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Hot News! Edited by Carl G. Perelman |
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EMC LONDON, ONTARIO PLANT TO CLOSE: Progress Rail Services Corporation, the parent company of Electro-Motive Canada (EMC), today announced its decision to close EMC's locomotive production operations at its London, Ontario plant. The company is notifying all affected employees of the decision. The Company stated it is regrettable that it has become necessary to close production operations at the London facility. The cost structure of the operation was not sustainable and efforts to negotiate a new, competitive collective agreement were not successful. Progress Rail's global manufacturing network assures its customers that delivery schedules will not be impacted by this decision.(Progress Rail, Randy Kotuby - posted 2/03) CN'S NEWEST INTERMODAL TERMINAL OPEN CHIPPEWA FALLS, WIS: CN today marked the opening of its newest intermodal terminal at Chippewa Falls in a ribbon-cutting ceremony here. The terminal, located only 100 miles east of Minneapolis/St. Paul, offers Wisconsin and Minnesota customers new supply chain options to ship and receive goods in containers. "This terminal gives companies in the Upper Midwest direct and efficient single-rail-line access to new North American and global markets via our continental network as well as the ports we serve on the Pacific, Atlantic and Gulf coasts," said Jean-Jacques Ruest, CN executive vice-president and chief marketing officer. "Today we are moving consumer products from world markets to Chippewa Falls, and providing the region growing opportunities to export grain and manufactured goods." The terminal offers twice weekly train service with fifth morning availability from the west coast for intermodal containers. Located on 8.5 acres of land at CN's Chippewa Falls Yard, the terminal features a 2,500-foot-long intermodal loading and unloading track plus an onsite grain transfer facility. Since 2001, when CN acquired Wisconsin Central Ltd., CN has invested more than $500 million in rail infrastructure improvements across the state. "With our commitment to innovation and supply chain collaboration, our goal is to help our customers compete more effectively in their end markets, be they in North America or around the world," Ruest said. "In the years ahead, we see good opportunities to develop new traffic lanes to this facility from a number of ports across our North American network." .(CN - posted 2/03) GRAND CENTRAL TERMINAL CENTENNIAL PLANNING UNDERWAY> The 100th anniversary of the opening of Grand Central Terminal is a year away, but news about the centennial celebration was released today by the Metropolitan Transportation Authority of New York (MTA) and Metro-North Railroad, which together announced formation of two committees created to guide the year-long public celebration, and initial plans for the first public events scheduled for February 1, 2013. MTA Chairman and CEO Joseph J. Lhota will serve as chair of the effort’s Honorary Committee. Former Metro-North Railroad President and MTA Chairman and CEO Peter Stangl will chair the Centennial Committee, which will help plan Centennial activities. Both groups are currently in formation. Officials say a spectacular celebration will focus international attention on the Terminal’s 100th birthday on February 1, 2013. Music and other performances, a formal re-dedication ceremony with VIP guests, and numerous other public activities will round out the day, which will be capped by a gala event. Also that day, The New York Transit Museum kicks off a six-week exhibition in the Terminal’s historic Vanderbilt Hall. This large-scale exhibit features artifacts, archival material, moving images and photographs from the Museum’s collection -- and private collectors -- that explore the past, present and future of Grand Central Terminal. “I look forward to chairing the honorary committee that will oversee the public recognition of Grand Central Terminal. The MTA has invested hundreds of millions of dollars in modernizing and restoring Grand Central for the good of the commuters and travelers who use it. This ongoing and constant improvement is obvious to anyone who visits the Terminal. Our investments in this landmarked gem pay daily dividends to the city and the state in increased economic vitality and tourism as well as increased rail ridership,” said MTA Chairman Lhota. “The MTA and Metro-North have rebuilt the Terminal into one of the great spaces of the city, a true crossroads that still inspires awe. This centennial will celebrate our commitment to this great New York icon. As stewards of this Terminal, Metro-North has embarked on a continuous upgrade of facilities, both seen and unseen. From the copper roof and sky ceiling, to the facade and statuary, to the energy-efficient infrastructure now being installed, Metro-North is ensuring that the greatness of Grand Central Terminal endures for the next 100 years,” said Howard Permut, President of Metro-North Railroad. “The Centennial celebration will feature events that call attention not only to Grand Central's history, but also to how the Terminal continues to adapt and to serve the 21st century and beyond -- as a great railroad station and transportation hub, a commercial center, an international visitor’s destination, the city’s most elegant landmark, and an engineering marvel. I look forward to working with members of the Centennial and Honorary Committees to make the Centennial informative, fun and memorable," said Peter Stangl. The year-long celebration will comprise a variety of events, publications, educational initiatives, and exhibitions to commemorate the Centennial, including additional programs from the New York Transit Museum and MTA Arts for Transit, as well as an officially-licensed line of MTA commemorative and collectible products that give visitors a chance to take home mementoes of the historic celebration. Activities being planned now include a parade of historic trains, collaborative commemorations with other New York institutions, and additional historic exhibitions. The Terminal’s retail tenants will join in the celebration through special promotions and sales activities. Officials say Centennial celebration activities are intended to serve the nation, as well as the 750,000 people who use Grand Central Terminal daily, the many tourists who visit each year, and the numerous businesses and institutions located in and near the Terminal. Details about all Centennial events will be released at a later date. Grand Central Terminal is the transportation hub for three of MTA Metro-North Railroad’s lines east of the Hudson River -- the Hudson, Harlem, and New Haven lines. As the nation’s largest commuter railroad, Metro-North provided 97 percent on-time service for 82 million people in 2011. Its 5,800 employees operate 720 trains each weekday, serving seven New York counties and two Connecticut counties, and contributing greatly to the vitality of the region and the success of the Terminal. Funds for the celebration activities will come from private sources. Centennial planners have engaged New York City-based Premier Partnerships to identify and coordinate corporate sponsorship opportunities available during the 2013 celebration. .(MTA - posted 2/03) AMTRAK REQUESTS LESS FEDERAL OPERATING SUPPORT: Amtrak is requesting $450 million in federal operating support for fiscal year 2013, a lower amount than the $466 million appropriated by Congress for FY 2012. The ability to seek reduced federal operating funding results from successful and ongoing efforts by Amtrak to improve its financial performance, including increased efficiency, cost controls, and debt reduction as well as better service, record ridership and anticipated increases in revenue. “Amtrak’s request for less federal operating support is a strong statement on just how much this railroad has improved its management and financial health. The fact is, Amtrak now covers 85 percent of its operating costs with non-federal dollars and we will further improve on that number without cutting service,” said President and CEO Joe Boardman. Amtrak submitted this request to Congress today as part of its FY 2013 Grant and Legislative Request for federal funding to support the operating and capital investment needs of America’s Railroad®. It also contains a detailed discussion of legislative issues, including Amtrak’s top five priorities for a new surface transportation bill. The full FY 2013 request totals $2.167 billion and supports aggressive efforts by Amtrak to build the equipment, infrastructure and organization needed to ensure continued strong growth. The company is investing in projects critical for enhancing the passenger experience, essential for supporting its national network and vital for its future. The funding request consists of four major components: $450 million for operations to support the national network of corridor, state-supported and long-distance trains; $1.435 billon for capital and infrastructure projects nationally; $212 million for debt service; and $60 million for Northeast Corridor (NEC) development projects, the Gateway Program to add track, stationsignificant increase over the $657 million appropriated by Congress for FY 2012. Boardman stated that the increase is necessary to move beyond mere maintenance of existing equipment and infrastructure and to invest in improvements that support faster, more frequent and more reliable service in the Northeast, the Midwest and elsewhere. For example, Amtrak is ready to move forward on NEC projects that address the major backlog of deferred maintenance and enhance capacity at key chokepoints, provide greater connectivity and increase operating speeds. The requested capital funding also will fund safety and security projects as well as customer focused programs such as improving station accessibility under requirements of the Americans with Disabilities Act and continuing the development of a next-generation reservation system. Funds are also required to replace an aging fleet of locomotives and passenger rail cars used for long-distance trains, state-supported routes and other corridor services. In addition, the request for $212 million for debt service in FY 2013 is lower than the $271 million appropriated by Congress for FY 2012 and reflects the fact that Amtrak has worked hard to control its finances and reduced its debt for eight consecutive years. Boardman further explained federal funding is critical for continuing and advancing many successful initiatives begun during the last three years which have taken root within the company and are now bearing fruit, strengthening the railroad’s bottom line and laying the groundwork that will take intercity passenger rail to the next level. He also emphasized it is imperative that Congress integrate Amtrak and other federal rail programs into a comprehensive and truly multi-modal surface transportation bill. As the nation’s intercity passenger rail provider and only high-speed rail operator, Amtrak believes the rail section should include these top five priorities: provide dedicated, multi-year funding for intercity and high-speed passenger rail; establish a national investment strategy; create a clear and leading role for Amtrak; ensure coordinated corridor planning and project execution; and address liability and insurance issues. Amtrak plays an important role in the nation’s transportation network, offering people a safe, efficient, and reliable alternative in an economy marked by high gas prices and pervasive highway congestion. The demand for Amtrak service across the country – eight ridership. records in the last nine years – is indicative of a sustainable trend “Congress has given Amtrak a critical national mission to provide intercity passenger rail service, and with an appropriate level of federal funding support, we can secure a stronger future for our country and reduce the nation’s dependence on foreign oil,” said Boardman. Along with its FY 2013 Grant and Legislative Request, Amtrak submitted to Congress its FY 2012 – FY 2016 Five Year Financial Plan that reflects the company’s commitment to continuing strategic capital investments that will yield returns from better service reliability, improved customer service and expanded service options. (Amtrak - posted 2/04) RAILAMERICA TO PURCHASE MARQUETTE RAIL: RailAmerica today announced that it has signed an agreement to acquire Marquette Rail LLC ("Marquette") for $40 million subject to final adjustments for working capital. The acquisition is subject to customary closing conditions and Surface Transportation Board approval. Headquartered in Ludington, MI, Marquette operates 126 miles of track running from Grand Rapids, MI to Ludington and Manistee, MI. Marquette interchanges with CSXT in Grand Rapids and serves customers primarily in the chemical, pulp & paper, and non-metallics industries. Marquette hauled approximately fifteen-thousand carloads of freight during the fiscal year ended 2011. RailAmerica President and CEO John Giles said, "We are extremely pleased to add this property to our existing Michigan rail portfolio. The acquisition of Marquette represents an attractive opportunity to invest in a high quality franchise with a solid base of revenue from large, long-term customers and drive substantial near-term growth from new developments on the line. In addition, the railroad is in close proximity to RailAmerica's existing Michigan operations, which we expect will create significant operating efficiencies." For the next twelve months, RailAmerica anticipates Marquette will generate approximately $13 million in revenue, $4 million in operating income (excluding closing costs) and $2 million in depreciation and amortization. The company intends to finance the purchase using cash on hand and its revolving credit facility. . (RailAmerica - posted 2/02) CANADIAN PACIFIC EXPANDS ITS OIL BY RAIL OPERATION TO LLOYDMINSTER, SASKATCHEWAN: - Canadian Pacific today announced that, by leveraging its North Main Line infrastructure, the company is now shipping crude oil by rail from a new transload facility near Lloydminster, Saskatchewan. This new facility is a key enhancement to CP's growing energy portfolio. It accommodates the initial transload and transportation needs of NuStar Energy LP (NYSE: NS), with a further planned expansion in 2012. "Moving Canadian crude through CP's North American network is a great complement to our asset base, which includes terminals and a large and expanding fleet of 1,700 coiled and insulated rail cars," said NuStar President and CEO Curt Anastasio. "We believe that moving undiluted heavy Canadian crude by rail to coastal markets is an economically viable solution that brings added value to the end users, as well as the producers in Canada." "This new facility and the planned expansion in 2012 represent an exciting growth opportunity for CP's energy portfolio," said CP Energy and Merchandise Vice President Tracy Robinson. "CP offers a flexible, reliable and efficient method of transporting crude oil and other energy-related products to emerging markets and we are proud to be partnering with NuStar to meet its growing transportation needs." "Lloydminster