UTU News Digest - Wednesday, November 25, 1998

UTU Daily News Digest

Information of interest to operating railroad and transportation employees

Wednesday, November 25, 1998

(There will be no News Digest on Thursday
or Friday due to the Thanksgiving Holiday)

Union Pacific says service is best since crisis started in ’97

DALLAS – In its biweekly service report to the Surface Transportation Board (STB), the Union Pacific Railroad said service is the best it has been since over its system before its operating crisis began in the summer of 1997.

On Tuesday, UP reported it had achieved across-the-board progress in service levels, including trouble-free movement of grain traffic.

UP said it handled more than 10,000 carloads of grain last week, which is consistent with the past eight weeks with the exception of one flood-affected period. However, overall rail grain traffic remains below last year due to low commodity prices and weak export demand.

UP said for the first time in a year that it no longer had any shortages of any type of car. On the West Coast, UP said service was at or above levels before the railroad acquired Southern Pacific Transportation Co. two years ago.

The railroad labeled critics who predicted another service crisis in the Texas Gulf Coast as "directionally backwards" and said service continues to improve in the region.

UP said service also is improving on the railroad's busiest routes across Nebraska and neighboring states citing the reduction in trains held in eastern Kansas. The number of held trains dropped from 44 two weeks ago to four last week. UP also was upbeat about coal shipments in Colorado and Utah, though the company acknowledged difficulty in loading trains out of the Powder River Basin.

Amtrak Reform Panel rides on and stays in business

WASHINGTON -- The panel charged with charting the future of the troubled Amtrak rail system decided to stay in business yesterday, despite the recent resignation of its chairwoman and strict limits placed by Congress on its operations.

At its second official meeting, members of the Amtrak Reform Council lamented the resignation of New Jersey Gov. Christine Todd Whitman (R), who quit in protest of Congress's refusal to allow the council to hire outside consultants, but members also unanimously agreed to push forward in taking a broad look at Amtrak's operations and work steadily toward deciding whether the passenger railroad system can become profitable as it is structured now or, if not, devising a plan for a new system.

"I think what the Congress wants us to do is to figure out how to make this system sustainable. I'm not sure that depends on experts," Milwaukee mayor and council member John O. Norquist said.

Norquist's comments were echoed by other members who argued that while the refusal of Congress to appropriate money for outside experts would slow down their work, the panel could move forward by hiring an office director and beginning work on its budget proposal to submit to Congress for the 1999-2000 fiscal year. The council has a budget of $450,000 though it requested $1.9 million for 1998-99.

The council plans to ask both outgoing House Speaker Newt Gingrich (R-Ga.) and Speaker-designate Bob Livingston (R-La.) to quickly appoint a new member, after which new elections for chair and vice chair would be held.

One council member, speaking on condition of anonymity, said Pennsylvania Gov. Tom Ridge (R) is a possible successor for Whitman. Representatives of the freight rail industry are lobbying for one of their own to be named to the vacant seat. Congress appoints eight of the 11 members of the council and the White House appoints two. Transportation Secretary Rodney E. Slater holds the last seat.

Council members also said yesterday they plan to draft a letter to Congress saying they have not had the time or resources to write several reports mandated by the Amtrak Reform and Accountability Act of 1997.

Under the Reform Act, Congress created the council and required that it report regularly on Amtrak's fiscal progress, including its use of government subsidies, as well as listing any train routes that should be eliminated or altered. Council members, however, said yesterday that they could not submit any of these reports now based only on the fiscal data provided by Amtrak thus far.

Ultimately, the Reform Act -- which Milwaukee Mayor Norquist called an act of "legislative frustration" on the part of Congress -- requires that if the council determines anytime after Dec. 2, 1999, that Amtrak cannot be weaned off government subsidies, the council must submit plans for Amtrak's liquidation and the creation of a workable replacement.

Federal Railroad Administrator Jolene Molitoris, sitting in for Slater, argued that many of the members of the council seemed to be operating under the assumption that Amtrak cannot be saved.

"A great deal of the conversation is what are we going to do when Amtrak fails," Molitoris said, arguing that developments such as high-speed rail lines are promising areas of revenue growth that could help sustain Amtrak.

Vermont Nature Council backs rail plan

BURLINGTON, VT-- The Vermont Natural Resources Council is among environmental groups supporting a plan for passenger rail service between Massachusetts and Maine through New Hampshire.

Council representatives joined the Conservation Law Foundation and other environmentalists at a two-day conference in Durham, New Hampshire. They say the railroad would be good for the economy and get polluting vehicles off the road.

