UTU News Digest - Friday, July 9, 1999

UTU Daily News Digest

Information of interest to operating railroad and transportation employees

Friday, July 9, 1999

Amtrak train derails after striking truck at crossing

EAGLE LAKE, Texas -- An Amtrak train carrying 235 passengers struck a truck yesterday at a rural crossing 60 miles west of Houston, derailing nine cars and injuring 18 people.

The Sunset Limited, on its way from Los Angeles to Orlando, Fla., slammed into the truck carrying a salt water disposal tank, tearing its two engines and eight of 13 cars from the tracks.

The lead locomotive was thrown onto its side, and rescuers broke its windshield to pull the engineer and a trainee from the wreckage.

Passengers said they heard the train's whistle blowing just before the collision with the truck, which was pulling a salt water tank.

The engineer was the most seriously injured, and remained hospitalized early today with a head injury. David Keith, an administrator of the Rice Medical Center, said the man's condition was not life-threatening.

UTU member Jason Goggans, an assistant conductor on the train, said passengers were calm in the aftermath of the accident.

"I felt the brakes go into emergency before we actually hit," he said. "You just grab on. You don't know what to expect. We knew something was going to happen."

The truck driver, whom police identified as Jason Bubela, 21, was not seriously hurt. Police were looking into potential charges against him, but none were immediately filed.

The passengers in the front of the train fared worst.

"All of a sudden, the train jerked back and forth, back and forth, and there were big noises," said Fatima Talebi, 52, of Irvine, Calif. "I knew something was going to happen. I heard a lot of yelling and praying."

But those at the back seemed as if they had been aboard another train. "It was fairly calm," said Marie Smith, 24, of Dublin, Ireland, who was seated near the end. "We just walked to the exit."

Among the uninjured passengers was Cindy McCain, wife of Republican presidential candidate and Arizona Sen. John McCain, and their son, Jack, 13.

After being treated for minor bumps and bruises, the injured passengers were released to join the others on buses bound for Houston, the train's next scheduled stop.

Cranes tried to right the derailed cars and crews tried to repair 800 feet of damaged track to reopen one of the country's main east-west rail links. About 28 trains use the track daily, railroad officials said.

The Sunset Limited was involved in the worst accident in Amtrak's 28-year history. On Sept. 22, 1993, 42 passengers and five crew members died when the train plunged off a bridge into a bayou near Mobile, Ala. The bridge had been damaged minutes earlier by a towboat.

In March, Amtrak's City of New Orleans ran into a truck at a crossing in Bourbonnais, Ill., killing 11 people and injuring more than 100.

Power to assumes presidency at Wisconsin Central

ROSEMONT, Ill. -- Thomas F. Power, Jr. will take over as president and chief executive officer of Wisconsin Central Transportation Co. (WCTC) after the unexpected announcement that the company's founder, Edward A. Burkhardt, has resigned and is leaving the company on Aug. 31.

Burkhardt, who is 60, created Wisconsin Central in 1987 by purchasing nearly 3,000 miles of track in Wisconsin and adjoining states from the Soo Line Railroad Co., a subsidiary of Canadian Pacific, Ltd.

The former vice president of operations at the Chicago & North Western Transportation Co. built Wisconsin Central into the largest U.S. holder of overseas rail assets and the nation's largest regional railroad. North American rail revenue alone reached nearly $350 million last year, four times the sales in the company's first full year of operations.

Foreign holdings by WCTC include 33% of three properties: the English, Welsh and Scottish Railway in England, Tranz Rail Holdings in New Zealand and Australian Transport Network Limited.

A company statement said Burkhardt was leaving to "establish an independent railway investment and consulting firm." No further information was available about his plans.

Asked if WC's board requested Burkhardt's resignation, company spokeswoman Ann Thoma had no comment.

Journal of Commerce: Chemical group slams NS, CSX

Twenty-five disgruntled chemical shippers gave the Surface Transportation Board an earful about problems resulting from the division of Conrail Inc.

They cited plant shutdowns, diversion to trucks and delays on key routes operated by Norfolk Southern Corp. and CSX Transportation Inc.

The chronicle of complaints was submitted to STB by the Chemical Manufacturers Association.

