UTU News Digest - Tuesday, May 18, 1999

UTU Daily News Digest

Information of interest to operating railroad and transportation employees

Tuesday, May 18, 1999

WASHINGTON: Government accuses Amtrak truck driver for crash

WASHINGTON -- The truck driver involved in an Amtrak crash that claimed 11 lives in Illinois stands accused by the federal government of falsifying his driving time log book and is on notice that he will be fined.

Gail Shibley, spokeswoman for the Federal Highway Administration, said Monday that drivers are allowed some leeway in filling out their logbooks, "but there were four occasions where this was clearly a false log.''

Federal rules say a trucker must be away from the wheel for at least eight hours after driving for 10 hours. Driving time must be logged in a book available for inspection.

Shibley did not immediately have details of the driver's alleged infractions, which she said were spelled out in a letter sent to him on Monday. Federal regulations allow a fine of $500 per instance.

Leonard Sacks, attorney for driver John R. Stokes, said he had not seen the letter and knew nothing about it. "It's nice they tell everyone else before John,'' Sacks said. ``That way they can sufficiently prejudice the public.''

Stokes was operating with a probationary permit because of previous traffic violations when Amtrak's City of New Orleans train slammed into his steel-hauling truck March 15 at Bourbonnais, Ill. Eleven aboard the train were killed, and more than 100 were injured.

Investigators are trying to determine whether Stokes went around the railroad crossing guards when the lights were flashing and security gates were down.

A coroner's inquest has ruled the deaths were accidental, but that does not preclude prosecutors from bringing charges.

Stokes is to lose his commercial driver's license June 1 for 60 days because of a ticket unrelated to the crash. He has been ticketed for moving violations at least seven times since 1993.

VIRGINIA: CSX and Norfolk Southern File STB Notification

RICHMOND and NORFOLK -- CSX Corporation and Norfolk Southern Corporation today formally notified the Surface Transportation Board (STB) that they will begin operating their respective parts of Conrail on June 1, 1999.

The filing was made in accordance with the STB's July 23, 1998, decision approving the joint control of Conrail by CSX and Norfolk Southern. The decision required that CSX and Norfolk Southern provide advance notice of their plans to integrate Conrail operations.

TEXAS: Amtrak to pay off loan from state early

AUSTIN -- Amtrak plays to pay back a $5.6 million loan to the state of Texas early, while an East Texas mayor has been named to a national board to help forge the future of the nation's passenger rail service.

George D. Warrington, president and chief executive officer of Amtrak, said the early repayment of the loan from Texas to Amtrak is scheduled to take place in ceremonies next week in Austin. The state made the loan two years ago in an effort to keep Amtrak's Texas Eagle service afloat while officials worked at efforts to make the route economically viable. Funding cuts from the federal government had threatened the route.

In a letter to Longview Amtrak supporter Natalie Rabicoff, Warrington said U.S. Sen. Kay Bailey Hutchison, R-Texas, should be on hand for next week’s event, as should state Sen. Bill Ratliff, R-Mount Pleasant, and state Reps. Robert Junell, D-San Angelo, and Dianne Delisi, R-Temple. They "were instrumental in passing the loan legislation," Warrington said. Rabicoff said she plans to attend the event at 1:30 p.m. Friday in the Lieutenant Governor's Press Room in the Texas State Capitol. She said Texas

Comptroller Carole Keeton Rylander is to accept the check on behalf of Texas.

Warrington said Rabicoff's support and past efforts in promoting the Texas Eagle have been instrumental in its survival. Rabicoff said the loan was originally due to be paid back July 31.

In other Amtrak-related news this week involving East Texans, Marshall Mayor

Audrey Kariel met in Chicago with other city leaders for the inaugural meeting of the Amtrak Mayor's Advisory Council. Kariel is one of two Texas representatives on the council, with the other being Fort Worth Mayor Ken Barr.

The organization was formed to support Amtrak and provide a closer partnership with the cities it serves, Kariel said. Other officials on the board include those from California, Ohio, Oregon, Florida, Georgia, New Jersey and Michigan.

"Amtrak and cities like Marshall have developed a mutually beneficial partnership that is helping to improve our economy and Amtrak's bottom line," Kariel said. "Strengthening that partnership by adding the expertise of mayors nationwide will help Amtrak achieve its business plan goals."

