Las Cruces and El Paso.

Gov. Bill Richardson said there is growing enthusiasm for the commuter train in southern New Mexico.

“It reinforces my belief that one day, it will be the centerpiece for regional transportation, from El Paso to Albuquerque to Denver,” he said in a news release.

The Rail Runner will stop at the Union Depot in downtown El Paso on May 8 for an open house from 9:30 a.m. to 2:30 p.m. Local residents will be able to board the train and ask questions. The train then heads to Las Cruces on May 9 for the second annual Railroad Days event at the Las Cruces Railroad Museum. It will hold an open house from 10 a.m. to 3 p.m.

Railroad Days celebrates the history of railroading in Las Cruces and offers an opportunity to look to the future as well, said state officials.

Las Cruces and El Paso have expressed interest in the train because they want to explore alternative transportation options, said Lawrence Rael, executive director of the Mid-Region Council of Governments.

The Rail Runner currently runs from Belen to Santa Fe and has nearly 5,000 daily commuters.

“I believe we have also set the foundation for public transportation that could be expanded to Las Cruces and other parts of northern New Mexico in the future,” said New Mexico Transportation Secretary Gary Girón.

Amtrak
Iowa Ramps Up Efforts to Add Intercity Passenger-Rail Service
May 6, 2009

Add Iowa to the growing list of states seeking to add intercity passenger-rail service. Gov. Chet Culver recently signed into law legislation that will make it easier for Iowa to enter into agreements fostering passenger-rail growth, according to the state.

The bill eliminates the Iowa Railway Finance Authority, as well as the maximum threshold that apples to grants under the Rail Revolving Loan and Grant Program. It also transfers responsibilities for the administration of the Rail Revolving Loan and Grant Fund, and Passenger Rail Service Revolving Fund to the state's department of transportation.

In addition, the legislation expands the director of transportation's authorization to enter into agreements related to passenger-rail service.

Meanwhile, the state recently created the I-JOBS program, which calls for spending $830 million to upgrade Iowa's infrastructure. The program earmarks $10 million for multi-modal transportation projects, including rail.

The state has made other passenger-rail strides in recent months, as well, such as budgeting $3 million for passenger-rail efforts. Iowa also plans to compete for federal passenger-rail funding under the American Recovery and Reinvestment Act.

The ultimate goal? Positioning the state to work with Illinois and Amtrak to bring new passenger-rail lines to the state and connect more Iowa communities with Chicago.

"Passenger rail service is a key component to our state's economic development efforts," said Culver in a prepared statement. "By making it easier to connect between our state and key cities throughout the Midwest and the nation, we can attract new companies and bring new jobs to Iowa."

Amtrak has made its recommendation for optimal restoration of passenger rail service linking Cleveland, Columbus, and Cincinnati, including a preferred route for such “3C” service—something the Buckeye State has considered, and spurned, for at least 20 years.

Amtrak says its best potential route between Cleveland and Columbus, the state capital, would use existing CSX right-of-way. An alternate route linking Akron with the two cities would add an hour of travel time to the overall trip, Amtrak said.

Southwest of Columbus, the route to Cincinnati would include Dayton, while the Cincinnati terminus likely would not be the city’s historic Union Terminal; Amtrak cites the high cost of capital improvement and existing freight rail traffic interference as obstacles to the reuse of the station.

Last March Gov. Ted Strickland said the state could restore passenger rail service on the 3C route using $250 million in federal stimulus money, with the long-term goal of making the route a high speed corridor. Strickland requested Amtrak to evaluate the route’s potential in March 2008.

Corridor endpoints Cleveland and Cincinnati currently are served by Amtrak long-distance trains, with Cincinnati served only three times a week in each direction. Dayton and Columbus lost Amtrak service in 1979.

Union Pacific Railroad recently was honored by GE through its Supplier Excellence Awards program. The prestigious award recognizes excellence in compliance, quality, lean, direct material productivity, growth and customer centricity.

Union Pacific received GE's Excellence in Customer Centricity award for the railroad's work in transporting wind energy components. The award is given to a supplier that consistently meets all sourcing critical to quality and price, delivery quality, and demonstrates flexibility and responsiveness to GE and GE's customers.

"Union Pacific has consistently demonstrated a commitment to excellence," said Jodi Markopoulos, vice president of global sourcing, GE Energy. "GE's Excellence in Customer Centricity award recognizes Union Pacific's dedication to integrity, strong values and quality performance."

"We are very proud to receive this recognition from GE," said Eric Butler, Union Pacific vice president and general manager - Industrial Products. "We are dedicated to providing value for our customers and will continue to look for ways to improve in all aspects of customer service."

In conjunction with the award, GE will donate a mural on Union Pacific's behalf at Children's Hospital and Medical Center of Omaha. Children's annually provides care to more than 250,000 children from a five-state region and beyond. Foundation for Hospital Art volunteers, a non-profit organization founded in 1984, will paint the mural. Approximately 500,000 Foundation volunteers and patients have painted more than 30,000 paintings in 190 countries in more than 2,000 hospitals.

GE Energy has been presenting its Supplier Excellence Awards for more than 10 years. This year's award winners were chosen from a field of 60 U.S. and European contenders, which were nominated by GE global commodity leaders and supplier quality leaders. GE Energy's senior sourcing leadership team reviewed the applications, which were put through a rigorous selection process. The final decisions were based on actual quantitative metrics and subjective opinion tied to historical commercial relations.

A dramatic downturn in railroad transportation since the beginning of 2009 means the end of the line for Tacoma’s Coast Engine and Equipment Co., which will close July 3.

The railroad equipment maintenance company employed 111 workers. Thirty of them lost their jobs Monday. The rest will be laid off incrementally between now and July, CEECO President Dave Swanson said Tuesday.

“Our employees are the best in the business. But, at this point with the economy, we just can’t find enough work to have the business be profitable,” Swanson said.

The Washington Cos., a group of individual companies ranging from construction to air transit industries, added CEECO to its fleet in 1988, shortly after the company moved to its current location on 14 acres in the heart of Tacoma’s port.

Port of Tacoma spokeswoman Tara Mattina said losing longtime transportation companies alters the social and physical landscape at the port.

“It’s really difficult to see our neighbors connected to international trade suffer the same losses,” she said. “It’s difficult on the whole community.”

A 15 percent drop in container volumes during the first three months of the year compared with the same time last year has affected nearly every business related to the Port of Tacoma, Mattina said.

She said CEECO currently has a long-term lease with the port for the land and that future use of the property would depend on what the company chooses to do with the structures it owns.

The Walker family founded CEECO in 1947 with a focus on repairing EMD (ElectroMotive Division of General Motors) marine engines in a variety of boats.

In recent years, CEECO was growing along with the railroad industry by morphing into one of the nation’s larger independent locomotive repair and overhaul facilities.

The company adapted to the railroad industry’s changing economics by diversifying its focus and becoming more technology-based over the years.

But Swanson said there was no time to react to the economy’s latest curveball – a 60 percent drop in business over last year that hit in a four-month flash.

“It was right after the first of the year things went south,” he said. “We had such a dramatic downturn that we couldn’t catch up with it ultimately.”

Tom White, spokesman for the Association of American Railroads, said the decline in railroad traffic began hitting nationwide around November 2008.

Freight traffic on U.S. railroads dipped 22.4 percent since last year during the week ending April 25, according to the association. Loadings in the West were down 20.7 percent during the same period.

A staggering number of rail cars – 460,000 in North America – are currently in storage because there is not enough traffic to need them.

“When volume is off 15 to 20 percent, you don’t need to keep all of those cars in service. You’re generally going to store your older equipment,” White said.

Swanson estimates CEECO’s customers, including main regional carriers such as BNSF and Union Pacific railroads, have 20 percent to 30 percent of their cars in storage – cars that, if needed, CEECO employees could have refitted for use.

Customers “are reacting to the market to operate their businesses properly.” Swanson said. “They’ve made the correct response for their businesses. The fallout is there isn’t enough business anymore.”

Railpower Technologies Corp. (TSX: P) (“Railpower”) and R.J. Corman Railroad Group, LLC (“R.J. Corman”) announced that they have entered into a binding agreement providing for the sale of all of the assets of Railpower and its U.S. subsidiary, except cash on hand and on deposit in financial institutions, the land and property located in St-Jean-sur-Richelieu (Québec) and two road switching locomotives, to R.J. Corman. It is not anticipated that this offer will provide any value to the shareholders of Railpower.

Closing of the transaction, which is conditional upon obtaining Court approval in both Canada and the United States, is expected to occur no later than May 20, 2009, being the expiry of Railpower’s Court protection under the Companies’ Creditors Arrangement Act (Canada) (“CCAA”), unless further extended by the Court.

