UTU News Digest - Friday, September 24, 1999

UTU Daily News Digest

Information of interest to operating railroad and transportation employees

Friday, September 24, 1999

WASHINGTON: CSX, NS restoring service to Southeast; Amtrak is back

WASHINGTON -- The water-logged Southeastern rail system moved closer to normal operations Thursday after CSX Transportation and Norfolk Southern Corp. restored some service in the area, but delays continued in portions of the Northeast, the Journal of Commerce reported.

CSX was running trains over its main line between Richmond, Va., and Savannah, Ga., late Wednesday for the first time since flood waters from Hurricane Floyd swamped tracks in northern North Carolina a week before.

Between 30 and 40 trains per day travel over that route. After having nearly 80 trains holding due to weather problems early in the week, CSX officials reported that only six trains were not being moved Thursday because of the residual effects of Floyd.

Amtrak restored passenger service Thursday between New York and Florida over CSX.

Delays continued in the Northeast, where flooding knocked out signals on rail lines east of Bound Brook, N.J., that are operated by Conrail Inc. for NS and CSX.

NS invoked force majeure on shipments moving east of Allentown, Pa., into New Jersey points because flood waters knocked out signal systems on the main line. NS said repairs could take weeks to complete.

CSX still was waiting for water to recede on two secondary routes in North Carolina and Virginia before service could be restored. The company said it should resume operations into Portsmouth, Va., from northern North Carolina on Friday.

Trains on CSX also weren't running in eastern North Carolina between Goldsboro and Tarboro. There was no set date for resumption of that flooded line.

On NS, service was restored to some customers on lines in Virginia and North Carolina that had been flooded.

The NS line between Morehead City, N.C., and Goldsboro, N.C., through New Bern and Kinston remained out of service with no indication when trains would be running again. The NS line running north from New Bern as far as Plymouth, N.C., also was flooded out with no target date for resumption of service.

NS also was shut down between Suffolk, Va., and Lawrenceville, Va., with operations expected to resume on Monday.

ENGLAND: Stagecoach submits proposals for SW trains

LONDON -- U.K. transport company Stagecoach Holdings PLC (U.SGS) said Friday that it has submitted a proposal to the Shadow Strategic Rail Authority for the long-term future of its South West Trains franchise.

Stagecoach operates South West Trains under a seven-year agreement which commenced in 1995.

Details of the proposal weren't disclosed.

In a separate release Friday, train operator Prism Rail PLC (U.PRL) said it has submitted renegotiation proposals for all four of its existing rail franchises. Prism runs the West Anglia Great Northern, LTS Rail, Wales & West and Cardiff Railways networks.

Prism said it plans to improve train service performance with money-back customer guarantees and investment in trains and station modernization. Prism added it will introduce enhanced services in Wales and West England and metro-style services for its South Eastern business.

Pending Parliamentary approval, the Shadow Strategic Rail Authority will succeed the office of the Director of Passenger Rail Franchising.

NEW YORK: Teamsters prepare to strike Overnite Transportation, owned by Union Pacific

NEW YORK -- In a high-stakes showdown in trucking, the Teamsters are preparing to launch a nationwide strike against one of the nation's largest trucking companies, Overnite Transportation Co., the Wall Street Journal reported.

A work stoppage, which could come as soon as Sunday, would happen at the height of shipping for the holiday season, when truckers are at their busiest. It would also bring to a head a long and bitter dispute between the Teamsters and Overnite.

David Cameron, the Teamsters' Overnite campaign coordinator, said it would take "divine intervention" at this point to avoid a strike. Overnite officials said they expect some job action as early as this weekend. Negotiations between the parties broke off last week, and additional talks haven't been scheduled.

For the past five years, the Teamsters have been waging an aggressive organizing campaign at Overnite as a critical first step in turning around the union's dwindled clout in the freight industry. Since 1980, the union's membership in the trucking industry has dropped to about 150,000 from a high of more than 270,000. In his campaign speeches, Teamsters President James P. Hoffa promised to reverse that trend.

