UTU News Digest - Friday, October 22, 1999

UTU Daily News Digest

Information of interest to operating railroad and transportation employees

Friday, October 22, 1999

CALIFORNIA: Amtrak train derails east of L.A.

CATHEDRAL CITY -- An Amtrak train carrying 147 passengers derailed today in the desert east of Los Angeles, slightly injuring at least two people.

Seven rear cars, two of them passenger cars, apparently jumped the track about 5:30 a.m. near Interstate 10, just east of Palm Springs and some 110 miles east of Los Angeles.

There were at least two injuries, but no details were available, said Ray Dampier of the Riverside County Fire Department. Amtrak spokesman Cliff Black said no passengers were hurt.

None of the cars on the westbound Sunset Limited from Orlando, Fla., to Los Angeles tipped over, Black said. The train's speed wasn't immediately known and the cause was not clear, he added.

"We have ordered buses to take passengers to their destination,'' Black said.

The train consisted of three engines and 16 cars, which included five "express cars'' at the rear carrying mail and packages. Two rear passenger cars and five express cars slipped off the track.

On Saturday, another Amtrak train derailed some 125 miles northeast of Los Angeles after the region was shaken by an earthquake. Four of the 155 passengers on the Chicago-to-Los Angeles train suffered minor injuries.

ONTARIO: New safety measures at rail crossings

OTTAWA -- The Canadian federal government is spending $2.12 million to improve safety at 18 railway crossings across the country after 23 fatalities so far this year.

Transport Minister David Collenette said Thursday the money will help communities and railways improve safety in smaller centers.

"Although accident rates and crossing fatalities across Canada have reached their lowest levels in 10 years, accidents at railway crossings have resulted in 23 fatalities and 24 injuries this year," Collenette said in a statement.

Crossings will be upgraded, relocated or closed in some cases, he said.

Improvements may include installing flashing lights and gates, extra lights, timing devices or the interconnection of crossing signals with traffic lights.

Transport Canada will finance up to 80% of the cost of improvements with railways, municipalities or the provinces making up the balance.

ALBERTA: Canadian Pacific profits up in 3rd quarter

CALGARY - Transport, energy and hotel conglomerate Canadian Pacific Ltd. said on Thursday its quarterly profit jumped 32%, beating analysts' estimates with strong results from its big railway and oil-and-gas arms.

Calgary-based Canadian Pacific (CP), known for its cross-Canada railroad and opulent hotels such as the historic Banff Springs in the Alberta Rockies, reported third-quarter net income of C$270 million or 80 Canadian cents a share, up from C$205 million or 61 Canadian cents a share last year.

Operating income at Canadian Pacific Railway, the company's best known division, rose 16% in the third quarter to C$210 million thanks to higher non-bulk commodity revenues as well as its major cost-cutting program, announced in July.

The cuts, aimed at lowering the No. 2 Canadian railway's operating ratio -- a key measure of productivity defined as expenses as a percentage of revenues -- to levels on par with its major North American rivals, will eventually see 1,900 jobs cut. Savings this year were expected to hit C$110 million.

The earnings per share beat a consensus estimate from six analysts surveyed by First Call/Thomson Financial by 11 Canadian cents, a result that prompted investors to drive up Canadian Pacific shares by C$1.55, or nearly 5 percent, to C$34.60 on Thursday on Toronto Stock Exchange trade.

Revenues totaled C$2.9 billion, up 16 percent from C$2.5 billion in the third quarter of 1998.

"When we released our second-quarter (results), I indicated that we expected to see stronger earnings in subsequent quarters due to our cost-cutting initiatives, stronger energy prices and solid forward bookings with hotels," CP Chief Executive David O'Brien told analysts in a conference call. "In the third quarter all of these factors helped to drive the improved earnings," he said.

The richer results were led by its 87%-owned oil-and-gas unit PanCanadian Petroleum Ltd., which emerged from a long industry slump to post a 518% increase in third-quarter profits due to strong conventional oil prices, record heavy crude and natural gas prices and a favorable Canadian-U.S. dollar exchange rate.

Operating income at CP Ships fell 24 percent to C$29 million, while the Fording Coal unit's income was off 59 percent to C$11 million amid 18-percent lower coal prices.

At CP Hotels, quarterly operating income rose slightly to C$90 million, buoyed by strong demand for Canadian business and resort hotels, the company said.

Early this month CP Hotels closed an agreement with U.S.-based Fairmont Hotels Management, which owns the Plaza in New York, to form a new management company combining the management contracts of each firm's landmark luxury hotels. Canadian Pacific owns 67% of the venture.

O'Brien said he foresaw improving earnings for at least another year due to better economic conditions worldwide.

