UTU Daily News Digest

Information of interest to operating railroad and transportation employees

Monday, February 7, 2000

BC Rail workers approve agreement

 VANCOUVER -- BC Rail Ltd.'s 1,600 unionized workers narrowly approved a collective agreement that would see them get a 2-per-cent wage increase this year, their first raise in five years, the Toronto Globe and Mail reported.

The workers voted 59.5 per cent in favour of the three-year contract. BC Rail locked out 1,600 union workers December 27 and January 5. UTU was the first union to pay its members strike benefits.

Highlights of the agreement include:

WASHINGTON: Short lines courted by both sides in CN-BNSF battle

 WASHINGTON -- Opponents and proponents of the merger of Burlington Northern Santa Fe and Canadian National railways are seeking support for their positions wherever they can find it, the Journal of Commerce reported.

The American Short Line and Regional Railroad Association is the latest battleground. The trade association, which represents some 500 regional and short-line railroads, heard two separate pitches for its support this week.

First up were Dick Davidson, chairman and chief executive of Union Pacific Railroad; John W. Snow, chairman and chief executive of CSX Corp.; and David R. Goode, chairman, president and chief executive of Norfolk Southern Corp.

They journeyed to the small-railroad association offices in downtown Washington to explain why they consider the BNSF-CN proposal to be badly timed.

The opponents were followed by Matt Rose, BNSF president, and Jack McBain, senior vice president of network operations for CN.

The visits are believed to be the first to the small-railroad association by senior executives of the major railroads.

Their meetings usually occur at the offices of the Association of American Railroads, which primarily represents the major carriers.

No commitments were made to either side, said Frank Turner, president of the association representing the smaller railroads.

The regional and short lines, many consisting of secondary and branch lines spun off from the major railroads, could play a significant role in the merger case.

The smaller railroads in Turner's organization operate 50,000 route miles and account for 9% of rail revenue, 13% of rail tonnage and 25% of rail carloads.

Turner said he told both sides that his organization would appear at the March 8 hearing at the Surface Transportation Board considering major railroad consolidations and the present and future structure of the North American railroad industry.

About half of the meetings of the small-railroads association with the representatives of the major railroads involved the pending merger.

The other half allowed Turner and members of his association's executive committee, who were called in for the meeting, to seek major carrier support for short-line public policy issues. There were no quid pro quos, Turner said.

As they have said previously, the large railroads did not object to the BNSF-CN merger on its merits, but on its timing.

UP, CSX and NS each have had service difficulties in implementing their own mergers. They also have paid large purchase premiums -- UP to acquire Southern Pacific Rail Corp. in 1996 and CSX and NS in their joint acquisition of Conrail in 1997. As a result, all three have weak balance sheets.

It would be exceedingly difficult for UP, CSX or NS to engage in another round of mergers, which they believe a BNSF-CN merger would force.

At the Surface Transportation Board hearing, the short lines probably will propose that any future rail mergers be conditioned on adoption of a "short-line bill of rights," Turner said.

That would strengthen the short lines in their relationship with the major railroads. Short-line issues include items such as the ability to set prices on interline traffic, establish new routes and secure car supply.

Many short lines rely on the major railroads that previously owned the track for car supply.

The short lines have been forced to cede rate-making authority to the long-haul carriers, and are required to exchange traffic with the original owner even when a competitive connection is available.

While the short lines consider themselves part of the rail network, short lines are more like customers in some of their dealings with their bigger connections.

"We're just as wide, only shorter," Turner says. "We're retail railroads."

At the meeting, Turner asked the major carriers to support the short lines' effort to obtain federal funding from the Highway Trust Fund to help solve the problem of 286,000-pound railcars.

The Class 1 carriers are rapidly going from a maximum gross vehicle weight of 263,000 pounds to 286,000 pounds.

The heavier railcars have caused problems for the short lines. Many rail lines that they bought from major railroads in the mid-1980s "were not superbly maintained," Turner said.