CMA, whose members spend almost $5 billion on rail freight service annually, said, "The U.S. chemical industry has been adversely affected by rail service disruptions. CMA commends CSX and Norfolk Southern for cooperating with their customers. Nevertheless, … rail service, particularly in the Northeast and Midwest has not been acceptable."

In recent weeks, other shipper groups, including the National Industrial Transportation League, have been directing their members to forward complaints about the breakup of Conrail to the STB so that the agency can have a fuller picture of the problems that have occurred.

Companies in the CMA complaint were identified by number, and not by name, because of competitive reasons, said Tom Schick, a CMA spokesman.

The chemical shippers complained of difficulty in reaching the railroads, safety of time-sensitive products that were delayed and "ping-pong" cars that are sent to places other than the destination before arriving late.

A sampling of the complaints:

Company 1: "We have not shut down any customers yet, but are whisker-close to several. One plant is 35 shipments behind. Minimum transit times are close to doubling."

Company 4: "Problems were anticipated but not this bad. Car from Newark, Delaware, that left June 1 still hasn't made it to Ohio (as of June 14)."

Company 6: "We've had to convert to truck as much as possible, but some customers will not take truck deliveries. We are clearly in danger of shutting down several key accounts."

Company 11: "Delays ranging from two to five days. Cause ranges from EDI failures to severe congestion in key areas, cars being moved incorrectly, no bills."

Company 14: "Having terrible problems . . . two weeks' worth of cars missing, shutting down part of plant, moving stuff to trucks . . . $500,000 a day in lost sales."

Company 18: "Were unable to trace cars today . . . already filing claims because we have moved to truck."

Company 20: "The railroads are doing their best to respond when plant/customer shutdowns are at risk. It is still difficult obtaining accurate and stable ETA's."

Company 21: "It would be helpful to us as customers to have specific contacts established who have the ability to obtain good information on when we can expect situations to improve."

The chemical shippers, whose comments concerned operations on NS and CSX during June, said problems on CSX were focused in the Pittsburgh, Albany, N.Y., and Atlanta areas, as well as shipments through Kansas City and from Texas to Pittsburgh. Problem areas on NS spanned 20 locations, including six in Ohio and two each in Indiana and New York state. Problems also were reported in Alabama, Tennessee, Maryland, Pennsylvania and Michigan.

Story by JOC’s Rip Watson

Kansas City Southern Railway to purchase 50 locomotives

KANSAS CITY, Mo. -- Kansas City Southern Railway announced earlier this week that it has placed an order with GE Transportation Systems, a division of General Electric Company, for 50 of GE's most advanced AC (alternating current) locomotives.

The company said the $100-million order, to be delivered in November and December of this year, provides for service expertise and performance guarantees for the 18-year life of the locomotives.

KCS President and CEO Michael R. Haverty said the investment in new locomotives puts KCS' NAFTA Railway in a position to deliver superior service to its customers and to handle its growth. "Upgrading our locomotive fleet will help us provide North American shippers with higher standards of service while achieving substantial operational efficiencies."

To maintain the 50 GE AC4400CW(TM) locomotives, GE will construct a new maintenance facility on KCS property adjacent to its rail yard at 4747 Front Street in Kansas City, Mo.

KCS mechanical employees, in consultation with GE technicians, will perform all maintenance work. The facility's flexible design will provide for expansion as KCS increases and upgrades its fleet.

According to Steve Angel, General Manager of Americas Locomotives for GE, the locomotive order is the first that GE has received from KCS. "With these new locomotives, KCS will achieve nearly twice the haulage capacity of older, DC (direct-current) units. AC technology also will help KCS reduce operating expenses including motor maintenance and fuel consumption."

KCS is a Class I railroad operating over 2,756 miles of track in seven Midwest and south-central states. Through acquisitions, investments and marketing alliances, KCS has developed a North American rail network called the NAFTA Railway, which links the commercial and industrial centers of Canada, United States and Mexico.

Transit board votes for union work force

SEATTLE, Wash. -- Organized labor scored a major victory yesterday when Sound Transit board members voted to standardize wages and working conditions through labor agreements on much of the $3.9 billion regional rail-bus project.

The decision means thousands of construction workers will be hired through union halls for the $2 billion light rail project. And some of those workers could come from the neighborhoods the system will serve.

