UTU News Digest - Monday, October 12, 1998

UTU Daily News Digest

Information of interest to operating railroad and transportation employees

Monday, October 12, 1998

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U.S freight traffic increases in September; Canadian freight down

WASHINGTON – Freight traffic on U.S. railroads rose both during the month of September and during the third quarter in comparison with the same periods last year, the Association of American Railroads (AAR) reported.

Carload freight increased 3.8% during the month and 1.9% for the quarter and automotive traffic has recovered from the General Motors strike earlier this summer, with volume up 22.9% for the month and 11.9% for the quarter.

Coal traffic was especially strong during September, registering a 5.5% gain over September 1997. For the quarter, coal loadings rose 4.0%. Grain traffic also began to show some signs of recovery, with volume up 7.0% for the month and 1.6% for the quarter.

Intermodal traffic, which is not included in the carload data, was not as strong as carload freight, he noted. Volume was off 1.4% for September and 0.5% for the quarter.

Canadian railroads experienced the reverse of the U.S. situation, with carload freight down and intermodal traffic up during both the third quarter and September. Carload traffic was down 4.1% for the month and 9.1% for the quarter, while intermodal registered a 2.3% rise for the month and a 4.4% gain for the quarter.

Canadian carload freight was especially hard-hit by the weak demand for export grain with grain off 27.8% for the month and 36.1% for the quarter.

For just the week ended Oct. 3, the AAR reported the following figures for U.S. railroads: 367,323 carloads, up 3.1% from the corresponding week last year; 183,728 trailers and containers, down 2.0% from last year; and total volume of an estimated 27.7 billion ton-miles, up 4.1% from the comparable 1997 week.

The AAR also reported the following cumulative U.S. totals for the first 39 weeks of 1998: 13,653,019 carloads, up 2.1% from 1997; 6,573,388 trailers and containers, up 0.4%; and total volume of an estimated 1,026.3 billion ton-miles, up 1.3% from last year.

On Canadian railroads, volume during the week ended Oct. 3 totaled 55,861 carloads, down 1.0% from the comparable 1997 week; and 29,894 trailers and containers, up 7.1% from last year. The cumulative volume for the first 39 weeks of 1998 was 2,017,163 carloads, down 3.5% from 1997, and 1,011,760 trailers and containers, up 4.5% from last year.

AAR also reported the following combined U.S.-Canadian cumulative totals for 19 reporting U.S. and Canadian railroads: 15,670,182 carloads, up 1.4% from last year; and 7,585,148 trailers and containers, up 0.9% from 1997.

Thieves hit train in Miami and separate dozens of cars from train

MIAMI -- Thieves attacked a slow-moving Florida East Coast Railway (FEC) train last Thursday, separating dozens of cars from the unit train. The train had slowed while passing work crews trying to restore a track damaged in a derailment on Wednesday.

Fortunately, said FEC's railroad police superintendent Jim Keeley, cargo theft was minimal.

"It's not a common thing," Keeley said of the incident near the Liberty City area of Miami, noting that thieves were able to break into about 20 trailers moving piggyback on flatcars. Most of the trailers were empty. No arrests have been made.

The incident of train robbery occurred because the northbound FEC train slowed when it approached the area where railcars carrying limestone derailed. The area was still under repair and the thieves used that to their advantage.

"They separated the train and the trailers (on flatcars)," said Keeley.

Such attacks are not common, he said, because the railroad has its own police units and surveillance cameras at its terminal. The incident, however, occurred outside the terminal. "The biggest problems in town are hijackings and thefts from business warehouses," the police superintendent said.

Although thefts are not common, the FEC -- which serves Florida and feeds into the CSX Transportation network -- has joined a growing number of others in the transport and logistics field to work on the crime problem.

CPR looks for buyer for Saskatchewan Rail Line

CALGARY -- Canadian Pacific Railway (CPR) announced it is seeking proposals from prospective shortline railways to take over operations on a 110-mile CPR branch-line between Moose Jaw and Broderick, Sask.

The line, part of CPR's Outlook Subdivision, was listed in April 1997 as a candidate for transfer under the railway's three-year network plan.

In an effort to preserve service on the low-volume branch-line, CPR is hoping to secure a commercial agreement with a shortline operator to provide rail service to and from the CPR main line at Moose Jaw.