On closing of the transaction, R.J. Corman has agreed to sell to certain current members of management of Railpower, acting on behalf of a wholly-owned corporation to be incorporated (“Management Newco”), certain assets to be purchased from Railpower by R.J. Corman, including the RTG cranes technology, and concurrently grant to Management Newco a non-exclusive, perpetual, fully-paid royalty free license to use intellectual property rights in any hybrid applications.

R.J. Corman and Management Newco have confirmed to Railpower that it is their intention to hire approximately 75% of Railpower’s current workforce, and enter into employment agreements with such individuals no later than the closing date.

Based on the advice of the Court-appointed Monitor, Ernst & Young Inc., and legal and financial advisors, having considered the interests of all stakeholders, and after review of all available alternatives, members of the board of directors of Railpower have unanimously concluded that the offer from R.J. Corman is in the best interests of Railpower and its U.S. subsidiary and their respective stakeholders.

While under CCAA protection, Railpower’s board of directors maintains its usual role and its management remains responsible for the day-to-day operations of Railpower, under the supervision of the Court-appointed monitor, Ernst & Young Inc.

According to a company spokesperson, the R.J. Corman Railroad Group is honored to be able to continue the advancement of the Railpower leading edge Gen-Set technology. “We look forward to working diligently with all of our railroad customers to close this transaction in a timely manner and to continue to provide the highest quality service in the Railroad Industry” added the company spokesperson.

Railpower (TSX: P), (www.railpower.com) is engaged in the development, construction, marketing and sales of high performance, clean locomotives and power plants for the transportation and related industries. Railpower has designed and is marketing a range of locomotives for the North American low and medium horsepower locomotive market. It has also designed and is marketing hybrid power plants for rubber tyred gantry cranes (Eco-Cranes(R)). Its technologies have broader potential and applications in other markets and industries.

Based in Nicholasville, Kentucky, the R.J. Corman Railroad Group, LLC is the owner of several business entities serving the rail industry. Started as a railroad construction company in 1973, the R.J. Corman Railroad Group, LLC has grown to include not only railroad construction, but the operation of 9 shortline railroads, 19 derailment and emergency services locations and 10 locations providing track materials. The company website is www.RJCorman.com.

Canadian Pacific Railway Ltd. is discussing a new partnership with Kansas City Southern Railway Co. aimed at granting the railways access to each other's lines. For CP, this would create a more direct route to the Gulf of Mexico in exchange for greater access to Chicago along its own network.

Management teams from both railways are set to discuss the possibility of a deal this week in Calgary, a source briefed on the talks said.

Such an arrangement was made possible by CP's recent acquisition of Dakota, Minnesota & Eastern Railroad Corp., which links the two railways in Kansas City, Mo.

"The CP acquisition of DM&E presents new opportunities for KCS and CP to work together over Kansas City and we are exploring those opportunities," said Doniele Kane, KCS spokeswoman.

In fact, the DM&E lines have the ability to connect to all seven of the top-tier North American railways, and growing its long-haul business through this new "Kansas City Gateway" has become a priority for CP's management, they said on a conference call last week.

Carrying freight over longer distances is typically more profitable, and CP's long-haul business has been hurt by declining potash and coal shipments.

"We looked at ... what point in time can we start the process of extending our hauls to reflect the new franchise that we have, and those discussions are underway with the various connecting carriers," said Brock Winters, CP's vice-president of operations, on the call.

The railway would look to move even more goods through this gateway when DM&E's current contracts expire, Mr. Winters said.

The talks between CP and KCS are centred on reaching some sort of operational routing agreement, and industry observers say a so-called "coproduction agreement" would be a logical outcome.

Such agreements are essentially alliances between the railways allowing each to run freight up each others lines, while preserving the shippers' competitive options. They have become a popular alternative to mergers and acquisitions in the heavily regulated rail sector.

"The agreements are driven by the railroad operations departments [not marketing] and are designed to be 'market neutral' for the customer -- meaning there is no change in pricing or competition," said Walter Spracklin, RBC Capital Markets analyst, in a recent note. "At the end of the day, the agreements make sense and we would expect to see an increasing number of these partnerships. The savings are real and the benefits are significant and immediate."

Typically, these alliances are not defined by rates, Mr. Spracklin noted, but rather involve an equitable split of the savings realized.

Both partners typically benefit through economies of scale, more efficient routing, quicker turnaround and lower fuel burn.

CP's larger domestic rival, Canadian National Railway Co., recently reached a similar deal with Norfolk Southern Corp. to create its so-called "MidAmerica Corridor," in which each railway shares each other's lines between Chicago, St. Louis, Kentucky, and Mississippi.

CN, which has one of the most fluid networks on the continent, currently has more than 100 such agreements across North America. CN's management says it approaches these agreements with the mindset of routing its trains the most efficient way possible across North America. If that requires running its trains across another railway's lines, it moves to strike deals such these, Mr. Spracklin said.

DesertXpress
FRA Approves Draft Environmental Work for Southern California-to-Vegas High-Speed Line
April 28, 2009

The Federal Railroad Administration recently signed off on the Draft Environmental Impact Statement for the DesertXpress, a proposed high-speed rail line linking southern California and Las Vegas.

Developed by DesertXpress Enterprises L.L.C. — a group of private California and Nevada companies — the 180-mile line would run on exclusive tracks along Interstate 15 between Victorville, Calif., and Las Vegas. Trains would operate at speeds up to 150 mph and make the trip in one hour, 20 minutes.

The project is expected to cost between $3.5 billion and $4 billion to build. So far, DesertXpress Enterprises has invested more than $25 million in private funding to complete environmental work.

The project could break ground by early next year. DesertXpress Enterprises plans to design the project to connect to the proposed California high-speed rail system.

Sound Transit
Sound Transit to Use $4.6 Million in Stimulus Funds for Commuter-Rail Extension
April 27, 2009

The Puget Sound region is set to receive $131 million in federal stimulus dollars for transit projects, including $23 million for five shovel-ready construction projects in the Sound Transit district. Last week, the agency announced it plans to use $4.6 million of the recovery dollars to help complete improvements on a Tacoma-to-Lakewood, Wash., rail corridor, which will advance Sound Transit's efforts to expand commuter-rail service south to Lakewood by 2012.

The project calls for upgrading seven miles of existing track that Sound Transit purchased from BNSF Railway Co., as well as upgrading signals, improving 11 grade crossings and adding layover tracks for train storage north of Lakewood Station.

However, Sound Transit still needs to close a $39 million funding gap for the final phase of the extension - building a 1.2-mile section of track connecting Tacoma Dome Station to the rest of the rail corridor. Final design for the project is under way.

Toronto Transit Commission
Bombardier Lands TTC Order for 204 Streetcars
April 26, 2009

Montreal-based Bombardier, Inc. has been awarded a C$2.23 billion contract by the Toronto Transit Commission to produce 204 low-floor light rail vehicles for Canada’s largest city. Bombardier said it expects to deliver the first cars to TTC by 2012. TTC’s purchase is said to be the largest LRV purchase ever in North America, and includes an option for even more cars, should Toronto’s proposed “Transit City” plan be implemented.

Bombardier’s bid was chosen over rival Siemens Transportation, but only after months of debate and dispute over TTC’s original bid process. The contract is expected to be formally voted on Monday by the nine Toronto city council members overseeing TTC, but approval is expected.

No funding is yet assured from either the federal governmentor the province of Ontario, though TTC officials say they believe such assistance will be forthcoming, possibly in amounts up to C$1.4 billion.

Last summer Bombardier was rebuffed by TTC after the manufacturer seemingly had won an earlier bid for the agency’s contract, beating out British manufacturer TRAM Power Ltd. TTC, however, questioned Bombardier’s earlier bid, citing design flaws, a claim Bombardier rejected. Last February Bombardier resubmitted its bid, challenged this time by Siemens.

TTC and Ontario province require that the new cars meet a 25% “buy Canadian” content threshold. Bombardier likely will do much of its manufacturing work at its Thunder Bay, Ont., facility, though it likely also will tap several of its European-based plants for the project.

Union Pacific
New Track To Add Capacity And Reduce Delays Of Amtrak Missouri River Runner Trains
April 27, 2009

Construction will start in May on a new $8.3 million 9,000-foot railroad side track just west of California, Mo., that will add capacity to the route used by Amtrak's Missouri River Runner and Union Pacific trains. The track is expected to be completed in December 2009.

Representatives of the State of Missouri, the City of California, Union Pacific Railroad and Amtrak kicked off the construction of a new $8.1 million, 9,000-foot railroad side track to add capacity and reduce delays on the route used by Amtrak Missouri River Runner trains between Kansas City and St. Louis.

The new siding, located just west of California, Mo., will unclog a major "bottleneck" caused by a 25-mile stretch of single track and enable slower freight trains to move off the main line allowing faster Amtrak trains to pass and annually reduce delays by nearly 17 percent.

"As the State of Missouri, Union Pacific and Amtrak break ground together on this project, it further represents our commitment to making the St. Louis to Kansas City rail corridor a more viable option for Missourians," said Pete Rahn, director of the Missouri Department of Transportation (MoDOT).