is highly regarded for innovation in the energy sector and this initiative is one more opportunity to shine positive light on this region. Torq Transloading and Canadian Pacific are two solid organizations with a healthy balanced focus on innovation, efficiency, safety and economic growth joining forces to serve the needs of industry leader NuStar Energy LP. We are excited to see where this may stimulate more transload facility activities in our City," commented Mayor Jeff Mulligan. Canadian Pacific is the only North American railway to serve the Alberta Industrial Heartland, the Bakken Formation and the Marcellus Shale. In addition, CP is the only Class I railway to connect the energy hubs of Alberta, Saskatchewan and the U.S. Midwest to the Northeast U.S. The Lloydminster facility, operated by Torq Transloading, enables CP to transport oil by rail to NuStar's terminals in the Northeast U.S. and Gulf Coast. In addition to the new facility near Lloydminster, CP continues to transport oil from other transload facilities in Saskatchewan and Alberta. The transloading process involves the use of a specialized pump and closed loop hose system, which safely transfers the oil from trucks to purpose-designed rail cars. Of the 140 million tons of freight shipped annually on CP, hundreds of thousands of carloads are directly related to energy production and distribution. This includes crude oil, sulphur, fuels, diluents and materials key to the energy industry, such as pipe and frac sand. (CP, Randy Kotuby - posted 2/02) AAR REPORTS GAINS FOR JANUARY RAIL TRAFFIC -WEEKLY RESULTS MIXED: - The Association of American Railroads (AAR) reported that total U.S. rail carloads originated in January 2012 totaled 1,144,800, an average of 286,200 per week and up 0.1 percent over January 2011. Intermodal volume in January 2012 was 877,637 containers and trailers, up 1.7 percent over January 2011. January’s average of 219,409 intermodal units per week was the third highest ever for a January for U.S. railroads. Detailed monthly data charts and tables will be made available in the AAR’s Rail Time Indicators report to be released tomorrow. Commodities showing gains in January 2012 over January 2011 included motor vehicles and parts, up 8,188 carloads or 18.3 percent; metallic ores, up 6,860 or 29.3 percent; crushed stone, gravel and sand, up 6,417 or 11.7 percent; and petroleum products, up 6,148 carloads or 22.3 percent. Commodities with carload declines in January included grain, down 15,099 carloads or 15.4 percent; coal, down 12,756 carloads or 2.4 percent; and chemicals, down 2,810 carloads or 2.3 percent. Carloads excluding coal and grain were up 5.5 percent (28,958 carloads) in January 2012 over January 2011. “Total rail carload traffic in January was flat compared with last year, due largely to sharp declines in coal and grain traffic,” said AAR Senior Vice President John T. Gray. “However, a number of other commodity categories — including many that have historically been much more highly correlated with GDP growth than coal and grain—saw large increases in January. That’s a sign that the underlying economy is probably stronger than you would think if you just looked at the rail traffic totals.” Total employment on Class I freight railroads was 159,717 in December 2011, down 402 employees from November 2011, but up 5,317 employees over December 2010. AAR reported mixed weekly rail traffic for the week ending January 28, 2012, with U.S. railroads originating 283,654 carloads, down 2.8 percent compared with the same week last year. Intermodal volume for the week totaled 235,028 trailers and containers, up 5.5 percent compared with the same week last year. Eleven of the 20 carload commodity groups posted increases compared with the same week in 2011, with metallic ores, up 59.2 percent; motor vehicles and equipment, up 25.1 percent, and petroleum products, up 22.2 percent. The groups showing a significant decrease in weekly traffic included farm products excluding grain, down 24.3 percent; grain, down 19.8 percent, and primary forest products, down 10.7 percent. Weekly carload volume on Eastern railroads was down 1.6 percent compared with the same week last year. In the West, weekly carload volume was down 3.6 percent compared with the same week in 2011. Canadian railroads reported 75,427 carloads for the week, up 5.4 percent compared with the same week last year, and 46,916 trailers and containers, up 2.4 percent compared with 2011. For the first four weeks of 2012, Canadian railroads reported cumulative volume of 289,293 carloads, up 3.8 percent from the same point last year, and 185,293 trailers and containers, up 3.1 percent from last year. Mexican railroads reported 14,065 carloads for the week, down 6.5 percent compared with the same week last year, and 9,712 trailers and containers, up 32.9 percent. Cumulative volume on Mexican railroads for the first four weeks of 2012 is 50,473 carloads, down 13.5 percent compared to last year, and 34,430 trailers and containers, up 24.7 percent. Combined North American rail volume for the first four weeks of 2012 on 13 reporting U.S., Canadian and Mexican railroads totaled 1,484,566 carloads, up 0.3 percent compared to last year, and 1,097,360 trailers and containers, up 2.5 percent compared with last year. (AAR - posted 2/02) RAILAMERICA SIGNS AGREEMENT TO ACQUIRE MAJORITY INTEREST IN WELLSBORO & CORNING RAILROAD AND INDUSTRIAL WASTE GROUP: RailAmerica today announced that it has signed an agreement to acquire a seventy-percent interest in the Wellsboro and Corning Railroad ("WCOR") and Industrial Waste Group ("IWG") from Myles Group for $18 million. Members of the Myles family will retain the remaining thirty-percent interest in the companies and continue in senior leadership roles. The acquisition is subject to customary closing conditions and is expected to be completed early in the second quarter of 2012. The WCOR operates 38 miles of track running from Wellsboro, PA to Corning, NY handling a variety of industrial products primarily used in the natural resources industry. RailAmerica anticipates the WCOR to experience rapid traffic growth and expand its freight and non-freight services in support of the development of the Marcellus Shale natural gas industry. IWG performs transload, storage, and other value-added services for customers in the energy and waste management industries. It operates four transloading facilities located in Wellsboro, PA; Corning, NY; Toledo, OH; and Amelia, VA. RailAmerica expects IWG to continue to grow by developing transload operations in new markets and extending its services throughout RailAmerica's network. RailAmerica President and CEO John Giles said, "This is an exciting opportunity for both RailAmerica and Myles Group. The rail and transloading infrastructure at Wellsboro is uniquely located in the heart of the northern Marcellus Shale and represents a key asset in the transportation of both inbound and outbound products for major exploration and production companies. Both WCOR and IWG have established relationships and contracts with leading companies in the energy and related industries. The acquisition allows RailAmerica to gain direct exposure to the enormous potential in the area and also leverage the expertise of Myles Group in opening similar transload facilities throughout the country." Giles continued, "This transaction, along with our acquisition of the Marquette Railroad also announced today, is the result of our ongoing focus on growth through corporate development and strategic investments. We continue to pursue an active pipeline of opportunities and are optimistic about the outlook for additional accretive investments." Over the next 12 months of operations, WCOR and IWG combined are expected to generate approximately $17 million in revenue, $3.5 million in operating income (excluding closing costs) and $1.3 million in depreciation and amortization. RailAmerica intends to finance the purchase using cash on hand and its revolving credit facility. The financial results of the WCOR and IWG will be consolidated into RailAmerica's financials, and RailAmerica's net income will be reduced by the thirty-percent minority interest. RailAmerica, Inc. owns and operates short-line and regional freight railroads in North America, operating a portfolio of 43 individual railroads with approximately 7,400 miles of track in 27 U.S. states and three Canadian provinces (RailAmerica - posted 2/01) U.S. TRANSPORTATION SECRETARY HELPS KICK OFF CONSTRUCTION OF NEW ATLANTA STREETCAR LINE: – U.S. Transportation Secretary Ray LaHood today helped kick off construction of a new 2.6-mile streetcar line that will run through the heart of Atlanta's business, tourism, and convention corridor, bringing jobs and new development to the city and reflecting President Obama’s blueprint for an America that’s built to last. The Secretary was joined at the kick off by Atlanta Mayor Kasim Reed and local officials. “President Obama called on us to rebuild America by putting people back to work on transportation projects that are built to last, like Atlanta’s modern streetcar line,” said Secretary LaHood. “All across America, there is work to be done on projects like this. Now is the time to connect people who need work with the work we need to do to improve our nation’s transit centers, highways, railways, airports and ports.” Secretary LaHood’s visit follows President Obama’s State of the Union address, in which he called for using funds saved from winding down the wars in Iraq and Afghanistan to pay down the debt and fund a six-year transportation bill that would clear the way for nation-building here in the United States. The Atlanta streetcar will traverse an economically distressed area of downtown, serving as a catalyst for millions of dollars in new residential, official, and retail development. It also reconnects the eastern and western sides of the city that have been divided by two interstate highways for half a century. The streetcar will eventually serve about 7,000 people who live within a quarter-mile of the route, as well as more than five million tourists and convention-goers. Operated by MARTA (Metropolitan Rapid Transit Authority), it will include 12 stops with access to major attractions like the Dr. Martin Luther King Jr. National Historic Site and the historic Auburn Avenue corridor, which is the birthplace of the Civil Rights movement. The line will also connect with MARTA’s heavy rail and bus systems and city bicycle routes. The streetcar project heeds President Obama’s call for a new era for American energy, fueled by homegrown and alternative energy sources, and because the streetcar will be powered by electricity, it will produce zero emissions. Throughout construction of the line, the City of Atlanta, MARTA, and all other stakeholders will use sustainable building materials, recycled materials, and renewable energy sources to make the system as “green” as possible. And overall, locally expanding transit options will help reduce vehicle miles traveled, which lessens our dependence on oil and reduces emissions. “The Atlanta streetcar project is creating American jobs, using American-made materials,” said Federal Transit Administrator Peter Rogoff. “It’s a great reflection of the President’s support for American manufacturing and for giving everyone a fair shot at success by investing in the infrastructure our country needs right now.” Secretary LaHood travelled to Atlanta in October, 2010, to announce $47.6 million for the streetcar project through the Department’s second round of TIGER (Transportation Investment Generating Economic Recovery) grants. It was the largest of the capital TIGER II grants awarded in 2010. The project is a cooperative effort by the City of Atlanta, the Atlanta Downtown Improvement District (ADID) and MARTA. The City and ADID funded the balance of the project. (USDOT - posted 2/01) RAILROAD MUSEUM OF NEW ENGLAND WINS AMHERST AWARD TO RESTORE CLASSIC GEEP: The winner of the first Amherst Railway Society Founders Award for preservation was announced on Sunday, January 29, 2012 at the Society's Springfield Show. Shown receiving the $10,000 award from ARS President Sudro Brown on behalf of RMNE was Howard Pincus holding the check, Celeste Echlin and Sam Walker. The RMNE won the award for restoration work in progress in our shop building on a diesel engine for Boston & Maine GP9 Locomotive #1732. This 1,750 hp road switcher locomotive was built by GM's Electro-Motive Division in May 1957. It was used in road and local freight service by B&M for decades and eventually purchased by RMNE in 1997 for use on our historic railway, the Naugatuck Railroad. The 1732 was used until late in 2001 when its diesel engine suffered a broken crankshaft. The painstaking and expensive process of removing power assemblies, heads, connecting rods and pistons and replacing with new and rebuilt pistons, rings and cylinder liners will be greatly enhanced with the proceeds of the ARS Founders Award supplementing a previous $10,000 grant received in 2005 and additional funding from RMNE. Working with our volunteers on this project, in particular RMNE's lead machinist Scott Lent, is well-known EMD expert Preston Cook.Once the engine rebuild work is completed and installed back into 1732, there will be additional body restoration and painting back to proper B&M colors in the final stages of the project, hopefully in early 2013. The goal is to place the 1732 back into active service on RMNE's historic railway, operating for the public (RMNE - posted 1/31) SUSQUEHANNA LIMITED SET TO ROLL BEHIND CLASSIC PRR E-UNITS: On Saturday, June 16, the Conrail Historical Society will host the Susquehanna Limited, operating from Washington, D.C. to Harrisburg, Pa. and return. The train will operate via the freight only Norfolk Southern "Port Road: and through Enola Yard, returning via the freight only Royalton Branch towards Columbia, then back onto the Port Road. The train will be powered by Bennett Levin's classic PRR E8A duo. Tickets for the Susquehanna Limited are $172.50 for Reserved Seating, and $400-425 for First Class. The train will board in Washington Union Station at 8AM on June 16, 2012 and will return between 4 and 5 PM. This trip is being run as a fundraiser by The Conrail Historical Society, a 501(c)(3) Non Profit dedicated to the preservation of Conrail's important story. For more information on the trip, visit https://www.crhstrips.com/susquehanna-limited/susquehanna-limited-route (CRHS - posted 1/31) MTA RELEASES FIRST-EVER LATE NIGHT MAP: The Metropolitan Transportation Authority (MTA) today released the first-ever map showing the scheduled overnight service of the subway system, when three subway lines don't run, three lines become shuttle trains, six express trains run as locals, and a night-only shuttle appears. The map has a gray background color to prevent confusion with the normal subway map. The New York City Subway is the only large subway or metro system in the world to maintain service to all its stations around the clock. The overnight service shown in the night map runs generally from midnight to 6 a.m., although certain lines' overnight service patterns depicted in the map may begin or end slightly earlier or later