Railpace Newsmagazine







Hot News!
Edited by Carl G. Perelman
UPDATED AUGUST 27, 2008:


GOVERNMENT OF CANADA CONTINUES FUNDING FOR NORTHERN MANITOBA PASSENGER RAIL SERVICE: Keewatin Railway Company will proceed with capital improvements to the passenger rail service between The Pas and Pukatawagan, Manitoba, thanks to an $2.8 million investment by the Government of Canada announced today by the Honourable Vic Toews, President of the Treasury Board, on behalf of the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities. The federal investment will fund railway track rehabilitation, bridge re-decking and the purchase of railway equipment. "Today's announcement supports commitments made by the Government of Canada towards the well-being of regional and rural communities," said Minister Toews. "Rail service improvements also support economic activities in the lumber, hydro-electric, prospecting, trapping and fishing sectors." "Our government is proud to continue its support for this important service for people living and traveling to and from these remote communities," said Minister Cannon. "This investment will allow Keewatin Railway Company to upgrade the rail line to better support safe and effective rail services." Keewatin Railway Company - jointly owned by three Manitoba First Nations (War Lake First Nation, Tataskweyak Cree Nation and Mathias Colomb Cree Nation) - operates passenger rail and freight service between The Pas and Pukatawagan in northern Manitoba. It became one of the first First Nations companies to own and operate a railway in Canada when it acquired, in April 2006, the Sherridon Subdivision through an asset purchase agreement with the Hudson Bay Railway Company (HBR). In 2007, Keewatin transported 5,437 passengers and it currently employs 10 full-time and 16 seasonal employees, mostly from First Nations. "Keewatin Railway Company welcomes this announcement by the Government of Canada and appreciates the ongoing support it has received since the acquisition of the line from Hudson Bay Railway Company," said Anthony Mayham, Chief Financial Officer of Keewatin Railway Company. "With this funding, Keewatin Railway Company will be able to control all the capital and operational track maintenance by acquiring equipment to do this work." While there is limited air and winter road service to Pukatawagan, most of the travel to the reserve is by rail. Trains also carry essential food, heating and building supplies, and household goods to the area, and support forestry, hunting and fishing activities. Since 2005, the Government of Canada has demonstrated its commitment to this rail service by providing over $8 million in start-up and capital funding to Keewatin Railway Company. The funding has been invested in the acquisition of the rail line, the recruitment and training of employees, the purchase of locomotives, railway equipment and vehicles, as well as infrastructure upgrades to the rail line. Federal funding comes from Transport Canada's Regional and Remote Passenger Rail Services Class Contribution Program. The program ensures that safe, reliable, viable and sustainable passenger rail services are provided to certain areas of the country where these services are either the only means of surface transportation for remote communities, or an alternative means of transportation for rural communities. These services also support economic activities in the lumber, mining, recreation and tourism sectors and provide an essential lifeline for isolated communities. (Transport Cananda - posted 8/27)

TORONTO TRANSIT COMMISSION RECOMMENDS DISCUSSIONS WITH THREE STREETCAR BUILDERS: Toronto Transit Commission staff, tomorrow, will seek approval from Commissioners to enter into a multi-phase bid process with three known and proven manufactures of low-floor light rail vehicles: Alstom Transportation Inc., Bombardier Transportation Canada Inc., and Siemens Canada Limited. The technical requirements remain unchanged. On July 17 the TTC announced that it had cancelled the Request for Proposal process to purchase 204 new low-floor streetcars. The two bids it received at the June 30 deadline were deemed non-compliant. The TTC said it would review its options to ensure the current streetcar fleet is replaced starting in 2012 with new, accessible vehicles. The recommendation from staff is that the TTC begin discussions with all three manufactures with respect to technical and commercial requirements. A formal competitive pricing phase, including a plan for 25% Canadian content, will be the last phase of the process before a contract award is recommended to the Commission. Prior to the close of the original RFP, the TTC retained a Fairness Monitor, Hon. Coulter Osborne, to ensure the process was followed as set out in the RFP. He concurred with staff’s decision that both bids received by the TTC were evaluated fairly and in a manner consistent with the RFP. Under its procurement rules, the TTC may contact any vendor, including those who responded to a Request for Expressions of Interest, a process undertaken before the original RFP was issued. The TTC met recently with representatives from Alstom, Bombardier and Siemens. Each indicated they could build a streetcar that meets the technical requirements established in the original RFP. If the recommendation is adopted, TTC staff will report regularly to the Commission on the status of discussions. The TTC believes the multi-phase bid process is the best option to ensure it obtains new streetcars that will meet the city’s needs. It also allows for questions or concerns to be discussed without the rigors of a formal RFP process. The Toronto Transit Commission moves 460 million people every year – about 1.5 million riders every weekday. The TTC is the third largest public transit system in North America servicing some 4.5 million people in the Greater Toronto Area, with a network of subways, streetcars, buses, and a specialized service, Wheel-Trans, for people who require accessible transportation. The TTC is committed to meeting the growing needs of the region with subway and light rail expansion, carrying an additional 175 million riders by 2021. For more information, visit www.ttc.ca. (TTC - posted 8/26)

CN AND CITY OF JOLIET APPROVE AGREEMENT ON CN ACQUISITION: CN said today that it has reached an agreement with the City of Joliet regarding CN’s proposed acquisition of the major portion of the Elgin, Joliet & Eastern Railway Company (EJ&E). The agreement resolves the outstanding concerns the City of Joliet has related to quiet zones, operations, and communications surrounding the transaction. The conditions of the negotiations are contingent upon approval of CN’s proposal to acquire control of the EJ&E, which is being considered by the federal Surface Transportation Board (STB). As stated in STB’s Draft Environmental Impact Statement, the Board has encouraged voluntary agreements between CN and communities. “We believe this will be the first of many agreements between CN and the communities along the EJ&E line that are impacted by this transaction,” stated Gordon T. Trafton Senior Vice-President, Southern Region. “We have consistently been willing to work with and address the concerns of communities across the region. We believe this agreement with Joliet is evidence that these concerns can be mitigated.” CN has been actively engaged in the environmental review process and will participate in the public hearings in August and September. CN also is actively working with other affected communities along the EJ&E line in an effort to reach voluntary mitigation agreements addressing reasonable environmental concerns associated with increased train traffic on the EJ&E. Upon approval of the agreement and final approval of the acquisition, CN will fulfill its commitments to the City of Joliet contained in this agreement within a three-year period. These terms include significant investment in track improvements and roadway features along the route through Joliet. “The purchase of the EJ&E will have far-reaching economic and transportation benefits to the Chicago region and the nation, and we are eager to continue our negotiations with other communities,” Trafton said. More information on the transaction, including a map of the areas served by the EJ&E and CN, is available by clicking on the EJ&E Acquisition icon on the “About CN” section of its website www.cn.ca/About CN (CN - posted 8/25)

ONTARIO'S GO TRANSIT ANNOUNCES LAKESHORE EAST LINE IMPROVEMENTS: Recently completed improvements to GO Transit's Lakeshore East rail line will relieve congestion and reduce delays for the 44,700 riders who use the corridor each weekday. The $69.5 million Lakeshore East corridor expansion projects included the construction of a third track on the main rail line from Danforth GO Station to Scarborough GO Station. This additional track will improve train service, increasing the efficiency of the commute for the passengers who travel along the corridor. To improve efficiency, GO Transit has also introduced 12-car passenger trains, the longest in North America, allowing over 300 new riders per train. "GO Transit is a critical service for commuters throughout the GTA and our government is working closely with the province and GO officials to make it more efficient," said Jim Flaherty, Minister of Finance and Minister Responsible for the GTA. "These investments in GO Transit, along with our long-term transportation plan FLOW, will help create a seamless transit system that will reduce traffic congestion, improve the environment and increase productivity." In addition to track expansion and longer trains, bridges at Warden, Danforth, St. Clair and Eglinton Avenues were expanded to accommodate the additional track, and the pedestrian overpass at Woodrow Avenue was replaced. Station, tunnel and platform improvements were made at Eglinton, Scarborough and Danforth GO Stations, including lengthening platforms to accommodate 12-car GO trains. "With the completion of the third track along GO's Lakeshore East line, GO trains will be able to keep moving as they pass other trains that are causing delays," said Ontario Transportation Minister Jim Bradley. "Not only are we easing congestion for GO passengers, we are building a greener, more sustainable transportation system." The Lakeshore East line runs from Union Station East to Oshawa. The expansion projects along the corridor began in October 2005 and were completed with the tunnel installation work at Scarborough Station at the end of July. In addition to the expansion projects, GO Transit continues to make operational improvements at Scarborough Station that will increase the accessibility of the station for passengers using mobility devices. This work is expected to be completed in the summer of 2009. "Our ridership numbers have been increasing as more and more people are choosing GO Transit," said Greg Ashbee, GO TRIP's Rail Expansion Program Manager. "At the end of the day, we are always working to keep up with increasing ridership numbers and to provide the most efficient and reliable service possible." Over a billion people have taken the GO Train or the GO Bus since GO Transit began operating in May 1967. Today, GO Transit carries more than 50 million passengers annually or nearly 200,000 passengers on a typical weekday. The Lakeshore East Corridor expansion projects are part of the GO Transit Rail Improvement Program (GO TRIP), a $1 billion-dollar expansion initiative funded by the federal and provincial governments and local municipalities through the Canada Strategic Infrastructure Fund. A backgrounder with further information on the Canada Strategic Infrastructure Fund and GO TRIP projects is attached. For more information on this project, call 416-869-3600, extension 5199, or visit GO Transit's website at www.gotransit.com/gotrip. (GO Transit - posted 8/22)