"Improvements like this will ease congestion on the railroad tracks across Missouri and enhance our state's quality of life by making passenger rail a more reliable option and increasing our global competitiveness as the flow of freight rail traffic improves."

"The Kansas City to St. Louis rail corridor has experienced such a steady growth in freight rail traffic over the years, that the corridor experienced capacity constraints. Union

Pacific has invested more than $400 million since 1999 on this corridor in track capacity and maintenance projects," said Shane Keller, Union Pacific Railroad's assistant vice president – operations – Northern Region. "All of us at Union Pacific look forward to not only the completion of this project, but also what we hope will be more public/private partnerships like this one which benefits everyone across Missouri."

"This kind of targeted capacity improvement can make a real difference in improving the on-time performance of Amtrak Missouri River Runner trains and make our service even more attractive," said Mike Franke, Amtrak Assistant Vice President of Strategic Partnerships and Business Development.

When finished in December 2009, the siding will accommodate the mile-and-a-half long Union Pacific coal trains that haul low-sulfur coal from Wyoming to electric utilities in the St. Louis area and eastern power generation facilities. MoDOT secured the funding for this project from state funds, complemented with a federal grant from the Federal Railroad Administration.

This location was chosen after a University of Missouri study estimated a siding in this area would annually reduce delays to Amtrak trains by nearly 17 percent. It was ranked as the first choice among three "bottlenecks" on the rail line between Kansas City and Jefferson City. The other locations are in the Knob Noster and Strasburg areas.

The study helped Union Pacific's engineering and network planning groups make solid choices where capacity projects should be considered across the 275-mile rail corridor. MoDOT commissioned the study in 2006 in order to determine where rail line capacity enhancements should be made to improve train velocity.

Kansas City Southern de Mexico
Kansas City Southern Announces Train Service to Ports America’s Multi-modal Shipper Facility in Toluca, México
April 28, 2009

Kansas City Southern is pleased to announce the addition of intermodal train service to Puerta México, a new multi-modal facility in Toluca, México. Operated by Ports America, Puerta México is located on KCS’ International Intermodal Corridor and offers shippers a convenient alternative to and from the busy México City market.

In addition to train service, Puerta México offers multi-modal terminal services and on-site customs and bonded warehousing facilities to ocean carriers, intermodal and other logistics service providers. With its direct access to Kansas City Southern de México, S.A. de C.V.’s (KCSM) “N” line, Puerta México will become the terminal of choice for service to and from the central valley, the Port of Lázaro Cárdenas and the border crossing at Nuevo Laredo/Laredo. With an estimated capacity exceeding 150,000 containers and two million plus tons of cargo per year on more than 130 developed acres, it essentially doubles the intermodal capacity available to the greater Mexican central valley region and alleviates congestion in the central valley supply chain. In addition to storage, cross-dock and transloading, the terminal will be a vehicle distribution center.

“KCS is pleased to partner with Ports America to provide train service to the Toluca facility,” said KCS President and Chief Operating Officer David L. Starling. “This modern and efficient facility offers an attractive option for the multimodal shipper with access to the industrial heartlands of the U.S. and México via KCS’ International Intermodal Corridor.”

Ports America Chief Operating Officer Wim Lagaay also commented on the importance of this service.

"The intermodal and related supply chain services that have been made possible by this partnership will bring to the Central Mexican Valley Region world class levels of multimodal service and efficiency,” said Lagaay. “The significant investment in this modern facility introduces much needed high-quality capacity to serve this fast-growing and increasingly sophisticated market.”

Amtrak
Obama Administration Releases Strategic Plan to Prompt High-Speed Rail Development
April 16, 2009

The Obama Administration has set aside federal stimulus dollars and voiced support for developing high-speed rail systems nationwide. Today, the Administration took another step toward advancing those systems by releasing a strategic high-speed rail plan, which identifies the potential beneficiaries of the $8 billion in American Recovery and Reinvestment Act funds and budgets an additional $1 billion annually for five years for the systems.

The Administration plans to follow up with detailed guidance for state and local applicants. By late summer, the Federal Railroad Administration will begin awarding the first round of grants. Additional funding for long-term planning and system development is expected to be included in the federal surface transportation program reauthorization, Administration officials said in a prepared statement.

The strategic plan identifies 10 high-speed rail corridors as potential recipients of federal funding:

• the California Corridor (including stops in the Bay Area, Sacramento, Los Angeles and San Diego);

• Pacific Northwest Corridor (with stops in Eugene and Portland, Ore., Tacoma and Seattle, Wash., and Vancouver, British Columbia);

• South Central Corridor (with stops in Tulsa and Oklahoma City, Okla., Dallas/Fort Worth, Austin and San Antonio, Texas, and Little Rock, Ark.);

• Gulf Coast Corridor (with stops in Houston, New Orleans, Mobile and Birmingham, Ala., and Atlanta);

• Chicago Hub Network (with stops in Chicago, Milwaukee, the Twin Cities, St. Louis, Kansas City, Mo., Detroit, Toledo, Cleveland, Columbus and Cincinnati, Ohio, Indianapolis and Louisville, Ky.);

• Southeast Corridor (with stops in Washington, D.C., Richmond, Va., Raleigh and Charlotte, N.C., Atlanta, Macon and Savannah, Ga., Columbia, S.C., and Jacksonville, Fla.);

• Keystone Corridor (with stops in Philadelphia, Harrisburg and Pittsburgh, Pa.);

• Empire Corridor (with stops in New York City, Albany and Buffalo, N.Y.); and

• Northern New England Corridor (with stops in Boston, Montreal, Portland, Maine, Springfield, Mass., New Haven, Conn., and Albany, N.Y.).

Under the plan, high-speed rail development will advance either as corridor programs, individual “ready to go” projects or cooperative initiatives. In addition, the administration and U.S. Department of Transportation are urging states and local communities to develop plans for a network of 100- to 600-mile high-speed rail corridors that could compete for federal dollars. A merit-driven process will result in federal grants as soon as late summer, administration officials said.

“My high-speed rail proposal will lead to innovations that change the way we travel in America. We must start developing clean, energy-efficient transportation that will define our regions for centuries to come,” said President Obama. “High-speed rail is long-overdue, and this plan lets American travelers know that they are not doomed to a future of long lines at the airports or jammed cars on the highways.”

Amtrak
Amtrak Names Stephen Gardner Vice President, Policy and Development
April 13, 2009

Amtrak announced the appointment of former Senate Commerce Committee staffer Stephen J. Gardner to the position of Vice President, Policy and Development, effective April 13, 2009. Mr. Gardner will be based in the railroad's headquarters in Washington, DC and will report directly to the President and CEO.

As Vice President, Policy and Development, Gardner will be Amtrak's lead executive responsible for formulating the policies necessary to carry out Amtrak's mission and strategic plan. Gardner will also oversee the railroad's general development and planning activities as Amtrak pursues growth and improvement through new business opportunities and partnerships.

Amtrak President and CEO, Joe Boardman, said, "We are very fortunate to have Stephen Gardner join our executive team. His extensive transportation policy experience and practical knowledge of railroading make him the best person to help Amtrak formulate and execute the plans that will enable our railroad to grow and develop into a safer, greener and healthier transportation company."

A recognized authority on transportation policy and legislation, Gardner was the lead surface transportation Democratic professional staff for the U.S. Senate Committee on Commerce, Science and Transportation's Subcommittee on Surface Transportation and Merchant Marine Infrastructure, Safety and Security. In this capacity, Gardner directed all legislative and oversight activities related to the safety, security, infrastructure and operations of railroads, motor carriers, pipelines and hazardous materials transportation, including overseeing all related Federal agencies. During his five-year tenure, he served on behalf of current Commerce Committee Chairman John (Jay) D. Rockefeller IV and former Chairmen Daniel K. Inouye and Ernest F. Hollings. Prior to his work with Commerce Committee, Gardner worked as legislative assistant for transportation to both U.S. Senator Tom Carper and U.S. Representative Bob Clement.

Prior to his policy work on Capitol Hill, Gardner held various railroad operating positions for Guilford Rail Systems and the Buckingham Branch Railroad.

FreightCar America
FreightCar America Suspends Roanoake Production
April 14, 2009

FreightCar America Inc. Monday announced a “temporary suspension of railcar production on a selective basis until the railcar market strengthens” at its Roanoke, Va., plant, which it has leased from Norfolk Southern since 2005. FCA workers at the former NS East End Shops (originally a Norfolk & Western car shop) have been producing aluminum coal cars there, including a new-design hybrid stainless steel/aluminum car. FCA said production will be suspended after current work orders are completed. Approximately 210 employees will be affected by the suspensions. Operations might be extended if additional orders are received, but there has been no indication any are forthcoming. Operations at FCA’s Danville, Ill., plant will not be affected.