Although the union has succeeded in part in representing Overnite employees, it has not been able to secure a contract at any Overnite location. Overnite, a unit of giant rail company Union Pacific Corp., Omaha, Neb., has been fighting to maintain its substantially nonunion status and positioning itself as the bastion against the resurgence of the Teamsters in the trucking industry.

"The results could be pivotal," said Aaron Gellman, director of the Transportation Center of Northwestern University in Evanston, Ill. "If the union is successful, it may signal a broader campaign against other truckers."

The outcome is of critical concern to customers of the $25-billion-a-year less-than-truckload industry, which consolidates small shipments into trailer loads. Such truck companies represent an important part of the distribution chain for businesses ranging from small manufacturers to retailers. Although the largest less-than-truckload companies have long been represented by the Teamsters, most of the growth in this part of the trucking industry in recent years has been taking place among nonunion carriers that have lower costs and more flexible working arrangements.

The union has been trying to organize Overnite terminal by terminal. It currently represents workers at a minimum of 22 of Overnite's 166 terminals, including some of the company's largest hubs in Chicago, Memphis, Tenn., and Kansas City, Kan. The union says it represents 3,600, or about 40%, of Overnite's workers eligible to join a union. Overnite puts the Teamsters' representation at 16%, citing legal challenges to votes at some terminals.

Both the Teamsters and Overnite said they remain far apart in reaching a contract. Among the key issues are control of Overnite's fully funded pension. The company is opposing the Teamsters' taking Overnite pension money and putting it into the Teamsters Central States Fund and is resisting Teamsters' work rules that it said would make Overnite uncompetitive.

"Caving into the Teamsters would put us out of business," said Leo Suggs, chairman, president and chief executive officer of Overnite, Richmond, Va.

Salaries have been less of an issue, because Overnite has upgraded its pay scale and benefits to attract drivers and counter the union. Currently, many Overnite drivers receive about $17 an hour, compared with about $19 an hour at unionized carriers.

Meanwhile, both sides are bracing for a strike. Overnite said it plans to use "volunteers" from its nonrepresented terminals to fill in as needed at other locations if the Teamsters put up pickets at Overnite terminals and has lined up outside companies to provide hundreds of security guards and licensed commercial drivers. The Teamsters have threatened to use people from unionized trucking companies and retired or out-of-work Teamsters to set up picket lines at Overnite terminals and customers facilities.

Mr. Cameron, the Teamsters' campaign coordinator, said the union has warned its members to avoid violence.

WASHINGTON: CSX, CP bargain over NY access

WASHINGTON -- Canadian Pacific Railway and CSX Transportation are trying to resolve a dispute over the Canadian carrier's access to two New York City rail freight terminals, the Journal of Commerce reported.

CP and CSX have clashed periodically over terms for CP's service to the city's customers ever since the Surface Transportation Board granted the Canadian carrier access to the New York market.

CP ran its first train into New York on July 13. CSX took over New York City rail service on June 1 as a result of the division of Conrail assets with Norfolk Southern.

In the latest dispute, CP asked the transportation board to grant wider access to the Harlem River Yard, an intermodal facility, and the Hunts Point Terminal, site of the metropolitan area's largest produce-distribution operation.

CP sought permission to serve Harlem River Yard directly, instead of through switching provided by CSX for a per-car fee. CP also sought regulatory approval to serve Hunts Point.

CSX responded by saying that CP's plan could create operational problems by expanding the authority STB originally gave CP to serve the city. In earlier decisions, the board ordered CSX to provide switching service to Harlem River Yard for CP in an effort to avoid duplication of services in an urban area where the rail plant already is congested.

Last week, both railroads notified STB that they were pursuing a negotiated approach to their latest dispute and asked the agency to withhold action until Nov. 1. STB agreed to that request.

A CP spokesman said the prospect for resolving the current issue brightened after informal discussions between executives of the two carriers.

The latest skirmish is the fourth time the two carriers have clashed over the CP's access to New York.

CSX opposed the original request by CP to serve the city when the Conrail acquisition was being reviewed before the Surface Transportation Board.