A number of shortlines have been established in recent years in Canada, bringing viability to low-volume rail lines and delivering competitive, flexible service to shippers. As part of its ongoing assessment of its network, CPR anticipates other low-volume branch-lines with the potential to succeed, as shortlines will be offered to the marketplace.

Virgin Atlantic interested in high-speed Florida rail

ORLANDO, Fla. – The owner of Virgin Atlantic Airways, British tycoon Richard Branson, has expressed interest in running a Florida high-speed rail system that could then ally itself with his airline, an official for Florida's rail consortium said.

Branson "probably feels it would be a very natural fit," said Jim Moore, a spokesman for Florida Overland Express, a consortium of European high-speed train companies picked by Florida to develop a bullet-train system connecting Orlando to Miami and Tampa Bay.

Branson, founder and chairman of Virgin Group, already operates rail systems in Britain and continental Europe, some of them in cooperation with the Florida consortium's members: GEC Alsthom Transport SA, Bombardier and Fluor Corp.'s Fluor Daniel Inc. Operational control over the railway would give Virgin Atlantic a pricing advantage over other airlines.

Pennsylvania and Norfolk Southern to install warning systems

HARRISBURG, Pa., Oct. 9 -- Pennsylvania Gov. Tom Ridge Friday announced that the Pennsylvania Department of Transportation (PennDOT) will team up with Norfolk Southern Railway Co. to install state-of-the-art warning systems at more than 40 locations where train tracks cross state highways.

"Last year, five people were killed and 26 others were injured in 65 incidents where vehicles collided with trains at rail-highway grade crossings," Gov. Ridge said. "Norfolk Southern expects rail-freight traffic to increase on the lines it recently purchased from Conrail. These safety improvements are intended to reduce the number of accidents at rail grade crossings."

PennDOT said that Gov. Ridge has authorized spending up to $10 million in highway capital budget funds for the "installation of constant warning-time devices" for the upgrade and safety improvement of highway-rail grade crossings. The State Transportation Commission recently gave final approval.

Under the proposal, 20 percent of the cost is paid by the railroad. The Commonwealth covers the remainder. The funds only are available for improvements where train tracks cross-state highways.

Norfolk Southern is initially proposing to make improvements at 43 crossings at an estimated cost of $4.7 million. Work is expected to begin soon and should be completed in 2000. Norfolk Southern has indicated that upon further review of its newly acquired Pennsylvania region from

Conrail, it may seek additional state funds to complete more projects.

PennDOT will meet with representatives of CSX Transportation, the other major rail carrier that acquired Conrail territory in the state, to enlist its participation. Funding also is available to help shortline and regional railroads undertake the safety improvements at rail-highway grade crossings.

Mallory said the "constant warning-time devices" significantly improve safety at grade crossings by activating warning bells, lights and gates at a pre-determined length of time, regardless of the speed of the train. Older warning systems are activated when the train reaches a certain distant from the crossing. Accidents have occurred when impatient motorists have ignored warning devices, activated by the approach of a slow-moving train, and crossed the tracks.

Mallory commended Norfolk Southern for its aggressive commitment to improve safety at rail grade crossings with the latest available technology and urged other railroads to take advantage of the opportunity to partner with PennDOT in the new rail-highway grade crossing initiative.

Warning signals will be installed or modified where Norfolk Southern tracks cross:

Lake Division/B Line

-- Pittsburgh Avenue in Erie, Erie County.
-- Crayton Road in East Springfield, Erie County.

Pittsburgh Division/Conemaugh Line

-- Corbet Street in Tarentum, Allegheny County.
-- Center Street in Tarentum, Allegheny County.
-- Center Street in Springdale, Allegheny County.
-- 43d Street in Millvale, Allegheny County.

Pittsburgh Division/Fort Wayne Line

-- Water Street in Haysville, Allegheny County.
-- Ferry Street in Leetsdale, Allegheny County.
-- Centennial Avenue in New Galilee, Beaver County.
-- Monroe Street in New Galilee, Beaver County.

Pittsburgh Division/Pittsburgh Line

-- Anderson Road in Granville, Mifflin County.
-- Fourth Street in Huntingdon, Huntingdon County.
-- Tipton Road in Tipton, Blair County.

Pittsburgh Division/Mon Line

-- Grant Street in Duquesne, Allegheny County.

Pittsburgh Division/Youngstown Line

-- Jefferson Street in New Castle, Lawrence County.