Federal Transit Administration
Obama Picks Senate Staffer Rogoff to Head FTA
March 9, 2009

Peter M. Rogoff, who helped develop funding mechanisms for mass transit and Amtrak as a long-time member of the Senate Appropriations Committee staff, has been selected by President Obama to head the Federal Transit Administration at the U.S. Department of Transportation.

In addition to his work on funding initiatives, Rogoff has played a key role in the development of security and safety legislation.

He earned a B.A. degree at Amherst University and an MA degree with honors by Georgetown University.

William W. Millar, president of the American Public Transportation Association, said Rogoff "understands what is needed to guide our country's federal policy on public transportation."

"As staff for the Senate Transportation Appropriations Subcommittee for 22 years, he is very familiar with transit plans and projects around the country," said Millar. "Additionally, he has worked on numerous transportation appropriation bills and issues as well as on the past three federal surface transportation bills."

As reported in the November 2008 issue of Railway Age, Canadian Pacific is working on regular use of extra-long, extra-heavy trains in Western Canada. CP is now testing such a consist, a loaded grain train with distributed power.

CP train no. 351-803 is now headed west and was due to arrive in Vancouver, B.C., on April 9 at 6:40 p.m. Pacific Daylight Time. The train stretches 10,400 feet (160 feet short of exactly two miles in length), and includes five General Electric a.c.-traction locomotives and 168 cars totaling 22,200 trailing tons.

Power and cars are distributed through the consist as follows: locomotives 8862/9700; 56 cars; locomotive 8810; 56 cars; locomotives 8871/8876; 56 cars. Additional pusher power was supplied to surmount the Canadian Rockies.

The 8800-numbered GE locomotives are Evolution Series ES44AC units; the 9700 is a GE AC4400CW.

Chicago Transit Authority
Illinois Dedicates Half a Billion for Chicago Transit Projects
April 7, 2009

Chicago is set to receive $495.9 million for mass transit projects under a $3 billion, statewide capital program approved by the Illinois General Assembly and signed by Gov. Pat Quinn this week. The program will be financed with bonds to be retired by state revenues.

The dedicated funding will enable the Chicago Transit Authority to advance several projects, such as replacing track on the Red Line, rehabilitating stations, and upgrading Brown and Red line substations.

Amtrak
Stimulus Dollars to Fund Amtrak Station Upgrades in Pennsylvania, Kansas
April 7, 2009

Amtrak stations throughout the country are getting a facelift thanks to American Recovery and Reinvestment Act funds. Two states recently announced station improvement plans in their neck of the woods.

The Pennsylvania Department of Transportation will allocate $9.3 million in stimulus funds to refurbish the 97-year-old Elizabethtown station. Ridership at the station has increased 93 percent since Amtrak completed Keystone Corridor improvements and launched express service on the Harrisburg-Lancaster-Philadelphia route in 2006. Today, more than 80,000 passengers use the station.

Meanwhile, the Kansas Department of Transportation announced Amtrak has earmarked more than $1 million to improve six stations along the Southwest Chief route. Improvements include adding signage, platform kiosks and wheelchair lifts, and rehabilitating platforms.

In a transaction valued at $C160 million (US$129 million), GO Transit will acquire Canadian National’s Weston Subdivision for expanded commuter rail service between Toronto's Union Station and regions northwest of the city.

GO Transit and VIA Rail currently operate 48 passenger trains a day over the line, which accommodates GO's Georgetown commuter rail service as well as VIA intercity trains operating between Toronto, Kitchener, and other points in southwestern Ontario. CN operates three daily local freight trains along the corridor.

GO said that by owning the corridor, it will be better positioned to add more infrastructure and expand service. The acquisition aligns with GO Transit's Strategic Plan GO 2020.

"This is a major step forward for future growth and expansion along this already busy corridor," said GO Transit Chairman Peter Smith. "This purchase sets the framework for future GO rail corridor purchases,and we look forward to continuing our longstanding partnership with CN."

Under an agreement announced Wednesday, CN and VIA Rail will continue to operate over the line.

Transport minister Dominique Bussereau announced on March 31 the creation of a joint venture to promote local and wagonload freight services.

The company is intended to provide expertise, financial and project planning assistance and operational input to encourage small businesses to transport freight over short distances by rail — the fret de proximité model. The partners involved are infrastructure manager RFF, state finance group Caisse des Dépôts et Consignations and Railroad Development Corp, the Pittsburgh-based freight operator which has interests in Argentina, Peru, Guatemala as well as the USA.

The creation of the venture is part of a wider package of measures that the French government has put in place over the past year to encourage greater use of rail transport for local freight movement. In particular, the government has asked RFF to look at allowing ‘more flexibility in managing infrastructure on lightly used lines that could be reserved for local freight trains’.

Wisconsin Department of Transportation
Wisconsin DOT Wins FRA Grant for Intercity Rail Corridor Planning
April 6, 2009

The Federal Railroad Administration (FRA) recently awarded the Wisconsin Department of Transportation a $297,000 grant to continue rail corridor planning for the Midwest Regional Rail Initiative (MWRRI).

Corridor planners seek to provide improved intercity passenger-rail service — including potential high-speed rail service — throughout a nine-state, 3,000-mile system, with Chicago as the regional hub. The FRA grant, which will be matched by MWRRI member states, will enable corridor officials to conduct an alternative routes analysis; update system costs; complete equipment, train control and operational plans; and prepare public outreach materials.

The grant was provided through the FRA's FY2008 Capital Assistance to States - Intercity Passenger Rail Service Program. The program is separate from the American Recovery and Reinvestment Act.

Middletown & New Jersey Railway
Regional Rail LLC acquires Middletown & New Jersey
April 6, 2009

Transportation holding company Regional Rail LLC, Kennett Square, Pa., has acquired the Middletown & New Jersey Railway, which will now be operated as the Middletown & New Jersey Railroad, LLC.

“The asset coverage and strategic location closely match our acquisition strategy” said Regional Rail LLC Vice President and CCO AL Sauer. In addition its location is of interest to some of our current customers.” Regional Rail President and CEO Bob Parker added, “Our strong and established ties to financial institutions familiar with the short line industry such as FirstCity Crestone LLC and Bank of America Surface Transportation enabled us to quickly react and close on this opportunity.”

Union Pacific
Hear That Train A Comin': Historic Steam Locomotive To Visit the West on Heritage Tour
April 06, 2009

No, you didn't step through a time portal, that really is a steam locomotive. Thousands of individuals will have the chance to see this "living legend" in person when Union Pacific's historic steam locomotive, No. 844, travels from its base in Wyoming, to California on a 32-day, four-state tour.

The "Western Heritage Tour" will be rolling from April 11 through May 12, heading through many cities and towns that witnessed the birth of the railroad. The 844 will make special stops in eight cities across Nevada, California and Utah for the public to experience this once in a lifetime opportunity, the No. 844 Western Heritage Tour. The Steam Locomotive will help "heat up" some special celebrations:

"We are very excited to be a part of so many celebrations this year. The towns that we are visiting have strong ties to the railroad," said Steve Lee, Union Pacific's manager – operating practices and locomotive engineer.

No. 844 was the last steam locomotive built for Union Pacific Railroad and was delivered in 1944. A high-speed passenger engine, it pulled such widely known trains as the Overland Limited, Los Angeles Limited, Portland Rose and Challenger. When diesel-electric locomotives took over all passenger train duties, No. 844 was placed in freight service in Nebraska between 1957 and 1959. It was saved from being scrapped in 1960 and held for special service.

Known as Union Pacific's "Living Legend," No. 844 returned to service in 2005 after one of the most extensive steam locomotive overhauls in the United States since the 1950s. The work began in 2000 and affected its running gear, pumps, piping, valves and springs. Along with replacement of its firebox and extensive boiler work, the cab interior was refurbished.

A Global Positioning Satellite (GPS) transmitter was installed on one of the rail cars that will travel with No. 844. The GPS system has been integrated with a map on UP's Web site.

Web site visitors will be able to access route maps with varying amounts of detail. The GPS system will update the map every five minutes showing No. 844's location.

Amtrak
Sleeping Car Service to be Restored between Boston and Chicago
March 27, 2009

The Amtrak Lake Shore Limited will offer sleeping car service between Chicago and Boston to better suit our passengers needs, starting with the eastbound departure of Trains 48/448 on April 2 from Chicago and the westbound departure of Trains 49/449 from New York and Boston on April 4. The eastbound Train 48/448 will depart Chicago an hour earlier than the existing schedule, also effective on April 4.

The restoration of sleeping car service provides a higher level of comfort than can be provided in coach for passengers riding to and from Boston (South Station) and the Massachusetts stops of Framingham, Worchester, Springfield and Pittsfield. Until now, Bay State passengers were required to change trains in Albany-Rensselaer, N.Y., to ride to and from points in Western N.Y., Pennsylvania, Ohio, Indiana and Illinois, including Buffalo, Erie, Cleveland, South Bend and Chicago.