than these times. The MTA has printed 25,000 copies of the map in tandem with its normal press run of a million copies of the standard subway and railroad map. The night map is available free of charge while supplies last at the New York Transit Museum, at Boerum Place & Schermerhorn Street in Downtown Brooklyn, and at the Transit Museum Annex in Grand Central Terminal. The night map, developed in-house by the MTA, is the same size as the standard map and similarly folds into a handy pocket-sized document. In addition to the folded version, 300 pristine, unfolded press sheets of the night map are available for purchase at the Transit Museum Annex for $20 each. It has also been posted to the MTA's website as a PDF, and the PDF is attached to this press release. The reverse side of the map shows a work commissioned for MTA Arts for Transit, "City of Glass," a faceted glass piece by Romare Bearden installed in the Westchester Square station in the Bronx in 1993. For each subsequent night map in the series, a new artwork will adorn the reverse side. The theme for 2012 is "night." In "City of Glass," jewel-like colored glass reveals a train wending its way through the canyons of towers and tenements under a full luminous moon. It is a moving work of art in brilliant color, filled with the vibrancy, excitement, and energy of the city, and is Bearden's only glass art installation. "The standard subway map depicts morning to evening weekday service," said MTA Chairman Joseph J. Lhota. "This companion night map will, for the first time, depict service for a particular portion of the day. This is the latest effort we've taken to improve the availability of information and detail we provide to our customers." (MTA - posted 1/31) U.S. TRANSPORTATION SECRETARY LAHOOD ANNOUNCES FOURTH ROUND OF FUNDING UNDER HIGHLY SUCCESSFUL TIGER PROGRAM: Following President Obama's call in his State of the Union address for greater infrastructure investment as part of “An America Built to Last,” U.S. Transportation Secretary Ray LaHood today announced the availability of funding for transportation projects under a fourth round of the popular TIGER (Transportation Investment Generating Economic Recovery) Discretionary Grant program. TIGER 2012 will make $500 million available for surface transportation projects having a significant impact on the nation, a metropolitan area, or region. The previous three rounds of the TIGER program provided $2.6 billion to 172 projects in all 50 states, the District of Columbia and Puerto Rico. Demand for the program has been overwhelming, and during the previous three rounds, the Department of Transportation received more than 3,348 applications requesting more than $95 billion for transportation projects across the country. “President Obama made clear in his State of the Union address that investing in transportation means putting people back to work, and that’s just what our TIGER program is doing in communities across the country,” said Secretary LaHood. “Americans are demanding investments in highways, ports, commuter rail, streetcars, buses, and high-speed rail. These kinds of projects not only mean a stronger economic future for the U.S., but jobs for Americans today.” As in previous rounds, high-speed rail and intercity passenger rail projects remain eligible for funding. TIGER 2012 provides for the possibility of up to $100 million being used toward these projects. TIGER 2012 will also continue to encourage the development of transportation projects in rural areas, providing $120 million for rural transportation projects. On November 18, 2011, the President signed the FY 2012 Appropriations Act, which provided $500 million for Department of Transportation infrastructure investments. Like the first three rounds, TIGER 2012 grants are for capital investments in surface transportation infrastructure and are to be awarded on a competitive basis. Projects will be evaluated on primary criteria that include safety, economic competitiveness, livability, environmental sustainability, state of repair and short-term job creation. Pre-applications are due February 20 and applications are due March 19. (USDOT - posted 1/31) FREIGHT RAILROADS EXPECT TO SPEND RECORD $13 BILLION ON CAPITAL EXPENDITURES, HIRE MORE THAN 15,000 IN 2012: The Association of American Railroads (AAR) today announced that the nation's major freight railroads are projected to invest a record $13 billion in capital expenditures in 2012 to expand, upgrade, and enhance the nation's freight rail network. The freight railroads also expect to hire more than 15,000 employees this year, replacing retiring workers and adding new positions nationwide. "Unlike trucks, barges or airlines, America's freight railroads operate on infrastructure they own, build and maintain themselves so taxpayers don't have to. And this year they are investing at a record rate to meet the demands of the recovering economy," said Edward R. Hamberger, AAR President and CEO. "These investments help businesses get their goods to market more efficiently and affordably, so they too can innovate, invest and hire. That's how freight rail spurs the American economy and supports jobs all across the country." With hundreds of infrastructure projects underway nationwide, privately owned freight rail networks are maintained through continued investments that have reached record levels in the past three years. These investments include expenditures such as intermodal terminals that facilitate truck to train freight transport; new track, bridges and tunnels; modernized safety equipment; new locomotives and rail cars, and other components that ensure the U.S. freight rail network remains the best in the world. In recent years, railroads have been spending roughly 17 percent of their annual revenue on capital expenditures, compared with the average U.S. manufacturer that spends roughly 3 percent of revenue on capital expenditures. "As the demand to move more freight by rail increases and a significant percentage of the rail workforce hits retirement age, freight railroads are continuing to add and fill jobs nationwide," said Hamberger. "These jobs are well paying, highly skilled careers that cannot be offshored." Rail employee compensation averages roughly $100,000 per year, with jobs ranging from engineers and dispatchers, to law enforcement, to information technology and industrial development. Freight railroads have roughly 175,000 employees nationwide, many of whom are veterans and reservists. In fact, one in five of recent new railroad hires are veterans. (AAR, Randy Kotuby - posted 1/30) SILVERLINER V SATURDAY SERVICE ON FEBRUARY 4TH: Something new this week with SEPTA is SILVERLINER FIVE SATURDAY SERVICE on two lines on Saturday, February 4th. Thorndale-Malvern-Dolestown and Philadelphia-Trenton. Lansdale/Doylestown Line - Saturday ONLY
CANADIAN PACIFIC ANNOUNCES STRONG OPERATING PERFORMANCE AND FOURTH QUARTER RESULTS: Canadian Pacific Railway Limited announced its fourth-quarter and full year 2011 results today. Fourth-quarter CP reported net income of $221 million and diluted earnings per share of $1.30, inclusive of $0.22 per share income tax benefit. For the full year, the company reported net income of $570 million and diluted earnings per share of $3.34. “We exited 2011 having made meaningful progress on the three pillars of our Multi-Year Plan: driving growth, expanding network capacity to safely and efficiently support higher volumes and controlling costs. During the fourth quarter we delivered record asset velocity, a direct link to better service, positioning us for a lower operating ratio,” said Fred Green, President and Chief Executive Officer. “We begin 2012 with operating momentum, excellent service levels and a stronger, more resilient rail network. We are aggressively executing on our Multi-Year Plan, which is instrumental in creating long-term value for shareholders (CP - posted 1/27) PORT AUTHORITY’S PATH SYSTEM REPORTS RECORD RIDERSHIP IN 2011: The Port Authority’s PATH rail system reported record ridership in 2011, with 76.6 million commuter trips made during the year, the highest number since the agency took over operation of the system in 1962. The record ridership follows the investment of more than $1 billion in PATH over the past four years for new cars, station upgrades and commencement of installation of a new signal system. The record ridership surpassed the previous record of 74.9 million commuter trips in 2008 by 1.7 million trips. The 2011 ridership number represents a 3.6 percent increase compared to 2010. The increase in PATH ridership mirrors a trend of strong increases in transit ridership around the region, and around the country, as the traveling public seeks transportation alternatives. Port Authority Chairman David Samson said, “Our multibillion-dollar commitment to transform PATH into a 21st century rail system has paid dividends. More people are taking notice of what PATH has to offer and are choosing it as their preferred mode of travel between New York and New Jersey.” Port Authority Executive Director Pat Foye said, “We continue to make significant investments in PATH, to provide our customers a quality mass-transit alternative to cross the Hudson for work, to see family, or a night out. Our customers have asked for new cars and upgraded stations and we are listening. PATH now has an entirely new 340-car fleet, and renovations are being made to stations throughout the system. And our new PATH signal system, when it is fully installed, will help meet the on-time performance standards and reliability that our customers demand.” Port Authority Deputy Executive Director Bill Baroni said, “We have been good stewards of this 104-year-old system – which is a lifeline between the two states – for many years, and our efforts will continue to ensure it remains a customer-friendly, efficient mode of travel to support the needs of commuters going to work on both sides of the Hudson.” In addition to record ridership, 2011 was a significant year for the Port Authority’s ongoing investment in PATH. In November, the Port Authority put the last of its 340 new rail cars into service, completing a three-year, $744 million program that created 700 jobs. The new cars included several new features, including three-door sets on each side of a car, allowing for faster exit and entry, improved lighting, heating and air-conditioning, and informational videos on each train. PATH cars were not the only things being replaced and modernized. Several stations are seeing upgrades as well: Harrison and Hoboken stations are both undergoing renovation. The World Trade Center-Newark line also will see renovations as the platforms eventually will be extended to accommodate 10-car trains, an improvement that will help increase system capacity. The installation of a computerized signal system also is under way, with signals being replaced throughout PATH’s 43 track miles and 13 stations. This $400 million upgrade will result in fewer PATH delays, increased numbers of trains running at any given time and improvements in overall safety and efficiency. The Christopher Street substation, which provides electrical power to the branch of the PATH system that goes to 33rd Street in Manhattan, also is being upgraded. The larger capacity of the upgraded power system will improve reliability and meet the demand for power resulting from increased service. During a typical weekday, approximately 256,000 trips are made on PATH system. Weekend ridership also is up, as approximately 211,000 trips are made. This represents a 2 percent increase in weekend ridership from 2010. The Harrison station exhibited the strongest weekday growth of all PATH stations at 8.7 percent. (The Port Authority of New York and New Jersey - posted 1/26) CANADIAN PACIFIC ANNOUNCES STRONG OPERATING PERFORMANCE AND FOURTH QUARTER RESULTS: Canadian Pacific Railway Limited announced its fourth-quarter and full year 2011 results today. Fourth-quarter CP reported net income of $221 million and diluted earnings per share of $1.30, inclusive of $0.22 per share income tax benefit. For the full year, the company reported net income of $570 million and diluted earnings per share of $3.34. “We exited 2011 having made meaningful progress on the three pillars of our Multi-Year Plan: driving growth, expanding network capacity to safely and efficiently support higher volumes and controlling costs. During the fourth quarter we delivered record asset velocity, a direct link to better service, positioning us for a lower operating ratio,” said Fred Green, President and Chief Executive Officer. “We begin 2012 with operating momentum, excellent service levels and a stronger, more resilient rail network. We are aggressively executing on our Multi-Year Plan, which is instrumental in creating long-term value for shareholders (CP - posted 1/27) PORT AUTHORITY’S PATH SYSTEM REPORTS RECORD RIDERSHIP IN 2011: The Port Authority’s PATH rail system reported record ridership in 2011, with 76.6 million commuter trips made during the year, the highest number since the agency took over operation of the system in 1962. The record ridership follows the investment of more than $1 billion in PATH over the past four years for new cars, station upgrades and commencement of installation of a new signal system. The record ridership surpassed the previous record of 74.9 million commuter trips in 2008 by 1.7 million trips. The 2011 ridership number represents a 3.6 percent increase compared to 2010. The increase in PATH ridership mirrors a trend of strong increases in transit ridership around the region, and around the country, as the traveling public seeks transportation alternatives. Port Authority Chairman David Samson said, “Our multibillion-dollar commitment to transform PATH into a 21st century rail system has paid dividends. More people are taking notice of what PATH has to offer and are choosing it as their preferred mode of travel between New York and New Jersey.” Port Authority Executive Director Pat Foye said, “We continue to make significant investments in PATH, to provide our customers a quality mass-transit alternative to cross the Hudson for work, to see family, or a night out. Our customers have asked for new cars and upgraded stations and we are listening. PATH now has an entirely new 340-car fleet, and renovations are being made to stations throughout the system. And our new PATH signal system, when it is fully installed, will help meet the on-time performance standards and reliability that our customers demand.” Port Authority Deputy Executive Director Bill Baroni said, “We have been good stewards of this 104-year-old system – which is a lifeline between the two states – for many years, and our efforts will continue to ensure it remains a customer-friendly, efficient mode of travel to support the needs of commuters going to work on both sides of the Hudson.” In addition to record ridership, 2011 was a significant year for the Port Authority’s ongoing investment in PATH. In November, the Port Authority put the last of its 340 new rail cars into service, completing a three-year, $744 million program that created 700 jobs. The new cars included several new features, including three-door sets on each side of a car, allowing for