UTU News Digest - Wednesday, May 5, 1999

UTU Daily News Digest

Information of interest to operating railroad and transportation employees

Wednesday, May 5, 1999

WASHINGTON: FRA applauds CSX and Norfolk Southern for safety efforts during Conrail split-up, JOC reports

WASHINGTON -- The Federal Railroad Administration (FRA) applauded safety integration efforts of CSX Corp. and Norfolk Southern Corp. as they plan to divide the assets of Conrail Inc. on June 1, the Journal of Commerce reported.

FRA Administrator Jolene Molitoris told the Surface Transportation Board "I am confident that the deeply rooted and long planned SIP (safety integration plan) actions ... will contribute significantly to a safe integration."

Her comments were part of a 29-page report that FRA agreed to send as STB oversees the steps following approval last summer of the $10 billion plus acquisition of Conrail by NS and CSX.

Both FRA and STB spotlighted safety efforts during the Conrail acquisition because of accidents, staffing shortages and training problems after Union Pacific Railroad's 1996 merger with Southern Pacific Transportation Co.

"Currently, there are no performance/safety conditions identified or foreseen by FRA on the CSX, NS and CSAO-acquired territory to warrant STB oversight action to correct deficiencies and or/address safety problems," the report said.

CSAO territory refers to portions of northern New Jersey, Detroit and Philadelphia where NS and CSX will run their own trains and a far-smaller Conrail will provide terminal operations.

While most of the report praised efforts by NS, CSX and current Conrail employees, the agency identified multiple areas that needed additional attention or increased scrutiny. Those included:

* staffing levels in the Buffalo and Cleveland area
* adequacy of training time for Conrail train crew workers before they are promoted to engineer.
* adequacy of operating rules training for Amtrak employees and other rail workers who will operate lines that NS and CSX take over on June 1
* maintenance coordination along parallel tracks in the Buffalo area that each Conrail buyer will operate
* concern about low-speed accidents and derailments in Elkhart, Ind., Pittsburgh and Selkirk, N.Y.
* smoothness of post June 1 operations in Northern New Jersey shared asset areas and in Chicago, the nation's largest rail hub.

The report noted that Conrail's safety and operational performance was favorable through much of 1998 and that accident and injury rates were the lowest in the railroad's history last year.

FRA praised NS and CSX for retaining top Conrail managers, encouraging a safety culture, completing pre-merger labor agreements, completion of training programs, hiring new workers, upgrading infrastructure and overhauling of computer systems to assure Y2K compliance.

The agency also endorsed efforts by managers of CSAO areas, where both NS and CSX will have separate operations and terminal services will be provided by a much smaller Conrail.

FRA has agreed to give STB two safety integration reports annually on the NS/CSX/Conrail transaction.

Ms. Molitoris said FRA officials have initiated "safety blitzes" of 30 to 40 inspectors and convened meetings with other U.S. railroads to assure a smooth transition on June 1. FRA responded to safety questions on Conrail after four workers died in January accidents by saying it "could not identify a direct causal relationship between these incidents and the ongoing merger integration."

FRA said current Conrail management "appears to be carrying out its responsibilities and decisions in a responsible and prudent manner."

OKLAHOMA: Tornadoes disrupt BNSF, UP service in Oklahoma, Kansas

OKLAHOMA CITY -- North America's two largest railroads on Tuesday delayed and rerouted dozens of cross-country freight trains in the areas of Oklahoma and Kansas that were ravaged by tornadoes Monday.

Union Pacific Railroad and Burlington Northern Santa Fe Railway said they had considerable debris across tracks, including separate instances of collapsed grain silos. Affected were trains hauling grain, coal, general freight and intermodal containers.

The powerful tornadoes killed at least 45 people in Oklahoma and Kansas.

A BNSF spokesman said storms destroyed a key rail signal building and knocked down a microwave signal tower near Moore, Okla., a suburb just south of Oklahoma City. Electronic signals are crucial to normal rail operations; among other problems, BNSF now has to post employees at some road-rail crossings in Oklahoma to let drivers know when trains are coming.

A silo was across BNSF tracks near Mulhall, Okla., well north of Oklahoma City, and BNSF had another report that some of its track was literally ripped up by the storm's power.

MICHIGAN: Gore proposes more mass transit

DETROIT (AP) -- Vice President Al Gore went to the heart of the nation's automobile industry to outline his ideas for relieving traffic congestion and improving living conditions.

Gore proposed $6 billion to help communities develop alternatives to building more roads during his keynote address Tuesday at the National Town Hall Meeting on Sustainable America.

"We need better and smarter mass transportation," Gore said.

Passenger vehicles and trucks should also be required to meet tough pollution standards, he said. Reliance on the automobile is a national trend. Only 5.1 percent of commuters across the country use public transit, according to a National Public Transportation Survey. In Detroit, only 2 percent use public transportation to get to work.

In his speech to nearly 3,000 local politicians and community activists, Gore also promoted $700 million in new tax credits for state and local bonds to build more livable communities.

