UTU News Digest - Thursday, June 17, 1999

UTU Daily News Digest

Information of interest to operating railroad and transportation employees

Thursday, June 17, 1999

WASHINGTON, D.C.: Anti-Amtrak rule expected in House

WASHINGTON -- The House Republican leadership is likely to offer an anti-Amtrak rule when the fiscal year 2000 transportation funding measure reaches the floor, which could happen as early as tomorrow, according to passenger rail proponents.

The National Association of Railroad Passengers (NARP) trumpeted the warning in an advisory issued to its members along with instructions for contacting lawmakers.

NARP noted that House Appropriations Chairman C.W. "Bill" Young (R-Fla.) and the chairman of his transportation subcommittee, Frank R. Wolf (R-Va.), had worked out a package of cuts that spared Amtrak. The Administration had agreed to the package, but NARP said the House leadership rejected it and is preparing its own, bigger package which seems likely to hurt Amtrak.

Amtrak's $571 million, as approved by the full appropriations committee, is $38 million (about 7%) below Amtrak's current level. By contrast, the committee approved significant increases for the other modes, including $1.6 billion more for highways and $153 million more for the Coast Guard.

Ironically, Rep. Tom Coburn (R-OK), in whose state rail passenger service returned this week, is a key leader in the cut-spending effort.

NARP is asking its members to contact their representatives in Washington, D.C., to urge them to vote against any effort to cut Amtrak spending. Lawmakers can be reached through the Capitol Switchboard at (202) 224-3121. E-mail can be sent to most House lawmakers through that chamber's website at http://www.house.gov/.

VIRGINIA: NS admits problems as stock dips with news of rising costs

NORFOLK -- Norfolk Southern Corp. (NS) late yesterday issued a report on its absorption of Conrail rail lines in which Chairman and President David Goode said "our service is not at the level of quality our customers have a right to expect."

At the same time, the carrier said the integration of its Conrail unit may be more costly than anticipated because of continued computer system glitches.

Shares closed down $1.437 at $32.937 yesterday, bucking an overall market boost on a day when the Dow Jones Industrial Average closed up 190 at 10,785.

The carrier also issued a statement commending workers' safety efforts, saying "the employees of Norfolk Southern, especially our new team members from Conrail, are performing admirably under challenging circumstances."

"We appreciate the cooperation the railroad has received from customers, labor organizations, other railroads, communities and transportation officials," Goode said.

"The cost of the Conrail integration may be higher than we anticipated, but the investment will pay off in efficiency and service enhancements on our expanded system," Goode said.

Goode said "while we have solved a number of problems, we still face others that we are working hard to solve as quickly as possible."

According to a company spokeswoman, NS has never released any cost estimates on the Conrail integration.

CSX Corp. has also experienced some continued congestion, according to Robert Guld, a spokesman at CSX Corp.

"As issues, some unanticipated, arise, teams are put into place," Guld said. "But even with these issues, the rail network is moving and we are making progress every day," he added.

On Wednesday, NS said terminals in Elkhart, Ind., Bellevue, Ohio and Conway, Pa., near Pittsburgh, have been congested, but trains are moving through them.

The railroad has been criticized by customers for computer problems, delayed deliveries and lost shipments, issues addressed in the carrier's statement yesterday.

"We are confident that over time we will deliver the benefits promised for the new eastern rail system," Goode said.

NS said it has also had problems with the crew calling system that have caused delays in dispatching crews to trains, but added that some progress had been made.

Steps also have been taken to give a clearer picture of actual traffic flows, NS asserted.

Goode noted that NS has shifted traffic to air and truck carriers and run special trains to meet customer commitments.

NS now operates about 21,600 miles of railroad in 22 states, the District of Columbia and the Province of Ontario.

WASHINGTON, D.C.: FRA awards grant to study rail fatigue

WASHINGTON -- U.S. Transportation Secretary Rodney E. Slater yesterday announced the award of a $99,000 Federal Railroad Administration (FRA) grant to Tuskegee University in Alabama for rail fatigue research.

Modern rails manufactured from steel are subjected to severe service conditions, FRA explained. These materials experience complex loadings which are generated by the weight of goods, the impact of trains, curves of the tracks, friction and wave actions of locomotive wheels, as well as thermal stresses in changing climates and other critical factors. Rail fatigue research is aimed at examining the properties of steel in modern rails to characterize crack growth patterns and their damage tolerances.