"The shift from 263 to 286 is coming quickly and a good segment of our industry is not prepared for it," he said.

He said unknowns include what kind of track will tolerate the heavier cars and what it will cost to maintain track.

Light, 90-pound rail "might handle it with a certain number of good ties, ballast and subgrade," Turner explained. "If a line is only 10 miles long, operating the heavier cars at 10 miles an hour might be acceptable, but if a line is 400 miles long, 10-mile-an-hour operation would not be economically feasible."

Major railroads should support the short lines because they need the revenue that interline traffic provides, Turner said.

"We have gotten their attention," he said.

The CSX and NS chiefs indicated they were willing to support the short lines before Congress, but UP still has some problems, Turner said. UP long has had philosophical problems with the concept of public funding for railroads.

TEXAS: BNSF and Overnite ink long-term agreement

 FORT WORTH -- BNSF has signed a new long-term partnership agreement with Overnite Transportation Company of Richmond, Va. The agreement is effective immediately, a news report said.

Overnight Transportation is the trucking subsidiary of the Union Pacific Corporation that is the subject of a nationwide Teamsters labor protest.

The LTL carrier has 13,000 employees at 166 service centers serving more than 45,000 points in all 50 states, Canada, Mexico, the U.S. Virgin Islands, Puerto Rico and Guam.

"Overnite continues to be one of the key players in the less-than-truckload arena," says John Lucas, assistant vice president, Direct Marketing. "We have been providing Overnite a premium transportation product for the past several years, and we appreciate this opportunity to strengthen our relationship over the long-term."

With the addition of Overnite, BNSF now has long-term agreements with each of the top five less-than-truckload (LTL) carriers-the others are Yellow Freight System; Roadway Express, Inc.; Consolidated Freightways (CF); and AABF Freight Systems, Inc.

"The key to our long-term relationship with these carriers has been our commitment to providing a high level of service," says Lucas. "That commitment will continue, backed by more than 42,000 BNSF employees dedicated to providing service that enables our customers to grow and thrive."

WASHINGTON: Administration asks $211 million for urban transit

 WASHINGTON -- Vice President Al Gore announced today in a press release that the Administration will seek $211 million for new transit system work in 12 urban regions as part of its $9.3 billion Livable Communities budget proposal for FY 2001.

The Vice President and Secretary of Transportation Rodney Slater said the Department of Transportation will seek to enter into major transit grant agreements this year in Baltimore, Pittsburgh, Chicago, northern Illinois, Denver, Memphis, Minneapolis-St. Paul, northern New Jersey, Portland, Ore., Salt Lake City, Seattle, and Washington D.C.-Maryland.

"Investing in important mass transit projects like these is key to rebuilding our cities and creating livable communities - it will stimulate economic development throughout our nation," the Vice President said. "For hardworking Americans, who live in our metropolitan areas, the payoff is in a better quality of life."

The proposed transit funding is part of the Administration's $9.3 billion Livable Communities Initiative. For fiscal year 2001 appropriations, the Vice President said the budget will request $9.1 billion for transportation systems.

Community Transportation Choices. The budget submission will include a record $9.1 billion for the U.S. Department of Transportation to help ease traffic congestion and reduce pollution - a $1.1 billion increase over last year's funding level. This item includes $6.3 billion for mass transit, $1.6 billion for congestion relief and air quality improvement, $719 million for community transportation enhancements, $468 million for an expanded passenger rail fund, and $52 million for a Transportation and Community and System Preservation pilot program. The funding will reduce traffic congestion and improve air quality by enhancing transit services and supporting other transportation alternatives, such as high-occupancy vehicle lanes, ridesharing, bicycle and pedestrian paths, and cleaner fuels fleets. The funding will also promote more sustainable community development by encouraging states and localities to coordinate land use plans and transportation alternatives.