After CP obtained the right to serve New York, CSX won a regulatory round by limiting the application of those rights to traffic between Albany and New York City. The effect of that decision blocked CP from serving any customers in between those two cities.

Just before the June 1 breakup of Conrail, the two companies argued again over the price that CSX would charge CP for switching and other services. The Surface Transportation Board sided with CP on that issue.

CP's effort to expand service to Harlem River Yard and Hunt's Point was supported by letters from Rep, Jerrold Nadler, D-N.Y., and James Oberstar, D-Minn. The two have been advocates of expanded competition in the Northeast.

MISSOURI: KCS cited in connection with switchman/brakeman’s death

KANSAS CITY -- A federal agency has cited Kansas City Southern Railway Co. for allegedly violating safety standards in connection with the death of a rail yard worker last February, the Kansas City Star reported.

The area office of the Occupational Safety and Health Administration has proposed fining Kansas City Southern $70,000 in the death of Stephen Barber III. Barber, a Kansas City Southern switchman and brakeman, died in the railroad's intermodal yard when he was struck from behind by an intermodal lift.

Kansas City Southern has contested the penalty and is awaiting further action by OSHA. The railroad contends that it had taken safety precautions and that the accident was caused by an employee of the intermodal operator, In-Terminal Services Corp.

Kansas City Southern's intermodal facility at 5701 E. Gardner Ave. is where cargo moved by rail and trucks is transferred between one and the other. Kansas City Southern contracts with In-Terminal Services to operate the yard.

The accident also is the subject of a lawsuit filed in May by Barber's parents. The lawsuit, filed in Jackson County Circuit Court in Independence, accuses Kansas City Southern, In-Terminal Services and the employee of In-Terminal operating the vehicle of negligence.

Kansas City Southern and In-Terminal Services, which also is representing the worker involved, denied the allegations.

OSHA said in its citation issued last month that union officials representing railroad employees had warned the company repeatedly over three years of potential hazards in the ramp area of the intermodal yard.

Kathy Simpson, spokeswoman for Kansas City Southern Railway, said the railroad had taken steps to improve safety conditions at the rail yard before the accident.

The railroad had reduced speed limits of trucks and other vehicles operating in the facility, Simpson said. In addition, asphalt was laid to reduce the amount of dust at the yard.

"Since the accident, there have been further enhancements to safety," she said, including the use of reflective vests.

Simpson said the railroad maintained that the accident was unintentional but was caused by "a careless act by the driver of the unit, who is not an employee of the railroad."

In its response to the lawsuit, In-Terminal Services said neither the company nor its employee was responsible for Barber's death.

GERMANY: Swiss criticize German intermodal pricing

FRANKFURT -- The Swiss, renowned for pinching francs, are complaining that the massive sums of money they spend to subsidize trans-Alpine rail freight could end up helping Germany's railroad more than their own.

At a session of the Swiss Parliament this week, Transport Minister Moritz Leunberger said he protested to his German counterpart about the intermodal pricing policies of Germany's rail-freight company, DB Cargo AG.

While Switzerland is finalizing plans to spend $2 billion to build rail tunnels and otherwise subsidize rail freight between 2000 and 2010, Leunberger said, the German rail system recently decided to raise its rates for intermodal freight shipments to and from the Alps.

"The Swiss pay in, and Germany cashes in," reported a headline in Switzerland's leading newspaper, the Neue Zuricher Zeitung.

Swiss officials argue that the Germans should be lowering their intermodal freight rates to keep in line with the Europewide effort to encourage shippers to shift more cargo from road to rail transport.

DB Cargo, the rail-freight arm of Germany's Deutsche Bahn AG railroad, disputed the Swiss transport minister's allegations. A spokesman for DB Cargo said Thursday that the Swiss railroad, SBB AG, charges "significantly higher" rates for intermodal freight per ton-kilometer.

DB Cargo officials say they were forced to increase prices for intermodal shipments throughout Germany because such routes were losing money, once all the railroad's costs were factored into the equation.