The board approved a job-training program for workers in low-income communities that will be served by Sound Transit.

The 14-4 vote came as a surprise. Most expected a closer split.

"We are clearly disappointed," said Curtis Smelser, executive vice-president of Associated General Contractors of Washington. His organization had lobbied Sound Transit board members for weeks to drop the union-only provision.

However, non-union workers would be able to seek jobs under the project labor agreements if they pay dues during the period they are on the job.

Also, the labor agreements would carry a no-strike clause and specify rules on resolving labor disputes.

Jack Gilchrist, executive secretary of the Seattle/King County Building and Construction Trades Council, applauded the decision as a vote of confidence.

But, he added, "Now we are on the hook. We'll get significant blame if we don't get this done on time."

Kathleen Garrity, executive director of the statewide Associated Builders and Contractors organization, said "we'll be monitoring closely that what is promised is delivered."

Board members voting against using labor agreements were Chairman Paul Miller, a Tacoma city councilman; Lakewood City Councilwoman Ann Davis; Sumner City Councilman David Enslow and Metropolitan King County Councilman Rob McKenna.

Census Bureau report highlights middle class woes

WASHINGTON, D.C. -- Luanne Shirling didn't think of herself as someone on the financial edge. She and her husband had good jobs and not much debt and were starting to fix up their house.

But she didn't have health insurance, and she unexpectedly became pregnant. She ended up with complications, a Caesarean section and $20,000 in medical bills. Before long, she had missed several mortgage payments and even had to use food stamps for a short while.

She's not alone. Some 49 million Americans -- or 20 percent of the nation -- had trouble meeting basic needs at least once in 1995. That includes paying rent, mortgages, food and utility bills.

The poorest, of course, were most likely to have trouble. But many, like the Shirlings, are solidly middle class. And 8.1 million were in families earning more than $45,700 a year, the Census Bureau said in a report being released today.

"We were not really saving when all of a sudden -- bam! -- this hit," said Mrs. Shirling, of Warrenton, Va., whose family income was about $35,000 -- putting them near the national average. "I think a lot of people out there think they're getting by and doing fine and don't realize how devastating it can be."

Nationwide, about 19.5 million of those who had trouble meeting basic needs had household incomes in the bottom 20 percent of the nation, meaning less than $16,800 per year. Another 12.2 million were below $30,400.

But 5.2 million people had incomes above $45,700, and another 2.9 million were above $68,700 -- in the wealthiest fifth of the nation.

Experts explain that many families with healthy incomes are still living close to the financial edge, without enough saved for an emergency. It's particularly dangerous for families living in expensive cities or carrying large mortgages or personal debt.

That makes them vulnerable to unexpected financial hits -- a layoff or large medical bill, for instance. Or divorce can often push a family into financial crisis, with the people who used to pay one rent or mortgage now forced to pay two.

The Census Bureau also asked Americans who would help them if they had trouble. More than three in four said they expected to get help if they needed it, mostly from family and friends.

But only 17 percent of those who ran into trouble actually got help, mostly from family but also from government.

Part of the difference in who needs help may be family stability, said Census demographer Kurt J. Bauman, who wrote the report. He noted that the elderly, who often live near the poverty line, were the age group least likely to report trouble meeting basic needs. But the elderly generally have fixed incomes and stable expenses.

The most vulnerable group was children, who are also the poorest Americans. Nearly 30 percent of children lived in a family that had trouble meeting basic needs. Blacks and Hispanics were more likely to report trouble than whites, as were female-headed families -- all groups that are more likely to be poor, as well.

But the report's more surprising findings dealt with those who are not poor, but firmly in the middle class or above.

The problem is that many of these families do not save enough money, said Joanne Kerstetter, president of the Consumer Credit Counseling Service, which helps consumers restructure their debt.

"They haven't been taught how to handle their finances. When any type of crisis hits, they don't have savings to fall back on," she said.

An estimated 55 percent to 60 percent of households carry some credit card debt, said Stephen Brobeck, executive director of the Consumer Federation of America. Interest payments and fees quickly add up.

"Even small differences can determine whether a lifestyle is sustainable or not," he said. "Eventually it catches up with them."