RAILROAD TON MILES UP DURING THE MOST RECENT WEEK: Total volume as measured in ton-miles was up slightly on U.S. railroads during the week ended August 16 in comparison with the corresponding week last year, the Association of American Railroads (AAR) reported today. Total volume was estimated 35.2 billion ton-miles, up 0.6 percent from the comparable week last year. Carload freight in the week totaled 335,245 cars, off 0.8 percent from last year. Volume was up 1.3 percent in the West but down 3.7 percent in the East. Intermodal volume, which is not included in the carload data, totaled 237,034 trailers or containers, down 0.5 percent from a year ago. Trailer volume was off 1.0 percent while container traffic slipped 0.4 percent. Seven of 19 carload commodities were up from a year ago. Metals were up 12.4 percent from last year while grain rose 9.5 percent and coal gained 5.1 percent. On the negative side, motor vehicles and equipment were down 30.6 percent, metallic ores dropped 23.2 percent and lumber and wood products fell 17.5 percent. Cumulative volume for the first 33 weeks of 2008 totaled 10,722,139 carloads, up 0.3 percent from 2007; 7,357,794 trailers or containers, down 2.9 percent; and total volume of an estimated 1.11 trillion ton-miles, up 1.5 percent from last year. On Canadian railroads, during the week ended August 16 carload traffic totaled 75,585 cars, down 4.1 percent from last year while intermodal volume totaled 51,438 trailers or containers, up 2.6 percent from last year. Cumulative originations for the first 33 weeks of 2008 on the Canadian railroads totaled 2,447,727 carloads, down 4.2 percent from last year, and 1,574,106 trailers and containers, an increase of 4.1 percent from last year. Combined cumulative volume for the first 33 weeks of 2008 on U.S. and Canadian railroads totaled 13,169,866 carloads, down 0.5 percent from last year, and 8,931,900 trailers and containers, a 1.8 percent decrease from last year. The AAR also reported that carload freight on the Mexican railroad Kansas City Southern de Mexico (KCSM) during the week ended August 16 totaled 9,900 cars, down 5.4 percent from last year. KCSM reported intermodal volume of 5,362 trailers or containers, down 0.6 percent from the 33rd week of 2007. For the first 33 weeks of 2008, KCSM reported cumulative volume of 344,380 cars, down 3.4 percent from last year, and 158,776 trailers or containers, up 8.5 percent. Railroads reporting to AAR account for 89 percent of U.S. carload freight and 98 percent of rail intermodal volume. When the U.S. operations of Canadian railroads are included, the figures increase to 96 percent and 100 percent. The Canadian railroads reporting to the AAR account for 91 percent of Canadian rail traffic. Railroads provide more than 40 percent of U.S. intercity freight transportation, more than any other mode, and rail traffic figures are regarded as an important economic indicator. (AAR - posted 8/22)

ONTARIO'S GO TRANSIT TO OPEN A NEW STATION AND ADD NEW, IMPROVED SERVICE: On Tuesday, September 2, GO Transit will open its newest GO Train station on the Stouffville line. Lincolnville GO Station, located at Bethesda Sideroad and 10th Line is north of the Stouffville GO Station. Some train arrival and departure times along this line will be adjusted for the new service. Union Station bus service will start serving the Lincolnville GO Station bus loop on Saturday, August 30. Weekday Uxbridge bus trips that currently connect with trains at Stouffville GO Station (southbound), and Mount Joy GO Station (northbound) will instead connect with trains at the new Lincolnville GO Station. It will be even easier to get on the GO with all of the new and improved services set to begin during or just following the Labour Day weekend, August 30 to September 2. A new westbound weekday bus trip is being added to the Brampton Trinity Common GO Bus service. A few new weekday northbound and southbound trips are being added to the Bolton - Hwy. 27 GO Bus service, connecting with trains at the Malton GO Station. These new weekday trips will begin on Tuesday, September 2nd. A new early morning westbound weekend and holiday bus will leave Oshawa GO Station serving Whitby, Ajax, and Pickering and express to Union Station beginning Saturday, August 30. Oakville Hwy. 403 GO Bus service will also have three new additional weekday westbound trips. Some arrival and departure times along these routes have been adjusted for the added service. A new early morning Saturday bus trip will leave Union Station westbound making all stops to Milton GO Station. Several new bus trips have been added between Union Station and Meadowvale GO Stations on Sundays and holidays. Hwy. 407 East and West GO Bus services will have several additional trips added on weekdays and Sundays, starting Sunday, August 31. University and college students will also be able to get on the GO as school services resume. GO serves the University of Guelph, McMaster University, Sheridan College, York University, Durham College-UOIT, U of T Scarborough, and Centennial College. GO is also making some changes to train schedules to better reflect typical arrival times at Union Station. On Labour Day, Monday, September 1, GO Train and Bus service will operate on a Holiday schedule. For more information on the new GO services, the public can call 416.869.3200, 1.888.GET ON GO (438.6646), 1.800.387.3652 TTY, or check the Schedules section at gotransit.com. (GO Transit - posted 8/21)

BOOMING RIDERSHIP ON AMTRAK'S HEARTLAND FLYER: The newest figures show people are increasingly opting for the Amtrak Heartland Flyer train between Oklahoma City and Fort Worth and avoiding the higher cost of driving their own cars and trucks. For the 10 months ending July 31, ridership on the daily trains is up by more than 17 percent over the year-ago period (67,141 vs. 57,327), with growth of more than 40 percent in July 2008 versus July 2007 (11,721 vs. 8,362). Amtrak operates the Heartland Flyer (Trains 821 & 822) under contracts with the Oklahoma and Texas state transportation departments. These are two of the 14 states for which Amtrak operates service that supplements the national network of Amtrak trains. "The Heartland Flyer's increased ridership numbers point to increased enthusiasm for rail travel in Oklahoma and Texas," said Phil Tomlinson, Oklahoma Secretary of Transportation. "I'm pleased that our cooperative effort with Texas is looking successful and has produced an important option to the increasing cost of traditional vehicle travel in our two states." "Increased ridership means more motorists are taking advantage of this great service," said Amadeo Saenz Jr., P.E., executive director of the Texas Department of Transportation (TxDOT). "At a time when high gas prices are hurting Texas families, we want to make sure that people have transportation options that meet their needs." "In addition to our unprecedented increase in passengers, our customer scores also are outstanding, with a satisfaction index of 98," said Joe Yannuzzi, the Amtrak General Superintendent responsible for Amtrak Southwest Division services. "Heartland Flyer customers are among the happiest in the Amtrak network and that is due to the focus, commitment and dedication of our employees." Along with Amtrak and the state DOT's, the Heartland Flyer Coalition works to promote and improve the service. The volunteer group represents communities and leaders along the 206-mile route, sponsors the www.heartlandflyer.com website and organizes events all year that make the train experience even more special. In addition to the Heartland Flyer, Amtrak is studying additional service in the two states at the direction of the state agencies. Specifically, a report reviewing service to and from Tulsa is due soon to the Oklahoma DOT, while next year TxDOT will receive a review of additional service between Austin and San Antonio (Amtrak - posted 8/20)

ELECTRO-MOTIVE'S ENVIRONMENTALLY FRIENDLY LOCOMOTIVES FOR CHINA: The first EMD-designed JT56ACe high powered diesel-electric locomotive jointly manufactured by CNR Dalian Locomotive and Rolling Stock Co. (DLoco) and USA-based Electro-Motive Diesel, Inc., (EMD) rolled out on July 2, 2008 in Dalian China. The JT56ACe locomotive utilizes a 6,000 HP engine and is one of the most fuel efficient and environmentally friendly diesel-electric locomotives in its class anywhere in the world The new JT56ACe diesel-electric locomotive was built with the needs of the Chinese market in mind. It is equipped with a variety of EMD advanced technologies which include dual isolated driver's cabins, EMD's type 265H 6,000HP diesel engine, low exhaust emissions, electronic fuel injection, AC traction drive system, microcomputer control system, and the ability to function in three-unit consists. Crew comfort was also taken into account with a microwave oven, air conditioning, refrigerator and toilet facility. As the most advanced 6,000 HP freight locomotive in the world, the JT56ACe has a variety of advantages, such as achieving an impressive starting tractive effort of 620 kN and a continuous tractive effort of 578 kN. The JT56ACe also includes the EMD collision protection package, improving locomotive durability and driver safety. With a weight of just 25 tonnes per axle the JT56ACe is the most powerful diesel-electric locomotive in the world at such a low axle load. The JT56ACe can pull up to 5000 tonnes with a maximum speed of 120 km/h. Under EMD's current contract, DLoco and EMD will manufacture 300 JT56ACe locomotives for the Chinese Ministry of Railways (MoR). Having been selected to develop and supply the JT56ACe locomotive to the MoR, EMD is excited to participate in the rapidly expanding Chinese market. Beginning with the licensing of advanced radial bogie technology to China in 2001, and now with the localization of the JT56ACe, EMD looks forward to a long and fruitful relationship with the MoR, Chinese suppliers and other Chinese customers. EMD is confident that by working with our Chinese partners we will be able to provide locomotive technology solutions to make a significant and lasting contribution to the railway transportation development in China. Founded in 1922, Electro-Motive Diesel, Inc. is one of two U.S. original equipment manufacturers of diesel-electric locomotives. Headquartered in LaGrange, Illinois, with additional facilities in London, Ontario, EMD designs, manufactures and sells diesel-electric locomotives for all commercial railroad applications and has sold its products in more than 70 countries worldwide. The Company is the only diesel-electric locomotive manufacturer to have produced more than 70,000 engines and has the largest installed base of diesel-electric locomotives in both North America and internationally. In addition to its locomotive manufacturing activities, EMD has an extensive aftermarket business offering customers replacement parts and a range of value-added services for its locomotives. The Company is also a global provider of diesel engines for marine propulsion, offshore and land-based oil well drilling rigs, and stationary power generation. In April 2005, Greenbriar Equity Group LLC, Berkshire Partners LLC, and certain related parties acquired EMD from General Motors Corporation. Additional information may be found at http://www.EMDiesels.com. (Electro-Motive Diesel, Inc. via Alex Mayes - posted 8/20)