Meanwhile, the Swiss Parliament's upper house gave tentative approval to the $2 billion plan to build two major new trans-Alpine rail tunnels that would make rail freight more attractive to shippers, who in theory would shift more cargo from road to rail transport.

Under the current Swiss plan, the number of big-truck trips across the Swiss Alps would be limited after the new rail tunnels are opened in 2007. However, the government has not yet agreed on the exact limits or their timing.

WASHINGTON: Train allure chugs along

WASHINGTON – We were riding through the Frederick County countryside on the Walkersville Southern Railroad when my son Aaron, 5, asked a probing question of the line's treasurer, an accountant named Paul J. Bergdolt. Aaron wanted to know whether the railroad had any cars from another perhaps more legendary line, a story in the Washington Post begins.

"How about the Santa Fe?" he asked. To which the train official glumly replied, "They unfortunately don't come here."

Well, okay, no Santa Fe. But how about a converted World War II troop sleeper car, a 1949 bright red Wabash caboose, an open B & O flat car with wooden benches and a 1939 30-ton Davenport diesel engine? And how about an hour-long, eight-mile excursion on just such a train a mere hour's drive from Washington?

This may indeed be the space age, the almost year of Y2K, the era of Nintendo and DVDs. And yet, there is something about the slow, creaky rumble of a train that entrances children. The train virus seems immune to technology.

Aaron has a bad case. So whenever the opportunity arises, he is ready to ride. His brother David, 8, though "Star Wars"-fixated, is a willing fellow traveler. So one Sunday, when their Uncle Rich, also an ardent train buff, was in town with his son Jake, 7, daughter Kate, 2, and his wife Ruthann, the Walkersville Southern seemed like the ideal outing.

The passengers-only railroad is a private, for-profit corporation that has rolling stock and some that just sits idle on a siding right off Biggs Ford Road in Walkersville, a formerly tiny farm town that is gradually giving way to the suburbs. People actually own shares in the railroad, which has been operating since 1995, though financially it's a loser. In other respects, however, it's a winner, for the rail buffs who both ride and own the train, about 50 of whom take turns operating it for no tangible reward.

The passing scene along the four-mile track includes farms, cows, grain silos, a lime kiln, the Catoctin Mountains, woods, grade crossings, housing developments and the Monocacy River. The railroad's small station, built by the Pennsylvania Railroad in 1920, looks as if it were plucked from a model railroad layout. Next to it is a B & O sleeper car, circa 1920, converted into a gift shop.

Heading out, the boys chose to ride in the ex-Western Maryland Troop Sleeper, which has park-style benches that can seat about 50 passengers. On this day, it carried only our party of eight and one other family of three. On the return trip, the boys chose to ride in the cupola of the caboose.

The train rattled along the 1869 right-of-way at no more than 10 miles an hour. A volunteer flagwoman in a car drove from grade crossing to grade crossing with a hand-held stop sign to warn what few motorists there were of the train's approach -- also signaled by two long, one short and one long toot of the horn.

The Walkersville Southern is big on safety, which is a good lesson for kids. "Son, tie your sneakers," Bergdolt admonished David. "Safety first always on the railroad." The boys were also directed to keep their hands off the air brake lever, "which is to be operated by qualified railroad employees only," according to the posted sign.

The other hazard was yellow jackets, which were also riding with us. "Yellow jackets can kill a person, can't they, Dad?" Jake asked his father. Fortunately, there followed two loud toots from the train, which seemed to send them packing. "That scares the bees," said Aaron, relieved. Jake, from San Diego, wanted to know if there was air-conditioning. "You open a window," Bergdolt said.

In the caboose, the boys learned another lesson when Aaron asked about a sign that said "Bathroom Out of Order." Bergdolt explained that, for the train crews of old, cabooses were homes away from home, with stoves, bunks, and, yes, even bathrooms.

There's nothing quite like a real train ride, unless, of course, it's a room full of model trains.

So from Walkersville, we drove 22 miles south to Brunswick, a gritty old railroad town along the Potomac River, also in Frederick County. There the Brunswick Railroad Museum beckoned.