Under full funding grant agreements, federal funding for these transit projects would be provided in the coming years as construction goes forward. Historically, the substantial majority of full funding grant agreements have received a contribution of between 33 and 80 percent of their total cost from the federal government. A determination of the federal commitment is subject to negotiation between the U.S. Department of Transportation and the sponsors of the project. The full funding grants agreements would assist the following:

ILLINOIS: Amtrak's Chicago-Milwaukee service starts year strong

 CHICAGO -- Ridership on Amtrak's Chicago-Milwaukee Hiawatha Service showed a healthy gain during the first quarter of FY2000 (October-December 1999) while the train continued to be the best on-time performer in the Amtrak system, a company press release said.

"The performance of the Hiawatha Service proves that Amtrak can deliver transportation that customers will support," said Wisconsin Governor Tommy Thompson, chairman of Amtrak's Board of Directors. "Corridor trains between major cities, like the Hiawatha Service, give rail customers a comfortable and timely transportation alternative that also helps clear the mounting congestion on our highways and in our airports."

A total of 109,561 riders used the Hiawatha Service during the first three months of the current fiscal year, a four-percent increase from the same period last year. In addition, the overall on-time performance of the Hiawatha Service during the first quarter was 98 percent, the best in the Amtrak system. This follows the service's on-time performance of 93.5 percent last year, the best record of any Amtrak train in FY 1999.

Amtrak recognizes the assistance provided by the Canadian Pacific/Soo Railroad and METRA, Chicago's commuter railroad, for the timely operation of the Hiawatha Service.

The Hiawatha Service, which provides six round trips daily between Chicago and Milwaukee, carried a total of 412,951 passengers during the entire 1999 fiscal year, 6,658 more riders than in FY 1998 (a 1.6 percent increase).

Despite the general decline in the travel industry caused by Y2K, Amtrak ridership was up one percent for the entire system during the first quarter of FY 2000, providing a good head start as the company strives to complete a record fourth straight year of overall ridership gains. Amtrak also reported that through the first quarter of fiscal year 2000, the corporation is $2 million ahead of its business plan targets and on track to becoming operationally self- sufficient by 2003.

NEBRASKA: U.P. considers Council Bluffs site for museum

OMAHA -- They are evidence of 138 years of Union Pacific Railroad history - train cars, lanterns, guns, maps and thousands of photographs and documents, the Omaha World Herald reported.

And for three years, these historical items have been locked up, out of public sight. When the railroad, desperate for more office space, closed its museum in downtown Omaha in 1996, most of the collection was put in storage.

Now, U.P. officials and preservationists think they may have found a new site for the museum, one that can hold most of the collection: Council Bluffs.

Specifically, the city's old public library at 200 Pearl St. The 96-year-old brownstone building has sat vacant for two years, collecting dust while city officials and concerned residents pondered its future.

A coalition of citizens, acting as the Friends of the Carnegie Cultural Museum, has advocated preserving the building's exterior and turning it into a museum. Recent talks with U.P. have led to a general agreement, and city officials could be asked to sign off on the deal this month.

"There are a few details that need to be ironed out still," said Mike Sciortino, an attorney working with the Friends of the Carnegie Cultural Museum.

"My group is very excited about this. They think it would be an excellent use for the building."

Siting the railroad museum in Council Bluffs would reinforce the connection between the railroad and the Bluffs. The city has long claimed that the Bluffs, not Omaha, was the starting point of the Transcontinental Railroad. And while the railroad's headquarters are in Omaha, historians have noted that mile marker zero of the U.P. line is in the Bluffs rail yards.

Under current museum plans, the railroad would lease the library building from the city. U.P. would pay for some operating costs and help staff the museum, while the preservation group would raise money to restore the building.

The cost of renovating the old library would not be small, Sciortino said. However, two grant applications worth a combined $665,000 are pending with the Iowa West Foundation and the Iowa State Historical Society.

If those grants are awarded, Sciortino said, that would take care of a big chunk of the money necessary for renovations. U.P. spokesman John Bromley said the railroad was encouraged by recent talks. Company officials have toured the building, and Bromley said the old Bluffs library is the only site under consideration for the railroad's new museum.