ROANOKE REGION INTERMODAL FACILITY PROJECT ADVANCES: The Virginia Department of Rail and Public Transportation (DRPT) today issued a Notice to Proceed to Norfolk Southern Railway, authorizing the railroad to initiate construction of the Roanoke Region Intermodal Facility at the Elliston site in Montgomery County, Va. The facility will provide significant economic benefits for the region, with up to 2,900 jobs and $71 million in tax revenue annually. Since 2006, DRPT has worked with localities in the Roanoke region to consider potential sites for the facility, which is part of the Heartland Corridor project. The Heartland Corridor project is a multi-state freight rail initiative with significant Virginia benefits. The project will save 1.5 days of shipping time between the Port of Virginia and markets in the Midwest, remove 1.9 million trucks from Virginia’s highways, save 189 million gallons of fuel and reduce carbon emissions by 700,000 tons in the first 15 years of operation. The decision to construct the intermodal facility at the Elliston site was based on two years of review and analysis. In March 2008, DRPT released the Roanoke Region Intermodal Facility Summary Report which concludes that the Elliston site is the only feasible site for the intermodal facility. On April 4, 2008, Governor Kaine requested that, based on the complete set of reports and information available, the localities provide their recommendation on the project within thirty days. To facilitate discussion, the Roanoke Alleghany Regional Commission hosted a regional meeting of elected officials on April 25, 2008, where Secretary of Transportation Pierce Homer and DRPT Agency Director Matthew Tucker provided additional information and answered questions during the meeting to help reach a consensus on next steps. Subsequently, the region affirmed its commitment to the Heartland Corridor project, including the intermodal facility. DRPT has authorized Norfolk Southern to commence facility construction activities by winter 2008, with the goal of project completion by 2010. Throughout the construction process, Norfolk Southern will coordinate with Montgomery County, the Virginia Department of Transportation, DRPT and other organizations to minimize the local impact of site construction. About the Heartland Corridor and the Roanoke Region Intermodal Facility The Roanoke Region Intermodal Facility is part of the multi-state Heartland Corridor freight rail project, which will increase capacity and reduce freight shipping time between Hampton Roads, Va. and Chicago by up to 1.5 days. Intermodal facilities serve as a transfer point for freight shipping between trucks and rail. Just one intermodal train has the equivalent carrying capacity of 200 long haul trucks, providing a competitive shipping option and reducing the number of trucks on highways. Additional information is available online ( DRPT - posted 8/19)

JULY 2008 AMTRAK RIDERSHIP SETS ALL-TIME MONTHLY RECORD: Amtrak ridership in July Fiscal Year 2008 increased to 2,750,278, nearly a 14 percent increase, marking the most passengers carried in any single month in Amtrak's 37 year history. Total ridership for the Fiscal Year to date — October 1, 2007 - July 31, 2008 — reached 23.7 million, topping the 21.3 million from the same period last year. Total ticket revenue for the fiscal year to date reached $1.4 billion, a 14.1 percent increase over the same period in FY07. For the month of July, ticket revenue increased by 18.6 percent to $168 million. "Increasing fuel prices, highway congestion, airline issues and environmental awareness continue to make intercity passenger rail extremely relevant and popular," said Alex Kummant, President and CEO of Amtrak. "In addition, we continue to work on service improvements and better on-time performance, which draws more ridership and revenue each month. "Our record-setting ridership and ticket revenue in the month of July alone indicate we will end the year with approximately three million new passenger trips in FY09," he added. Eastern Highlights
  • The popularity of the Acela Express service continued in the month of July with a 5.5 percent increase over July 2007. Ticket revenue in the Northeast Corridor reached more than $79 million, a 16.2 percent increase. Ridership on the recently relaunched Northeast Regional trains continued to rise with an 8.8 percent increase in the month of July and revenue topping $41 million.
  • The Downeaster, which operates between Portland, Maine and Boston, carried 48,438 passengers in July, a 33.6 percent increase over July last year. Ticket revenues on this route increased by 34.1 percent to $722,676.
  • The Keystone Service, which operates between Harrisburg, Philadelphia, and New York City experienced significant growth with a 26 percent increase in ridership, reaching 109,317 in July, and a 19.9 percent increase from October - July with more 975,184 passengers.
  • The Piedmont, which runs between Raleigh and Charlotte NC, increased ridership by 43 percent in July, and ticket revenue by 48 percent.
Central Highlights
  • The Midwest trains continued to see significant gains in both ridership and revenue in July. The Heartland Flyer increased ridership by 40.2 percent and revenue by 70.2 percent last month. The Hiawatha Service, with seven daily round-trips sponsored by the Wisconsin Department of Transportation and Illinois DOT, reached 78,662 passengers - a 37.7 percent increase over July 2007.
West Highlights
  • California's Capitol Corridor service which operates between Auburn and San Jose, carried 161,731 passengers in July FY08, a 32.6 percent increase over the same month last year. The San Joaquins continue to increase in ridership with a 32.1 percent increase over July last year and a 47.5 percent increase in revenue.
  • National Highlights Among the trains on the Amtrak national network, the Coast Starlight - which operates between Seattle and Los Angeles - was the most popular overnight train in the month of July with more than 47,000 passengers, a 27.7 percent increase. The Auto Train, which runs non-stop between the Washington, DC and Orlando areas, carried more than 24,000 passengers in July and the New York-Miami Silver Service trains (Silver Meteor-Silver Star) achieved ridership gains of 14.7 and 17.8 percent respectively.
(Amtrak - posted 8/18)

BOMBARDIER SIGNS CONTRACTS TO SUPPLY 46 DUAL MODE LOCOMOTIVES: Bombardier Transportation announced today it has signed two contracts to supply a total of 46 dual-powered passenger locomotives to the New Jersey Transit Corporation (NJ TRANSIT) and the Agence Metropolitaine de Transport (AMT) in Montreal. The order from NJ TRANSIT, valued at approximately 178 million euros ($262 million US), is for 26 dual-powered locomotives. The contract includes options for an additional 63 locomotives. The order from AMT, valued at approximately 152 million euros ($223 million US), is for 20 dual-powered locomotives. The AMT contract includes options for an additional 10 locomotives. The new dual-powered locomotives will be capable of operating under both diesel power and alternating current electric power from overhead sources - a first in North America. The flexible power system will enable the locomotives to operate across the entire NJ TRANSIT and AMT rail systems, which include both electrified and non-electrified lines. The dual-powered locomotives are an evolution of service-proven ALP-46 electric locomotive technology in successful operation at NJ TRANSIT since 2002. The new units will include highly reliable BOMBARDIER MITRAC propulsion and controls technology, which offers high performance and intelligent features such as remote diagnostics systems and sophisticated adhesion control for improved traction and hauling efficiency. Locomotives for both contracts will be built at Bombardier manufacturing facilities in Germany and Poland. Delivery to clients is scheduled to begin in 2011. "We are proud to support NJ TRANSIT and AMT in their continuing commitment to provide modern, efficient, environmentally-friendly passenger rail service. These two orders for new locomotives illustrate the confidence both agencies place in Bombardier and our products," said Ake Wennberg, President, Locomotives and Equipment Division, Bombardier Transportation. NJ TRANSIT is the third largest provider of public transit in the United States and an established customer of Bombardier. In terms of locomotives, Bombardier has supplied 29 ALP-46 electric locomotives to the Transit Authority and earlier this year received an order for 27 ALP-46A electric locomotives, an upgraded version of the product. Over the years, Bombardier has provided hundreds of Comet II, III and IV push-pull commuter coaches to New Jersey and is currently delivering stainless-steel Multilevel vehicles to the agency. In addition, Bombardier was a member of the consortium that designed and built NJ TRANSIT's turnkey River LINE light-rail system between Camden and Trenton, New Jersey and now operates and maintains the system under a contract with NJ TRANSIT. AMT, another long-time customer of Bombardier, is the second largest commuter rail service in Canada and the sixth in terms of ridership in North America. AMT is the umbrella organization that plans, integrates and coordinates public transportation services across the greater Montreal region. Over the years, Bombardier has provided Montreal's commuter rail system with locomotive-hauled coaches for the Montreal-Rigaud line, electric commuter vehicles for the Deux-Montagnes line, and aluminum BOMBARDIER BiLevel cars for the Montreal-Rigaud line. Most recently, in December 2007, Bombardier received an order from AMT for 160 stainless-steel Multilevel commuter rail cars. (Bombardier - posted 8/18)