"Our Lake Shore Limited service continues to post ridership gains and these changes are aimed to better serve our passengers needs by further improving their travel experience to and from Boston," said Carol Gambrel, Director, Product Management.

The Lake Shore Limited is one of six trains that are getting an intense focus to improve revenue, ridership, and to drive customer service improvements across the Amtrak system.

"We continue to rely on customer and employee feedback to enhance service on routes across the Amtrak system, and the Lake Shore Limited is a prime example of what can be achieved by listening to and acting upon suggestions from both groups," said Emmett Fremaux, Vice President of Marketing & Product Management, who heads the Route Performance Improvement program.

As part of this change, the eastbound Train 48/448 will depart Chicago at 9:00 p.m., local time, and most timing will change across the route, effective April 4. Use the Fare Finder on Amtrak.com to determine exact schedule departure and arrival times. Amtrak will continue to open the Dining Car for a pre-departure Welcome Aboard reception for sleeping car passengers.

There is a also a slight change to the schedule of Train 49, the westbound Lake Shore Limited, as it arrives in Albany-Rensselaer, due to track work on the Metro North Commuter Railroad, north of New York City.

In figures for the five months ending Feb. 28, 2009, 130,352 passengers rode on the Lake Shore Limited, an increase of 1.9 percent from the same period a year earlier. Ticket revenue is up by more than $844,000 and is in excess of $9.1 million for the five months that begin the current Amtrak fiscal year.

Amtrak ridership for overnight trains is also up for the Oct. 2008-Feb. 2009 period. The total of 1,628,631 passengers is an increase of seven percent from the year-ago figure and includes double-digit increases for several routes on the national network.

North Carolina's Amtrak, in partnership with My School Rocks!, Radio Disney Charlotte and the Easter Bunny invite kids of all ages to celebrate the start of spring with a festive ride on the Bunny Train between Charlotte and Salisbury on April 4, 2009.

The Easter Bunny will depart Charlotte aboard the Carolinian at 7:40 am and greet children in Kannapolis when the Bunny Train makes a brief stop there at 8:07 am before arriving in Salisbury at 8:25 am. At Salisbury, Bunny Train passengers will enjoy an Easter egg hunt, a magician, games and prizes. Each passenger will receive a special Easter treat and pictures with the Easter Bunny may be taken.

The festivities will continue when the Easter Bunny returns to Charlotte aboard the Piedmont, departing Salisbury at 9:24 am. The train will stop in Kannapolis at 9:40 am and return to Charlotte at 10:12 am. Reservations are required and children ages 2 to 15 travel at half the adult fare on the Bunny Train. Adult fares start at $8 each way between Charlotte and Salisbury. Up to two children may travel at the discounted children's fare with each full-fare paying adult.

Amtrak has released a list of capital projects to be funded by $1.3 billion from the American Recovery and Reinvestment Act (ARRA). Submitted to the Federal Railroad Administration, the highlights of the list include railcar and locomotive restoration to augment the current fleet, projects to bring stations into compliance with the Americans with Disabilities Act (ADA), facility improvements, track, bridge and signal replacements and upgrades.

"These Amtrak projects fulfill all of the objectives of the ARRA, and more. They are 'shovel-ready;' they will improve the efficiency and accessibility of Amtrak trains and facilities; and we estimate they will result in the retention or creation of approximately 6,000 jobs," said Amtrak President and CEO Joseph H. Boardman. "It is extremely encouraging to see the direction our country is taking to improve our national mobility, reduce our dependence on imported energy and make a stronger, healthier passenger rail system."

The investment package is broken down into two separate accounts: one for railroad and station capital projects funded at $845 million and one for security and life safety projects, funded at $450 million. For a detailed list of projects, click on "Inside Amtrak," then "Other Reports." Further information on how contractors and suppliers can contact the railroad about bidding on those projects that contain outsourcing elements will be available on Amtrak.com soon.

Following are examples — not a comprehensive list — of some of the projects to be performed with ARRA funding.

Amtrak shops in Beech Grove, Ind., will rebuild 20 out-of-service Superliner and one Viewliner railcar ($19.3 million) and 15 locomotives ($13 million) and the Amtrak shops in Bear, Del, will rebuild 60 out-of-service Amfleet railcars ($58.5 million). This equipment can be used throughout the Amtrak system.

More than 200 stations in 40 states will receive needed upgrades and improve accessibility for disabled persons ($40 million).

Replacement of the existing Auto Train passenger station in Sanford, Fla., ($10 million) will be carried out, and the Wilmington, Del., station will receive more than $20 million for renovation.

This includes major investments such as the Niantic River Bridge replacement in Connecticut ($100 million), the renewal of 10 other bridges in Delaware, Pennsylvania, Connecticut and New York ($65 million) construction of a maintenance facility in Los Angeles ($25 million) and Seattle ($35 million), improvements to the Chicago facilities ($47.5 million) and the Miami (Hialeah) maintenance facility ($25 million).

The $450 million Security and Safety fund will be used for investments in security measures that reduce infrastructure vulnerabilities and enhance incident management at Amtrak facilities nationwide, including stations, bridges, tunnels, maintenance facilities and other buildings.

Enhancements to safety installations include projects such as fire detection and suppression systems and improved emergency egress from buildings and tunnels. Projects in this category also involve expansion of Positive Train Control safety systems in the Northeast Corridor ($50 million) and Michigan ($10 million).

BNSF Railway
BNSF Named One of the World's Most Admired Companies
March 23, 2009:

BNSF Railway Company was recently named one of the World's Most Admired companies for 2009 by Fortune Magazine. Fortune's World's Most Admired list is considered the definitive report card on corporate reputations. Fortune's survey partners at Hay Group, a global management consulting firm, started with some 1,400 companies: the Fortune 1,000-the 1,000 largest U.S. companies ranked by revenue; non-U.S. companies in Fortune's Global 500 database with revenues of $10 billion or more; and the top foreign companies operating in the U.S. They then sorted the companies by industry and selected the 15 largest for each international industry and the 10 largest for each U.S. industry for consideration.

The survey covers 64 industries: 25 international industries and 39 primarily U.S.-market industries. To create the World's Most Admired lists for each of the industries, Hay Group asked executives, directors, and analysts to rate companies in their own industry on nine criteria, from investment value to social responsibility. A company's score must rank in the top half of its industry survey to make the list.

The Steam Railroading Institute of Owosso, Michigan
Daylight Steam Locomotive to Attend TrainFestival 2009 in Owosso Michigan
March 24, 2009

The “World’s Most Famous Steam Locomotive” will travel from it’s home in Portland, OR 2500 miles to Owosso, MI for America’s Largest Celebration of Railroading in July. Southern Pacific steam locomotive no. 4449 known as the “Daylight” will appear at TrainFestival 2009 in Owosso, MI July 23-26. The massive undertaking to organize this train is being jointly coordinated by The Steam Railroading Institute of Owosso, MI, The Friends of the 4449 of Portland, OR and The Friends of the 261 of Minneapolis, MN.

TrainFestival 2009 is America’s Largest Celebration of Railroading and will include 8 steam locomotives under steam, vintage and modern diesel/electric locomotives, various train rides, huge model train layouts, miniature train rides, art exhibit, locomotive cab tours, railroad vendors and much more. This family event is being held as a fund raiser to keep operating Pere Marquette steam locomotive no. 1225. This locomotive owned by the Steam Railroading Institute of Owosso, MI is due for Federal Railroad Administration re-certification in 2010. This locomotive is best known as the steam locomotive portrayed in the animated movie “The Polar Express”.

The Southern Pacific Daylight no. 4449 will travel across country on an Amtrak sponsored trip hauling thousands of passengers on this rare excursion. The locomotive and train will travel through many cities along the way including Spokane, Fargo, Minneapolis, Milwaukee, Chicago, and Lansing. A special excursion will be operated on July 24 originating from TrainFestival 2009, tickets are available online. The locomotive will be on display during the event for visitors to photograph, visit with the crew as well as explore the cab.

Southern Pacific no. 4449 was built in 1941 as a GS-4 "Northern" type locomotive. A 4-8-4 wheel arrangement, she is 110' long, 10' wide and 16' tall. The locomotive and tender weighs 433 tons, and it operates with a boiler pressure of 300 psi. Her eight 80" diameter drivers and unique booster truck can apply 5,500 horsepower to the rails and exceed 100 mph.

The only remaining operable "streamlined" steam locomotive of the Art Deco era, No. 4449 pulled the famous Southern Pacific first class "Daylight" passenger trains between Los Angeles and San Francisco over the scenic Coast Route and then on to Portland until 1955. Retired to static display at Oaks Park in 1958, most thought SP 4449 would never run again.