faster exit and entry, improved lighting, heating and air-conditioning, and informational videos on each train. PATH cars were not the only things being replaced and modernized. Several stations are seeing upgrades as well: Harrison and Hoboken stations are both undergoing renovation. The World Trade Center-Newark line also will see renovations as the platforms eventually will be extended to accommodate 10-car trains, an improvement that will help increase system capacity. The installation of a computerized signal system also is under way, with signals being replaced throughout PATH’s 43 track miles and 13 stations. This $400 million upgrade will result in fewer PATH delays, increased numbers of trains running at any given time and improvements in overall safety and efficiency. The Christopher Street substation, which provides electrical power to the branch of the PATH system that goes to 33rd Street in Manhattan, also is being upgraded. The larger capacity of the upgraded power system will improve reliability and meet the demand for power resulting from increased service. During a typical weekday, approximately 256,000 trips are made on PATH system. Weekend ridership also is up, as approximately 211,000 trips are made. This represents a 2 percent increase in weekend ridership from 2010. The Harrison station exhibited the strongest weekday growth of all PATH stations at 8.7 percent. (The Port Authority of New York and New Jersey - posted 1/26) AAR REPORTS INCREASE IN WEEKLY RAIL TRAFFIC: The Association of American Railroads (AAR) today reported an increase in weekly rail traffic for the week ending January 21, 2012, with U.S. railroads originating 287,734 carloads, up 1.6 percent compared with the same week last year. Intermodal volume for the week totaled 219,706 trailers and containers, up 3 percent compared with the same week last year. Fourteen of the 20 carload commodity groups posted increases compared with the same week in 2011, with metallic ores, up 50.8 percent; petroleum products, up 26.8 percent, and motor vehicles and equipment, up 16.7 percent. The groups showing a significant decrease in weekly traffic included grain, down 10.7 percent, and farm products excluding grain, down 10.5 percent. Weekly carload volume on Eastern railroads was down 1.5 percent compared with the same week last year. In the West, weekly carload volume was up 3.6 percent compared with the same week in 2011. For the first three weeks of 2012, U.S. railroads reported cumulative volume of 861,146 carloads, up 1.1 percent from last year, and 642,609 trailers and containers, up 0.4 percent from last year. Canadian railroads reported 68,366 carloads for the week, up 3.5 percent compared with the same week last year, and 48,092 trailers and containers, up 4.8 percent compared with 2011. For the first three weeks of 2012, Canadian railroads reported cumulative volume of 213,866 carloads, up 3.2 percent from the same point last year, and 138,377 trailers and containers, up 3.4 percent from last year. Mexican railroads reported 13,658 carloads for the week, down 11 percent compared with the same week last year, and 9,007 trailers and containers, up 27.6 percent. Cumulative volume on Mexican railroads for the first three weeks of 2012 is 36,408 carloads, down 15.9 percent compared to last year, and 24,718 trailers and containers, up 21.8 percent. Combined North American rail volume for the first three weeks of 2012 on 13 reporting U.S., Canadian and Mexican railroads totaled 1,111,420 carloads, up 0.8 percent compared to last year, and 805,704 trailers and containers, up 1.4 percent compared with last year. (AAR - posted 1/26) CSX NAMES NEW CHIEF OPERATING OFFICER AND CHIEF FINANCIAL OFFICER: CSX Corporation announced the appointments of Oscar Munoz as executive vice president and chief operating officer and Fredrik J. Eliasson as executive vice president and chief financial officer, effective immediately. Munoz replaces David A. Brown, who is no longer with the company. The company’s decision to make this change is unrelated to CSX’s financial condition, business performance or outlook, all of which are strong. “Oscar Munoz is a proven leader who has been an integral part of creating the company’s vision and success,” said Michael J. Ward, chairman, president and chief executive officer. “He brings tremendous business skills, a disciplined approach and a passion for superior results.” Munoz has been executive vice president and chief financial officer of CSX since 2003, responsible for all financial, strategic planning, information technology, procurement and real estate activities. Prior to joining CSX he held senior leadership roles at PepsiCo, Coca-Cola and AT&T. Munoz is a member of the board of directors of United Airlines, as well as several local and national educational and philanthropic institutions. He earned a bachelor’s degree from the University of Southern California and a master’s of business administration from Pepperdine University. Succeeding Munoz as chief financial officer is Fredrik Eliasson, a 16-year veteran CSX executive. “Fredrik brings broad senior leadership experience and a track record of success in key financial and commercial roles,” said Ward. “He has invaluable insight into creating value for shareholders and customers, as well as clear focus and skill in business execution.” Eliasson was vice president of sales and marketing for CSX’s chemicals and fertilizer business and previously headed the emerging markets business. Before that, he was vice president of financial planning and analysis, overseeing all aspects of planning, forecasting and economic analysis activities. Eliasson is on the board of directors of the Jacksonville Chamber of Commerce. He earned a bachelor’s degree and a master’s degree in business administration from Virginia Commonwealth University. (CSX Corporation, - posted 1/25) PROVIDENCE & WORCESTER RAILROAD COMPANY ANNOUNCES DIVIDEND: Providence and Worcester Railroad Company announced that, at its regular quarterly meeting on January 25, 2012, the Board of Directors of the Company declared a dividend of $.04 per share on the outstanding Common Stock of the Company, payable on February 24, 2012 to common shareholders of record on February 10, 2012. In addition, the Board of Directors declared a 10% noncumulative annual dividend of $5.00 per share on the outstanding preferred stock of the Company, payable on February 24, 2012 to preferred shareholders of record on February 10, 2012. (Providence & Worcester - posted 1/25) NORFOLK SOUTHERN REPORTS 2011 FOURTH-QUARTER AND FULL-YEAR RESULTS: Norfolk Southern Corporation today reported record fourth-quarter net income of $480 million, 19 percent higher compared with $402 million for the same quarter of 2010. Diluted earnings per share were a record $1.42, up 30 percent compared with the $1.09 per diluted share earned in the same period a year earlier. For 2011, net income increased to an all-time record $1.9 billion, 28 percent higher compared with $1.5 billion for 2010. Diluted earnings per share for the year increased 36 percent, or $1.45, to a record $5.45, compared with 2010. “Norfolk Southern achieved all-time records for revenues, operating income, net income, and earnings per share during 2011, and set fourth-quarter records for revenues, net income, and earnings per share,” said Norfolk Southern CEO Wick Moorman. “In 2012 we will remain committed to enhancing our service product, maintaining the safety and quality of our rail network, improving operational efficiency, and supporting growth.” “Our strong capital program of $2.4 billion will include substantial investments along our Crescent Corridor, a public-private partnership to create a high-capacity, truck-competitive intermodal freight rail route between the Gulf Coast and Northeast,” Moorman said. “As part of this program of projects, we plan to open intermodal terminals in Alabama, Pennsylvania, and Tennessee later in the year. Facilities such as these relieve congested freight lines and highways, and are proven centers for creating jobs and economic development.” Railway operating revenues increased to $2.8 billion, a fourth-quarter record, up 17 percent compared with the same period a year earlier. For 2011, railway operating revenues set an all-time record $11.2 billion, 17 percent higher compared with 2010. The improvements were the result of increases in revenue per unit of 11 percent for the quarter and 12 percent for the year and higher volumes that were up 6 percent for the quarter and 5 percent for the year. General merchandise revenues rose to $1.4 billion, up 13 percent compared with fourth-quarter 2010. For 2011, general merchandise revenues increased to $5.6 billion, 12 percent higher compared with 2010. Traffic volume increased 1 percent in the quarter and was even for the year compared with the same periods of 2010. Coal revenues in the fourth quarter were $850 million, up 24 percent compared with the same period last year. For 2011, coal revenues were $3.5 billion, 27 percent higher compared with 2010. Traffic volume increased 3 percent in the quarter and 4 percent for the year compared with the same periods of 2010. Intermodal revenues were $554 million, up 18 percent compared with fourth-quarter 2010. For the year, intermodal revenues were $2.1 billion, up 19 percent compared with 2010. Traffic volume increased by 11 percent in the quarter and 10 percent for 2011 compared with the same periods of 2010. Railway operating expenses were $2 billion for the fourth quarter, 14 percent higher compared with the same period a year earlier. For 2011, railway operating expenses were $8 billion, up 16 percent compared with 2010. The increases were primarily driven by fuel expenses, which rose by $95 million in the fourth quarter and $510 million for the year, and higher costs associated with increased traffic volumes. Income from railway operations increased 25 percent for the quarter to $800 million and improved 20 percent to a record $3.2 billion for the year, compared with the same periods of 2010. Fourth-quarter 2011 results included $11 million in deferred income tax benefits attributable to state tax law changes. The year included $68 million of favorable, non-recurring income tax benefits. The fourth-quarter railway operating ratio improved by 2 percent to 71.4 percent compared with the same period last year. For 2011, the railway operating ratio improved by 1 percent to 71.2 percent compared with 2010. ( Norfolk Southern Corporation - posted 1/24) CN REPORTS BEST EVERY QUARTERLY REVENUE: CN today reported its financial and operating results for the fourth quarter and year ended Dec. 31, 2011. Net income for full-year 2011 was C$2,457 million, or C$5.41 per diluted share, compared with 2010 net income of C$2,104 million, or C$4.48 per diluted share. The financial results for both years included a number of items that affect the comparability of the results, including in 2011 an after-tax gain on the disposal of a segment of CN's Kingston subdivision known as the Lakeshore East of C$254 million, or C$0.55 per diluted share, and an after-tax gain of C$38 million (C$0.08 per diluted share) on the sale of the assets of IC RailMarine Terminal Company. Excluding items in both years, adjusted 2011 net income was C$2,194 million, or C$4.84 per diluted share, compared with 2010 adjusted net income of C$1,973 million, or C$4.20 per diluted share. Adjusted diluted EPS for 2011 increased by 15 per cent. (1) Claude Mongeau, CN president and chief executive officer, said: "Solid operational and service performance helped CN deliver exceptional financial results for the fourth quarter and 2011 as a whole. Our broad-based service innovation benefited our customers and enabled us to grow our business faster than the overall economy and close the year with record carloadings and revenues. Moving forward, our goal of becoming a true supply chain enabler is the foundation of our commitment to deliver solid shareholder value." Foreign currency impact on results Although CN reports its earnings in Canadian dollars, a large portion of its revenues and expenses is denominated in U.S. dollars. As such, the Company's results are affected by exchange-rate fluctuations. On a constant currency basis that excludes the impact of fluctuations in foreign currency exchange rates, CN's 2011 fourth-quarter net income would have been lower by C$2 million (nil impact per diluted share), and its 12-month net income higher by C$43 million, or C$0.09 per diluted share. (1) Positive 2012 outlook, increased dividend (2) Mongeau said: "Although the economic recovery may be affected by global uncertainty, CN believes the gradual improvement in the North American economy will continue in 2012. Despite significant headwinds from additional pension expense of about C$120 million in 2012, CN is aiming to achieve a growth of up to 10 per cent in diluted earnings per share (EPS) over adjusted diluted EPS of C$4.84 for 2011. CN also expects to generate 2012 free cash flow in the order of C$875 million, which is in line with 2011 excluding major asset sales." (1) Mongeau added: "With a strong balance sheet and solid prospects for earnings and free cash flow generation, I'm pleased to announce that our Board of Directors has approved a 15 per cent increase in CN's 2012 quarterly common-share dividend." Fourth-quarter 2011 revenues and expenses Revenues for the fourth quarter of 2011 increased by 12 per cent to C$2,377 million. All but one of CN's commodity groups experienced increased revenues: metals and minerals (30 per cent), intermodal (16 per cent), petroleum and chemicals (14 per cent), automotive (13 per cent), forest products (12 per cent), and grain and fertilizers (three per cent.) Coal revenues were flat. Revenue ton-miles increased three per cent over the fourth quarter of 2010, while rail freight revenue per revenue ton-mile increased by nine per cent. Total operating expenses for the fourth quarter increased by 15 per cent to C$1,538 million. Full-year 2011 revenues and expenses: Revenues for the year increased by nine per cent to C$9,028 million, mainly attributable to higher freight volumes, due to a modest improvement in the North American and global economies and to the Company's performance above base market conditions in a number of segments; the impact of a higher fuel surcharge; and freight rate increases. These factors were partly offset by the negative translation impact of the stronger Canadian dollar on U.S.-dollar-denominated revenues in the first nine months of the year. All commodity groups saw revenue increases for 2011: metals and minerals (17 per cent), intermodal (14 per cent), grain and fertilizers (seven per cent), petroleum and chemicals (seven per cent), forest products (seven per cent), automotive (six per cent), and coal (three per cent). Revenue ton-miles for the year increased by five per cent from 2010, while rail freight revenue per revenue ton-mile increased by four per cent. Operating expenses for 2011 increased by nine per cent to C$5,732 million, mainly due to higher fuel costs, purchased service and material expense, labor and fringe benefits expense as well as higher depreciation and amortization. These factors were partially offset by the positive translation impact of the stronger Canadian dollar on U.S.