CN REQUESTS STB APPROVAL FOR REVISED PROCEDURAL SCHEDULE AND NEW APPROACH TO EJ&E ACQUISITION: CN (TSX: CNR)(NYSE: CNI) said today that it has asked the Surface Transportation Board (STB) to take a new approach to CN’s proposed acquisition of the major portion of the Elgin, Joliet & Eastern Railway Company (EJ&E). CN has asked the Board to issue a final decision on the transportation merits of the transaction in time to permit the transaction to close before year-end, but to preserve the environmental status quo pending further STB action on the environmental issues posed by the transaction. The new approach would assure adequate protection of the environment for communities along the EJ&E. At the same time, it would avoid the risk to the broader public interest in improved rail transportation posed by regulatory delays that threaten termination of the transaction. CN’s petition requests that the STB decide by September 15, 2008 whether it will modify its procedural schedule to provide for a final decision by October 15, 2008 on the transportation merits of the proposed EJ&E acquisition. Under law, that decision would be based on whether the Board has found adverse competitive impacts that are both “likely” and “substantial.” CN is also asking the Board, if it decides to approve the transaction in October, to condition its approval on preserving the environmental status quo until the Board’s Section of Environmental Analysis (SEA) has completed its environmental review of the transaction. CN contends that, so long as the environment is not affected by the transaction during environmental review, the law requires the Board to approve the transaction on its competitive merits. Once the STB’s environmental review is completed, the Board would be expected to issue a decision governing any change in the environmental status quo. “This transaction has far-reaching economic and transportation benefits to the Chicago region, the Midwest, and the nation as well as for CN and its customers,” said E. Hunter Harrison, President and Chief Executive Officer of CN. “This transaction enjoys significant support from a broad array of shippers and the range of other parties who have a stake in making sure that the serious rail congestion issues plaguing Chicago are being addressed by sound transportation initiatives such as the acquisition by CN of the EJ&E. “At the same time, we are well aware of the concerns raised by communities along the EJ&E line about the environmental impacts of increased train traffic. We are asking the STB to set a schedule providing for a decision on the merits which, if favorable to CN, would allow us to close on this transaction before the end of this year, but would not cause any adverse environmental impacts before the Board completes its environmental review and develops a full record on which to base the environmental mitigation that it may impose on the transaction.” CN is entitled to and requires this relief because the STB declined CN’s request for a fixed timetable that would conclude its regulatory and environmental review by the end of the year and, despite CN’s continuing best efforts, a substantial risk remains that EJ&E, which is an indirect subsidiary of United States Steel Corporation (U. S. Steel), would terminate the proposed transaction if it is not closed before year-end. U. S. Steel has recently declined CN’s request for a modification of the Stock Purchase Agreement (SPA) or other action that would assure that the transaction could still be closed if approved after December 31, 2008. That decision has highlighted the risk that the transaction would be terminated before it was reviewed by the STB. As a result, CN is seeking relief to allow this important transaction to close prior to the end of 2008. “CN is prepared to take the positive step of closing this transaction before year-end in a way that provides the STB with additional time to complete its environmental review by early 2009,” Harrison said. “We are hopeful that the final EIS will conform to the view that this transaction is clearly beneficial to the environment of the broader Chicago region and that the legitimate impacts on affected communities are not novel and can all be reasonably mitigated in accordance with sound STB precedents and the long-established public policy framework governing railroad transactions throughout the United States. “The chief concerns raised by opponents of this transaction are the impacts of train traffic that will be diverted from CN lines in Chicago onto the EJ&E,” Harrison said. “Our proposal would ensure that the STB has sufficient time to review those matters fully before it authorizes any diversion of traffic. The action we are requesting would not interfere in any way with SEA’s environmental review process and we are seeking to protect the interests of all parties. At the same time, we would be moving one step closer to meaningful rail congestion relief and rail efficiency enhancements in the Chicago region. “We have consistently stated that we understand and are willing to address the concerns of communities that will experience train traffic increases as a result of this transaction,” Harrison said. CN has been actively engaged in the SEA’s environmental review process and will participate in the SEA’s public hearings in August and September in communities in the region. CN also will continue to work with affected communities along the EJ&E line in an effort to reach voluntary mitigation agreements addressing reasonable environmental concerns associated with increased train traffic on the EJ&E. CN’s petition notes that if the Board does not act by September 15, 2008, CN will be prepared to petition the U.S. Court of Appeals for the District of Columbia Circuit immediately thereafter to compel the STB to issue a final decision that would permit CN to close the transaction by December 31, 2008. By requesting an STB decision by September 15 solely on the question of whether the STB will agree to issue a final decision on the transportation merits by October 15, 2008, CN hopes to avoid the need for judicial intervention. CN and U. S. Steel announced on September 26, 2007, an agreement under which CN would acquire most of the EJ&E for $300 million, subject to regulatory approval by the STB. The transaction would enable CN to re-route its trains along the EJ&E arc around the periphery of the Chicago area, reducing rail congestion in the inner core of Chicago while significantly improving the flow of CN’s rail operations in the Chicago region. CN has committed an additional $100 million for integration, new connections, and infrastructure improvements to add capacity on the EJ&E line and allow network synergies to be realized over time. This $400 million of private-sector investment, combined with the roughly $40 million that CN would expect to spend to mitigate the impacts of increased train traffic along the EJ&E line, would better utilize and enhance capacity on the Chicago-area rail network. (CN - posted 8/15)

SEPTA TO EXPAND LATE NIGHT WEEKEND REGIONAL RAIL SERVICE ON SELECT ROUTES: SEPTA will expand Regional Rail service in the upcoming weeks to include additional late-night train service for weekend passengers on Friday and Saturday evenings. The measures, which impact select routes, are in response to customer feedback and tremendous ridership growth as commuters seek alternative and more cost-effective means of transportation. When the service expansion plans become effective in September, new R5 Paoli-Thorndale, R6 Norristown and R7 Trenton train service will operate as late as 2:47 a.m. providing passengers with additional travel options. SEPTA’s new late-night weekend train service was specifically designed to give those passengers without cars, as well as those with cars (who don’t necessarily want to spend additional money on gas or parking) more access to events and attractions throughout the region. With expanded late-night R5 Paoli-Malvern service to and from Center City Philadelphia, numerous students attending colleges and universities along the Main Line will now have more opportunities to enjoy various dining, cultural and entertainment venues in the region. Expanded late-night R6 Norristown service will provide passengers traveling to and from popular destinations in Manayunk or Conshohocken with a choice to savor the nightlife even longer. And R7 Trenton Line service with its expanded hours will offer later connections for visitors traveling to and from New York City as riders have the option of taking the R7 to the Trenton Transit Center and transferring to New Jersey Transit service to New York City and vice versa. “This is truly an exciting time for us here at SEPTA,” said SEPTA General Manager Joseph Casey. “Riders throughout the region now have more options to enjoy a late night out on the town without having to worry about transportation needs because of the additions we’ve made to service. We’re happy to help riders get to many of the region’s great destinations.” SEPTA will also provide R5 Paoli-Thorndale riders with a new early morning trip departing Thorndale Station at 4:55 a.m. each weekday and serve passengers at Downingtown, Whitford and Exton Stations en route to Center City Philadelphia. All SEPTA Regional Rail passengers should pick up new fall schedules when they become available in the upcoming weeks and look for changes to their specific routes. New schedules will also be available online at www.septa.org. Passengers may call the SEPTA Customer Service Department at 215-580-7800 for information on all service. (SEPTA posted 8/14)

BOTH CARLOAD,INTERMODAL FREIGHT DOWN SLIGHTLY ON U.S. RAILROADS: Both carload and intermodal freight were down slightly on U.S. railroads during the week ended August 9 in comparison with the corresponding week last year, the Association of American Railroads (AAR) reported today. Carload freight in the week totaled 328,281 cars, off 0.1 percent from last year. Volume was up 1.2 percent in the West but down 2.0 percent in the East. Intermodal volume, which is not included in the carload data, totaled 233,948 trailers or containers, down 1.4 percent from a year ago. Trailer volume was up 0.3 percent while container traffic slipped 1.9 percent. Total volume was estimated at 34.2 billion ton-miles, the same as during the 32nd week of 2007. Seven of 19 carload commodities were up from a year ago, with metallic ores gaining 49.5 percent, metals rising 5.3 percent and coal up 5.1 percent. On the negative side, motor vehicles and equipment were down 29.6 percent, lumber and wood products fell 16.9 percent and farm products other than grain dropped 16.5 percent. Cumulative volume for the first 32 weeks of 2008 totaled 10,386,894 carloads, up 0.3 percent from 2007; 7,120,760 trailers or containers, down 3.0 percent; and total volume of an estimated 1.08 trillion ton-miles, up 1.5 percent from last year. On Canadian railroads, during the week ended August 9 carload traffic totaled 71,764 cars, down 4.7 percent from last year while intermodal volume totaled 47,826 trailers or containers, up 0.7 percent from last year. Cumulative originations for the first 32 weeks of 2008 on the Canadian railroads totaled 2,372,142 carloads, down 4.2 percent from last year, and 1,522,668 trailers and containers, an increase of 4.2 percent from last year. Combined cumulative volume for the first 32 weeks of 2008 on U.S. and Canadian railroads totaled 12,759,036 carloads, down 0.5 percent from last year, and 8,643,428 trailers and containers, a 1.8 percent decrease from last year. The AAR also reported that carload freight on the Mexican railroad Kansas City Southern de Mexico (KCSM) during the week ended August 9 totaled 10,116 cars, down 6.6 percent from last year. KCSM reported intermodal volume of 5,951 trailers or containers, up 11.0 percent from the 32nd week of 2007. For the first 32 weeks of 2008, KCSM reported cumulative volume of 334,480 cars, down 3.4 percent from last year, and 153,414 trailers or containers, up 8.8 percent. Railroads reporting to AAR account for 89 percent of U.S. carload freight and 98 percent of rail intermodal volume. When the U.S. operations of Canadian railroads are included, the figures increase to 96 percent and 100 percent. The Canadian railroads reporting to the AAR account for 91 percent of Canadian rail traffic. Railroads provide more than 40 percent of U.S. intercity freight transportation, more than any other mode, and rail traffic figures are regarded as an important economic indicator. (AAR posted 8/14)

TRANSIT AGENCIES EXPAND JOINT TICKETING OPTIONS NJ TRANSIT and SEPTA announced today that they have begun selling tickets to more than 125 new destinations in Pennsylvania on regional rail connections through an expanded ticketing agreement. Previously, NJ TRANSIT only sold SEPTA tickets to three destinations in Center City Philadelphia. Under the new agreement, tickets are available for Bucks, Montgomery, Chester and Delaware county locations, as well as popular destinations such as Philadelphia Airport. Regional rail connections are available at the newly renovated Trenton Transit Center. "Commuters, students, tourists and all riders can now travel between the Philadelphia metropolitan area to Rutgers in New Brunswick, Prudential Center events in Newark and to Broadway with convenient one-stop shopping for both their SEPTA and NJ TRANSIT tickets," said SEPTA General Manager Joseph Casey. "We already have New Jersey customers purchasing their SEPTA connecting tickets to and from 84 locations on our system, and this will give our customers more travel options throughout the region," said NJ TRANSIT Executive Director Richard Sarles. "With gas prices driving people to transit, we want to offer customers more local connecting options at affordable prices." Joint SEPTA/NJ TRANSIT tickets are now available for travel to any SEPTA regional rail station, including those beyond or via Center City Philadelphia. Customers can purchase return tickets when purchasing their original fare. Tickets for both SEPTA and NJ TRANSIT are now available through NJ TRANSIT’s rail ticket vending machines and sold at rail ticket windows at Trenton Transit Center and across the rest of the system. NJ TRANSIT tickets are sold at SEPTA ticket windows at Suburban and Market Street East stations and via ticket vending machines at 30th Street Station. Sarles said at today’s NJ TRANSIT Board meeting in Newark that he will be working with Casey to expand regional travel options through joint ticketing and other enhancements. Sample NJ TRANSIT/SEPTA Connections and Combined Fares
  • Philadelphia – New York: $20.50
  • Hamilton – Philadelphia Airport: $11.50
  • Tacony – New Brunswick: $10.25
  • Paoli – Princeton: $14.00
  • Cornwells Heights – Newark Liberty Airport: $18.25 Includes $5.50 Airport Access Fee
(NJ TRANSIT posted 8/14)