"Railroad traffic is increasing and this research will assist us in improving railroad safety by expanding our knowledge of rail durability," said FRA Administrator Jolene M. Molitoris.

She said the research is important because premature rail fatigue failure has been the cause of derailments and other severe accidents. An improved understanding of this failure mechanism is essential to address related issues of railroad safety, reliability and operational efficiency.

The grant was awarded after a preliminary qualification assessment, consultations with appropriate faculty, and inspection of the scientific facilities at the institution. The research will build on Tuskegee University's heritage in science and engineering, a tradition going back to George Washington Carver and continuing with the its more recent research for NASA and the U.S. Department of Energy.

"This grant demonstrates President Clinton and Vice President Gore's commitment to education to prepare America for the next century and the new millennium," Secretary Slater said. "Such research and study will both prepare our students to enter the 21st century workforce and develop a platform to achieve our vision of the transportation system for the new millennium."

CANADA: Court upholds CTA approval of new CPR line to Prentiss

CALGARY -- A unanimous federal appeals court ruling yesterday allows Canadian Pacific Railway (CPR) to proceed with plans for construction of a new rail line that will provide Union Carbide Canada (UCC) with competitive transportation options at its planned new facility at Prentiss, Alta., the railway said.

The court ruling, which awards legal costs to CPR, upholds an April 1998 Canadian Transportation Agency (CTA) decision approving construction of the proposed 12.6-km (eight-mile) rail line to a new polyethylene facility at Prentiss. The CTA decision, which followed a three-day public hearing last year in Red Deer, had been appealed by a Lacombe County landowner.

Lacombe County and the Town of Lacombe supported CPR's proposal to build the spur line to Prentiss. In addition, Agricore recently announced it plans to build a high-throughput grain elevator on the proposed CPR line.

"The decision brings an end to a long period of uncertainty, allowing an important, Alberta-based economic development project to proceed," said Fred Green, vice-president of marketing at CPR.

Prior to its December 1997 application for CTA approval to build the rail line, CPR said it conducted an extensive program of public consultation and environmental assessment to determine the best route in response to the demand for the new rail line. Since its application, the railway said it has continued to consult with the community and governments and has established a Lacombe-area Community Advisory Panel.

The carrier also said it reached agreement with UCC and the Province of Alberta to provide a $1.2-million grade separation at the intersection of the planned spur line and Highway 12, just east of Lacombe.

As a result of the ruling, CPR expects to soon finalize plans for construction of the rail line to meet the planned opening of the polyethylene plant in August 2000. The new rail line will run southeast from CPR's Lacombe Subdivision at a point about four km (2.4 miles) from the Town of Lacombe.

Calgary-based CPR, a subsidiary of Canadian Pacific Limited, operates about 25,000 km (15,500 miles) of track in Canada and the United States, has approximately 19,800 employees and annual revenues of $3.4 billion. The railway serves ports on both coasts of Canada and all regions in between, as well as the Midwestern U.S. into the Chicago heartland and the most industrialized and populous sectors of the U.S. Northeast.

CALIFORNIA: High-speed rail authority hears recommendations

LOS ANGELES -- The California High-Speed Rail Authority received its staff and consultant recommendations yesterday for adoption of a statewide route designed to serve the greatest number of travelers while keeping costs and travel times at their minimum for the 200-mile-an-hour train.

Board members said they will vote on the staff recommendations at a meeting July 20 in San Francisco. When adopted, the alignment outlined yesterday will become part of the final business plan that the authority will present to the governor and the state legislature by the end of the year.

"We chose these route options because they provide the best combination of ridership, revenue and speed potential," said Mehdi Morshed, executive director of the authority, a state agency established to oversee development of a statewide high-speed train system for the 21st century.

"We will review this staff recommendation and make our decision next month," said Michael Tennenbaum, authority board chairman. "We intend to present the governor, the legislature and the public a business plan that makes sense, is cost-effective and serves the best interests of the state."

A variety of alignment options had been under consideration over the past year. A preliminary route had been identified in December 1996 by the California High-Speed Rail Commission, the authority's predecessor agency.

