UTU News Digest - Wednesday, September 16, 1998

UTU Daily News Digest

Information of interest to operating railroad and transportation employees
For
Wednesday, September 16, 1998

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Union Pacific picks new president to replace Davis

OMAHA -- Union Pacific went outside the company to clean up its troubled railroad unit, naming a non-railroader, Ike Evans, as president and chief operating officer of Union Pacific Railroad Co.

In choosing Evans, 56, who is currently senior vice president of Emerson Electric Co., St. Louis, Union Pacific tapped a seasoned manufacturing executive. Evans succeeds railroad veteran Jerry Davis, 60, who was named vice chairman of the railroad, a position he will hold until his retirement expected later this year.

Evans will report to Richard Davidson, who remains chairman and chief executive officer of the parent company. Davidson recently announced a major reorganization of the railroad, decentralizing operations and putting more authority in the field.

Prior to joining Emerson Electric in 1989, Evans spent 21 years in various manufacturing jobs in the component businesses of General Motors Corp.

Evans said, "I bring 33 years of operating experience and in doing that I have had to deal with customers. I think I bring the Emerson disciplines in managing a business and a leadership style that cuts across functional lines."

BNSF grabs new business at expense of UP

NEW YORK – With the quarter almost over, the big news is the substantial traffic gain at Burlington Northern and Santa Fe Railway and the nearly equal volume loss at rival Union Pacific Railroad.

Through early September, BNSF originated 453,000 more shipments in 1998 than it did in 1997, representing a 10% increase. UP lost 391,000 shipments or 8%. That shift has left BNSF with 51% of the 8.9 million shipments originated by the two Western rail giants so far this year. Last year, UP had 54% of that market.

While BNSF remained ahead, UP narrowed some traffic losses in August. UP carloads were down 1%, compared with 7% in the first seven months of 1998. Meanwhile, the rest of the U.S. carriers are running in place, with virtually no change in traffic levels from last year despite continued growth in the U.S. economy.

On the automotive front, traffic fell 11% in July when the effects of the GM strike were most felt, but carriers made up most of July's 10,000-shipment shortfall last month as traffic increased by 7%. Despite the third-quarter falloff, automotive traffic remains the strongest rail volume gainer with 1998 year-to-date shipment levels up 8%.

Norfolk Southern showed nearly 25% volume growth in the third quarter over the prior year due to that railroad's long-term contract with Ford Motor Co. Canadian National Railway and Conrail were apparent losers as both carriers' third-quarter automotive traffic slipped approximately 30%. CN officials said recovery from the strike was slower than expected.

Intermodal traffic continued to build modest momentum. Container and trailer traffic rose 1% in August, as carriers were handling 200,000 shipments a week. July intermodal traffic was flat, but year-to-date intermodal traffic was still 1% ahead of last year's record pace.

BNSF attributed its double-digit growth to a combination of market share gains from UP and his company's long-term growth rate of 7% to 8%. Among the major carriers, NS was a loser, with a 10% traffic drop that apparently reflected the carrier's intermodal network restructuring.

Coal traffic rose a modest 2% in August, slower than the 3% growth earlier in the year. Eastern railroads' coal volume dipped 3% in August, while Western carriers boosted shipments by 9%. BNSF officials attribute their coal volume growth to new business gained from UP and volume growth by existing customers.

Union Pacific Coal Service, System Speed Improve Slightly

WASHINGTON – In its latest report to the Surface Transportation Board (STB), the Union Pacific Railroad said its coal deliveries to U.S. electric utilities improved slightly over the two weeks through Sept. 11 as the carrier's trains moved at slightly greater speed.

The number of "coal cycle days," improved over the past two weeks to 6.6 days from 6.7 days two weeks ago. The target range is 5.9-6.2 days.

Union Pacific told the STB that its coal deliveries would have improved much more except for a temporary plant maintenance shutdown during the Labor Day weekend. Electric utilities have told news services that their deliveries from Union Pacific have greatly improved since the beginning of August.

Over the two-week period the average speed of Union Pacific trains systemwide rose to 15.1 mph from 15.0 mph. Markers of system congestion, such as the number of main terminals blocked and the number of hours that trains were delayed, mostly improved during the period. Grain car loadings and deliveries have slowed since peaking in the week through Aug. 14.

San Antonio-Austin commuter rail derailed by UP

SAN ANTONIO -- Even though the idea of creating a commuter rail system between San Antonio and Austin is attracting renewed interest, city and county officials likely will not have access to Union Pacific Corp.'s rail lines in establishing such a system.

Union Pacific spokesman Mark Davis says the nation's largest railroad company does not currently have the rail capacity between San Antonio and Austin to facilitate operation of both a system of passenger trains and freight cars.

"Essentially, we'd have to shut down operations between San Antonio and Austin. The majority of that line from San Antonio to Austin would have to shut down (to accommodate the commuter system)," Davis says.

The cities of San Antonio and Austin have joined a dozen local, state and federal agencies in conducting a formal feasibility study to determine whether a commuter rail line between the two cities can effectively alleviate congestion along Interstate 35. One of the options under consideration involves gaining access to Union Pacific's rail lines along the Interstate 35 corridor.

Commuter rail is touted by the business community as one of the ways of keeping the San Antonio-Austin corridor economically viable. Although commuter rail proposals have surfaced before, this time the idea has the support of 14 state, regional and local agencies committed to a serious study of the idea.

One way of clearing the hurdle is to reroute Union Pacific's lines into a new rail corridor, says Ross Milloy, president of the Austin-San Antonio Corridor Council in San Marcos -- one of the members of the commuter-rail feasibility study team. However, moving Union Pacific to another rail corridor could cost as much as $150 million, according to Milloy. This is one of the things the feasibility study will address as well, he says.

STB issues IC-CN merger review schedule

WASHINGTON -- The Surface Transportation Board released a schedule for the environmental review of the proposed acquisition of Illinois Central Corp. by Canadian National Railway Co.

The agency said it would complete a preliminary environmental assessment of the transaction by the end of November. Interested parties would have 30 days after that to comment. A final environmental review will be completed before the scheduled March 8 voting conference on the plan. The STB has promised a final decision by May 11, 1999.

Wisconsin lists most dangerous rail crossings

MILWAUKEE -- The Fox River Valley dominates a new list of the state's most dangerous railroad crossings, with Waukesha County running a distant second.

Of 25 crossings with four or more crashes in the past eight months, 10

are in the Fox River Valley, with five in Oshkosh, three in Grand Chute and one each in

Green Bay and Neenah, according to the list released Monday by Railroad Commissioner Rodney Kreunen.

That's up from six Fox River Valley crossings on last year's list. Three of the Oshkosh crossings and one of the Grand Chute crossings are new to the list. Waukesha County has four crossings on the list, up from three last year. The new addition is the Wisconsin Central Ltd. crossing at E. Main St. in Waukesha, where a train hit a truck and then derailed, tying up traffic for hours Sept. 2. Crossings on Lawnsdale Road, East Ave. and state Highway 59 were all on last year's list.

Both the Fox River Valley and Waukesha County are seeing increasing growth and development, which means more people, more cars and more train traffic, Kreunen said. Another thing the Fox River Valley and Waukesha crossings on the list have in common:

They're all on Wisconsin Central tracks. Counting two crossings in the Stevens Point area and three in northern Wisconsin, the Rosemont, Ill., railroad accounts for 19 of 25 crossings on the list, up from 13 of 19 last year.