EXPANDED PASACK VALLY LINE RIDERSHIP: Since MTA Metro-North Railroad introduced weekend and mid-day off peak train service on the Pascack Valley Line in Rockland County, New York, weekly ridership on the line has grown an astonishing 40% from spring 2007 to spring 2008. All time periods, weekday peak, weekday off-peak and weekends, experienced significant increases on the New York State portion of the line. Combined weekly ridership on the Pascack Valley Line is now 11,634, highest in Metro-North history. "Not only did the addition of weekday off peak service make sense for the occasional customer but we believe it made the line more attractive to would-be peak-hour commuters who wanted the safety net of a way to get home early," said Metro-North President Howard Permut. The new service, inaugurated October 28, 2007, includes 16 new weekday trains, nine inbound to Secaucus and Hoboken and seven outbound. Weekend service began with 23 trains operating each weekend day - 11 inbound to Hoboken and 12 outbound each day, but an additional inbound train was added August 3. There are now a dozen trains in each direction each weekend day. These improvements were made in conjunction with New Jersey Transit, which operates the service under contract for Metro-North. NJTransit reported yesterday that ridership on the Bergen County portion of the line increased nearly 16% in the first three months of the year. Ridership in the AM peak has increased by 22% since last fall and 30% since spring 2007. Metro-North's Pascack Valley line now carries 975 AM peak commuters. Off-peak inbound ridership went from zero in spring of 2007 to 35 a day last fall to 119 this spring, an increase of 240%. Over 2,100 trips are now made each weekday on the Pascack Valley Line, Metro-North's smallest. Located in Rockland County, it has just three stations in New York: Spring Valley; Nanuet and Pearl River. The line continues south through New Jersey to Hoboken. Weekend ridership on the line increased by over 60% since the first few weekends of operation last fall when the first counts were taken. Saturday ridership has increased by almost 75% since last fall while Sunday ridership has increased by almost 50% since last fall. Approximately 800 trips are currently made on the Pascack Valley Line each weekend. (MTA - posted 8/14)

HISTORIC WALDWICK STATION GETS NEW LEASE ON LIFE: The historic Waldwick train station building would be renovated and converted into a facility that offers meeting space as well as a railroad museum under a lease arrangement approved today by the NJ TRANSIT Board of Directors. The aging stucco and wood-beam station building, built in 1887 and listed on the National and New Jersey Registers of Historic Places, is scheduled to be renovated by the not-for-profit Waldwick Community Alliance Inc. under terms of a 25-year lease that would preserve a piece of railroad history at no expense to NJ TRANSIT. "This agreement preserves a cultural resource and benefits the community in a manner that has zero impact on a very tight NJ TRANSIT capital budget," said NJ TRANSIT Chairman and Transportation Commissioner Kris Kolluri. The obsolete Main Line station building has been closed since 1983, and is located on the outbound side of the tracks, where few Waldwick Station commuters would wait. Current customers are sheltered from the elements by a modern heated and air-conditioned building on the inbound side of the station. "This is a win-win for the community and for NJ TRANSIT because the lease enables a preservation effort that financial constraints would not permit us to undertake," said NJ TRANSIT Executive Director Richard Sarles. Under the terms of the proposed lease of the 8,545-square foot property, the alliance would pay $1 per year for 25 years and pay the cost of restoring the building to historic standards and upgrading landscaping and walkways. Prior to restoration, NJ TRANSIT will relocate six parking spaces and the entrance and exit points to the existing station parking lot to reorient pedestrian flow around the station building. No parking spaces will be lost. (NJT - posted 8/13)

NEW FRA SAFETY INITIATIVE: Improving upon the historic levels of safety achieved in recent years by the nation’s railroads will require the use of a new risk-based approach to identify and correct safety issues before they result in train accidents and employee injuries, Federal Railroad Administrator Joseph H. Boardman told industry leaders at a Rail Safety Summit today. “Fixing something after it breaks or writing rule violation notices is increasingly unlikely to result in significant additional gains in rail safety,” Boardman said, who announced the Risk Reduction Program (RRP) which is aimed at supplementing current federal regulations, inspection requirements, and other compliance and enforcement activities. Boardman said the Federal Railroad Administration (FRA) has recently sponsored several risk-reduction pilot projects and now is moving toward establishing the RRP as a formal agency safety program. In addition to input from rail management and labor, the FRA will be accepting public comment this fall on the RRP and how to make it most effective, he said. The RRP initiative will develop innovative methods, processes, and technologies to address the contributing risk factors that result in train accidents and employee injuries. For example, a conventional approach to prevent train derailments is to search for and fix any broken joint bars that connect two sections of track. A risk-based strategy will focus on identifying the precursors that indicate a joint bar might break followed by proper preventive maintenance before it fails, he said. Boardman said the RRP framework encourages voluntary participation of railroads and labor on projects that target specific risk categories such as confidential close call reporting systems, peer-to-peer accident prevention strategies, and fatigue risk management programs. In addition, the RRP supports the strategic use by railroads of technology, such as trackside equipment to monitor trains as they roll by to identify potential safety problems. And, it will be necessary for railroads to develop and strengthen their safety cultures so that the risk-based approach to safety eventually becomes second nature, he said. At today’s Rail Safety Summit, Boardman presented awards to the Union Pacific Railroad, the Brotherhood of Locomotive Engineers and Trainmen, and the United Transportation Union for their partnership with the FRA Office of Railroad Development on two effective risk-reduction demonstration projects. The first is for the Changing At-Risk Behavior (CAB) project that resulted in an 80 percent reduction of the targeted behavior in less than two years. The other is for the ongoing Safety Through Employees Exercising Leadership (STEEL) project that has thus far removed over 75 barriers to safety. (USDOT - posted 8/13)

PROVIDENCE & WORCESTER ANNOUNCES SECOND QUARTER RESULTS: Providence and Worcester Railroad Company today reported its results for the second quarter of 2008. The Company had net income for the quarter of $320,000 compared to net income of $347,000 in the second quarter of 2007. Diluted income per common share was $0.07 for each quarter. Other income for the second quarter of 2007 included $269,000 of gains realized from the sale of property and easements compared to just $26,000 of such gains in 2008. Operating revenues for the second quarter of 2008 increased $1.1 million, or 16.1% from the second quarter of 2007. This increase is the result of a 23.9% increase in conventional freight revenues partially offset by a 45.9% decline in container freight revenues. Shipments of ethanol and automobiles, two commodities which the Company began handling during the second half of 2007, as well as increased shipments of coal and steel ingots, account for the increase in conventional freight revenues. That increase was offset somewhat by decreases in shipments of construction aggregates, chemicals, building products and other commodities during the quarter, which appears to be largely attributable to the economic slow-down experienced by the United States economy. The sharp decrease in container revenue results from a continuing decline in container traffic volume which began midway through 2007. Diesel fuel expense for the quarter increased by $618,000 (103.5%) from the second quarter of 2007, primarily as a result of sharply-increased prices for petroleum products. During the six months ended June 30, 2008, the Company had a net loss of $602,000 ($0.13 per common share) compared to a net loss of $814,000 ($0.18 per common share) during the six months ended June 30, 2007. (Providence and Worcester Railroad Company - posted 8/13)

GO TRANSIT'S CREDIT RIVER BRIDGE GETS A THIRD TRACK: The Credit River Bridge along the GO Transit Lakeshore West corridor was widened this past weekend to improve rush hour service. The process took just six hours and new and innovative technology was used to install the pre-assembled bridge section, which adds a third mainline track to the existing two-track bridge. The third track addition is part of a project to widen the Lakeshore West line to improve peak period service for the 60,000 GO Transit commuters who travel in and out of downtown Toronto each day. "The installation of this third track will help cut commute times for passengers and improve the efficiency of this important commuting option," said the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities. "It also reflects this government's commitment to working with its partners to improve environmentally-friendly transportation options such as transit." "Improving GO Transit service is critical if we are going to ease traffic congestion, strengthen the economy and improve the environment throughout the Greater Toronto Area," said the Honourable Jim Flaherty, Minister of Finance and Minister Responsible for the GTA. "This is just the latest investment by our government to make commuter rail service more efficient for the benefit of the tens of thousands of commuters each and every weekday." The installation process provided a safer and more cost-effective alternative to the more common practice of assembling the expansion over the bridge. As the bridge span was pre-assembled and slid into place overnight, GO Transit was able to complete the process without any interruption to service. "Investing in transit infrastructure is part of our plan for the economy and of our fight against climate change," said Ontario Minister of Transportation Jim Bradley. "Better service for GO Transit riders makes it easier for commuters to leave their cars at home." The work on the Credit River Bridge is part of the GO Transit Rail Improvement Program (GO TRIP), which includes a larger expansion and improvement project underway on the Lakeshore West railway corridor from the Port Credit GO Station to Kerr Street in Oakville. Construction began on this section of the corridor in April 2007, and is expected to be completed by November 2009. Upon completion, the improvements will allow for the introduction of more GO train service and help reduce delays during peak travel periods. "Because of its unique assembly process, the Credit River Bridge project has been of particular interest to GO Transit riders, and we are pleased to have this important piece of this corridor's expansion complete," said Greg Ashbee, Rail Expansion Program Manager at GO Transit. For more information about GO Transit's improvement and expansion program, please go to www.gotransit.com/gotrip. (GO Transit - posted 8/12)

RIVERHEAD RAILROAD FESTIVAL: The Board of Trustees of the Railroad Museum of Long Island is pleased to announce our ninth annual Riverhead Railroad Festival. It will be held on the Museum grounds at 416 Griffing Avenue, Riverhead, NY across from Riverhead’s Long Island Railroad Station from 10:00 AM to 4:00 PM on Saturday, August 23th and Sunday, August 24th, 2007. Formed in 1990 and opening its doors to the public in 1991 at the Historic Greenport Freight Station, the Railroad Museum of Long Island has grown to include a Visitor’s Center, a restoration shop, numerous artifacts and exhibits including historic railcars and locomotives bringing the history of railroading on Long Island to life. At this year’s event, see exhibits and working machines of the “Long Island Antique Power Association.” Ride our restored 1964 ~ 1965 LIRR Pavilion World’s Fair Train. Under the big-top tent, visit railroad preservation groups and historical societies and view and purchase items from railroad related vendors. Visit our Museum Gift Shop. See operating toy train layouts in “G” scale, “O” gauge, “HO” scale, and “N” scale model train layouts. Tour our historic collection of railcars and locomotives, including the newly received retired M-1 cars. For an additional experience, take the 11:20 AM LIRR “Greenport Scoot” to visit our Museum in Greenport and then return to Riverhead. Admission to the Riverhead Railroad Festival allows you to see both sites on the same day of purchase. Due to the LIRR rework of the Queens interlocking trackwork, the LIRR is providing Buses for this trip. “Scoot” tickets are purchased separately onboard the buses from the LIRR conductor. Admission to the Riverhead Railroad Festival is for adults: $6.00; children 5 through 12 years: $3.00; children under 5 yrs. FREE. For additional information, contact the Riverhead Railroad Festival event coordinator, Mr. Donald Fisher at e-mail n2qhv@arrl.net or the Museum at 631-727-7920. (The Railroad Museum of Long Island - posted 8/12)