The recommendations include these major elements:

-- High-speed train service from Riverside to Union Station in Los Angeles, possibly in conjunction with the Southern California Association of Government's (SCAG) regional maglev (magnetic levitation technology) proposal;

-- a Tehachapi crossing close to the Grapevine route followed by Interstate 5;

-- Central Valley routing from Bakersfield to Modesto along a corridor west of State Route 99;

-- a Pacheco Pass alignment from the Central Valley to the Bay Area, creating a more direct link to San Jose and a peninsula route to San Francisco. In 1996, the former commission chose a route through Altamont Pass; and

-- direct service from Modesto to Sacramento along the State Route 99 corridor.

In addition, the staff recommended further study of at least three other major route options.

-- Routing the Los Angeles-San Diego segment through Orange County. In 1996, the former commission chose to bypass Orange County in favor of a Los Angeles-Riverside-San Diego loop via the Interstate 15 corridor;

-- service to Los Angeles International Airport, which ultimately may be part of SCAG's Maglev route; and

-- East Bay options from San Jose to Oakland that may include a direct very-high-speed link or upgraded conventional rail service.

In other action related to development of its business plan, the authority heard details of a framework for establishment of a 100-mph feeder rail network to complement the proposed 200-mph statewide very-high-speed backbone system. The complementary feeder system would expand the impact and benefits of the full statewide system to scores of communities and millions of Californians.

The authority also received an assessment of the implications of the very-high-speed train system for commuter routes, particularly in the Los Angeles region and San Francisco Bay Area. The very-high-speed train system is envisioned as an intercity network that will connect with and enhance commuter travel in some areas, according to the analysis.

WASHINGTON, D.C.: Amtrak to guarantee service with voucher offer

WASHINGTON -- Amtrak embarked on another journey today to ground flying travelers, pledging rail passengers good service or a voucher for free travel.

The promise came as frustrations rise over air travel and as Congress considers bills requiring airlines to treat their passengers better.

Amtrak, which must wean itself from federal operating subsidies by 2003, hopes its planned service improvements will boost revenues by $85 million over three years.

"We will treat our customers as valued guests when they travel on Amtrak, so they will choose to ride our trains over and over again," said George Warrington, Amtrak's president and chief executive.

"We are going to guarantee passenger rights while others in the transportation industry are fighting them in Congress," he said in remarks prepared for a formal announcement today at Amtrak's Union Station.

The nation's major airlines are trying to negotiate voluntary protections to stave off passenger-rights directives from Congress. Air travelers have complained of long delays and airlines' failures to keep them informed and comfortable.

Warrington announced a customer-service program that includes training and incentives for all 24,000 employees, enhanced food-service options and improved on-board amenities.

Central to the initiative is a guarantee: Amtrak will offer dissatisfied passengers a refund voucher for future travel. That guarantee will take effect later this year, after the railroad's other service initiatives are in place.

Spokesman John Wolf estimated that only one out of every 1,000 passengers will request a voucher. Amtrak is offering vouchers, instead of refunds on the current trip, to give itself a second chance to woo the customer.

Amtrak still faces hurdles, such as limited routes and schedules, in becoming a true alternative to airlines. But Wolf said the guarantees should help the railroad set itself apart from other travel modes.

Earlier this year, Amtrak announced a high-speed service to lure travelers who now fly the lucrative Washington-New York-Boston shuttle route.

The new 150-mph Acela trains are to travel between Boston and New York in three hours -- an improvement of 90 minutes over the current trip -- and from New York to Washington in as little as 2 1/2 hours, a savings of a half-hour.

Amtrak also is developing other high-speed rail corridors elsewhere, including one linking Illinois, Indiana, Iowa, Michigan, Minnesota, Missouri, Nebraska, Ohio, and Wisconsin.

Amtrak passenger revenues exceeded $1 billion for the first time ever last year, with 21 million customers riding by rail. Amtrak said it had the best on-time performance in 13 years.

ILLINOIS: RRB notes Railroad Unemployment and Sickness Benefits rate increase

CHICAGO -- The maximum daily benefit rate payable for claims under the Railroad Unemployment Insurance Act increases to $46 from $44, in the new benefit year which begins July 1, 1999, according to the U.S. Railroad Retirement Board (RRB).

Benefits are normally paid for the number of days of unemployment or sickness over four in 14-day registration periods, so maximum benefits for biweekly claims will total $460.

