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STB concludes hearings on Conrail takeover; will vote on Monday

WASHINGTON – Today the Surface Transportation Board (STB) will rule on the $10.2 billion acquisition of Conrail by Norfolk Southern Corp. and CSXT.

If things go as predicted, the STB will approve the deal – with some strings attached.

The key question will be what the regulators will impose in terms of conditions on the deal.

After today’s vote, which is widely expected to approve the deal, the board has until July 23 to file its written decision and definitive rulings. Many observers say the STB will create regulatory mechanisms meant to ensure the Conrail breakup doesn’t turn into the fiasco created by the takeover of the Southern Pacific by the Union Pacific.

Concerns about the deal revolve over competition in the Northeast to higher costs and monopolies in some areas.

During the hearings, New York Republican Sen. Al D’Amato threatened a lawsuit if regulators approve the proposal without addressing concerns that some shippers would benefit little from the promised competition to some Northeastern markets. He is concerned about Buffalo and areas east of the Hudson River.

In addition, several rail unions are concerned that CSX and NS want to cancel Conrail contracts with many employees and require them to accept wage schedules and working conditions that now apply at the two railroads. The United Transportation Union is currently negotiating implementing agreements with NS and CSX and does not oppose the transaction.

Germany reduces death toll in crash to under 100

ESCHEDE, Germany – On Sunday, German officials lowered the estimated death toll because many of the bodies were so badly mutilated they are not sure exactly how many died.

But they believe the number is less than 100 and say they think they have found 93 or 94 bodies. Another five people have died at hospitals.

Investigators have pointed to wheel failure as the likely cause of the crash. Rail delays, caused by similar trains being pulled from service, continued yesterday and are expected to continue today. It will take about 15 days to complete tests on the wheels and wheel casings.

Investigators believe that Inter City 884 might have begun to derail well before it hit the bridge. Some survivors say they had heard noises a few minutes before the crash. It is possible that a wheel on the car directly behind the locomotive may have broken.

The accident was the worst in Europe since 1974, when 153 people were killed in Zagreb when a train bound for Germany from Belgrade derailed.

SEPTA strike enters second week; AFL-CIO blasts SEPTA

PHILADELPHIA – The transit strike entered its second week today without city trains, buses and trolleys as an impasse continues between Transportation Workers Union Local 234 and SEPTA.

Last week SEPTA refused to accept binding arbitration to help settle the strike, which prompted the Philadelphia Council AFL-CIO to blast SEPTA as "union busters."

SEPTA is considering whether to have managers and non-union personnel operate buses, the subways and the EL.

No new talks have been scheduled.

On June 1, the 5,300 SEPTA workers represented by the Transportation Workers Union Local 234 went on strike because they have failed to reach a new contract after their old pact expired on March 15.

About 280 SEPTA drivers and trolley operators represented by the United Transportation Union Local 1594 in Upper Darby, Pa., had approved a three-year contract with SEPTA in early April. Service in those areas continues.

China to reduce rail work force by 1 million workers

BEIJING – By 2000, one million Chinese rail workers will be reassigned to other jobs, the government said.

At the end of 1997, the government said 3.37 million people work in the railroad industry and intends to reduce the number as it attempts to expand and upgrade its national rail system.

The Chinese government is calling on foreign investment to help upgrade its rolling stock. More than $2 billion of overseas investment will be used in the next five years to continue opening its rail market.

The 41,000-mile rail network – the largest in Asia – is only 20% electrified and huge stretches are still single-track.

Couple killed by train in Washington state

TUKWILA, Wash. – An elderly couple was fatally injured on Friday when a freight train hit their car at a railroad crossing here.

The accident happened at a gate-controlled public railroad crossing on BNSF’s main line. Witnesses said the car was crossing the tracks during rush-hour traffic when the warning bells sounded and the gates came down. The car had no place to do and the elderly man and woman inside could not get out. The train blew its horn but couldn’t stop in time.