The "Better America Bonds" would preserve open spaces, build parks, improve water quality, and redevelop old, toxic industrial sites known as brownfields.

ILLINOIS: Wisconsin Central reports highest 1st quarter income

ROSEMONT, Ill. -- Wisconsin Central Transportation Corporation yesterday reported net income for the first quarter ended March 31, 1999, of $13.7 million ($.27 per diluted common share).

First quarter 1998 net income of $20.4 million ($.40 per diluted common share) included the sale of rights under a transportation agreement for $5.4 million ($.06 per diluted common share, after tax).

The company's North American operating income for first quarter 1999 increased 12 percent to $18.0 million from $16.0 million in the year-ago quarter. The operating ratio (operating expenses as a percentage of operating revenues) improved to 79.7 percent versus 81.0 percent for the year-ago quarter.

First quarter 1999 North American operating revenues of $88.5 million were a first-quarter record, up 5 percent from year-ago revenues of $84.0 million. Declines in some categories, especially steel and wood fibers, were more than offset by revenue increases in other categories including wood pulp, food and grain, intermodal and wholesale freight haulage.

First quarter 1999 North American operating expenses were $70.6 million versus $68.0 million in the year-ago quarter, an increase of 4 percent. Most of the difference is attributable to an increase in casualty accruals and to weather-related congestion in the Chicago rail network, affecting the ability to make timely and efficient connections with other railroads in January and February.

WCTC Chairman, President and CEO Edward A. Burkhardt commented, "I am pleased with our North American operations this winter. Despite delays within Chicago's railroad network early in the quarter, our own system remained fluid and efficient. Also, our business in the second half of the quarter rebounded from the first half levels."

The company's first quarter 1999 results included equity in net income of affiliates of $5.2 million compared to $9.9 million in the year-ago quarter. The contribution from English Welsh & Scottish Railway Holdings Limited (EWS) was $3.4 million in first quarter 1999 versus $7.9 million in the year-ago quarter. EWS's operating revenues in the quarter declined 12 percent from a year-ago, reflecting reduction of certain freight rates to market levels, reduction in infrastructure traffic, and weakness in the steel market. EWS's operating expenses in the quarter declined 4 percent.

Mr. Burkhardt commented, "Expenses are falling more slowly than we would like, as EWS migrates from the fragmented operating structure of the past to centralized train and resource planning. Transition to the new, more efficient operating mode is necessary to serve the U.K.'s changing marketplace and to realize long-term efficiencies and asset utilization strategies. This transition is expected to take most of 1999 to complete."

The contribution from Tranz Rail Holdings Limited was $1.6 million in first quarter 1999 versus $2.0 million in first quarter 1998. Measured in New Zealand dollars, Tranz Rail's operating revenues decreased 1 percent as New Zealand's economy remains under pressure. Operating expenses increased2 percent including redundancy costs associated with Tranz Rail's continuing work force reduction. The value of the New Zealand dollar versus the U.S. dollar was $.53 in first quarter 1999 compared to $.58 in the year-ago quarter.

PENNSYLVANIA: History rides rails from Philadelphia to Scranton

SCRANTON, Pa. -- History and elegance will take center stage upon the rails, as the Buy-Miles Purchasing Group will conduct an excursion of fully restored private business coaches from Philadelphia to the Steamtown National Historic Site in Scranton.

The May 7th trip will originate from the 30th Street Station in Philadelphia at 7:00 A.M. and arrive in Scranton at approximately 7:00 P.M.

The Buy-Miles Purchasing Group is an organization of vintage railroad business car collectors that will parade as many as twelve fully restored business coaches throughout Eastern Pennsylvania and into Steamtown. This will be the first time ever that so many coaches of this nature have entered the confines of Steamtown.

Included in the excursion on Friday will be the Pennsylvania Railroad 120. The PRR 120 was the Presidents car of the Pennsylvania Railroad and was the same car that carried the body of Robert Kennedy after his assassination.

Among the events planned while in Scranton, is a special private trip to Analomink on Saturday morning and added interpretive programs that will showcase the remaining coaches that will be exhibited at Steamtown throughout the day. Included in the display at the park will be the Lehigh Valley 353. Originally purchased in 1916 by the Lehigh Valley Railroad, the all-steel, mahogany interior 353 has been fully restored to its original charm and majesty. The 353 is today's equivalent of a corporate business jet. Among the dignitaries to ride the 353 include Richard Nixon and General Douglas MacArthur.

Rail fans and historians alike are encouraged to come out and view the excursion as it passes through the Keystone State. This moving depiction of yesteryear has not been duplicated since rail travel was the transportation norm instead of the exception.

After the 7:00 a.m. departure, the excursion will reach the North Reading Yard at 9:25 (mile 65.9), and Port Clinton at 10:00 (mile 82.5). After a 10:45 departure from Port Clinton, they will arrive in Packerton at 1:10 p.m. (mile 125.2). A special photo run-by is scheduled at Barndoor as the excursion leaves the M & H Junction at 2:25 (mile 134.5). As the cars roar towards Steamtown, they will make a stop in Pittston at 4:30 (mile 181.8). The group will depart Pittston at 5:00 and arrive at Steamtown at approximately 6:30-6:45.