NYS&W ANNOUNCES PLANS TO DISCONTINUE SERVICE ON 41 MILES OF UTICA BRANCH: New York, Susquehanna, and Western Railway has filed legal notices announcing its intention to formally discontinue 41 miles of track between Chenango Forks in Broome County and Sherburne in Chenango County. The legal notice said the Cooperstown- based railroad will seek an exemption from the U.S. Surface Transportation Board relieving the railroad of its obligation to provide service along the line. Fighting the move are the Chenango County Area Corporation and Commerce Chenango, which say discontinuing the line will impede economic development. Chenango County officials have been seeking federal assistance to bring the track back to useable status; it was damaged in 2006 by heavy flooding. The line has not been in use since then. The filing is not an abandonment filing but a notice required legally for a line that is not in service, said officials (Binghamton Press and Sun-Bulletin via Susquehanna Yahoo Groups posted 8/11)

STOURBRIDGE RAILROAD'S RAILFAN WEEKEND CANCELLED: The Stourbridge Railroad's Railfan Weekend, scheduled for September 20, has been cancelled due to a bridge in Hawley, Pa. remaining out of service. This bridge was washed out several years ago and is currently being replaced. However, it will not be in service by September 20. The railroad plans to host a railfan's day in 2009, with the anticipation that the bridge will then be in service. . (posted 8/11)

MULTILEVEL RAILCAR FLEET'S GOOD TRACK RECORD: Millions of new vehicles crisscross North America’s railroads each year on their way from assembly plants to distribution centers and dealers. Railroads now carry approximately 70 percent of all new vehicles manufactured in the United States. These vehicles ride the rails in a dedicated fleet of enclosed, streamlined tri-level and bi-level rail cars, all part of the National Multilevel Reload Pool. In 2008, the National Multilevel Reload Pool includes 55,000 rail cars, specially designed to transport new automobiles and light trucks safely and securely. “The Multilevel Pool is a remarkably effective and efficient system,” said David F. Julian, chairman of the Multilevel Pool Executive Committee (MPEC) and president of automotive and supply chain services for Norfolk Southern Corp. “By using the pool, railroads in the United States, Canada, and Mexico can deliver vehicles with greater reliability than ever before.” The Multilevel Pool program began in 1979 and today includes 10 railroads, 114 loading locations and 159 unloading locations, transporting new vehicles that otherwise would have to be delivered by truck over highways and local roads on about 1.5 million tractor-trailer trips annually. Railroads working cooperatively with automotive manufacturers continue to improve the fleet utilization by reducing cycle times, implementing new technology, and promoting damage-free vehicle loading and unloading. The efforts are working. For example, multilevel availability has been increasing since late 2005, as bad orders (rail cars in need of repair) have decreased 41 percent for tri-levels and 54 percent for bi-levels (the largest segment of the fleet), and average shop time for repairs has declined 31 percent. “The pool represents sizable, ongoing capital investment by railroads on behalf of our customers in the automotive industry,” said Julie Krehbiel, vice chairman of MPEC and vice president and general manager for automotive at Union Pacific Railroad. “At the same time, consumers benefit because their new vehicles arrive in excellent condition with 99.6 percent damage free delivery and via the most fuel-efficient, environmentally friendly mode of transportation. As we approach the 30th anniversary of the fleet, we’ll continue to look for ways to make the pool work better for all our partners.” The Multilevel Pool Executive Committee was formed in 1981, under the aegis of an ICC-approved agreement. MPEC includes automotive transportation experts from 10 railroads, charged with supporting and monitoring the pooled multilevel fleet’s service commitment. The Association of American Railroads provides legal, technical and administrative support for MPEC. (AAR - posted 8/09)

U.S. RAILROAD CARLOADINGS UP IN JULY: U.S. railroads originated 1,606,877 carloads of freight in July 2008, up 16,825 carloads (1.1 percent) from July 2007. U.S. railroads also originated 1,125,795 intermodal trailers and containers in July 2008, a decrease of 25,645 units (2.2 percent) from July 2007, the Association of American Railroads (AAR) reported today. Commodities showing carload gains in July 2008 included coal (up 28,716 carloads, or 4.3 percent, to 697,055 carloads); grain (up 8,010 carloads, or 7.2 percent, to 119,455 carloads); and chemicals (up 6,197 carloads, or 4.1 percent, to 156,871 carloads). Commodities showing carload declines in July 2008 included motor vehicles and equipment (down 17,248 carloads, or 22.2 percent, to 60,454 carloads); coke (down 8,358 carloads, or 29.7 percent, to 19,744 carloads); and lumber and wood products (down 3,744 carloads, or 17.1 percent, to 18,182 carloads). Seven of the 19 major commodity categories tracked by the AAR saw U.S. carload increases in July 2008 compared to July 2007. For the first seven months of 2008, total U.S. rail carloads were up 36,575 carloads (0.4 percent) to 10,058,613 carloads. Year-over-year traffic was up in coal (up 138,386 carloads, or 3.3 percent); grain (up 94,784 carloads, or 14.5 percent); and chemicals (up 30,606 carloads, or 3.3 percent), among others. Year-over-year traffic was down in motor vehicles and equipment (down 96,029 carloads, or 15.5 percent); coke (down 55,097 carloads, or 31.9 percent); and crushed stone, sand, and gravel (down 38,213 carloads, or 6.0 percent), among others. “All things considered — including a continued weak economy and residual effects from the devastating floods in the Midwest in June — the increase in U.S. rail traffic in July was gratifying,” said AAR Senior Vice President John T. Gray. “With fuel prices staying high, many shippers are finding that the fuel efficiency of rail is just one more reason to turn to railroads to meet their transportation needs.” U.S. intermodal traffic, which consists of trailers and containers on flat cars and is not included in carload figures, was down 217,003 trailers and containers (3.1 percent) for the first seven months of 2008 to 6,886,812 units. Total volume for the first 31 weeks of 2008 was estimated at 1.04 trillion ton-miles, up 1.6 percent from the same period last year. Canadian rail carload traffic was down 16,759 carloads (4.4 percent) in July 2008 to 362,163 carloads. For the year to date, total Canadian carloads were down 99,367 carloads (4.1 percent) to 2,300,378 carloads. In July, carload gains for metallic ores (up 5,029 carloads, or 7.7 percent) and crushed stone and gravel (up 3,580 carloads, or 33.5 percent) was not enough to offset declines in grain (down 9,165 carloads, or 20.2 percent), lumber and wood products (down 4,925 carloads, or 27.3 percent), and coal (down 4,569 carloads, or 10.8 percent), among others. Canadian intermodal traffic was up 9,969 units (4.2 percent) in July 2008 compared with July 2007 to 248,147 units, and up 60,545 units (4.3 percent) for the first seven months of 2008 to 1,474,842 units. Carloads carried on Kansas City Southern de México, a major Mexican railroad, were down 1,615 carloads (3.1 percent) in July 2008 to 50,708 carloads, while intermodal units carried totaled 23,716 units, up 591 units (2.6 percent). For the year-to-date, KCSM carloads carried were down 3.3 percent (10,977 carloads), while intermodal units carried were up 8.7 percent (11,832 units). For just the week ended August 2, the AAR reported the following totals for U.S. railroads: 337,765 carloads, down 0.3 percent (876 carloads) from the corresponding week in 2007, with loadings down 3.7 percent in the East and up 2.3 percent in the West; intermodal volume of 230,825 containers and trailers, down 3.0 percent (7,025 units) from last year; and total volume of an estimated 35.4 billion ton-miles, up 0.6 percent from the corresponding week of 2007. For Canadian railroads during the week ended August 2, the AAR reported volume of 76,441 carloads, down 1.7 percent from last year; and 50,315 containers and trailers, up 6.4 percent from the corresponding week of 2007. Combined cumulative rail volume for the first 31 weeks of 2008 on 12 reporting U.S. and Canadian railroads totaled 12,358,991 carloads, down 0.5 percent (62,792 carloads) from last year, and 8,361,654 containers and trailers, down 1.8 percent (156,458 units) from the first 31 weeks of 2007. (AAR - posted 8/08)