"I would guess, once the city approves it, we could move fairly quickly," Bromley said. "We've been talking about this for some while."

When U.P. dismantled its museum, a small part of the railroad's collection was placed on display at the Durham Western Heritage Museum. Bromley said Friday that most of that display likely would remain, although a few items might be moved to the Bluffs.

Even without those items, Sciortino said the remaining collection is of great historical value.

"I've seen pictures of some of the items, and they're excellent artifacts," he said.

Final approval for any use of the old library would have to come before the Bluffs City Council. Several members contacted Friday said they were unaware of any recent developments with U.P., but they all said the railroad would be a welcome tenant.

"If we can get the funding in line, I think that would be a great use for it," said City Council member Paul Shomshor. "It's something downtown that people can go do, it's historical and it might bring some people into town."

Another council member, Matt Walsh, said the railroad museum was a natural fit for the city. He noted that Gen. Grenville Dodge, whose home is a Bluffs landmark, served as chief engineer on the construction of U.P.'s portion of the Transcontinental Railroad.

"I think it would be a great fit, given General Dodge's association with Union Pacific," Walsh said.

The library was built in 1904 with money donated from philanthropist Andrew Carnegie. When the city's new library opened in 1997, many Bluffs residents - including Mayor Tom Hanafan - called for the old building to be preserved in its current state.

At one point the Pottawattamie County Board considered the building as potential office space, but voted against accepting a $1-per-year lease offered by the city.

"I hope something's done with it very soon," said Councilman Scott Belt. "We've kind of been fiddling with this thing for quite a while. If we can come up with a long-term agreement with them, that would be great.

"They've been in this town for more than a hundred years," he said. "They should have some history here."

OHIO: Payments from CSX will have restrictions

 EAST CLEVELAND - Residents living near the CSX rail line where increased train traffic has made their neighborhood noisier soon will be able to apply for $4,000 grants to soundproof their homes, but not before City Council establishes spending guidelines, the Cleveland Plain Dealer reported.

The Plain Dealer on Wednesday inaccurately reported that the city would allow residents unrestricted use of the $4,000. The legislation, if approved this month, would allow residents to use the money to pay for soundproofing or home repairs or to help pay moving costs to leave the neighborhood.

Some residents appealed to the City Council to allow them to use the money as they saw fit, including for vacations. The legislation and guidelines proposed by the City Council and Mayor Emmanuel Onunwor, however, do not allow such spending.

The guidelines allow homeowners to receive the $4,000 before any repairs are made as long as they sign a contract with the city stating what repairs will be made.

Landlords who own property will have to make the repairs first and then apply to the city for reimbursement under the guidelines.

Councilman Nathaniel Martin said the City Council established the guidelines so property owners don't run off with the money.

"We want to do the responsible thing," Martin said. "And we want to make sure landlords put the money in the property."

The cash settlements are part of an agreement between CSX and the city providing for the grants to 120 residents living near the "Short Line" along E. 133rd St. between Lakeview and Woodworth roads because of increased train traffic through the city.

Also included in the agreement is $2 million CSX agreed to pay the city to train police, fire and city service officials for train- related emergencies. The city has received the $480,000 to administer to property owners.

On Tuesday, the City Council voted 4-1 to accept the authorizing legislation on first reading. A final vote is expected on Feb. 15.

Councilman O. Mays, the only council member to vote against the guidelines, said landlords should be treated the same as homeowners and receive the money before hiring contractors. "The money is for the inconveniences of the trains, not for the city to attach restraints," Mays said. "It's discriminatory."

To apply for the money, property owners must complete an application provided by the city. Residents will have from Feb. 15 to Dec. 3 to apply for the $4,000.

ILLINOIS: CN-IC Mistake almost proves tragic

 ELMHURST -- A mistake that almost turned tragic this week prompted officials of Canadian National-Illinois Central Railroad to finish fixing a crossing gate that had been broken for six weeks, the Chicago Tribune reported.