Wisconsin Gov. Tommy Thompson is serving as Amtrak's chairman of the board and said the new organization should offer an outlet for the nation's municipal leaders to offer input into the direction Amtrak takes in the future. "As a governor, I have heard mayors in my state of Wisconsin and others express interest in more Amtrak service," Thompson said. "This council will be a forum for the development of smart business ideas for Amtrak and cities to pursue together and an outlet for mayors to voice their support for equitable transportation funding from coast to coast."

Warrington said strong local coalitions such as those supported by Kariel and Rabicoff have helped make Amtrak more viable. Cities in Texas formed the Texas Eagle Coalition to save Amtrak's Texas Eagle from being eliminated. Officials said Texas Eagle ridership and revenues are on the upswing.

MICHIGAN: Teamsters OK car haulers strike

DETROIT -- Teamsters truckers have sent management negotiators a message as talks with 17 car haulers continue: They're ready to strike, if necessary.

The truckers voted 5,705 to 251 to give their negotiating committee the power to call a strike against any or all of the companies, which haul new cars and trucks to dealers nationwide, if talks fail. Teamsters’ president James P. Hoffa said Monday that the vote was a strong statement that the truckers were prepared for a fight.

"People are buying new cars in record numbers,'' he said. "The industry is making big money. It's time the owners shared the profits with the people doing the hard work.''

A nationwide strike against the car haulers could put the brakes on the auto industry's record sales pace so far this year.

"Everyone would have a problem'' if there were a prolonged walkout, Ford Motor Co. president Jac Nasser said. Nasser said his company was keeping in close contact with the Teamsters and the trucking companies.

The Teamsters contract, which expires May 31, covers about 12,000 drivers, mechanics, yard and office workers nationwide. If a strike were called, industry officials expect the Teamsters initially would target just one of the major trucking companies that contract with automakers to move new cars and trucks to dealers from assembly plants, ports and rail yards.

A likely target is Allied Holdings Inc., the largest of the trucking companies. Based in Decatur, Ga., Allied operates about 5,200 car- and truck-hauling rigs from 120 terminals in the United States and Canada, and serves all the domestic and foreign automakers with North American plants. It handles about two-thirds of the U.S. car-hauling market.

Spokesman Steve Wright declined to say what steps Allied was taking to prepare for a possible walkout. The trucking companies are negotiating as a group with the Teamsters.

"We are negotiating in good faith,'' Wright said. "We have every confidence there will be a mutually agreeable, workable solution.''

The Teamsters are seeking improved pensions, higher wages, a reduction in ``excessive work hours'' and improved health care. They also say they oppose proposals for a two-tier wage structure and a reduction in some trip rates.

"Management is demanding that these hardworking men and women receive less for doing one of the most difficult jobs in the transportation industry,'' Hoffa said recently.

So far this year, U.S. sales of new cars and light trucks are up 9 percent. A prolonged strike in the midst of the strong spring selling season could be devastating to automakers and dealers alike.

"Short term, it's not going to affect us a great deal,'' said Dan Moore, a spokesman for DaimlerChrysler AG. "Long term, it will affect all our plants. We're hoping, of course, for no strike at all.''

DaimlerChrysler and other automakers are preparing contingency plans should a walkout be called; they likely would use their own drivers and hire independents to help get some vehicles to dealers.

VIRGINIA: Norfolk Southern, New York Cross Harbor sign agreement

NORFOLK -- Norfolk Southern Corporation today announced that it has signed an agreement with New York Cross Harbor Railroad (NYCH), an operating subsidiary of New York Regional Rail Corporation, to provide exclusive access to NYCH's new bulk terminal facility to be located at NYCH's Bush Terminal Rail Yard in Brooklyn, N.Y., beginning June 1.

The terminal will be marketed by NYCH, Liberty Transmodal Inc. and Norfolk Southern. Under the agreement, Norfolk Southern will interchange freight with NYCH at NYCH's Greenville Yard in Jersey City, N.J. NYCH will transport the rail cargo via tug-propelled car floats across New York Harbor to the bulk terminal in Brooklyn.

The new facility, which is under construction, will be operated by Liberty Transmodal and will be open to all qualified motor carriers. The terminal will handle shipments of edible oils, plastic pellets and food products, which travel long distances by rail, with local truck pickup and delivery throughout New York City and Long Island.