The kids weren't the least bit interested in the narrated introductory slide show on the first floor or the static exhibits on the second. They headed straight up the stairs to the third-floor layout. It is, indeed, a remarkable re-creation of the B & O Railroad line from Union Station to Brunswick, 56 miles compressed into a single room.

More than that, it is interactive in a way that computer games never can be. And while every sign on the railroad seemed to say no, don't do this or that, the big sign at the HO-gauge layout was a welcoming "Kids at Play."

There are 41 buttons to push, plus three switches to control and one knob to turn. One button makes pigs squeal, another lights the hobo fire by the Monocacy, yet another causes crossing lights to flicker as trains go by. "Oh, no, there's a fire in there," Aaron said, pushing a button that ignited a light inside a warehouse somewhere in scaled-down Silver Spring. "A train is coming, a train is coming!" he said, excitedly.

David, meanwhile, announced, "There's something going on in Germantown." Actually, it was Seneca. He pushed a button, and suddenly the stationary HO-scale people positioned at the creek seemed to come alive with sounds.

To allow for a kid's-eye view of the layout, steps are located strategically along the way. The museum also provides a third-floor view of real freight trains passing by Brunswick. "Hey, here's a real train," announced Lee Smith, a museum volunteer who also worked as a B & O freight agent for five years in the late '50s. "Where's he going?" Aaron asked. It was a single coal-train "helper" engine, "going back to the yard," said Smith.

The boys were there for longer than they were on the Walkersville Southern, and still they showed no signs of losing steam. But the afternoon was getting on, and so were we. To cap the outing, we walked around the corner to the Silver Rail Diner for ice cream and milkshakes. Then Uncle Rich took some pictures of the railroad station at Brunswick, which formerly boasted a major freight yard with a roundhouse. It is still a place freight trains rumble through and is also now an important commuter stop to and from Washington.

Not to mention a mecca for rail fans of all ages.

WALKERSVILLE SOUTHERN RAILROAD -- Ticket office is at 34 W. Pennsylvania Ave., Walkersville, Md. 301/898-0899. The railroad operates every Saturday and Sunday May 1 through Oct. 31, with departures at 11 a.m., 1 p.m. and 3 p.m. The railroad will run the "Santa Special" Dec. 4, 5, 11 and 12. Regular season tickets cost $7 for adults, $3.50 for children, and is free for kids under 3 unless they occupy a seat. The railroad is also available for charters and caboose parties.

BRUNSWICK RAILROAD MUSEUM -- 40 W. Potomac St., Brunswick. 301/834-7100. Open April to January. Admission is $4 for adults, $2.50 for children 6 and over. From June to the first weekend in October, the museum is open Thursdays and Fridays from 10 to 2, Saturdays from 10 to 4 and Sundays from 1 to 4. From the second weekend in October to Christmas, it is open only Saturdays and Sundays.

ILLINOIS: Grimstad joins Wisconsin Central System

ROSEMONT -- William R. Grimstad has been appointed Assistant Vice President Transportation for Wisconsin Central (NASDAQ: WCLX) at the railroad's operating headquarters in Stevens Point, Wis., reporting to Vice President and General Manager Ed Terbell. A native of Superior, Wis., Grimstad, 53, has more than 28 years of railroad experience and most recently served as assistant vice president merchandise operations division for the Burlington Northern and Santa Fe Railway at Fort Worth, Texas.

Grimstad began his railroad career with the Burlington Northern in 1970 serving as trainmaster, terminal manager, terminal superintendent, division superintendent, regional director of employee relations and general superintendent of corridor management. From 1992 to 1994, he held various posts in network scheduling and in June 1994, was named assistant vice president network service measurement. Grimstad became general superintendent in BNSF's network operations center in 1995 and was promoted to assistant vice president-merchandise operations division in April 1996.

Grimstad holds a Bachelor of Science degree from Wisconsin State University, Superior, Wis., and subsequently attended the Graduate School of Business Administration at the Minnesota Management Academy and the Leadership Development Program at the Center of Creative Leadership.