Train crews had been directed to stop at least 10 feet away from the crossing at St. Charles Road next to York High School and use flagmen to stop traffic, said Elmhurst police Sgt. James Kveston.

But on Wednesday morning, an engineer apparently forgot the gate was not operating and sent his train across St. Charles Road without warning, narrowly missing a car crossing the tracks. Police threatened to close the crossing until the problem was resolved. The gate was repaired and in service late Wednesday.

FLORIDA: CSX attracts over $250 million in industrial development to Florida in 1999

 JACKSONVILLE -- CSX Transportation Inc. (CSXT), one of America's leading railroads, announced in a press release that, working with Florida economic development officials on 22 projects in 1999, it helped bring more than $250 million in new plant and equipment investment and 1,072 new jobs to the state.

Since 1994, CSXT-supported industrial development projects have helped to generate over $840 million in capital investment and create more than 3,614 new jobs for Florida.

Last year, CSXT worked with a total of 120 companies on 129 projects to locate sites and facilities in its 23-state rail system. Through these projects, CSXT helped to spur a total of more than $1.4 billion in industrial development and bring over 5,500 new jobs to 19 states and the Canadian province of Quebec.

"The record number of industrial development projects in 1999 shows increased confidence in the rail system," said Randy Evans, CSXT vice president for real estate and industrial development. "Customers are increasingly using rail to forward-position their products closer to the markets that they want to reach. Both receivers and shippers are not only using rail because it is economical and efficient, but also because it is an important part of their logistics chain."

For example, last year CSXT worked with Champion International, an integrated forest products company, to establish a new state-of-the-art sawmill in McDavid, near Pensacola, Fla.

Working with the state of Florida's economic development organization, Enterprise Florida, CSXT assisted Champion in locating and evaluating a rail- served site for the facility. CSXT also helped design a rail spur connecting the new sawmill with CSXT's main line. When the mill reaches full production in the third quarter of this year, CSXT will transport approximately 1,000 carloads of wood chips and lumber for the facility annually.

OHIO: CSX attracts over $50 million in industrial development to Ohio in 1999

JACKSONVILLE -- CSX Transportation Inc. (CSXT) said in a press release that working with Ohio economic development officials on 13 projects in 1999, it helped bring more than $50 million in new plant and equipment investment and 158 new jobs to the state.

Since 1994, CSXT-supported industrial development projects have helped generate over $450 million in capital investment and create more than 2,100 new jobs for Ohio.

For example, CSXT worked with Suzanne Clark, executive director of Bowling Green Community Development Foundation, to locate a rail-served site for Southeastern Container. The company's new blow molding plastics plant has generated 58 new jobs and $19 million in investment for the Bowling Green community. When the plant reaches full production capacity in early 2000, CSXT will transport 500 carloads of plastic containers for the company each year.

CSXT also worked with Clark to help Pinnacle Plastics Products relocate its processing facility to a rail-served building. The company invested $5 million in the move and created 36 new jobs. CSXT will transport 100 carloads of plastic resin to be used in the production of household products and children's toys for Pinnacle Plastics Products each year.

KENTUCKY: CSX attracts $227 million in industrial development to Kentucky in 1999

 JACKSONVILLE -- CSX Transportation Inc. announced in a press release that working with Kentucky economic development officials on 11 projects in 1999 it helped bring more than $227 million in new plant and equipment investment and 617 new jobs to the state.

In 1999, CSXT partnered with Lafarge Corp. to locate a rail-served site and design a track link for the company's new gypsum wallboard facility in Silver Grove, Ky. Lafarge will invest $90 million in this project and employ 100 people when construction of the new facility is completed in the first half of 2000. CSXT will transport 2,500 carloads annually for the plant.

"This was the first time Lafarge Gypsum has worked with CSXT, and we had a very good experience. We acquired the land and secured valuable track arrangements from CSXT," said Lafarge Gypsum President Alain Bouruet-Aubertot. "CSXT proved to be a real team player -- very cooperative with us as well as other participants throughout the process. If this situation is a harbinger of our future relationship with CSXT, we believe it will be a win-win situation for everyone."