In 1974, she was selected to pull the American Freedom Train throughout the United States, and was subsequently rebuilt. Southern Pacific no. 4449 ran for three years to the delight of over 30 million people. She is arguably one of the most beautiful locomotives ever built -- and kept that way by the all-volunteer Friends of SP 4449!

Union Pacific
Feds Sue UP for Failing to Prevent Drug Trafficking; Government, Not Railroad, Controls Border-Crossing Cars, Class I Says
March 23, 2009

The U.S. Department of Justice (DOJ) recently filed two lawsuits against Union Pacific Railroad seeking a total of $37 million in penalties for allegedly failing to prevent the use of its rail cars to smuggle large quantities of narcotics into the country.

Government officials claim the cars carried cocaine and marijuana across the border at ports of entry in Calexico, Calif., and Brownsville, Texas.

UP has a substantial ownership-interest in Ferrocarril Mexicano S.A. de C.V. and partners with the Mexican railroad to offer customers the ability to move merchandise north and south between Mexico and the United States, the lawsuits state. In accordance with U.S. law, the owner or person in charge of a vehicle bound to the United States is required to submit to the U.S. Department of Homeland Security (DHS), Customs and Border Protection (CBP), a manifest that accurately identifies all merchandise on board the vehicle, the DOJ said.

On 37 separate occasions between November 2001 and October 2006, UP submitted manifests and CBP officials found more than 4,000 pounds of marijuana on the railroad’s cars heading northbound from Mexico to the United States, the DOJ claims. CBP imposed mandatory penalties totaling $33.6 million to date, but UP “failed and refused to pay the civil penalties,” the suits state.

"Railroad companies and other freight carriers must take seriously their obligations under the law to take appropriate action to prevent the use of their vehicles to smuggle narcotics and other contraband into the United States," said Karen Hewitt, U.S. attorney for the southern district of California, in a prepared statement. "This civil complaint marks an important step toward addressing the repeated failure of the largest railroad company in North America to prevent rail cars bound for travel throughout the United States from being used to smuggle significant amounts of narcotics."

However, as UP officials explained in a lawsuit filed against DHS in July 2008, it is the government, not the Class I, that takes initial control over rail cars entering the country from Mexico, UP officials said in an email. CPB is “punishing Union Pacific for drug smuggling that the company has no ability to prevent,” they said, adding that the railroad has exceeded its legal obligations and will defend itself against “these duplicative lawsuits.”

UP initiated the lawsuit against DHS last year because railroad officials believe CBP is violating federal law in taking legal actions when the Class I has no ability to prevent the drug trafficking, UP officials said. For years, UP has been a strong supporter of CBP in protecting U.S. borders and preventing illegal drugs from entering the country. In addition, the Class I has provided millions of dollars in annual financial support, constructed buildings for CBP, trained federal officers, and deployed its own private police and K-9 squads, UP officials said.

Dick Webb, founder and chairman of the Watco Cos. Inc., died March 23 after a short battle with lung cancer. He was 70.

Webb formed Watco in 1983. The short-line holding company’s first business was an industrial switching operation in DeRidder, La., that still exists today. Webb later opened a rail-car repair shop in Coffeyville, Kan.

Watco now owns 19 short lines operating in 16 states, and operates 24 industrial switching locations, four locomotive shops, 14 car repair shops, and transloading subsidiary Watco Transload and Intermodal Services. The company also offers locomotive, freight-car and track equipment leasing services, and property management and warehousing services.

Webb valiantly fought his cancer for four weeks, Watco officials said in an announcement.

“He was a true fighter to the end, showing the phenomenal spirit and grit that made him such a success in life, and that he used to create and grow Watco,” they said.

BNSF Railway/CSX
BNSF and CSX Enhance Container Service to the Southeast
March 19, 2009:

BNSF Railway Company and CSX Intermodal recently expanded their current intermodal container service to include several new locations in the Southeast.

BNSF and CSXI will now serve Charleston, S.C.; Savannah, Ga.; and Miami, Orlando and Tampa, Fla., in addition to current eastern hubs at Atlanta, Ga.; Jacksonville, Fla.; and Charlotte, N.C.

"BNSF and CSX expanded their original program because it proved to be very successful for both us and shippers," said Steve Branscum, group vice president, Consumer Products. "Our combined service is competitive with highway carriers, saves shippers money and reduces fuel consumption for moving freight. From our new and existing hubs, goods can easily move to destinations throughout the Southeast."

This expanded service builds upon a 2006 agreement between BNSF and CSXI to provide improved service to customers for shipments between the West Coast, Atlanta and other Southeast destinations.

President Obama has announced his intent to nominate Joseph C. Szabo as Administrator for the Federal Railroad Administration.

"We congratulate Joe Szabo on his nomination as Administrator of the Federal Railroad Administration," said Edward R. Hamberger, President and CEO of the Association of American Railroads. "He brings a wealth of experience in the railroad industry to this assignment."

Szabo currently serves as the Illinois State Legislative Director for the United Transportation Union. In this position, he has worked in cooperation with the railroad industry to advance important rail safety and regulatory issues.

"We have worked closely with Joe on a wide range of rail policy issues and we look forward to partnering with him in this new role to continue to advance freight and passenger rail service in this nation," said Hamberger.

On St. Patrick’s Day, when many people are sporting the color green, CSX touted “green” by unveiling its first low-emission, fuel-efficient switcher locomotives deployed in Illinois.

At Chicago’s LaSalle Street commuter rail station, CSX chief executive Michael Ward—in town to accept Railway Age’s Railroader of the Year Award (and sporting a green tie)—unveiled four National Railway Equipment Co.-built, EPA Tier II-compliant, 2,100-hp 3GS21B-DE N-ViroMotive GenSet locomotives (sporting CSX’s blue and gold livery). These units, each equipped with three 700-hp Cummins engines and Cattron-Theimig remote control, are assigned to CSX’s Barr Yard Riverdale, Ill., just outside Chicago. The locomotives were acquired through a public-private partnership, with 80% funding from a CMAQ (Congestion Mitigation and Air Quality) grant and 20% from CSX. They join four other GenSets operating in CSX’s Rougemere Yard, Dearborn, Mich.

These GenSets are retrofits of older locomotive technology. Essentially, they’re a total rebuild of an EMD GP38. Equipped with three computer-managed 700-hp engine-generator sets, they reduce NOx and PM (particulate matter) emissions by up to 80% and CO2 by up to 50%.

Amtrak
Amtrak Cascades Celebrates 10 Years of Passenger Rail Service in Pacific Northwest
March 17, 2009

The Washington State Department of Transportation (WSDOT), Amtrak and the Oregon Department of Transportation are celebrating 10 years of Amtrak Cascades passenger rail service in the Pacific Northwest (Eugene, Ore. to Vancouver, B.C.). Amtrak Cascades is commemorating its 10th anniversary with a special celebration during the National Train Day event on May 9, 2009 at Seattle's King Street Station.

“Amtrak Cascades has proven to be a valuable transportation option for Washington travelers,” said Paula Hammond, Washington Transportation Secretary. “Whether people are exploring unique Northwest towns and attractions or making an important business connection in urban centers, this rail line is a fast and economical way to travel.”

Passenger rail service along the I-5 corridor began in 1993 when Amtrak started offering one daily Seattle to Portland round trip. Amtrak Cascades debuted in 1999, providing intercity passenger rail service in the Pacific Northwest from Vancouver, B.C. to Eugene, Ore. Today, Amtrak Cascades consists of four daily round-trips between Portland and Seattle, with connecting service between Portland and Eugene and between Bellingham and Seattle, and one daily round-trip between Seattle and Vancouver, B.C.

More than six million passengers have ridden Amtrak Cascades over the last ten years, resulting in a 71 percent increase in ridership since 1999. In 2008, ridership reached nearly three quarters of a million passengers, making it the most successful year in the history of the service.

Washington State is one of 13 states that provide operating funds to Amtrak for intercity passenger rail service. Amtrak Cascades uses five European designed Talgo trains for daily operations. Three of the five trains are owned by Washington State, and the other two are owned by Amtrak.

Various 10th anniversary promotions will be scheduled throughout the year. More information on 10th anniversary promotions and offers will be announced on www.AmtrakCascades.com

Amtrak Cascades is operated by Amtrak in partnership with the Washington and Oregon Departments of Transportation. For Amtrak Cascades fares and schedules, visit www.AmtrakCascades.com

Amtrak has announced its second National Train Day celebration will take place on May 9, 2009. Events will be held in Washington, DC, Philadelphia, Chicago and Los Angeles. For event details visit the event webpage at http://nationaltrainday.org

With information from Amtrak

Amtrak
Vice President Biden, Railroad Administrator, Members of Congress Announce Funding for Amtrak in Recovery Act
March 13, 2009

Standing at Washington, DC's Union Station, one of the most traveled railway stations in the nation, Vice President Joe Biden announced that Amtrak will receive $1.3 billion in grant funding from the recently enacted American Recovery and Reinvestment Act (ARRA) to expand passenger rail capacity. He was joined by Jo Strang, Acting Federal Railroad Administrator, along with several members of Congress, including: Senator Arlen Specter (R-PA); Senator John Kerry (D-MA); Senator John D. Rockefeller, IV (D-W.Va); Senator Bill Nelson (D-FL); Senator Frank Lautenberg (D-NJ); Senator Ted Kaufman (D-DE); Congressman Nick Rahall (D-W.Va.); Congresswoman Corrine Brown (D-FL); Congressman Elijah Cummings (D-MD); Congressman Rick Larsen (D-WA); Congressman Christopher Carney (D-PA); and Congressman Andre Carson (D-IN).