FLORIDA: FEC Industries reports rising rail profits

ST. AUGUSTINE -- Florida East Coast Industries, Inc., noted its railroad operating profits were up 11% as it announced a third quarter 1999 net income of $8.6 million ($0.24 per share), compared to net income of $13.0 million ($0.36 per share) for the same period in 1998.

The prior year result included a gain of $3.1 million on a land sale consummated in August 1998. Other factors impacting the third quarter of 1999 include increased depreciation resulting from the aggressive property development program at Gran Central Corporation, FECI's commercial property subsidiary, and costs related to FEC Telecom, Inc., FECI's new telecom subsidiary.

"Railway results are already showing the impact of new initiatives with operating profit up by 11% in the quarter and year to date," said Robert W. Anestis, chairman, president and CEO. "The operating ratio is now below 73% with further improvement expected."

The corporation's net income for the nine-month period ended September 30, 1999, inclusive of $8.2 million of special charges recorded in the second quarter of 1999 (related principally to a reorganization and workforce reduction), was $28.9 million ($0.81 per share) compared to $32.9 million ($0.91 per share) in 1998.

"The Company's new leadership and direction is producing results for shareholders," Anestis said. "New properties are coming on stream and we expect them to deliver similar results in the future. FEC Telecom, while still in its early stages, is investing in the completion of its core Florida network. We expect to complete physical construction of this network and be in service in the carrier's carrier bandwidth business in the near future."

WASHINGTON, D.C.: FCC okays smart-transportation radio

WASHINGTON -- U.S. Transportation Deputy Secretary Mortimer L. Downey yesterday hailed a Federal Communications Commission's (FCC) decision to make radio spectrum available for intelligent transportation systems (ITS) operations.

"This decision will enable broader, innovative uses of telecommunications technology and result in enhanced safety and efficiency of our nation's surface transportation system," Downey said. "I commend the FCC for allocating the spectrum and those at the U.S. Department of Transportation whose vision helped set this stage for improving safety, which is President Clinton's and Secretary Slater's highest transportation priority."

The FCC allocated a range of 5850-5925 megahertz (MHZ) for Dedicated Short Range Communications (DSRC) between vehicles and electronic systems on the roadside, such as at toll booths or intersections.

Transportation safety operations are a primary reason for this allocation of spectrum, which will support intelligent transportation systems activities such as intersection collision avoidance; transit or emergency vehicle signal priority, which allows an ambulance to command a green light approaching an intersection; electronic parking payments; and commercial vehicle clearance and safety inspections that can be done at highway speeds instead of requiring trucks to pull off the road.

"Today's decision is one more building block as we work toward our goal of integrated ITS deployment this decade in 75 cities and 25 states," said Federal Highway Administrator Kenneth R. Wykle. "Already deployment of different ITS solutions across the nation have demonstrated between 15% and 50% reductions in crashes."

The FCC allocation culminates many years of work initiated by the department's Federal Highway Administration (FHWA), which partnered with ITS America in this initiative. ITS America petitioned the FCC for radio spectrum for this purpose.

The Intelligent Transportation Systems program was established by the Intermodal Surface Transportation Efficiency Act of 1991 and was reauthorized in the Transportation Equity Act for the 21st Century (TEA-21), which was signed into law by President Clinton in 1998. ITS uses communications, computer and sensor technology to improve surface transportation safety, mobility and efficiency.

A 20-year life-cycle cost analysis for 50 major urban areas has indicated that buying smarter by deploying ITS not only enhances safety but reduces the need for new roads, while saving taxpayers 35% of the required investment in urban highways.

PENNSYLVANIA: Work begins on new rail/truck terminal

YORK -- Emons Logistics Services, Inc., has commenced construction of a new state-of-the-art rail/truck bulk transfer terminal in York, Pennsylvania.

The new terminal, estimated to cost $1.5 million, is located on a 23-acre parcel of land adjacent to another Emons subsidiary, Yorkrail, Inc. The terminal will be lighted, paved, fenced and contain five double-ended tracks that will hold approximately 70 railcars, which will be staged for transferring product to trucks for delivery to customers in Central Pennsylvania.

"The goal for this facility is to increase our rail-to-truck transload business by 1,000 to 2,000 railcars per year over the next several years," said Robert Grossman, chairman and president of Emons. "This is a win-win situation. Customers not located on a railroad in Central Pennsylvania will win by reducing their transportation costs since they will avail themselves of the benefits of lower cost, long haul rail with local, just-in-time, truck delivery. Emons Logistics will generate fees for transloading and other value-added services, and Yorkrail will receive revenue for hauling the loaded railcars to the facility."

Half the cost of the facility is being borne by the state, according to Elizabeth S. Voras, deputy secretary for Aviation and Rail Freight in the Pennsylvania Department of Transportation.