CONTACT: J.R. Rupp, 800-22-WELCOME, or Ralph Coury 570-340-5185, both of the PA Northeast Visitor Bureau.

COLORADO: Railroad faces fire claims

DURANGO -- The federal government is seeking payment for fire damage from the Durango and Silverton Narrow Gauge Railroad.

The claims are the result of a 1994 fire that swept across 270-acres in the San Juan National Forest. A District judge has dismissed several of the government's claims, but says it can proceed with four. A Colorado statute holds railroads liable for damages from fires that are caused by operation of the trains.

FRIENDS OF AMTRAK UPDATE

The following letter is from Amtrak NEC to employees...

Dear NEC Co-worker:

With the spring/summer timetable, we will be making a few changes in preparation for the launch of Acela service later this year.

The biggest, most noticeable change is the renaming of the classes of our service to First class, Business class, and Coach class. Gone are Club and Custom classes. With Club and Custom, customers often received different levels of service by product line. It is our intent to provide a consistent level of customer service and amenities across all Acela services. Business class on Acela Regional will offer the same amenities as it will on Acela Express. We are changing the service classes now to allow for a smoother transition to Acela Express, Acela Regional and Acela Commuter later this year.

As part of this effort, we are also discontinuing the use of individual train names. Market research has shown that our customers are seeking simplicity and clarity in our offerings. When our transition to Acela is complete, NEC trains will be known only as Acela Express, Regional or Commuter.

Effective May 16th, to coincide with the timetable, we are also discontinuing Club Service on NortheastDirect trains. In addition to assisting in the transition to Acela service, this change will enable us to rotate cars out of service so they can be refurbished. This change will also help us maintain the required staffing levels on our trains, while Club Service attendants and other front-line employees participate in Service Success Training over the next several months.

Temporarily, customers traveling between New York and Boston will not have a premium service option. However, these customers will have the option of traveling in First class aboard Acela Express when it launches in just a few months. Our Marketing Department has identified our frequent NortheastDirect Club customers, and we will be offering them some incentives to make up for the temporary loss of this service.

Also in the new timetable, you will see that we are temporarily discontinuing service to Back Bay station. This is necessary to accommodate an acceleration of the electrification work that's part of the northend high-speed rail project. Some special shuttle trains will operate between Back Bay and South Station, but we are encouraging customers to travel through South Station as the preferred alternative.

I recognize that these changes will impact some of our customers, and may change the daily routine for some employees. However, please understand that these changes are necessary to ensure that we are able to deliver on our promise of offering world-class service when we launch Acela later this year.

Thank you for your commitment to achieving our Transformation 2000 goals and please work safely.

Sincerely, E. S. Bagley, Jr. President - Northeast Corridor

AMTRAK places an order for additional RoadRailers:

In response to the rapidly growing demand for Amtrak Mail & Express cross-country shipping service, Amtrak has placed an order with Wabash National Corp. for an additional 129 RoadRailer units. At its January meeting, the Amtrak Board of Directors approved the acquisition of 89 48-foot RoadRailer MailVans and 40 53-foot RoadRailer trailers. Wabash National Corporation has now been awarded that contract.

Expansion of Amtrak's Mail and Express program is a critical element of the corporation's strategic business plan to achieve profitability and maintain a national passenger rail system. The new bi-modal units represent a carefully planned response to the continually expanding transcontinental service requirements of the U.S. Postal Service (U.S.P.S), as well as ongoing growth of other commercial traffic. The 89 MailVans, which are employed by Amtrak exclusively to haul mail for the U.S.P.S., feature special side doors to promote faster, more convenient loading and unloading at Amtrak passenger stations.

Along with the MailVans, the 40 new RoadRailer vans join 291 RoadRailer units already in operation for Amtrak Mail and Express. Amtrak is purchasing Wabash National's new DuraPlate RoadRailer Van design, which features unique lightweight steel and plastic composite sidewalls that offer improved performance with greater durability and resistance to forklift damage, as well as longer service life and easier maintenance and repair. Bi-modal RoadRailer equipment operates at the rear of Amtrak passenger trains, at speeds up to 90 miles per hour, for fast intercity transit schedules. The units quickly convert to highway mode for dock-to-dock service that is indistinguishable from standard shipping services used by most U.S. shippers.

Passenger service between Oklahoma City, Fort Worth in final stages

Amtrak and the Oklahoma Department of Transportation are currently in the final stages of developing passenger rail service between the cities of Oklahoma City, OK and Ft. Worth, TX.

The first scheduled service date is targeted to be June 15, 1999. An inaugural event is tentatively planned for June 14, 1999 exclusively for invited guests.

Specific information regarding this service such as fares, schedules and rail equipment should be available approximately June 1, 1999. Additional information will be made available through Amtrak's web site at http://www.amtrak.com/news/pr/index.html