CN WILL SEEK LEGAL RELIEF TO CONCLUDE IT PROPOSED EJ&E ACQUISITION: CN said today that it will be seeking legal relief in order to permit the company to close on its proposed acquisition of the major portion of the Elgin, Joliet & Eastern Railway Company (EJ&E). Relief will be required now that the Surface Transportation Board (STB) has declined CN’s request for a fixed timetable that would conclude its regulatory review by the end of the year, and the seller, United States Steel Corporation (U. S. Steel), has informed CN that it will not extend the Stock Purchase Agreement (SPA) for the transaction beyond December 31, 2008. “Given the significant uncertainty on the date for completion of our proceeding after issuance of the STB’s time limits decision, and the fact that U. S. Steel has read the SPA to require that this transaction close by December 31, 2008, CN contacted U. S. Steel last week to formally request an extension of the deadline,” said E. Hunter Harrison, President and Chief Executive Officer of CN. “U. S. Steel is prepared to cooperate with CN towards the goal of closing the transaction in 2008, but it will not agree to extend the SPA. Therefore, we need a decision in this case, and we have decided to seek legal relief to allow CN to close on the transaction prior to December 31, 2008.” Harrison noted that CN asked the STB in May 2008 for time limits for the STB’s regulatory review and for issuance of a final decision on this transaction consistent with the terms of CN’s SPA with U. S. Steel. In response, the STB established a 60-day timetable for interested parties to submit comments on the Draft Environmental Impact Statement (DEIS). The STB’s decision projected issuance of the final EIS between December 1, 2008 and January 31, 2009, with a final decision on the transaction to be served as soon as possible thereafter, pursuant to Council on Environmental Quality regulations. As a result, the STB’s final decision could be served during the December 1, 2008 to March 2, 2009 time frame, with the STB’s final decision becoming effective then or later. The STB also reserved the right to adjust this schedule as necessary. CN will provide more detail in the near future on the legal relief it will be seeking to ensure that this transaction is allowed to close in the public interest. In the meantime, CN will continue to work with affected communities along the EJ&E line in an effort to reach voluntary mitigation agreements addressing environmental concerns associated with increased train traffic on the EJ&E line. CN also has been actively engaged in the environmental review process undertaken by the STB’s Section of Environmental Analysis (SEA) and will be participating in the public hearings that will be conducted by SEA in communities in the region in August and September. “The public interest calls for the STB to complete its review of the transaction and, should it be approved, to serve a decision that would allow the transaction to close by the end of the year,” Harrison said. “This transaction would not simply benefit CN and its customers – this transaction is in the broader regional and national interest. A more efficient rail system benefits businesses that rely on freight rail transportation and is an important component in the competitiveness of Chicago as a critical rail hub for the United States. “Shifting CN’s trains to the underutilized EJ&E line would bring benefits for millions of residents in downtown Chicago while also streamlining rail operations. For every community along the EJ&E line that would see increased train traffic as a result of this transaction, nearly double that number along other rail lines would experience a traffic decrease. CN recognizes the concerns of the communities along the EJ&E line about increased train traffic, and we have been working for the past several months with community leaders on appropriate mitigation measures for reducing adverse impacts.” CN and U. S. Steel announced on September 26, 2007, an agreement under which CN would acquire most of the EJ&E for $300 million, subject to regulatory approval by the STB. The transaction would enable CN to re-route its trains along the EJ&E arc around the periphery of the Chicago area, generating broad public benefits by reducing rail congestion in the inner core of Chicago while significantly improving the flow of CN’s rail operations in the Chicago region. The transaction would also provide a head start for the Chicago Region Environmental Transportation Efficiency Program (CREATE), with CN committing an additional $100 million for integration, new connections, and infrastructure improvements to add capacity on the EJ&E line and allow network synergies to be realized over time. This $400 million of private-sector investment, combined with the roughly $40 million that CN would expect to spend to mitigate the impacts of increased train traffic along the EJ&E line, would better utilize and enhance capacity on the Chicago-area rail network. On November 26, 2007, the STB designated the transaction as a “minor” one because the application did not pose anti-competitive issues. Under current law, the STB is required to issue a final decision on “minor” transactions within 180 days after accepting the application for consideration. In its November decision, however, the STB also announced that it would prepare an Environmental Impact Statement (EIS) on the transaction and that issuance of a final decision would be extended beyond the 180 days until the completion of the EIS. SEA began its extensive environmental review of this transaction in December 2007 (CN - posted 8/06)

AMTRAK'S EASTERN SHORE CONNECTION: Amtrak recently extended its Thruway bus service to Maryland's Eastern Shore through a partnership with BayRunner Shuttle of Salisbury, Md. The service is available from Baltimore Washington International Thurgood Marshall Airport Rail Station (BWI) to the communities of Easton, Cambridge, Salisbury, Ocean Pines and Ocean City, Md. Amtrak's Thruway service is a convenient way for Amtrak passengers to reach communities not served by rail. This new Thruway service offers Amtrak passengers a choice of 14 daily departures — 7 in each direction to and from Maryland's Eastern Shore. Shuttles depart BWI every two hours from 8:35am to 8:35pm to Easton, Cambridge and Salisbury. Shuttles depart Salisbury for BWI every two hours from 5:20am to 5:20pm making stops at Cambridge and Easton. Ten of the daily departures — 5 in each direction — also serve Ocean Pines and Ocean City. BayRunner Shuttle provides all-reserved van shuttle service. Fares begin at $40 each way. (Amtrak - posted 8/05)

AMBITIOUS STATE PROPOSALS TO IMPROVE INTERCITY PASSENGER RAIL SERVICE COMPETE FOR FEDERAL FUNDING UNDER NEW DOT GRANT PROGRAM: Twenty-five forward-thinking proposals from 22 states to improve intercity passenger rail service and help relieve traffic congestion in many regions of the Nation will compete for $30 million in federal funding under a new Bush Administration grant program, announced U.S. Secretary of Transportation Mary E. Peters today. “Our goal is to achieve long-term improvements in intercity passenger rail service by supporting state investments that get real results,” said Secretary Peters. She said the Department is currently reviewing the proposals and will determine final grant awards in September. Secretary Peters explained that the state proposals received are generally designed to improve the reliability of intercity passenger rail, relieve highway congestion, and increase rail capacity. Some examples of proposed projects include installing advanced signaling systems to increase track speeds, reconfiguring track junctions to enhance operational efficiency, and constructing additional main line track to keep trains moving. Most of the grant applications seek to improve existing passenger rail routes while a few involve planning activities for the creation of an entirely new service. Each federal grant awarded will require a 50-50 funding match, she said. The Federal Railroad Administration will evaluate each proposal for key program priorities such as inclusion of intercity passenger rail in state plans to address congestion and a project’s ability to reduce travel times, increase service frequency, or enhance service quality. And, since some projects also will benefit the operations of private freight railroads on whose tracks passenger trains primarily run, a commitment by the host railroad to improve on-time performance will be a major consideration in evaluating proposals, said the Secretary. Secretary Peters said that the Bush Administration strongly supports a greater role by states in deciding where and how intercity passenger rail is operated while focusing federal investments on capital projects. She noted that between 1996 and 2006, ridership on state-supported intercity rail routes grew by 88 percent, far more than the 17 percent increase on all other routes combined. The Bush Administration called for creation of this first-ever federal-state funding partnership as part of its long standing intercity passenger rail reform effort, and is requesting $100 million for this grant program in its proposed FY 2009 budget. For more information, http://www.fra.dot.gov/us/content/1954 (US DOT - posted 8/05)

GENESEE & WYOMING SIGNS AGREEMENT TO ACQUIRE OHIO CENTRAL RAILROAD SYSTEM: Genesee & Wyoming Inc. announced today that it has signed an agreement to acquire nine short line railroads known as the Ohio Central Railroad System (OCR), for $219.0 million in cash. In addition, GWI has agreed to pay contingent consideration of approximately $25 million upon satisfaction of certain conditions. The final purchase price will be adjusted for working capital at the time of closing. The acquisition is subject to customary closing conditions and is also contingent upon approval from the state of Ohio for the transfer of an operating agreement for one of the railroads. GWI expects to close the acquisition and commence operations in the fourth quarter of 2008. Overview of Acquisition: Founded in 1988 and headquartered in Coshocton, Ohio, OCR operates nine short line railroads located in Southern Ohio, in Youngstown, Ohio, and in Pittsburgh, Pennsylvania. OCR operates over 445 miles of track and owns 64 locomotives. The railroads handle approximately 140,000 annual carloads, primarily in the coal, steel and solid waste industries.
  • OCR's operations in Southern Ohio include the Ohio Central Railroad and the Ohio Southern Railroad, which run a combined 130 miles from South Glouster to Brewster, and the Columbus and Ohio River Railroad, which runs 160 miles from Columbus to Mingo Junction near the Pennsylvania border and 85 miles between Newark and Cambridge. These railroads serve a large coal fired power plant, several coal mines and solid waste landfills, as well as other diversified industries. The railroads interchange with CSX, Norfolk Southern, Wheeling & Lake Erie Railway, RJ Corman Railroad Company and Ohi-Rail.
  • In and around Youngstown, Ohio, OCR's operations run over 20 miles and include the Youngstown Belt Railroad, the Youngstown & Austintown Railroad, the Warren & Trumbull Railroad and the Mahoning Valley Railway Company. These railroads primarily serve customers in the steel industry and interchange with CSX and Norfolk Southern.
  • In Pittsburgh, OCR's operations run over 50 miles and include the Pittsburgh & Ohio Central Railroad and the Aliquippa & Ohio River Railroad. These railroads primarily serve customers in the cement, chemicals and ethanol industries and interchange with CSX, Norfolk Southern and Wheeling & Lake Erie Railway.
Expected Financial Impact In 2009, GWI expects OCR to generate approximately $70 million of revenues and approximately $20 million of operating income. GWI expects the OCR railroads will have annual capital expenditures of approximately $6 million and annual depreciation and amortization expense of approximately $12 million. These expectations include the ramp-up of certain customer facilities, some of which have recently commenced shipments. GWI expects the acquisition to be immediately accretive to earnings per share and free cash flow. Senior Debt Financing GWI expects to finance the $219 million cash purchase price by amending and expanding the size of its senior credit facility from $256 million to $570 million, subject to customary closing conditions. The amended credit facility will be comprised of a US$300 million revolving loan, a US$240 million term loan and a Canadian dollar equivalent of a US$30 million Canadian term loan, all of which will be due in 2013. Initial borrowings will be priced at LIBOR plus 2.0%. Bank of America, N.A. acts as sole lead arranger and administrative agent for the existing credit facility and will play the same role in the amended credit facility. GWI anticipates closing the amended facility concurrent with the closing of the OCR acquisition. Following the acquisition, and including all existing contingent payments, GWI will have approximately $170 million of remaining borrowing capacity under the amended credit facility, which will be available for general corporate purposes, including acquisitions. As of June 30, 2008, pro forma for the debt financing of the $219 million cash payment for the OCR acquisition, GWI's total debt to capitalization would be approximately 54.0%. (GWI- posted 8/04)

NEW NJ TRANSIT RAIL TIMETABLES TAKE EFFECT AUGUST 3 New rail timetables will take effect Sunday, August 3, as Amtrak advances their project to replace concrete ties on the Northeast Corridor. Rail schedules will change on all lines, except the Atlantic City Line. Customers are reminded to carefully review new timetables available online and at Customer Service offices. On the Northeast Corridor, Amtrak has completed the replacement of concrete ties on Track 4, the outbound local track, between Jersey Avenue and Trenton stations. To date, crews have replaced about 15 miles of ties, allowing trains to return to normal speeds on this section of track. This month, Amtrak crews will begin replacing ties on Track 1, the inbound local track, taking it out of service for several months. In preparation of this next phase of the project, a new Northeast Corridor timetable will take effect Sunday, August 3, reflecting slightly longer trip times for inbound trips originating in Trenton. (Some trains will depart Trenton, Hamilton and Princeton Junction stations up to five minutes earlier.) As a reminder, until the tie replacement project is complete, one of four tracks will remain out of service between Jersey Avenue and Trenton stations—a 25 percent reduction in capacity that can limit our ability to work around certain operational issues (i.e. a disabled train or switch problem). For schedule information, customers may visit www.njtransit.com or call 973-275-5555. (NJ Transit - posted 8/01)