-dollar-denominated expenses, particularly in the first nine months of 2011, and lower casualty and other expense. CN's operating ratio for 2011 was 63.5 per cent, compared with 63.6 per cent for 2010, a 0.1-point reduction. (CN - posted 1/24) AMTRAK OUTLINES PLAN FOR NEXT PHASE OF IMPROVEMENTS AT LANCASTER TRAIN STATION With the current work on the Lancaster Train Station project nearing completion, Amtrak announced a detailed plan for the next phase of station improvements, the Capstone project. Starting as soon as work on the current phase is complete, Amtrak will begin work to restore the passenger areas into an accessible, comfortable and convenient station that is of historic significance. “Passengers will see Amtrak crews begin making the improvements just as soon as the current project ends in the next few weeks,” said Amtrak Sr. Director of Major Project Partnerships Marilyn Jamison. “Amtrak is eager to get started,” she added. The first phase of the three phase Capstone project consists of short term items to be completed by Amtrak forces. Design work is currently underway and in the coming weeks work will begin on the restoration of the passenger areas of the station including the benches, doors and archways. In addition, some plaster work and molding restoration will be done in portions of the station. The station foyer, public hallways and restrooms will be painted and repairs will be made to the platform surface among other items. The second phase is long term work requiring a standard design-bid-build project delivery method. It includes items such as station lighting upgrades and rehabilitation, HVAC replacement and platform canopy repairs. The third phase involves work to be completed under the Amtrak Accessible Stations Development Program which will make improvements to the station’s accessibility by all passengers, including the main waiting room, platform, restrooms and parking areas. This phase commenced in early January with survey work. Construction is expected to begin in mid-2013. An advisory committee comprised of local stakeholders will be formed to provide input on the project. The Lancaster train station serves Amtrak’s Keystone Service (Harrisburg – Philadelphia – New York) and Pennsylvanian (Pittsburgh – Harrisburg – Philadelphia – New York). For fiscal year 2011, 539,338 passengers arrived or departed from the station making it the 3rd busiest Amtrak station in Pennsylvania and the 22nd busiest station in the Amtrak national network. (Amtrak - posted 1/23) AMERICA TO CELEBRATE THE 5TH ANNUAL NATIONAL TRAIN DAY Amtrak presents the 5th Annual National Train Day, a celebration of trains and the different ways trains touch the lives of people around the country. The celebration will take place at train stations in New York City, Philadelphia, Chicago and Los Angeles, as well as numerous other communities throughout the nation, on Saturday, May 12, 2012. National Train Day is for people who relish the journey – not just the destination. This one-of-a-kind train event will bring the ‘rail way’ to life for those in attendance, as well as those participating online and through social media. To join in the celebration of this year’s National Train Day, passengers who are inspired by their train travel experiences can share what they see and do on their train journeys by submitting photos, video and stories at NationalTrainDay.com, on facebook at facebook.com/NationalTrainDay or on Twitter at @natltrainday for a chance to win prizes. “Trains have always been an important part of America’s transportation legacy, and Amtrak has been America’s Railroad for 40 years. This past year, we had a record-breaking 30 million passengers enjoying the journey on our trains, and this year’s National Train Day will celebrate the unique excitement and inspiration train travel offers,” said Emmett Fremaux, Amtrak Vice President, Marketing and Product Development. Signature experiences in the four markets will feature a wide array of family-friendly activities including:
METRO-NORTH RAILRAOD RIDERSHIP TOPS 82 MILLION IN 2011: MTA Metro-North Railroad provided 82 million rides last year, up 1.4% over 2010, with ridership gains on all lines and in all markets from traditional AM inbound commutation to nights, weekends, middays and holidays. On the three main lines, Hudson, Harlem and New Haven, ridership was up 1.7% over 2010. But West of Hudson, where the Port Jervis Line was shut down for three months after Tropical Storm Irene devastated the tracks, ridership declined 11.4% from the previous year. Still, overall ridership last year was the second highest in Metro-North history, exceeded only by 2008, before the economic downturn, when annual ridership was 83.6 million. “This growth is gratifying because people have a choice in travel. They are voting with their feet by taking Metro-North because of the value we provide,” said Railroad President Howard Permut. “This growth is the continuation of a long-term trend and is a result of our unwavering focus on reliability, cleanliness, customer service and safety.” In December, East of Hudson ridership increased 6.4%, the fastest growth rate observed in 2011 and the largest monthly ridership growth rate since September 2000, when ridership jumped up 6.7%. Permut pointed to on-time performance as a major reason that people choose Metro-North. Of the 209,020 trains operated last year, 96.9% of them arrived on time. “Reliability, as measured by on-time performance, is the result of all departments working together to maintain the trains, track, power and signal systems. And this includes coordinating construction projects and track outages with schedule planners and crew schedulers. It also requires a multitude of back office employees in areas such as training, purchasing, inventory control and environmental compliance to work together with a singular focus on providing excellent train service,” Permut continued. In addition to train trips, Metro-North provided 555,000 rides on the two Hudson River ferries that feed customers to the Hudson Line and on Hudson Rail Link, the west Bronx bus service that brings customers to Riverdale and Spuyten Duyvil stations. Ridership also was boosted by big increases during the holidays, with records set for Thanksgiving weekend and weekends in December. Also, New Year’s Eve was the highest ridership since the mid-1990s. Metro-North ridership is projected to grow at a rate of about 2% in 2012, continuing a trend that began in 1983, when Metro-North was created. Since then, ridership has doubled. The annual ridership growth for 2011 is even more impressive considering the extraordinarily challenging weather that included record snowfall in January, a heat wave in July, Tropical Storm Irene in August, which completely shut down service for two days, and a snowstorm in October. (MTA Metro-North - posted 1/23) IMPROVED VIA RAIL SCHEDULES: anada will introduce new schedules in the Montreal-Ottawa-Toronto triangle, effective January 24, 2012. These important changes are expected to attract some 100,000 new passengers annually. The increased ridership will lead to an increase in revenues of several million dollars per year. This will reduce the need for government operating funding, good news for Canadian taxpayers. Passengers on VIA's new Ottawa-Toronto express trains will make the non-stop journey in just three hours and 57 minutes. These new trains will operate every day except Saturday, leaving Toronto and Ottawa in late afternoon. Customers will also have the option of a new late evening departure from Ottawa for Montreal (Sunday through Friday), allowing them to extend their stay in Ottawa beyond the dinner hour. Ottawa-bound travellers from Montreal will also have more end-of-day choices. Passengers travelling from Montreal to Toronto will be offered two new trains, bringing the total number of weekday departures to Toronto to ten. These improvements are made possible by the federal government's major capital investment in VIA. Since 2007, the Government of Canada has invested $923 million in VIA for capital improvement initiatives. Over $400 million of this funding is dedicated to rail infrastructure projects, much of this from the government's Economic Action Plan, investments which will directly benefit Canadians and the country's economy. Over the coming year, VIA expects to complete other major rail infrastructure projects between Toronto and Brockville, allowing the passenger rail service to further improve reliability, and introduce more improvements, such as better trip times and more departures, including additional express trains between Toronto and Montreal. New or improved stations are also set to open later this year in Windsor, Oshawa, Cobourg and Belleville. See viarail.ca/transformingVIA to learn more. More details on the schedule changes are available at http://www.viarail.ca/en/useful-info/customize-your-train-schedule. (VIA Rail Canada - posted 1/23) CSX ANNOUNCES RECORD FOURTH QUARTER AND FULL YEAR 2011 EARNINGS PER SHARE: CSX Corporation today announced fourth quarter 2011 earnings of $0.43 per share, versus $0.38 per share in the same period last year. This represents a 13 percent year-over-year improvement in earnings per share and a fourth quarter record. The results were driven by revenues of nearly $3.0 billion, operating income of $841 million and an operating ratio of 71.5 percent. "CSX once again delivered record earnings per share while investing in resources to support high customer service levels and growth in the near- and long-term," said Michael J. Ward, chairman, president and chief executive officer. "Our performance in 2011 has set a strong foundation for growth, and CSX remains committed to achieving a 65 percent operating ratio by no later than 2015." For the full year, CSX generated record performance in revenue, operating income, operating ratio and earnings per share. Revenues increased 10 percent to $11.7 billion, operating income rose 11 percent to $3.4 billion, the operating ratio improved to 70.9 percent, and earnings per share improved 24 percent to $1.67. (CSX - posted 1/23) AMTRAK EXHIBIT TRAIN COMING TO MISSISSIPPI AND FLORIDA IN FEBRUARY In celebration of the 40th anniversary of Amtrak, America’s Railroad® is offering the public an opportunity to view an Exhibit Train, a unique traveling display showcasing the railroad’s history. In February, it will make one stop in Mississippi and two stops in Florida.
SAQUENAY, QUEBEC RAIL IMPROVEMENTS: The Government is committed to supporting initiatives that improve trade while fostering economic growth and employment. To this end, the federal government announced that it would provide up to $15 million over two years to support the construction of a rail link and intermodal rail yard at the Port of Saguenay in Saguenay, Quebec. The project is expected to be completed by March 31, 2014. The project will help improve the performance, capacity and competitiveness of maritime facilities, in addition to facilitating interprovincial and international trade and improving the competitiveness of Quebec and Canada. It will also foster investment, economic growth and job creation, and increase the competitiveness of Northern Quebec businesses by providing them with transport options that reduce their environmental impact. According to the Port of Saguenay authorities, the improvements are anticipated to generate 125 jobs. The improvements to the Port’s infrastructure – funded in part through Transport Canada’s Gateways and Border Crossings Fund – will help advance the flow of goods. The Fund supports transport infrastructure projects in order to develop and exploit Canada’s strategic gateways, trade corridors and border crossings. These improvements also support Canada’s Continental Gateway initiative, which aims to create a transport system that is viable, integrated and globally competitive in terms of international trade in order to support economic growth in Quebec, Ontario, and throughout Canada. The project, which is estimated to cost $36 million, consists of the construction of a 12.5-kilometre rail link from the Roberval & Saguenay Railway line to the Port of Saguenay. The project will also include the construction of an intermodal rail yard at the port, including storage and handling areas, as well as railway tracks needed for transit operations. (Prime Minister of Canada - posted 1/20) EXTENSION OF HEARTLAND CORRIDOR FROM COLUMBUS TO CINCINNATI, OHIO BENEFITS PORT OF VIRGINIA: Norfolk Southern has cleared the way for more double-stack intermodal trains to use its Heartland Corridor with the opening this week of a newly improved double-stack rail line between Columbus and Cincinnati, Ohio. The Heartland Connector will reduce transit times by one to two days and increase service reliability for double-stack freight traveling to and from the Port of Virginia and Cincinnati and Detroit. The improvements also will provide Norfolk Southern with the potential to connect Ohio Valley markets to other major East Coast container ports. The Heartland Connector project is a public-private partnership among Norfolk Southern, Ohio Department of Transportation, Ohio Rail Development Commission, and Ohio-Kentucky-Indiana Council of Governments to upgrade the NS rail line to accommodate double-stack trains. Previously, containers only could be single-stacked on trains moving over the connector. The project included raising clearances at five locations along the 124-mile route between Cincinnati and Columbus and adding tracks at Norfolk Southern’s Rickenbacker Intermodal Terminal near Columbus. Prior to the upgrades, double-stack intermodal trains leaving the Port of Virginia for Cincinnati and Detroit followed longer routes through Tennessee or Pennsylvania. Now, double-stack trains bound for Detroit use a route that is 212 miles shorter, and trains traveling to Cincinnati travel 69 fewer miles and save up to two days transit time. Financial support for the $6.1 million project included $3.6 million from the federal government combined with matching contributions from Norfolk Southern and the Ohio-Kentucky-Indiana Council of Governments. “The Rail Commission is very happy to have been able to facilitate this very important infrastructure project that builds on previous investments and further solidifies Ohio’s position in the global supply chain,” said Matthew Dietrich, executive director of the Ohio Rail Development Commission. “Routing trains over the Heartland Connector improves transit times and allows Norfolk Southern to provide more reliable service and handle additional intermodal freight,” said Jeff Heller, NS group vice president international intermodal marketing. “The Heartland Connector is significant for the Port of Virginia because it increases the efficiency of the Heartland Corridor to move goods to and from Ohio and other Midwest consumer markets and adds to the competitiveness of the Hampton Roads region.” Norfolk Southern’s Heartland Corridor is the shortest, fastest double-stack route from the Port of Virginia to the Midwest. A single NS intermodal train takes up to 300 trucks off America's highways, reducing traffic congestion and repair costs. In addition, rail