Bulk transfer permits off-line shippers and receivers of varied commodities to combine the long haul and regional efficiencies of rail with the convenient door-to-door delivery of truck.

The facility will feature 124 car spots, complete paving, security, full fencing, lighting, a truck scale, 24-hour access, full-time personnel and an office building.

"We are targeting non-rail customers who currently use over-the-road motor carriers," said Jim Brannon, general manager of Distribution Services for Norfolk Southern. "This new service should help reduce truck traffic over the Hudson River bridges by substituting rail/carfloat/truck service for all- truck movements. This is one of many new Conrail transaction-related opportunities that will help increase competition for New York City transportation service users east of the Hudson River."

Norfolk Southern and NYCH signed a freight handling agreement in November 1998 in anticipation of the expansion of Norfolk Southern's rail network into the New York area.

W. Robert Bentley, president of the New York Cross Harbor Railroad, said, "I am pleased by this most recent development in our expanding partnership with Norfolk Southern. We believe that this new service offering of transload bulk operations will add to our intermodal capacities and allow the NYCH/NS to attract greater volumes of rail freight to this region and to our unique rail-freight marine system.

"We join our long-haul partner, Norfolk Southern, in the ongoing cause for regional modal balance and improved goods movement between and within New York and New Jersey," Bentley said.

The only rail freight marine operation in the Northeast, New York Cross Harbor Railroad transports rail cars via tug-propelled car floats between its Greenville Yard in Jersey City, N.J., and the Brooklyn waterfront. The system takes 35-45 minutes to cross the harbor and 20 minutes for loading or unloading on either side, creating a direct conduit for freight to reach the New York City and Long Island marketplace.

WISCONSIN: Railway mulls Janesville-Chicago line

JANESVILLE -- The Wisconsin and Southern Railroad has told Rock County board members that its considering running passenger rail service between Janesville and Chicago.

The railway hopes to have three passenger trains running every day within 18 months. The route may be extended northward to include suburban Madison. Wisconsin and Southern officials says it will ask Walworth, Rock, and Dane Counties for loans of nearly 200-thousand dollars to start-up the service.

TEXAS: Coach USA, Dav El Chauffeured Transportation form alliance

HOUSTON -- Coach USA has joined forces with Boston- based Dav El Chauffeured Transportation Network, the nation's largest privately held chauffeured transportation company, to form a comprehensive ground transportation service.

"This is a perfect fit," commented Larry King, Chairman and Chief Executive Officer of Coach USA, "because it takes ground transportation services to the next level. Dav El and Coach USA together can offer our clients the full range of luxury motorcoach and limousine services all from a single reliable source."

"Our alliance provides clients with a more consistent level of service to meet all their ground transportation needs," added Dav El President Scott Solombrino. "Together, the two companies become a full-service provider of ground transportation. No matter where you are in the country, you can access consistent, reliable, and comprehensive ground transportation with one phone call."

Large corporate events like shareholders meetings, conventions and conferences, sporting events and concerts, and group excursions are typical examples where a client may require buses, sedans, limousines, and vans for a variety of needs from hotel-to-convention shuttles to transporting VIP's. In the past, planners were confronted with a tangle of different services depending on where a particular event was taking place. With the Coach USA- Dav El alliance, they can schedule all of their ground transportation virtually anywhere in the country from one source.

"There are synergistic advantages as well," noted King, "such as economies of scale derived from the volume of business we are capable of handling and the advantage of combined marketing and customer service efforts."

Marketing efforts already in progress include linking the Internet sites of the two firms and joint sponsorship of a sweepstakes directed toward international tour operators attending the May 1999 Travel Industry Association of America "Powwow" conference in Miami. King said the two companies will continue to find new approaches to market their services together.

Serving over 450 cities worldwide, Dav El (www.davel.com) is the leading limousine company in the U.S. Founded in 1966, Dav El operates nearly 11,000 deluxe stretch limousines, luxury town cars, and executive vans. The Dav El Worldwide Reservations System facilitates around-the-clock ground transportation reservations in most cities throughout the world.

Coach USA is the largest provider of motorcoach services in the United States. These include motorcoach charter, tour and sightseeing services, commuter and transit motorcoach services; airport ground transportation, paratransit, taxi and other related passenger ground transportation services.