"Over 28 million passengers ride Amtrak each year. That’s about 500,000 passengers a week – or 80,000 a day,” said Vice President Biden. “For too long, we haven’t made the investments we needed to make Amtrak as safe, as reliable, as secure as it can be. That ends now. The funds in the Recovery Act for Amtrak will help create jobs and at the same time, repair and update critical needs of our nation’s infrastructure."

“This is the Obama Administration keeping its promise to America,” said Secretary LaHood. “We are investing in jobs that will allow Amtrak to add and modernize cars and engines and upgrade its tracks. We are getting transportation money to Americans quickly in order to get the American economy going again.”

ARRA funding will roughly double the size of Amtrak’s capital investment program over a two-year period. It will be used to upgrade railroad assets and infrastructure and for capital projects that expand passenger rail capacity.

Among the improvement projects that will be undertaken are replacement of a major drawbridge on the Northeast Corridor (NEC), repairs to Amtrak facilities nationwide, the repair and return to service of nearly 70 stored and damaged passenger cars, and the rehabilitation of major elements of the NEC electrification system.

Repairs to passenger cars will be performed at Amtrak’s facilities in Beech Grove, Indiana, and Bear, Delaware, where Amtrak plans to hire skilled workers laid off from jobs at recently shuttered manufacturing facilities located nearby.

In addition to helping Amtrak achieve a state of good repair for its critical infrastructure and assets, the projects to be funded through the ARRA will result in tangible benefits to Amtrak’s passengers, including increased capacity (with fewer sold-out trains), improved operational reliability, and increased passenger comfort and accessibility at stations. Refurbished rolling stock that is returned to service may also be available for use on new State-supported routes.

The Vice President also noted that Amtrak’s hiring for ARRA projects represents a major investment not just in infrastructure, but also in the railroad’s employees. As a large portion of Amtrak’s skilled workforce nears retirement age, workers hired for ARRA projects will be trained and ready to step in to a long-term role on the railroad.

The economic recovery funds will be managed through a formal grant agreement between the Federal Railroad Administration (FRA) and Amtrak, consistent with ARRA transparency and accountability requirements, including those related to job creation, assisting those areas most impacted by the recession, making investments that increase economic efficiency and provide long-term economic benefits. The grant agreement will also ensure timely expenditure of the funding within two years and ensure that Amtrak complies with newly established financial, operational, and customer service standards.

Examples of Amtrak Projects to be Funded through the American Recovery and Reinvestment Act (ARRA):

Replacement of the movable bridge over the Niantic River on the Northeast Corridor in Connecticut - $105 million. In the largest single Amtrak project to be funded through the Recovery Act, Amtrak will replace the 102-year-old drawbridge which carries the Northeast Corridor over the Niantic River near East Lyme, Connecticut. The replacement of this aging bridge has been planned for over 20 years, but has been repeatedly deferred due to a lack of capital funding for Amtrak. Any further delay in replacing the bridge would result in the imposition of significant speed restrictions over the bridge (with resulting increases to passenger’s travel times), and potentially a major disruption to passenger rail service between New York and Boston were the bridge’s moving machinery to fail in the open position. Amtrak estimates that the bridge replacement will result in 860 person-years of work for those directly employed in the bridge construction.

Rehabilitating and returning to service 68 stored or damaged passenger cars - $82 million. With $82 million in Recovery Act funding, Amtrak with rehabilitate and return to service 68 passenger cars that are have long been in storage due to damage and lack of funding for necessary repairs. Once returned to service, many of the cars (which include among them both corridor and long-distance equipment types) will be used to alleviate capacity constraints on heavily-traveled trains, while others may be made available for new State-supported Amtrak services. The cars will be repaired at Amtrak’s maintenance of equipment facilities in Beech Grove, Indiana and Bear, Delaware, both located near recently closed manufacturing facilities in areas that have been hard hit by the economic downturn. Amtrak anticipates hiring 125 workers to work on this project.

Rehabilitation of the Lamokin frequency converters in Chester, Pennsylvania - $63 million. Using $63 million in Recovery Act funding, Amtrak will entirely rebuild three rotary frequency converters, which form a key element of the power supply system for the Northeast Corridor, located in Chester, Pennsylvania. Known as the “Lamokin Converters,” they were placed in service in the 1920's as part of the Pennsylvania Railroad's electrification of its mainline between Philadelphia and Wilmington, Delaware (on what has since become Amtrak's Northeast Corridor (NEC)). Since that time, the three 16 megawatt motor-generator sets located at the site have been in continuous use to convert commercial electric power, which operates at 60 Hertz alternating current, to the 25 Hertz alternating current that powers Amtrak and commuter trains along the NEC south of New York City.

After over 80 years of continuous use, the Lamokin frequency converters are in dire need of major rehabilitation to ensure their future reliability. As demonstrated by the power outages that crippled Amtrak and commuter rail service in the Northeast on several occasions in 2006 (the causes of which were traced to frequency converting equipment), the reliable supply of electric power is essential to the NEC remaining one of the county's most energy-efficient examples of transportation infrastructure. Through this project, the three rotary converters will be entirely rebuilt with rewound motor coils, new stator coils, and new collector rings, allowing them to continue to serve passengers on the NEC for generations to come. Amtrak estimates that the project will result in 504 person-years of work for those directly employed in the rehabilitation of the frequency converters.

Repairs to Amtrak facilities nationwide - $105 million. In the most wide-reaching of Amtrak’s Recovery Act-funded projects, dozens of aging Amtrak facilities throughout the country will be the target of significant repairs, such as roof replacements, plumbing repairs, heating and air conditioning improvements. Throughout the recent history of inadequate capital funding for Amtrak, these projects, which include work on stations, maintenance facilities, crew facilities, and warehouses, have been repeatedly deferred due to more pressing investment requirements. The additional capital funding provided through the Recovery Act will allow these projects (plans for many of which have been sitting on the shelf for years) to move forward quickly. Amtrak anticipates using local contractors throughout the country to perform this work, resulting in an estimated 860 person-years of work.

Restoration of the Wilmington, Delaware station - $21 million. With $21 million in Recovery Act funding, plus additional funding from the State of Delaware and other sources, Amtrak will make restorations to Wilmington, Delaware’s historic century-old Victorian train station. The project will incorporate the rebuilding and restoration of the interior of the station buildings, improvements to make the buildings entirely accessible for those with disabilities, restoration of the building's terracotta façade, and the replacement of the track and supporting infrastructure which runs through the station. In addition to increasing comfort and convenience for passengers using Amtrak’s eleventh busiest station, the project includes the construction of a third high-level platform, which will significantly increase the capacity of the station. Amtrak estimates that the project will result in 168 person-years of work for those directly employed in the restoration of the station.

Construction of a new station for the Auto Train in Sanford, Florida - $10.5 million. With $10.5 million in Recovery Act funding, Amtrak will construct a new station at the Auto-Train’s southern terminus in Sanford, Florida. The Auto Train, one of Amtrak’s best performing long-distance services, and one of the nation’s most innovative forms of intermodal passenger transportation, transports passenger together with their private automobiles non-stop from Lorton, Virginia (15 miles south of Washington, DC), to Central Florida. The new station will replace temporary facilities that have been in place since the destruction of much of the previous station by the 2005 hurricanes, and will provide Auto Train passengers with a more comfortable waiting area and allow for faster, more efficient boarding operations. Amtrak estimates that the project will result in 84 person-years of work for those directly employed in the construction of the new station.

Installation of Positive Train Control on the Amtrak-owned Michigan Line (Porter, Indiana – Kalamazoo, Michigan) and the south-end of the Northeast Corridor (New York – Washington). Amtrak will invest $60 million in Recovery Act funding in installing Positive Train Control (PTC) on its Porter, Indiana to Kalamazoo, Michigan line (used by Chicago – Detroit trains) and on the south-end of the Northeast Corridor (between New York and Washington). PTC is an advanced signaling technology that can prevent train-to-train collisions, over-speed derailments, train incursions into roadway work zones, and movement over switches improperly lined. The installation of PTC by 2015 on all routes used by intercity passenger trains is mandated by the recently enacted Rail Safety Improvement Act of 2008. The Recovery Act funding will allow for the acceleration of the installation of PTC on lines owned by Amtrak, and will result in an immediate safety benefit, along with potential trip-time reductions where the advanced signaling system will allow for increased speeds.