transportation is nearly four times more fuel efficient than trucking, resulting in fewer greenhouse gas emissions. (Norfolk Southern Corporation, Alex Mayes - posted 1/19 NORFOLK SOUTHERN MECHANICSVILLE INTERMODAL TERMINAL OPENS FOR BUSINESS: Norfolk Southern has opened the new Mechanicville, N.Y, intermodal terminal on January 16.The terminal offers service for containers only (53ft domestic private, EMP, or ocean containers). It replaces the former D&H intermodal terminal at Kenwood Yard in Albany. GOVERNOR MCDONNELL ANNOUNCES NORFOLK PASSENGER RAIL SERVICE TO BEGIN IN 2012: Governor Bob McDonnell announced today that the expected start date of the Amtrak Virginia extension to/from Norfolk will begin by December 31, 2012. This moves the service to start 10 months earlier than originally projected. “This service will provide immediate relief to road weary travelers between two of the state’s most congested regions” said Governor McDonnell. “This service is long overdue and I congratulate our partners and commend their cooperation in moving up the scheduled start date.” The Commonwealth’s Virginia Department of Rail and Public Transportation (DRPT), CSX, Norfolk Southern and the City of Norfolk have been working speedily to make the necessary upgrades for the service. The round-trip train will bring intercity passenger rail service to Norfolk for the first time since 1977, and will link Norfolk with a single-seat ride to Richmond, Washington, D.C. and cities as far north as Boston. The updated timeline comes from today’s Commonwealth Transportation Board meeting where they passed a resolution outlining the new goals and start date. “There is high demand for passenger rail service in Virginia as demonstrated by considerable ridership growth throughout the Commonwealth,” said Amtrak Vice President of Government Affairs and Corporate Communications Joe McHugh. “We have a strong partnership with the Commonwealth and look forward to operating this expanded service to Norfolk in 2012, providing passengers the option of convenient one-seat service to Washington and Northeast Corridor destinations.” The Norfolk train marks the third service expansion launched under the Amtrak Virginia partnership, which has introduced service to Richmond and Lynchburg since October 2009. Virginia is the 15th state to partner with Amtrak for intercity passenger rail service, and the successful launch of these new services is made possible through the partnership between DRPT, Amtrak and the host railroads along the routes. Amtrak Virginia routes had sizable gains in fiscal year 2011 over fiscal year 2010 with increases of 28.5 percent on the Washington-Lynchburg route and 19.1 percent on the Washington-Newport News route. “This service is a win-win for Hampton Roads and Northern Virginia. The economies of these two regions are intertwined and getting this service operating will strengthen them both,” said Thelma Drake, Director of the Department of Rail and Public Transportation. (Amtrak - posted 1/19) L.B. FOSTER BEGINS DELIVERY OF #3.4 MILLION RAIL PRODUCTS TO YOUNGSTOWN PLANT: Pittsburgh, PA-based L.B. Foster Company (NASDAQ: FSTR) has begun delivery of $3.4 million of rail and trackwork products to rail contractor Wintrow Construction of Barberton, Ohio for the construction of 8.5 miles of track and other track materials at the new Vallourec & Mannesmann Tubes (V&M) Star Steel pipe mill in Youngstown, Ohio. L.B. Foster has teamed with key strategic partners to meet the product requirements for track construction at this important industrial facility. The new 115# continuous welded rail (CWR) is produced by Steel Dynamics, Inc. (SDI) in their Columbia City, Indiana facility. SDI welded 240 foot rail sections into 1,600 foot strings and loaded them onto a special L.B. Foster work train for delivery to the Ohio project site. L.B. Foster's team of rail professionals is managing the logistics required to provide efficient Just-in-Time delivery of the rail and trackwork materials to the jobsite. The new rail, trackwork and rail accessories supplied by L.B. Foster will provide mainline access and in-plant transportation for seamless steel pipe at the new Youngstown mill. Vallourec & Mannesmann is building the facility to meet the growing demand for small diameter oil country tubular goods (OCTG) resulting from the increase in drilling for natural gas in the nearby Marcellus Shale region. (L.B. Foster - posted 1/19) AAR REPORTS INCREASE IN WEEKLY RAIL TRAFFIC: The Association of American Railroads (AAR) today reported an increase in weekly rail traffic for the week ending January 14, 2012, with U.S. railroads originating 298,560 carloads, up 5.5 percent compared with the same week last year. Intermodal volume for the week totaled 229,091 trailers and containers, up 7.4 percent compared with the same week last year. Seventeen of the 20 carload commodity groups posted increases compared with the same week in 2011, with crushed stone, sand and gravel, up 33.2 percent; motor vehicles and equipment, up 31.5 percent, and petroleum products, up 28.9 percent. The groups showing a significant decrease in weekly traffic included grain, down 10.1 percent. Weekly carload volume on Eastern railroads was up 5.3 percent compared with the same week last year. In the West, weekly carload volume was up 5.6 percent compared with the same week in 2011. For the first two weeks of 2012, U.S. railroads reported cumulative volume of 573,412 carloads, up 0.9 percent from last year, and 422,903 trailers and containers, down 1 percent from last year. Canadian railroads reported 77,095 carloads for the week, up 9.8 percent compared with the same week last year, and 50,004 trailers and containers, up 15.5 percent compared with 2011. For the first two weeks of 2012, Canadian railroads reported cumulative volume of 145,500 carloads, up 3.1 percent from the same point last year, and 90,285 trailers and containers, up 2.7 percent from last year. Mexican railroads reported 11,893 carloads for the week, down 21.3 percent compared with the same week last year, and 8,545 trailers and containers, up 20.5 percent. Cumulative volume on Mexican railroads for the first two weeks of 2012 is 22,750 carloads, down 18.5 percent compared to last year, and 15,711 trailers and containers, up 18.6 percent. Combined North American rail volume for the first two weeks of 2012 on 13 reporting U.S., Canadian and Mexican railroads totaled 741,662 carloads, up 0.5 percent compared to last year, and 528,899 trailers and containers, up 0.1 percent compared with last year. (AAR - posted 1/19) STATEMENT BY AMTRAK PRESIDENT AND CEO JOE BOARDMAN ON OBAMA ADMINISTRATION ANNOUNCEMENT TO EXPEDITE ENVIRONMENTAL REVIEW OF NORTHEAST CORRIDOR HIGH-SPEED RAIL PROJECTS The White House Council on Environmental Quality and the U.S. Department of Transportation announced a pilot program to expedite environmental review of Northeast Corridor high-speed passenger rail projects. The statement below is from Amtrak President and CEO Joe Boardman: "The decision to expedite the federal environmental review process for Northeast Corridor (NEC) high-speed rail projects is great news for all users of the NEC who are seeking increased passenger rail capacity, mobility and connectivity in the region. “A faster review process will help speed along Amtrak's efforts to rebuild and improve today's Corridor and advance Amtrak's vision to develop a new high-capacity, 220 mph NextGen high-speed rail system serving the region, including our Gateway Program to bring more track, tunnel and station capacity into the heart of Manhattan." (Amtrak - posted 1/16) MTA COMPLETES FASTRACK: For four consecutive weeknights hundreds of MTA workers labored through the late night and early morning hours cleaning, inspecting, repairing and replacing subway infrastructure on a nearly seven-mile segment of the normally busy Lexington Avenue Line. Jobs that would usually take weeks or months to complete were accomplished in days because, for the first time, maintenance workers were allowed to perform their tasks without the interruption of passenger trains rolling through a massive work area that stretched from Grand Central-42nd Street to Atlantic Avenue in Brooklyn. MTA New York City Transit’s new FASTRACK initiative is an entirely new way to perform subway maintenance in our system completely suspending train service over a segment of a subway line, giving workers uninterrupted access to tracks, signals, cables, lighting, third rail components and platform edges. During the four-night period, more than 300 vital tasks were completed - from rail replacement to roadbed cleaning to the scraping and painting of ceilings over tracks and platforms. Much of this work had not been performed in several years and some of it could only be done in the absence of trains over an extended period of time. “It was clear from the first night that in terms of productivity and efficiency, FASTRACK is a major improvement in the way we perform subway maintenance and a perfect example of what can be accomplished when labor and management work as a team to improve the system,” said NYC Transit President Thomas F. Prendergast. “I consider this effort a success and it could not have come about without the hard work and dedication of the hundreds of Transit workers who worked on the tracks, tunnels, and in the stations.” Three work trains supported nearly 70 work crews from several divisions within the Department of Subways. Work was performed in the stations along the line segment as well as the tunnels and even into the Joralemon Tube that connects Brooklyn to Manhattan. In the planning for upwards of three months, the result was a seamless effort that saw maintenance workers specializing in different disciplines working to complete jobs and make improvements that customers would notice by the time service was resumed on the 4, 5 and 6 line for the next morning’s rush period. Workers cleaned and replaced lighting fixtures, scraped dry mud from the roadbed while also removing trash and debris, as well as inspected and performed preventative maintenance on components crucial to providing safe and reliable service. They also scraped peeling paint from station ceilings and painted station areas. Rails were replaced in several areas along with a heavily utilized track switch just north of the Brooklyn Bridge Station. Work also included inspections of equipment along the tracks; scraping and bagging of debris; replacement of tie and rail fastener plates; scraping and painting rubbing board and columns within station limits; cleaning of stations (mobile wash); cleaning of drains; and routine maintenance and performance testing of signals. All work was wrapped up and service restored to customers by 5 a.m. each morning. “A tremendous amount of coordination and effort is going into FASTRACK and we are already seeing the benefits,” said Carmen Bianco, Senior Vice President of the Department of Subways. Platform Conductors and Traffic Checkers were on hand at key transit hubs including Grand Central – 42nd St, Atlantic Ave-Pacific St and 14th St – Union Square handing out printed information and directing riders to alternate lines. In addition to these efforts, the MTA’s website, www.mta.info, provided daily updates to customers on the previous night’s work. When FASTRACK is complete, and NYC Transit performs its assessment, NYC Transit will provide a full report to the MTA Board for review. The next FASTRACK overnight closure will be on the Broadway/Seventh Avenue 1, 2, 3 line between 34th Street and Atlantic Avenue from 10 p.m. to 5 a.m. for four consecutive nights beginning Monday, February 13 and ending at 5 a.m. Friday, February 17 (MTA - posted 1/16) NORFOLK SOUTHERN'S PIER 6 HANDLES LARGEST COAL LOADING IN ITS 50 YEAR HISTORY: Norfolk Southern has loaded the largest volume cargo in the history of its Pier 6 coal transloading facility at Lamberts Point in Norfolk. Early yesterday morning, Norfolk Southern finished loading 159,941.45 net tons (145,097.931 metric tons) of metallurgical coal into the M/V Cape Dover, destined for China. That quantity can be used to make about 207,000 tons of steel – enough to build 230,000 automobiles. The coal was shipped by Xcoal Energy & Resources in conjunction with CONSOL Energy, from mining operations in Virginia, in 1,561 railroad coal cars. T. Parker Host was the ship agent/broker. Norfolk Southern employees loaded the 951-foot vessel in fewer than 48 hours in order to accommodate a tight schedule for the receiver. "This is the kind of capacity and service that makes Pier 6 the preeminent coal transloading facility on the East Coast," said Mark H. Bower, NS group vice president, export, metallurgical, and industrial coal marketing. "Worldwide demand for U.S. coal for utilities and coke plants continues to grow, and the railroad is the reliable and safe link that, with our coal production and sales partners, brings that energy to market around the globe." The loading of the M/V Cape Dover eclipsed the former record of 157,645 net tons for the M/V Irongate in 1998 as well as the 155,522 net tons into the M/V Cape Provence in December 2010. Norfolk Southern has been transferring coal and coke from railroad cars into ocean-going export and domestic vessels in the Lamberts Point area since 1884, when it opened Pier 1. In the first half of the 1900s, new Piers 2-5 featured improvements in speed and capacity and even loaded coal into a number of famous vessels, such as those used in Admiral Byrd's 1933 Antarctica expedition. Pier 6 opened for business in 1962 as the hemisphere's largest, fastest, and most efficient transloading facility. In 1999, Pier 6 dumped its billionth ton of coal and became the only facility in the world to have reached that milestone. Most of the coal moving through Pier 6 originates in Southwest Virginia, Southern West Virginia, Eastern Kentucky, and Pennsylvania. It is shipped to several dozen countries as well as to coastwise domestic receivers. Pier 6 is situated with access to Hampton Roads' deep 50-foot channel that allows modern vessels to make productive use of their large holds. (NS, Randy Kotuby - posted 1/13) AAR REPORTS DECREASE IN WEEKLY RAIL TRAFFIC: The Association of American Railroads (AAR) today reported a decrease in weekly rail traffic for the week ending January 7, 2012, with U.S. railroads originating 274,862 carloads, down 3.7 percent compared with the same week last year. Intermodal volume for the week totaled 193,812 trailers and containers, down 9.3 percent compared with the same week last year. Five of the 20 carload commodity groups posted increases compared with the same week in 2011, with metallic ores, up 29.2 percent, having the greatest gain. The groups showing a decrease in weekly traffic included: grain, down 20 percent; farm products excluding grain, down 18.5 percent, and iron and steel scrap, down 17 percent. Weekly carload volume on Eastern railroads was down 13.8 percent compared with the same week last year. In the West, weekly carload volume was up 2.7 percent compared with the same week in 2011. For the first week of 2011, U.S. railroads reported cumulative volume of 274,862 carloads, down 3.7 percent from last year, and 193,812 trailers and containers, down 9.3 percent