During the first 14-day claim period in a benefit year, benefits are payable for each day of unemployment or sickness in excess of seven, rather than four, which, in effect, provides a one-week waiting period, the RRB said. Initial sickness claims must also begin with four consecutive days of sickness. However, only one waiting period is required during any period of continuing unemployment or sickness, even if that period continues into a subsequent benefit year. Therefore, claimants already on the rolls will normally not be required to serve another waiting period because of the onset of the new benefit year.

To qualify for normal railroad unemployment or sickness benefits, an employee must have had railroad earnings of at least $2,312.50 in calendar year 1998, not counting more than $925 for any month, according to the RRB. Those who were first employed in the rail industry in 1998 must also have at least five months of creditable railroad service in 1998.

The board said that under certain conditions, employees with 10 or more years of service, who do not qualify in the new benefit year on the basis of their 1998 earnings, may still be able to receive benefits after June 30, 1999. Ten-year employees who received normal benefits in the benefit year ending June 30, 1999, might still be eligible for extended benefits, and ten-year employees may be eligible for accelerated benefits if they have rail earnings of at least $2,425 in 1999, not counting earnings of more than $970 a month.

Application forms for unemployment and sickness benefits can be obtained from railroad employers, railroad labor organizations, any Railroad Retirement Board office, or the Board's website. Field office locations can also be accessed through the website, which can be accessed at http://www.rrb.gov.

Claimants with questions about unemployment or sickness benefits should contact the nearest board office. Most board offices are open to the public from 9 a.m. to 3:30 p.m., Monday through Friday. Claimants can find the address and phone number of the board office serving their area, and also get information about their claims and benefit payments, by calling the toll-free RRB Help-Line at 1-800-808-0772. The RRB Help-Line is an automated telephone service available 24 hours a day, 7 days a week.

Callers to the RRB Help-Line who want information about their unemployment or sickness claims and benefit payments need a Personal Identification Number (PIN), which is printed on the back of each claim form.

PENNSYLVANIA: SEPTA riders offered discount to SportsFest'99

PHILADELPHIA -- Riders who patronize Southeastern Pennsylvania Transportation Authority (SEPTA) services are being offered a special $2.00 discount on admission fees during the three-day SportsFest'99 event, which runs from today through Sunday, June 20, the agency said.

SEPTA said it offers the quickest and most convenient route to SportsFest'99, which is being held at for the Pennsylvania Convention Center, with more than 25 bus and rail routes operating just about to the doors of the facility.

The SportsFest'99 sports collectible and entertainment festival will feature autograph sessions with more than 20 sports superstars, a kids store for young collectors, and over 400 sports card exhibitors and memorabilia dealers.

SEPTA regional rail lines, the Broad Street and Market-Frankford high speed lines, subway-surface trolley routes, and Center City bus Routes 12, 17, 23, 33, 38, 44, 48, 76, 121, 124 and 125 provide convenient services to the Convention Center for riders traveling to the event from throughout the Greater Philadelphia region.

To receive the $2.00 admission discount to SportsFest'99, SEPTA riders should visit the SEPTA booth near the entrance of the Convention Center and show a SEPTA pass, token or transfer.

For additional information about SEPTA services to the Convention Center or the admission discount, call 215-580-7800.

TEXAS: "Rail Killer" continues to elude manhunt

ROUND ROCK -- A man arrested on a freight train yesterday wasn't the rail-riding murder suspect as police initially believed.

Authorities announced the arrest Wednesday night of a man who fit the description of Rafael Resendez-Ramirez, a suspect in six slayings that happened near railroad tracks since 1997.

Hours later, authorities said the man was not Resendez-Ramirez.

"We have a pretty high confidence that it's not Rafael Resendez-Ramirez," Department of Public Safety spokesman Mike Cox said.

A fingerprint test didn't match, he said. The arrested man has a similar snake tattoo but on the wrong arm, said another spokesman, Tom Vinger.

Police stopped the train in this Austin suburb after a 911 caller said Resendez-Ramirez might be on a freight train in the area, Cox said.

A drifter from Mexico known to hop freight trains, Resendez-Ramirez has been wanted by the FBI in connection with five Texas killings and one in Lexington, Ky., since August 1997. All the victims were beaten to death near railroad tracks.

On Wednesday, police in the east Texas town of Hughes Springs said they also consider Resendez-Ramirez a suspect in the killing of an 87-year-old woman eight months ago. The victim was robbed and beaten to death in her home near a railroad track.