"Governor Tom Ridge has committed important resources to improve economic vitality in communities across the state," Voras said. "Once in operation, the bulk transfer terminal will further enhance the competitive position of Pennsylvania businesses in the global marketplace. It will do so by lowering transportation costs. Simultaneously, it will improve air quality, as well as reduce highway congestion. Additionally, a further economic boost will come from increased employment for locally based rail freight and trucking operations."

Company officials expect the facility to be substantially completed and open for business in December 1999. Plans call for bringing products in by railcars through all three of Yorkrail's Class I railroad connections, including CSX Transportation, Norfolk Southern Corporation and Canadian Pacific Railway. The facility will handle food and other products, such as sweeteners and oils and plastics, as well as minerals and chemicals.

"This rail/truck network can bring in raw materials for small or large manufacturing or food processing facilities not located on our rail line, and those off-line facilities can still receive the cost-effective benefits of a rail/truck combination linked to the global marketplace," an Emons official said.

Emons Transportation Group, Inc., is a rail freight transportation and distribution services company serving the Mid-Atlantic and Northeast regions of the United States and Quebec, Canada, through its Pennsylvania and New England/Quebec operations. Emons currently owns five short line railroads, operates rail/truck transfer facilities and a rail intermodal terminal, and provides its customers with warehousing and logistics services for the movement and storage of their freight.

WASHINGTON, D.C.: Stagecoach Holdings plans to sell notes

WASHINGTON -- Stagecoach Holdings Plc., a Scotland-based surface transportation company, has filed with U.S. regulators to sell up to $500 million in notes.

The company, which offers bus, motorcoach and train services in nine countries, said it plans to use the proceeds to repay a portion of its outstanding borrowings under a credit facility, for possible further expansion and general corporate purposes, according to the filing with the U.S. Securities and Exchange Commission.

Stagecoach, the parent of Coach USA Inc., also said it plans to sell up to 400 million British pounds worth of ordinary shares in a separate concurrent offering, according to the note offering filing.

NEW YORK: School bus crash injures 52

CENTRAL BRIDGE - A school bus filled with young children on a Halloween field trip collided with a dump truck in upstate New York Thursday, injuring 52 people, authorities said.

The dump truck ran a flashing red light and crashed into the bus as it was headed to the Pumpkin Patch, a popular Halloween attraction, in rural Schoharie County, said Sheriff John Bates.

On board the bus were 44 first-grade children, four teachers and four chaperons from a public school in Albany, the state capital, he said.

One child was listed in critical condition, four others were serious condition and a chaperone was flown to a hospital with chest injuries, he said. Most of the others suffered only minor injuries.

The dump truck driver, Edward Cook, was not injured, and neither was the bus driver, the sheriff said.

CALIFORNIA: Elderly held on bus for hours

SAN CLEMENTE -- Eight elderly passengers say they became ill after they were kept on a bus for up to four hours by a driver who got lost and refused to stop.

The Orange County Transportation Authority bus was taking passengers from the Leo Fessenden Adult Day Health Care Center to their homes on Tuesday. Some threw up and complained of back pain from being confined for so long, said Bill White, the center's program director.

"There was one individual -- an Alzheimer's patient -- who threw up all over the bus. When he got home, they had to carry him off the bus," White said Thursday. "It's terrible, the abuse these people suffered."

White said the driver received the wrong address of one of the passengers and drove around trying to find it until one woman finally talked the driver into stopping.

Transportation authority spokesman John Standiford confirmed the passengers' account of the trip, saying the driver received the wrong address due to a computer error.

He acknowledged, "there could have been better ways of handling the situation, rather than driving around," he said.

The driver has been put on paid leave pending an investigation and "older, veteran drivers" will take over the route, said Dave Simpson, another authority spokesman.

The driver, whose identity was not released, works for Laidlaw Transit, a private company contracted by the authority to provide specialized bus service. Laidlaw referred inquiries to the transportation authority.

It's the third time this year that elderly passengers using the special bus service have reported similar problems.

Earlier this year, a driver was arrested for punching an Alzheimer's patient who unbuckled her seat belt and walked around the bus while it was moving.

Three months ago, an elderly man was on a bus for four hours and needed to go to the bathroom. The driver refused to stop and told the man to use a tin can, White said.

MASSACHUSETTS: Teachers back Gore

BOSTON (AP) -- The Massachusetts Teachers Association (MTA) said Thursday it was endorsing Vice President Al Gore in next year's Democratic presidential primary.

The decision followed the National Education Association's recent vote to back Gore. The 87,000-member MTA's decision to concur with the NEA's endorsement of Gore was based on the results of a questionnaire sent to candidates.

"During his seven years as vice president and during his prior congressional experience, Al Gore has been right on the issues that are important to our members, such as children's health and safety, maximizing student learning and respecting education employees," MTA president Stephen Gorrie said in a statement.

Gore is battling former Sen. Bill Bradley for the Democratic presidential nomination. Texas Gov. George W. Bush is the front-runner in the Republican race.