Philadelphia Division/Harrisburg Line

-- Main Street in Royersford, Montgomery County.
-- South Hanover Street in Pottstown, Montgomery County.
-- Columbia Avenue, Sinking Spring, Berks County.
-- 16th Street in Lebanon, Lebanon County.
-- North Railroad Street in Palmyra, Lebanon County.

Philadelphia Division/Reading Line

-- Main Street in Blandon, Berks County.
-- Walnuttown Road in Fleetwood, Berks County.
-- Kemp Street in Lyons, Berks County.
-- Chestnut Street in Topton, Berks County.
-- Schlossburg Road in Alburtis, Lehigh County.
-- Main Street in Alburtis, Lehigh County.
-- Main Street in Macungie, Lehigh County.

City of Reading, Berks County

-- Franklin Street in Reading, Berks County.
-- Penn Street in Reading, Berks County.
-- Chestnut Street in Reading, Berks County.
-- Washington Street in Reading, Berks County.

City of Sunbury, Northumberland County

-- Packer Street in Sunbury, Northumberland County.
-- Arch Street in Sunbury, Northumberland County.
-- Race Street in Sunbury, Northumberland County.
-- Chestnut Street in Sunbury, Northumberland County.
-- Walnut Street in Sunbury, Northumberland County.
-- Spruce Street in Sunbury, Northumberland County.

Borough of Milton, Northumberland County

-- Locust Street in Milton, Northumberland County.
-- Broadway Street in Milton, Northumberland County.
-- Center Street in Milton, Northumberland County.
-- Race Street in Milton, Northumberland County.
-- Mahoning Street in Milton, Northumberland County.
-- Cameron Avenue in Milton, Northumberland County.

European railways to invest billions for improvements

GENEVA -- Railways in Germany, Britain, Italy and other European nations plan to invest billions of dollars in a bid to enhance the competitiveness of the sector, according to government reports.

Germany's Deutsche Bahn AG alone has earmarked $6.2 billion in the country's rail network.

According to German government estimates, about DM10 billion will be required between 1998 and 2007 for rolling stock for long-distance passenger services.

The study, compiled from reports from individual European nations, was circulated to a meeting here of transport experts sponsored by the U.N. Economic Commission for Europe (ECE). The research also indicates major investment is planned for cargo equipment.

The commission, based here, promotes cooperation on transportation among its 55 member countries, including the United States. It has established more than 50 transport agreements and conventions ranging from safety standards to the development of coherent infrastructure networks for railroads and other modes of transportation.

Between 1997 and 2002, Germany plans to obtain 80 four-axle electric locomotives worth about DM395 million, with an option on another 300 to 400, according to the report.

German railways also plan to purchase 195 six-axle locomotives totaling DM994.5 million, with options on another 100.

They also have agreed to invest about DM2 billion by 2001 to purchase approximately 20,000 new railcars to put into service, it said.

Last year, German rail traffic registered growth for the first time in 14 years.

Regional railways reported an increase of 6.5%, to 22.5 million metric tons, while volume moving on Deutsche AG increased 2.7%, to 316 million metric tons.

The study notes that the movement of high-quality goods moving over long distances -- particularly via intermodal service -- has gained in importance.

Italy's status report outlines that between 1997 and 2002, investments in rail infrastructure and rolling stock will total about 55,100 billion lira ($34.5 billion).

Nearly half of the planned Italian investment will be spent on upgrading existing networks and about 8,000 billion lira on new equipment.

Italian railways increased their cargo volume last year, to 82.7 million metric tons from 80.4 million in 1996.

The British report noted that Railtrack PLC plans to spend about 10 billion lira on the maintenance, renewal and development of the rail network between 1998 and 2003.

It also underlined that freight operators have set targets for increasing rail freight, with English, Welsh and Scottish Railways aiming to triple freight over the next 10 years. Moves also are under way to modernize the railways of the reform economies of Central and Eastern Europe.

The Czech government said modernizing four transit corridors and further electrification of railway lines are high on the priority list, while Slovakia plans to introduce a host of rail freight technology innovations.

Poland's priority is to upgrade two rail lines by 2001 -- the E20 line that connects Berlin and Moscow via Warsaw and Minsk, and the E65 line linking Gdynia and Vienna via Gdansk and Warsaw.

Slovenia, Hungary, Latvia, Romania and other reform economies also outlined ambitious modernization plans.