WASHINGTON: FRA announces agreement with Transport Canada

WASHINGTON -- Federal Railroad Administrator Jolene M. Molitoris and Ron Jackson,

Assistant Deputy Minister Safety and Security for Transport Canada, on Friday, May 14, signed a cooperative agreement for a joint research program on the effect of low temperatures on rail tank cars.

"By investigating the effect of extreme cold on rail tank cars, we will learn what precautions may be appropriate to improve safety, President Clinton's highest transportation priority," U.S. Transportation Secretary Rodney E. Slater said. "This agreement, signed at the onset of National Transportation Week in the United States, will help advance railroad safety in the new millennium."

The Cooperative Research Program addresses several areas directly related to the safe transportation of hazardous materials or dangerous goods in railroad tank cars. Over the last six years, incidents have occurred in the United States and Canada involving brittle fracture failure of tank cars subjected to cold temperatures.

"I am pleased that the Federal Railroad Administration (FRA) will be working closely with our counterparts at Transport Canada to better understand the effects of severe climate conditions on tank cars," said Molitoris. "At both the FRA and Transport Canada, safety is the number one priority."

"Transport Canada and the FRA have shared research results on a number of rail-related programs, and I look forward to continuing our collaboration," Jackson said.

The FRA has worked successfully with Transport Canada in the investigation and analysis of tank car stub-sill failures and crack propagation into the tank shell. This led to an intensive investigative and repair program in both the U.S. and Canada. The program will be contracted out for competitive bids in compliance with applicable U.S. federal and Canadian law and regulations. Contracting services will be handled by the Public Works and Government Services Canada (PW&GSC). A steering committee will administer the technical aspects of the contract.

The objective of the research is to identify the causes and possible solutions to cold temperature (minus 20 degrees Fahrenheit and below; minus 29 degrees Celsius) tank car failures. Tank car steels are sometimes vulnerable to impact-induced failures, particularly in cold weather conditions. Another objective is to determine the effect of increased actual landing capacity on the draft gear. The research conclusions will assist the FRA in developing new requirements to reduce this type of tank failure. The FRA and Transport Canada are each contributing $150,000.

NEW YORK: Cinergy and PP&L settle rail rate cases

NEW YORK -- PSI Energy Inc., the Indiana unit of Cinergy (CIN), and PP&L Resources Inc. (PPL) each settled rate disagreements with rail carriers of their coal supplies, according to the federal Surface Transportation Board.

PSI Energy had complained that the rates charged by CSX Transportation Inc. (CSX) and Soo Line Railroad Company, a unit of Canadian Pacific Railway (X.CPF), were unfairly high due to a lack of competition. CSX is the only rail carrier with access to the generating plant involved, Cayuga Station.

The other complaint involved the transportation of PP&L's coal by CSX, Consolidated Rail Corporation and Norfolk Southern Railway Company (NSC). CSX and Norfolk Southern have acquired Conrail and divided its assets. PP&L had reached an agreement with Norfolk Southern privately.

PSI declined to comment on the settlement for proprietary reasons, and PP&L was not available for comment Monday.

When rail competition between two points is limited and a rate complaint is filed, the STB measures the reasonableness of a rate by determining what a hypothetical optimally efficient carrier would need to charge to serve a limited group of traffic selected by the complainant, including the traffic involved in the rate complaint.

Since the STB was created in 1995, it has issued substantive decisions in three such cases. In two of the cases, the complaining shipper prevailed and obtained substantial rate relief and reparations, while in one the STB found that the challenged railroad rates had not been shown to be unreasonable.

In announcing that the PSI and PP&L cases had been resolved, the STB said that previous decisions have established a body of precedence that allows parties to resolve their rate issues privately.

"The two settlements reached here reflect a trend, as parties continue to reduce their reliance on the regulatory process," the STB said in a statement.

ILLINOIS: Wisconsin Central tabs BNSF's Franke as EVP

ROSEMONT, Ill. - Wisconsin Central Transportation Corp. has named Michael W. Franke executive vice president and he will take his new post in mid-June. He's now vice president and chief engineer of the Burlington Northern and Santa Fe Railroad.

Mr. Franke began his career in the railroad industry with the Norfolk & Western Railway in 1968, joined Chicago, South Shore and South Bend Railroad as vice president operations and the Atchison, Topeka and Santa Fe in 1990.