from last year. Canadian railroads reported 68,405 carloads for the week, down 3.6 percent compared with the same week last year, and 40,281 trailers and containers, down 9.8 percent compared with 2011. For 2012, Canadian railroads reported cumulative volume of 68,405 carloads, down 3.6 percent from the same point last year, and 40,281 trailers and containers, down 9.8 percent from last year. Mexican railroads reported 10,857 carloads for the week, down 15.2 percent compared with the same week last year, and 7,166 trailers and containers, up 16.5 percent. Cumulative volume on Mexican railroads for 2012 is 10,857 carloads, down 15.2 percent compared to last year, and 7,166 trailers and containers, up 16.5 percent. Combined North American rail volume for 2012 on 13 reporting U.S., Canadian and Mexican railroads totaled 354,124 carloads, down 4.1 percent compared to last year, and 241,259 trailers and containers, down 8.8 percent compared with last year. (AAR - posted 1/12) AMTRAK MOVES AGGRESSIVE AGENDA FOR 2012: With demand for intercity passenger rail service on the rise as demonstrated by yet another year of record ridership, Amtrak is moving forward with an aggressive agenda for 2012 and building for the future while strengthening current services. Among the key actions planned in the New Year are building the first units of 70 new electric locomotives and 130 new single-level long-distance cars, the national roll-out of eTicketing to all trains, and the further integration and advancement of Northeast Corridor (NEC) planning efforts to improve the existing Corridor and develop a high-capacity, next-generation high-speed rail (NextGen HSR) system. “Amtrak is building the equipment, infrastructure and organization needed to ensure our strong growth continues into the future,” said President and CEO Joe Boardman. “We are investing in projects critical for enhancing the passenger experience, essential for supporting our national network of services and vital for the future of America’s Railroad.” Other significant projects in 2012 include: upgrading NEC tracks, bridges and other infrastructure; pursing efforts to expand Acela Express capacity; advancing initial planning work for the Gateway Program to provide additional capacity into Manhattan for intercity, commuter and NextGen HSR services; improving station accessibility under requirements of the Americans with Disabilities Act; and continuing the development of a next-generation reservation system. Boardman explained these and other projects support a strong focus on strengthening the Amtrak bottom line and its strategic goals of safety and security, customer focus, mobility and connectivity, environment and energy, and financial and organizational excellence. He added the projects for 2012 follow and enhance recent accomplishments including a new all-time ridership record of nearly 30.2 million passengers in FY 2011 – the eighth ridership record in the last nine years. Among other major achievements in the past year, Amtrak also: made Wi-Fi available to 75 percent of all its passengers; launched an iPhone app; reduced its debt for the eighth consecutive year; and completed a massive renewal and integration of its financial, and procurement and materials management systems. Attached are highlights of just some of the major projects Amtrak will begin, continue or complete during 2012 across its national network. (Amtrak - posted 1/11) OHIO BASED ORGANIZATION PURCHASES SLSF 1352: The closing days of 2011 have brought a new chapter in the life of a veteran railroad locomotive. The American Steam Railroad Preservation Association (ASR), a 501c3 Not-for-Profit corporation headquartered in Columbus, Ohio, announces that it has completed the purchase of SLSF 1352, a Mikado-type (2-8-2 wheel arrangement) steam locomotive, built in 1912 in Schenectady, N.Y., by the American Locomotive Company. 1352 served the St. Louis-San Francisco Railroad (commonly called the Frisco) until 1956 when she was retired and placed on public display in a park in Kansas City, Missouri. To save 1352 from neglect and vandalism she was later moved from the park and efforts commenced to restore her to service. Currently stored in Taylorville, Illinois, 1352 will now be brought to Ohio for completion of her on-going restoration after which she will begin a new career pulling passenger excursion trains. SLSF 1352 was built in 1912 as a Consolidation-type (2-8-0) steam locomotive and rebuilt in June 1944 into a Mikado-type (2-8-2) locomotive. In her present configuration she weighs 161 tons but is able to easily traverse rail as light as 94 pounds per yard. Her working boiler pressure is 195 pounds/square inch. The American Steam Railroad Preservation Association was founded in 2005 to acquire and restore to service steam locomotives and other equipment from the halcyon days of steam railroading. The group will bring 1352’s smaller parts, such as pumps, generator, and power reverser to Ohio to begin work on them while they continue to raise the money for the crane and rigging company required for the move of 1352 to Ohio. Several events are planned to help raise this money including a Father’s Day train and a Civil War reenactment train. More information on these events, the restoration of 1352, and how you can help can be found on the American Steam Railroad website www.americansteamrailroad.org . ASR President Steven M. Harvey, commenting on the purchase of 1352, said “Since its inception, the American Steam Railroad Preservation Association has been especially focused on the acquisition of SLSF 1352. With the completion of this purchase, she will now be brought to Ohio where we will complete her restoration and return to service. This is a great time for all of us who love steam locomotives. 1352 is a representative of the engines that powered America’s railroads for much of the steam era. I urge anyone who shares our passion to join us.” (American Steam Railroad Preservation Association - posted 1/10) GE RECEIVES ORDER FOR 43 LOCOMOTIVES FROM TRANSNET IN SOUTH AFRICA: During a ceremony today at the Transnet Rail Engineering (TRE) facility in Koedoespoort, South Africa, Transnet SOC Ltd. and GE South Africa Technologies Limited (GESAT) celebrated the signing of a contract for 43 new Model C30ACi locomotives for South Africa, bringing the total number of GE locomotives ordered to 143 since December 2009. “The acquisition of these locomotives is part of our fleet renewal program, a key element of our R110 billion, 5-year capital investment program,” said Brian Molefe, CEO of Transnet Group. “Improving the average age of our assets is crucial in our efforts to improve our reliability, efficiency and our ultimate goal of running a scheduled railway.” “GE is honored to build on its long standing partnership with Transnet with this new order for GE locomotives to South Africa,” said Lorenzo Simonelli, President and CEO of GE Transportation. “These locomotives will create great opportunities for Transnet, South Africa, and GESAT. Transnet will be able to significantly improve hauling capability while reducing fuel consumption and greenhouse gas emissions. Our partnership also is a significant investment in job development, economic advancement and infrastructure growth on both sides of the Atlantic.” “GE and GESAT are committed to partnering with South Africa and the entire African continent for growth. We are honored to partner with Transnet in delivering on this new order for GE locomotives to South Africa,” said Jay Ireland, President and CEO for GE in Africa. Added Ireland: “The improvement and expansion of South Africa’s rail sector is a catalyst for advancing regional integration and the fast and seamless movement of goods. This benefit will increase trade and ensure increased competitiveness of the Southern Africa region as a trading block.” “The positive impact of this success will be felt way beyond the GESAT venture,” said Paul Nkuna, CEO of the Mineworkers Investment Company, GE’s empowerment partners in the GESAT joint venture. “Benefits include job creation here in South Africa, skills and technology transfer and the renewal and modernization of South Africa’s transport infrastructure at a time when greater balance in road and rail transport capacity has become a national priority. Improved energy efficiency is another major positive. The team at MIC congratulates everyone associated with today’s announcement. It’s wonderful news.” GE Transportation will provide locomotive kits for 43 locomotives to GESAT in South Africa. GESAT will work with Transnet Rail Engineering for local assembly. The kits will be manufactured at GE Transportation’s manufacturing plants in Erie and Grove City, Penn., and assembled in South Africa. In 2011, GE announced investments of more than $200 million in upgrading its manufacturing operations in Northwestern Pennsylvania, including approximately $136 million in new technology, manufacturing improvements and facility upgrades in Erie, and more than $70 million to upgrade its existing diesel engine manufacturing plant and to establish a new remanufacturing plant, both located in Grove City. The assembly kits for local production will ship in batches starting in the second quarter 2012. The 43 locomotives are scheduled to be delivered by June 2013 and will enter revenue service shortly thereafter. GE’s Model C3OACi Locomotive Technology Advantage GE’s Model C3OACi Locomotive is a product of ecomagination, a GE-wide initiative to help meet customer demand for more energy-efficient products. The locomotives will enable customers to haul the same amount of freight with fewer locomotives thereby reducing fuel use and greenhouse gas emissions. GE’s C3OACi are the first locomotives in the South African region to meet stringent UIC2 emissions standards. With GE’s C3OACi locomotives a South African customer can deploy three C3OACi models to haul a load that would require four older locomotives, reducing annual diesel fuel consumption by approximately 600,000 liters under typical operating conditions. It can reduce emissions by 1,500 metric tons of C02 annually, equivalent to eliminating the emissions from 310 cars on South African roads. GE’s Model C3OACi is first AC diesel-electric locomotive to be introduced to sub-Saharan Africa. Its engine delivers 3,300 Gross Horse Power (GHP) using an electronic fuel injection system that automatically supplies the exact amount of fuel needed for optimal engine efficiency. The locomotives also feature GE’s unique AC propulsion technology and dynamic braking. The addition of these new locomotives, which will be used to haul freight and coal, will decrease life-cycle costs, improve fuel efficiency and reduce emissions. (GE Transportation - posted 1/10) CSXT REOPENS BOTH MAIN TRACKS IN NORTHWEST INDIANA: Both tracks have re-opened in Northwest Indiana between Chicago and Garrett, Indiana, but trains continue to operate slowly through the site of Friday's derailment near Portage, Indiana. Customers with traffic over this line should continue to expect residual delays as CSX works through the congestion and backlogged traffic, and completes train re-routes. (CSX - posted 1/09) NORFOLK SOUTHERN FACILITATES $9.5 BILLION IN INDUSTRIAL INVESTMENT: Norfolk Southern Corporation participated in the location of 73 new industries and the expansion of 27 existing industries along its rail lines in 2011. New plants and expansions announced in 2011 represented an investment of $9.5 billion by Norfolk Southern customers and are expected to create 6,800 jobs in the railroad's territory, in future years potentially generating more than 152,000 carloads of new rail traffic annually. Norfolk Southern assisted state and local government and economic development officials throughout 18 states in helping customers identify ideal locations for new and expanded facilities. “The energy sector was once again a major contributor to these new plants and expansions,” said Newell Baker, assistant vice president industrial development. “Norfolk Southern assisted in the location or expansion of 27 energy-related facilities in 15 states across our service area. Coal projects led the way, contributing 41 percent of the potential new rail traffic in future years. In addition, Marcellus Shale gas exploration projects increased in 2011, and we expect this trend to continue. Industrial investment along our rail lines in 2011 also was bolstered by strong rebounds in the metals and automotive sectors.” The balance of other projects secured during 2011 was distributed among several of the broad product areas Norfolk Southern serves. Norfolk Southern works with state and local economic development authorities on projects involving site location and development of infrastructure to connect customers to its rail system and provides free and confidential plant location services, including industrial park planning, site layout, track design, and logistics assistance. During the past 10 years, Norfolk Southern's Industrial Development Department has participated in the location or expansion of 1,053 facilities, representing an investment of $30 billion by NS customers and generating more than 46,000 jobs by those NS customers companies in the territory served by the railroad. ( Norfolk Southern Corporation - posted 1/09) PATRIOT RAIL CORP. DONATES RAILROAD TO MISSISSIPPI COUNTIES: Patriot Rail Corp. (“Patriot” or the “Company”), a privately-held short line and regional freight railroad holding company, today announced that it has donated its 21-mile Mississippi & Skuna Valley Railroad (“MSV”) to Calhoun and Yalobusha counties in Mississippi. The donation sets the stage for the counties to pursue creation of the Skuna Valley Trail for public recreational use. The Calhoun County Board of Supervisors accepted the property donation in December 2011, establishing the Mississippi and Skuna Valley Rails to Trails Recreational District. Since the MSV also traverses Yalobusha County, Calhoun County entered into a joint agreement with Yalobusha County for the project. The ownership of the trail by the counties ensures that it can be returned to use as a rail line in the future, if service is warranted. “We are pleased to donate the MSV to these counties,” said Gary O. Marino, Chairman, President and CEO of Patriot Rail Corp. “Re-purposing the MSV railroad into a trail is an excellent use of this rail corridor, transforming a once underutilized property into a vibrant community asset. We hope that this trail will be a source of enjoyment for the community for many years to come.” Patriot Rail acquired the MSV in 2010 with the purchase of six railroads belonging to the Weyerhaeuser Company. The MSV ceased operations in April 2008 after the Class I connection suspended service due to a bridge that required substantial repairs. Tommy Vaughn, President of Supervisors of Yalobusha County, said, “We are very appreciative of Patriot’s donation. Our hope is to create a recreational area in the near future that will benefit both counties.” “Calhoun County appreciates the gift of the railbed. The gift enables us to use the railbed for recreational purposes and will remain in place for any future railway needed for industrial development of Calhoun County and surrounding areas,” added