Also last year, CSXT worked with the Celotex Corporation and JM Mullis Consulting, to help locate a site for Celotex's new state-of-the-art gypsum wallboard manufacturing facility. Upon completion in mid-2000, the new $75 million plant will bring 125 new jobs to the community and is expected to generate 2,500 carloads of wallboard per year to be transported by CSXT.

PENNSYLVANIA: Halt to SEPTA transit tabloid rejected

 PHILADELPHIA -- A federal judge last week denied the request of three newspaper publishers to stop the city's transit authority from distributing a free daily tabloid at locations where other publications cannot be sold, a wire service reported.

In denying the request for an injunction, U.S. District Judge Robert F. Kelly ruled that Philadelphia Newspapers Inc., The New York Times and Gannett Satellite Information Network Inc. have failed to show that Metro has caused them "immediate and irreparable harm."

The newspapers publishers said they will appeal the decision.

Kelly, who on Jan. 24 refused to issue a temporary restraining order, ruled Wednesday that an injunction to stop the distribution of the 2-week-old newspaper would hurt the Southeastern Pennsylvania Transportation Authority and its contractual obligations with the tabloid and its parent company, TPI Metro PA.

SEPTA's contract states commuters will receive "an objective and nonpartisan newspaper" but also says "each issue should provide SEPTA with significant editorial coverage and must conform to SEPTA's editorial standards for content."

The publishers maintain that SEPTA is violating the First Amendment because it is a government agency that is giving a market advantage to what amounts to its own publication and denying the same right to privately owned newspapers.

Metro is distributed aboard buses and on subway and train platforms, where other papers are not permitted.

GERMANY: Rail crash death toll reaches nine

  BRUEHL -- At least nine persons died and more than 20 others were seriously injured by a passenger train crash Sunday near Cologne, according to German rail chief Hartmut Mehdorn, a wire service reported.

The death toll is unlikely to go higher, according to authorities, who said the crash may have stemmed from the nine-car train going faster than the 25 mile-an-hour limit.

Police spokesman Winrich Granitzka told the BBC Sunday, "We cannot rule out more deaths but we do not think there will be many more." A probe into the speed was being conducted.

According to Mehdorn, the overnight express train crashed just south of Cologne in the early morning, causing at least some injury to about 100 people on board.

Police said the passenger load was as high as 300 for the sleeper train, which derailed on its way from Amsterdam in the Netherlands, to Basel, Switzerland.

Mehdorn said the derailing tossed the train off the tracks in the tiny community of Bruehl. Transportation officials report cranes are still working to shift the debris to see if any other persons can be found.

According to German television, the wreckage includes two train carriages, which plunged down an embankment and another which slammed into a steel post.

Police also speculated the accident may have been the result of diverting the train to another platform in the area because of track work just outside of Bruehl.

Just last year, seven persons were seriously injured after two underground trains collided in Cologne.

In January, 19 people died in a train crash near Hamar, Norway; in October of last year, there were 31 dead after a crash near Paddington, London. And in 1998 a German Railways' high-speed express trains had an accident at Eschede -- the worst in post-war Germany -- killing 101 people.

INDONESIA: Train crash kills 13

 JAKARTA -- At least 13 people were killed and one person was injured when an express train slammed into a minibus at a railway crossing in Indonesia's West Java province, officials said Friday, a wire service reported.

The incident took place Thursday afternoon when a minibus with 19 people on board was hit by a train at the crossing in West Java town of Karawang, some 50 miles east of Jakarta. Police said 10 people, including a railway crossing guard, were killed instantly, while three others died on the way to hospital. Six minibus passengers were unhurt and the vehicle's driver sustained a slight injury. Witnesses reported that the minibus driver had ignored a crossing barrier. Once the bus was on the tracks, the Argo Bromo express train, bound for Jakarta from East Java capital Surabaya, smashed into the vehicle. Authorities said they were investigating the accident.

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