UP opens new locomotive service and repair facility at Hinkle, Oregon

HINKLE, OREGON -- Union Pacific Railroad’s President & COO Ike Evans on Monday officially opened Union Pacific’s new $32 million locomotive service and repair facility here during ribbon-cutting ceremonies with employees and local officials.

"As you might imagine, we at the UP -- and that means all of our 53,000 employees are extremely proud of this facility. This shop in Hinkle, Oregon assumes its place as the most modern and efficient facility of its kind in the western United States," said Evans.

The new 100,000-square-foot facility is strategically located on Union Pacific’s busy Pacific Northwest corridor. Twelve locomotives at a time can be maintained or repaired on the four tracks that run through the main building. Ten locomotives at a time can be serviced with fuel at the new service track area just outside the main building.

Union Pacific’s new facility has incorporated new zero discharge environmental systems for sanitary and industrial waste. Industrial wastes are treated, then sent through a series of aeration ponds. Sanitary wastes are treated in oxidation ponds.

The service track employees fuel and ready nearly 90 locomotives a day using 3.5 million gallons of diesel fuel a month.

Union Pacific is spending nearly $2.4 billion in 1998 on improving, expanding and maintaining its 35,000 miles of railroad track in 23 states.

Santa Claus is coming to town on a SEPTA 'Santa Express' train

PHILADELPHIA -- Even Santa Claus knows that the best way to travel to Center City Philadelphia is on SEPTA. He and the Mrs. will be coming to town on Friday, November 27, on board one of six SEPTA Santa Express trains.

On Friday, SEPTA is offering special family-fares by which up to two children 11 and under ride free with each fare paying passenger on all SEPTA buses, trolleys, subway-elevated trains and regional rail trains.

For the ninth straight year, SEPTA Santa Express service will operate with six colorfully decorated trains featuring Santa, Mrs. Claus and Santa's helpers (SEPTA employee volunteers) plus a spirited group of magicians, face painters, and thousands of children. Two Market-Frankford El trains, two Broad Street Subway trains, and two regional rail trains comprise the Santa Express fleet.

Train stations will be decorated bringing a festive mood to all. Passengers will be offered free shopping bags, kazoos and elf ears.

Santa and Mrs. Claus arrive at the 11th Street Market-Frankford Line Station at 10:22 a.m. Santa will lead the parade to the towering Musical Christmas Tree in the Center Court at The Gallery at Market East.

Santa Express trains will depart:

* At 10 a.m. from the Bridge Street entrance of the Frankford Terminal on the Market-Frankford Line, with Santa and Mrs. Claus on-board (the media are invited to join them).

* At 10 a.m. from 69th Street Terminal on the Market-Frankford Line.

* At 10 a.m. from Fern Rock Transportation Center on the Broad Street Line. (express stops only)

* At 9:50 a.m. from Pattison Avenue Station on the Broad Street Line. (local stops to Lombard/South)

* At 9:30 a.m. from Chestnut Hill West Station on regional rail Route R8.

* At 9:10 a.m. from Paoli Station on regional rail Route R5.

Passengers can board any of the six trains at station stops along the way, but seating may be limited.

BNSF cuts back on Santa Claus service in Missouri

SPRINGFIELD, MO -- The Burlington Northern-Santa Fe Railroad is playing Scrooge to the annual Santa Train.

Railroad officials say the annual excursion... which last year distributed gifts in 63 Ozark towns... will make just 13 stops this year. The railroad says it's the busiest time of the year on the nation's rails... and they don't want to bottle up traffic.

Railroad employees who used to round up the goodies and staff the train say they understand the railroad's position ... but they're disappointed.

FedEx, Union Resume Contract Talks

MEMPHIS -- Federal Express Corp. and its pilots union are talking about a contract again, with no threat of a holiday strike.

Union spokesman Bob Clement said the FedEx Pilots Association decided to end any possibility of a strike after Memphis-based FedEx followed up on threats to lease cargo planes and crews from other companies.

If the company continued on such a course, some FedEx pilots might have lost their jobs, Clement said. The company says contracts it has entered into with other airlines, particularly for international flights, will be honored. FedEx refuses to disclose the length of those contracts.

Talks began in July but broke off Oct. 30. They resumed Monday.

FedEx founder Frederick Smith, chairman of company parent FDX Corp., told the pilots last week that the company's latest contract offer was rescinded. When contract talks were last under way, FedEx pilots sought pay raises of 24 percent over four years. The company was offering 17 percent over five years.

Federal Express says its pilots on average are paid $142,000 a year, though the union says that figure is inflated with overtime. With 326 jets, Federal Express has the world's largest fleet of cargo planes. The company employs 3,500 aircrew members and 140,000 workers worldwide.