Sonny Clanton, attorney for the Calhoun County Board of Supervisors. (Patriot Rail Corp - posted 1/09) THREE UNIONS RATIFY CONTRACTS WITH FREIGHT RAILROADS: Members of the Brotherhood of Locomotive Engineers & Trainmen (BLET), the National Conference of Firemen and Oilers (NCFO) and the International Brotherhood of Electrical Workers (IBEW) have ratified new contracts with the nation's largest freight railroads. The BLET, NCFO and IBEW, which together represent about 33,170 employees in collective bargaining, began negotiations with the National Carriers' Conference Committee (NCCC) in January 2010. The agreements implemented recommendations made by Presidential Emergency Board No. 243 (PEB 243), which President Obama appointed in October to help resolve the disputes between the railroads and 11 unions. The agreements bring the number of ratified contracts to seven, representing nearly 90,000 employees or about 68% of those in national handling. The other four ratified contracts are with the United Transportation Union, its Yardmasters Department, the Transportation Communications Union/IAM and the Brotherhood Railway Carmen-Division TCU/IAM. Five other unions have reached tentative agreements that are awaiting member ratification. The only union without a settlement, the Brotherhood of Maintenance of Way Employes (BMWE), has agreed with the railroads to extend the "cooling off" period until February 8, 2012, eliminating the immediate threat of a national rail strike. The railroads are making every effort to reach an agreement with the BMWE by February 8. The NCCC represents more than 30 railroads, including BNSF, CSX Transportation, Kansas City Southern, Norfolk Southern and Union Pacific in national bargaining with the 13 major rail unions. (BLET, Randy Kotuby - 1/06) AAR REPORTS GAINS FOR ANNUAL RAIL TRAFFIC: The Association of American Railroads (AAR) today reported gains in 2011 rail traffic compared with last year, with U.S. railroads originating 15.2 million carloads, up 2.2 percent over 2010 and up 9.7 percent over 2009. Total U.S. rail intermodal volume in 2011 was 11.9 million trailers and containers, up 5.4 percent over 2010 and up 20.4 percent over 2009. In 2011, 14 of the 20 carload commodity categories tracked by AAR saw increases on U.S. railroads compared with 2010 indicating a broad recovery across industry sectors. The largest gains were: metallic ores, up 20.5 percent or 67,631 carloads; primary metal products, up 12 percent or 56,988 carloads; and petroleum products, up 11.1 percent or 36,811 carloads. The commodity with the biggest carload decline in 2011 from 2010 was grain, down 27,946 carloads or 2.4 percent. “A good beginning, some uncertainness in the middle, and then a good ending—that describes U.S. rail traffic in 2011,” remarked John Gray, AAR’s Senior Vice President for Policy and Economics. “We continue to see hopeful economic signs, as the industry prepares for 2012.” AAR also announced gains in December 2011 rail traffic, with U.S. railroads originating 1,134,580 carloads, up 7.3 percent over December 2010, which is the largest year-over-year monthly increase since January 2011. U.S. rail intermodal originations totaled 873,390 containers and trailers, up 9.4 percent over December 2010. This is the second-highest monthly intermodal average for any December in history. During December 2011, 16 of the 20 carload commodity categories tracked by the AAR saw increases compared with December 2010. AAR reported gains in weekly rail traffic for the week ending December 31, 2011, with U.S. railroads originating 245,666 carloads, up 1.9 percent compared with the same week last year. Intermodal volume for the week totaled 181,217 trailers and containers, up 8.6 percent compared with the same week last year. Ten of the 20 carload commodity groups posted increases compared with the same week in 2010, including: crushed stone, sand and gravel, up 35.2 percent; waste and nonferrous scrap, up 23.8 percent, and metals and products, up 15.7 percent. The groups showing a decrease in weekly traffic included: farm products, excluding grain, down 7.6 percent; primary forest products, down 6.5 percent, and food and kindred products, down 6.1 percent. Weekly carload volume on Eastern railroads was down 5.3 percent compared with the same week last year. In the West, weekly carload volume was up 6.1 percent compared with the same week in 2010. For the 52 weeks of 2011, U.S. railroads reported cumulative volume of 15,155,992 carloads, up 2.2 percent from last year, and 11,892,431 trailers and containers, up 5.4 percent from last year. Canadian railroads reported 66,683 carloads for the week, up 10.9 percent compared with the same week last year, and 34,787 trailers and containers, up 5.4 percent compared with 2010. For 2011, Canadian railroads reported cumulative volume of 3,927,217 carloads, up 3.4 percent from the same point last year, and 2,505,081 trailers and containers, up 2.4 percent from last year. Mexican railroads reported 10,114 carloads for the week, down 12.1 percent compared with the same week last year, and 5,729 trailers and containers, up 22.7 percent. Cumulative volume on Mexican railroads for 2011 was 739,320 carloads, up 3.7 percent compared to last year, and 436,974 trailers and containers, up 23.7 percent. Combined North American rail volume for 2011 on 13 reporting U.S., Canadian and Mexican railroads totaled 19,822,529 carloads, up 2.5 percent compared to last year, and 14,834,486 trailers and containers, up 5.3 percent compared with last year. (AAR - 1/05) U.S. TRANSPORTATION SECRETARY LAHOOD AWARDS $186 MILLION TO EXPAND HIGH-SPEED RAIL IN THE MIDWEST: U.S. Transportation Secretary Ray LaHood today announced U.S. Transportation Secretary Ray LaHood today awarded more than $186 million to the Illinois Department of Transportation (IDOT) for a high-speed rail project that will reduce travel times and put Americans back to work this spring. “The Great Lakes-Midwest economic region is the world’s fifth largest economy by Gross Domestic Product, and nearly 100 million people live within 500 miles of each other,” said Secretary LaHood. “The Department of Transportation’s investment of more than $1 billion in the region’s high-speed rail service will reduce trip times and save travelers money, resulting in reduced congestion for the region and making the Midwest a better place to start a business and create jobs.” The project will extend construction of the corridor north to Joliet, allowing for 110-mph service along nearly 70 percent of the route. Construction is already underway on the Chicago – St. Louis corridor, and work on the extension to Joliet will begin this spring. Once construction is complete, travelers can expect reductions of more than an hour in trip time, with improved on-time performance as well. Ridership has grown 137 percent over the last five years. The state has plans to add more frequent trips, and further reduce trip times on this popular route in the future. The corridor will also benefit from next-generation American-made trains, funded as part of a previously announced $782 million grant that will pump new life into domestic manufacturing. States will purchase 33 quick-acceleration locomotives and 120 bi-level passenger cars to operate in Illinois, Indiana, Michigan, Iowa, Missouri, California, Washington and Oregon. Illinois is among thirty-two states throughout the U.S. and the District of Columbia that are laying the foundation for high-speed rail corridors that will link Americans with faster and more energy-efficient travel options. To date, the U.S. Department of Transportation has invested $10.1 billion to put American communities on track towards new and expanded rail access and improved reliability, speed and frequency of existing service (FRA- 1/04) MASSDOT RELEASES FARE AND SERVICE PROPOSALS STUDY: The Massachusetts Department of Transportation (MassDOT) released fare increase and service reduction proposals for the Massachusetts Bay Transportation Authority (MBTA) aimed at closing a projected $161 million budget gap for Fiscal Year 2013 (FY13). Earlier estimates projected the gap would total approximately $185 million for FY13, however the MBTA has taken aggressive steps towards reducing the deficit including reducing energy costs, planned introduction of single person train operation on the Red Line, encouraging MBTA employees to enroll in more affordable health insurance plans and other operating and administrative efficiencies. However growing debt service costs associated with capital projects, significant increases in maintenance costs for an aging fleet and higher costs for the RIDE mean additional solutions are necessary “While the MBTA continues to identify and adopt strict measures to close the budget gap, less costly ways of doing business and additional revenue-generating measures are necessary," said MassDOT Transportation Secretary and CEO Richard A. Davey. "I am confident with the public’s involvement in this process we can review the study, propose recommendations, and together generate new revenue to continue the progress the MBTA has made in serving its customers.” In order to fully engage transit users in the process, the MBTA will host more than 20 public hearings over the next several months. A final fare increase and service reduction recommendation will be made to the MBTA’s Board of Directors this spring and changes will be implemented on July 1, 2012. In addition to rising operating costs, annual revenues continue to be insufficient to fund the system. Sales tax revenue allocated to the MBTA has increased by only 0.08% annually since fiscal year 2001, resulting in growing budget gaps since the original projections were made with the expectation of forward funding. While the MBTA was a beneficiary of the 2009 sales tax increase, the annual growth in sales tax revenues is not enough to address continuing increases in the cost of service on all modes. “With MBTA ridership at record levels, the demand for the services we deliver is unquestionable,” said Acting MBTA General Manager Jonathan Davis. “I look forward to an open and transparent public process that will lead to recommendations on how we can continue to satisfy demand while addressing the T’s financial crisis.” As only one of two transit properties in North America that has not raised fares over the last five years, the MBTA has worked hard to identify ways to save money and reduce costs, while improving customer service. From investments in accessibility improvements to use of modern technology to improved transparency, the MBTA is committed to responding to the needs of its customers. The Fare Increase and Service Reductions Study will be available at www.mbta.com on Wednesday, January 4, 2012. The MBTA’s public outreach process begins immediately with the acceptance of public comment through March 1, 2012 electronically at mbta.com, by email at fareproposal@mbta.com, via mail to MBTA, Ten Park Plaza, Boston, Ma 02116, Attention: Fare Proposal Committee, and by phone at 617-222-3200/ TTY (617) 222-5146. Twenty public meetings, including one hearing, will be held beginning January 17 through early March. A list of meeting times and locations is available at www.mbta.com. (MBTA - 1/04) FEDERAL RAILROAD ADMINISTRATION ANNOUNCES PROPOSED ENHANCEMENTS TO PASSENGER TRAIN EMERGENCY SYSTEMS: U.S. Transportation Secretary Ray LaHood today announced proposed improvements to existing Passenger Train Emergency Systems regulations that could further protect occupants of passenger trains during emergencies. “Safety is our highest priority,” said Secretary LaHood. “Adoption of these safety measures will help rail passengers locate and operate emergency exits. These improvements will also make sure that first responders can quickly reach passengers in need during emergency situations.” The proposed regulations are expected to improve railroad safety by helping improve the ability to safely evacuate passengers and crewmembers in the event of an emergency. Specifically, the rule addresses passenger train emergency systems including vestibule doors, emergency lighting, signage and markings for emergency entrance and exit, and rescue access. It also addresses the application of photo luminescent materials to highlight emergency exit path markings, instructions for emergency systems operations and requirements for debriefing after emergency situations and simulations. “These proposed improvements represent an upgrade to the already high safety standards we help enforce,” said FRA Administrator Joseph C. Szabo. “The proposed new requirements are based on the latest developments in passenger train emergency system technologies and best practices.” The proposed requirements are based on recommendations of FRA’s Railroad Safety Advisory Committee (RSAC) and were developed by its Passenger Safety Working Group, Emergency Preparedness Task Force. The proposed regulation would also incorporate three industry standards developed by the American Public Transportation Association (APTA). Comments on the proposal are due by March 5, 2012. (FRA - 1/03) HEDGE FUND FORCES CHANGES IN CP MANAGEMENT: The Financial Times has reported that the hedge fund Pershing Square Capital Management is pressuring the Canadian Pacific to remove most of the current board of directors unless it agrees to appoint Hunter Harrison as the railroad's CEO. The Pershing group, owning over 14% of CP's stock, is not satisfied with railroad's financial bottom line. In 2011, profits fell for nine months, while competitor CN's profits increased 16%. Hunter Harrison is the former CEO of the Canadian National. During his rein, he turned the CN into a very profitable railroad. (Financial Times - 1/02) CN COMPLETES MERGER OF DMIR, DWP INTO WISCONSIN CENTRAL: CN announced today it will complete the merger of three of its U.S. operating subsidiaries on Dec. 31, 2011. The merger of Duluth, Missabe and Iron Range Railway Company (DMIR), Duluth, Winnipeg and Pacific Railway Company (DWP), and Wisconsin Central Ltd. (WC) will simplify CN's corporate structure and operations by combining these three separate connecting rail affiliates into a single entity -- Wisconsin Central Ltd. Jim Vena, CN senior vice-president, CN Southern Region, said: "CN expects the merger will lead to operational efficiencies and service improvements through the integration of distinct work forces in and around the Twin Ports region of Duluth, Minn., and Superior, Wis., where DMIR, DWP, and WC operate today. A unified workforce will allow better management of crew staffing and more efficient and reliable rail service to customers throughout the region, including those in the Mesabi iron ore range, and beyond." The merger was authorized through a notice of exemption for transactions within a corporate family filed with the U.S. Surface Transportation Board on April 8, 2011, that became effective May 8, 2011. Under labor protective conditions imposed by the STB, implementing agreements with the unions representing the various crafts must be in place prior to closing the transaction. All such agreements are now in place, permitting the company to complete the merger. (CN, Randy Kotuby - posted 12/30) |
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