Tongue River Railroad
Bill to Block Montana Short Line Growth Stalls
March 12, 2009

Montana House Bill 422, advanced by those seeking to weigh down short line Tongue River Railroad’s efforts to extend its right-of-way to coal deposits, has stalled. The bill, backed by some state landowners and by environmentalists, seeks to make eminent domain procedures more difficult.

Billings, Mont.-based Tongue River Railroad Co. is pursuing right-of-way acquisition from Miles City, Mont., a potential exchange point with BNSF, to the Montana-Wyoming border, in order to tap coal deposits located in the Tongue River Valley. The extension also would be a precursor to offering a potential new route to and from Wyoming’s Powder River Basin.

The state House Federal Relations, Energy and Telecommunications Committee is deadlocked over the bill, while the state Senate is expected to be even more resistant to the proposal.

South Dakota last week gave its conditional approval to efforts by the Dakota, Minnesota & Eastern Railway to extend its right-of-way to the Powder River Basin, easing eminent domain issues within that state. DM&E parent Canadian Pacific, however, has not made a definite commitment to extending DM&E’s reach.

Railway Age

Pan Am Railways/Springfield Terminal
Pan Am Railways and Norfolk Southern Receive Approval to Improve Rail Service in New York and New England
March 11, 2009

Pan Am Railways (PAR) and Norfolk Southern Railway Company (NS) have received governmental approvals for their proposed Pan Am Southern joint venture, clearing the way for more than $87 million in rail infrastructure investment designed to significantly enhance the service capabilities and commercial offerings that NS and PAR provide in upstate New York and New England. The U.S. Surface Transportation Board’s approval of the joint venture will become effective as of 12:01 a.m. (EDT), April 9, 2009. Pan Am Southern is expected to commence operation on or about May 1, 2009.

On May 15, 2008, PAR and NS announced an agreement to improve freight rail service and increase track and yard capacity in upstate New York and New England through a newly formed railroad company, Pan Am Southern. The focus of Pan Am Southern is the Patriot Corridor, the 155-mile main line track that runs between Mechanicville (Albany), N.Y., and Ayer, Mass. (approximately 30 miles west of Boston). PAR will transfer to the joint venture this trackage, along with 281 miles of secondary and branch lines, including trackage rights, in Connecticut, Massachusetts, New Hampshire, New York, and Vermont. NS will transfer cash and other property valued at $137.5 million to the joint venture, $87.5 million of which will be invested within a three-year period in capital improvements on the Patriot Corridor. Included in this investment is a new intermodal and automotive terminal in Saratoga County, N.Y., a new automotive terminal in Ayer, expansion of the existing intermodal terminal in Ayer, as well as track and signal upgrades on the Patriot Corridor. These improvements will be implemented as expeditiously as possible, and will comply with certain conditions imposed as part of the Federal regulatory approval process.

“Pan Am Southern will bring immediate benefits to shippers doing business in upstate New York and New England,” said David Fink, Pan Am Railways’ president. “The Patriot Corridor will revitalize freight rail in the region, reducing highway congestion and improving air quality.”

“Both NS and PAR are ready to begin making the infrastructure improvements,” said Wick Moorman, Norfolk Southern’s chief executive officer. “These improvements will enable us to deliver the speed and reliability that our customers expect and deserve. We commend the STB for recognizing the numerous benefits the Pan Am Southern joint venture creates for shippers doing business in New York’s Capitol Region and throughout New England.”

A Pan Am Southern map can be found at http://www.nscorp.com/nscorphtml/pdf/pan-am-southern.pdf

Norfolk Southern

Last week, Sound Transit broke ground on University Link, a 3.1-mile light-rail line that will run entirely underground between downtown Seattle and the University of Washington.

The line will serve as an extension to the Link light-rail system scheduled to open later this year between downtown Seattle and Sea-Tac International Airport. Scheduled to be complete in 2016, the $1.9 billion University Link project calls for boring twin tunnels from the university station site south to Capitol Hill, and connecting with the existing Downtown Seattle Transit Tunnel.

Kansas City Southern
KCS Railroads Launch Midwest-to-Mexico Intermodal Service
March 9, 2009

Last month, Kansas City Southern Railway Co. (KCSR) and Kansas City Southern de México S.A. de C.V. (KCSM) launched a new dedicated intermodal service between Kansas City, Mo., Dallas and several Mexican destinations.

The seven-day-a-week service represents the start-up of a key lane within the KCS International Intermodal Corridor and an alternative to the congested Chicago gateway for traffic moving between the northeastern U.S., Midwest and Mexico, Kansas City Southern officials said in an item posted on the “KCS News” Web site. The in-bond service offers market-competitive transit times and rates, fast and efficient border crossings, and a high level of security “unmatched by the trucking industry,” they said.

KCSR and KCSM officials expect the service to attract more shippers to the CenterPoint-KCS Intermodal Center in Kansas City and increase volumes out of Dallas.

“The initial results have been encouraging,” said Gil Niesen, KCSR assistant vice president of intermodal operations and administration. “Despite the macro-economic difficulties, volumes have increased each week since start-up, and we’re close to securing several significant volume deals with large shippers through our asset partners.”

This week, KCSR and KCSM, in cooperation with CSX Transportation, plan to extend the service through the East St. Louis gateway to distribution hubs in Worcester, Mass., and Little Ferry, N.J.

Dakota, Minnesota & Eastern
South Dakota OKs DM&E Land Acquisition Effort
March 5, 2009

Canadian Pacific subsidiary Dakota, Minnesota and Eastern Railroad can proceed with a $6 billion plan to extend rail right-of-way 262 miles west of Wall, S.D., to Wyoming’s Powder River Basin coal fields, the South Dakota Transportation Commission ruled Wednesday.

The commission ruled that DM&E had negotiated in good faith with existing landowners prior to seeking eminent domain. The commission did turn down DM&E’s application eminent domain authority east of Wall, along existing rail right-of-way, stating DM&E has not yet negotiated with any landowners on that stretch.

Canadian Pacific has previously stated it is still considering the merits of such an expansion. DM&E began its efforts prior to CP’s takeover, which the Surface Transportation Board approved on Sept. 30, 2008. STB, citing its own environmental concerns, stated CP and its U.S. subsidiary, Soo Line Holding Co., could not carry “any coal originating on the new Powder River Basin line until the agency has prepared an Environmental Impact Statement addressing the environmental impacts of those movements and issued a final decision allowing such operations to begin.”

The South Dakota Transportation Commission's decision was unanimous, and followed a recommendation of approval submitted by former South Dakota Supreme Court Chief Justice Robert A. Miller, who served as hearing officer in the case. South Dakota law says a railroad can use eminent domain only if the governor or the Transportation Commission finds the project is a public necessity—and if it is determined that the railroad has negotiated in good faith with landowners first.

The Metrolink engineer involved in the Sept. 12, 2008 Chatsworth, Calif., train crash had earlier allowed a teenaged railfan access to the locomotive cab, overseeing him as the railfan piloted the train, and planned to do so again the day of the accident, which killed 25 and injured 130, according to the National Transportation Safety Board.

NTSB Tuesday provided a transcript of text messages to and from operator Robert Sanchez, who was killed as his train ran a red signal and collided with a Union Pacific freight train. The messages reveal that Sanchez had allowed one text-message correspondent to ride in the locomotive cab a few days before the incident.

Officials said Sanchez sent and received 57 text messages while on duty that day, including one sent by him 22 seconds before his train collided with the UP consist. NTSB said there was no sign of mechanical error involving the Metrolink train.

South Coast British Columbia Transportation Authority
Canadian Government to Provide Millions for Vancouver Area's Evergreen Line
March 2, 2009

The Government of Canada recently announced plans to commit up to $350 million for the South Coast British Columbia Transportation Authority's (TransLink) Evergreen Transit Line under the Building Canada Fund, which aims to create jobs and stimulate economic growth.

The 6.8-mile line would run from Lougheed Town Centre in Burnaby to Coquitlam Town Centre via Port Moody. The system will feature the same automated technology as TransLink's existing SkyTrain. The new line also will be fully integrated with TransLink's existing systems, providing a direct link to the Millennium Line, with connections to the Expo and Canada lines, West Coast Express and regional bus systems. The $1.4 billion project is expected to create more than 8,000 jobs during construction and improve the area's economy, according to the Canadian government.

The federal funding is contingent on final project detail approval by the province of British Columbia, Treasury Board approval and the signing of a contribution agreement.

The federal government already has provided $66.7 million for the Evergreen Line under the Public Transit Capital Trust in the 2008 budget. British Columbia has committed $410 million for the project and TransLink, $400 million. The remaining $173 million will be funded by project partners, including a possible public-private partnership.