CARLOAD, INTERMODAL OFF ON U.S. RAILROADS: Both carload and intermodal volume on U.S. railroads were off during the week ended July 26 in comparison with the same week last year, the Association of American Railroads (AAR) reported today. Carload freight totaled 333,187 cars for the week, down 0.9 percent from last year. Volume was up 1.7 percent in the West but down 4.3 percent in the East. Intermodal volume, which is not included in the carload data, totaled 235,397 trailers or containers, down 3.2 percent from a year ago. Trailer volume was up 1.3 percent while container traffic dropped 4.4 percent. Total volume was estimated at 34.8 billion ton-miles, virtually the same as last year. Six of 19 carload commodities registered gains from a year ago with metallic ores jumping 23.8 percent, grain climbing 5.0 percent, and coal increasing 3.3 percent. Among commodities reporting declines were motor vehicles and equipment, 33.6 percent, lumber and wood products, 19.6 percent, and primary forest products, 14.1 percent. Cumulative volume for the first 30 weeks of 2008 totaled 9,720,848 carloads, up 0.4 percent from 2007; 6,655,987 trailers or containers, down 3.1 percent; and total volume of an estimated 1.006 trillion ton-miles, up 1.6 percent from last year. On Canadian railroads, during the week ended July 26 carload traffic totaled 71,444 cars, down 9.8 percent from last year while intermodal volume totaled 50,570 trailers or containers, up 4.9 percent from last year. Cumulative originations for the first 30 weeks of 2008 on the Canadian railroads totaled 2,223,501 carloads, down 4.2 percent from last year, and 1,424,527 trailers and containers, an increase of 4.2 percent from last year. Combined cumulative volume for the first 30 weeks of 2008 on U.S. and Canadian railroads totaled 11,944,349 carloads, down 0.5 percent from last year, and 8,080,514 trailers and containers, a 1.9 percent decrease from last year. The AAR also reported that carload freight on the Mexican railroad Kansas City Southern de Mexico (KCSM) during the week ended July 26 totaled 9,635 cars, down 3.3 percent from last year. KCSM reported intermodal volume of 5,219 trailers or containers, up 1.0 percent from the 30th week of 2007. For the first 30 weeks of 2008, KCSM reported cumulative volume of 313,898 cars, down 3.3 percent from last year, and 142,070 trailers or containers, up 9.1 percent. Railroads reporting to AAR account for 89 percent of U.S. carload freight and 98 percent of rail intermodal volume. When the U.S. operations of Canadian railroads are included, the figures increase to 96 percent and 100 percent. The Canadian railroads reporting to the AAR account for 91 percent of Canadian rail traffic. Railroads provide more than 40 percent of U.S. intercity freight transportation, more than any other mode, and rail traffic figures are regarded as an important economic indicator. (AAR - posted 8/01)

VIA RAIL CANADA REPORTS INCREASE IN KEY OPERATING RESULTS FOR FIRST HALF OF 2008: VIA Rail Canada today reported an increase of 6.7 per cent in total passenger revenues for the six-month period ending June 30 compared with the same period in 2007. The number of passengers travelling on VIA's network increased by 9.7 per cent in this year's first half. The biggest increase was registered in the Quebec City-Windsor Corridor, which carried 10.3 per cent more people than last year. Likewise, passenger miles were up 9.5 per cent in the Corridor compared with last year. In customer surveys carried out at regular intervals over the first six months of 2008, 96.1 per cent of respondents said that VIA met or exceeded their expectations. "These results signal that more travellers are opting for a transportation mode that offers real value, and that is environmentally responsible, convenient and safe," said Paul Côté, VIA's president and chief executive officer. "In recent years, all of us at VIA have made a tremendous effort to focus on our customers' needs and promote rail as a more human way to travel, and that effort is paying off." On-time performance - Improving ... still a challenge For the six-month period, on-time performance (OTP) results stood at 65 per cent based on long delays caused primarily by severe weather this past winter, rail traffic (freight) congestion over which VIA has no control, repairs to the infrastructure and equipment problems. The last three months however, have been significantly better than the beginning of the year; in June alone, OTP stood at 85 per cent, exceeding VIA's monthly target. While there are still many challenges ahead, VIA continues to work on those areas under its direct control and in close collaboration with Canadian National (CN) and other operating railways to improve VIA's train performance ... and these efforts are paying off. Moreover, the recent $692-million investment by the Government of Canada is allowing VIA to rebuild aging locomotives and passenger cars, as well as improve the infrastructure over which its trains operate ... major steps toward improving on-time performance and overall reliability. "We remain committed to our goal of delivering on the promise of a unique, high-value travel experience for our customers," said Mr. Côté. "Based on these positive results, we are convinced we have the right solution for today's travellers, and we will keep working hard to maintain that momentum." (VIA Rail Canada - posted 8/01)

VIA RAIL TO IMPROVE OTTAWA TO MONTREAL RAIL LINE: As part of the Government of Canada's $692 million dollar investment to improve passenger rail service, VIA Rail Canada announced today that it plans to invest more than $25 million on a multi-phase, multi-year program to modernize key parts of its rail infrastructure between Ottawa and Montréal. These improvements are part of VIA Rail's overall capital investment plan. In this first phase, upgrades to the Ottawa-Montréal line will include the addition of a .76-km long passing track (siding) approximately 16 kilometers east of Ottawa, near Carlsbad Springs, a project which will be carried out by PNR RailWorks Inc. The siding will be constructed with remote-controlled power switches tied into the existing Centralized Traffic Control (CTC) system and Rail Traffic Control (RTC) dispatch system. The siding will also be equipped with a back track (additional track adjacent to the siding) for the storage of maintenance equipment, when required. VIA will also be installing new continuously-welded rail and performing other associated track work over some 40 track-miles between Coteau, Québec and Moose Creek, Ontario. This work, which is expected to be completed within the next few months, will be carried out by Total Track. Some trains on the Montréal-Ottawa route may experience minor delays while this work is being completed. Additionally, structural rehabilitation of the bridge over the South Nation River in Casselman, a project which has been awarded to SEMA Railway Structures, will also be completed. Improvements to VIA's Ottawa station are also planned. VIA will be modernizing and improving the layout of the public washrooms, ticket office, baggage operations and Panorama (VIA 1) lounge. The lounge will also be enlarged to accommodate increased demand. As part of these renovations, VIA will be making both technological and environmental improvements to the station. The general contractor chosen for the project is Terlin Construction Ltd. of Ottawa. CSV Architects Inc. and Norr Ltd., also of Ottawa, will provide design and engineering support. Work on this project, worth some $500,000, will begin shortly and is expected to be completed by this fall. "These initiatives will improve comfort, speed, ride quality and reliability," said VIA Rail President and Chief Executive Officer Paul Côté. "They will also enhance overall safety, and increase scheduling flexibility and capacity for additional trains. Just as importantly", he noted, "a more efficient operation will also contribute to reductions in fuel consumption and greenhouse gas emissions." "The projects on VIA's Montréal-Ottawa route are part of the $692 million in new funding this government announced in 2007 as part of its commitment to providing Canadians with safe, reliable and sustainable passenger rail service. This funding will help VIA to continue providing an affordable and competitive option for inter-city travel - an especially important feature as we seek means to reduce harmful emissions from travel in this time of high energy costs," stated the Honourable Lawrence Cannon, Minister of Transport, Infrastructure and Communities. For more information on VIA Rail, or to reserve a ticket, go to VIA's secure Web site at viarail.ca or call toll-free 1-888 VIA-Rail (1-888 842-7245) or 1 800 268-9503 (hearing impaired). As Canada's national passenger rail service, VIA Rail Canada's mandate is to provide efficient, environmentally responsible and cost effective passenger transportation services, both in Canada's busiest corridor and in remote and rural regions of the country. Serving more than 450 communities with a network of inter-city, transcontinental and regional trains, demand for rail services continues to grow as more Canadians turn to train travel as a safe and convenient travel choice. (VIA Rail Canada - posted 7/31)

RAILPOWER TECHNOLOGIES AWARDED CONTRACT FROM VIRGINIA INTERNATIONAL TERMINAL FOR THREE FUEL EFFICIENT LOCOMOTIVES: Railpower Technologies Corp. announced today that Virginia International Terminal (VIT) purchased two multi-genset, low emission, fuel efficient, four-axle RP20BD locomotives and one hybrid GG20B locomotive from the Corporation. The agreement reached between Railpower and VIT is a three year long term lease with the commitment to purchase at its expiry. Over time, these locomotives will pay for themselves in fuel savings, efficiency, maintenance and overall operating costs while significantly reducing the Port of Virginia's carbon emissions" said Heather Mantz, VPA's Director of Environmental Affairs. The four-axle RP20BD model sold is the first of the low emission, fuel efficient Eco-Motive series of four-axle units to be designed with a new modular platform. Also included in the Eco-Motive series low horsepower solutions are the six-axle RP20CD and the RP14BD. Accompanied by the medium horsepower six-axle RP27CD, the Eco-Motive series has the ability to cover the complete array of medium and low horsepower needs for the rail industry. All three of these models achieve unrivaled adhesion levels that allow customers to re-evaluate the historic locomotive requirements for their freight movements and optimize the utilization of their assets. The four-axle GG20B hybrid model requested by VIT demonstrates that the interest in hybrid technology for rail application still exists. The GG20B is a viable product for customers who want the greatest emissions and fuel savings, which are completely unattainable with conventional technology. The return to service of Railpower GG20B Generation III units across America, represents Railpower's commitment to continually standing behind its products. First-and-only to market with hybrid, Railpower will continue to develop its technologies to meet evolving customer needs. "This new award combined with the success of our new six-axle model at Union Pacific, demonstrates that Railpower is the supplier of choice of locomotives that provide a return-on-investment both in economical and ecological terms" said Mr. José Mathieu, President and CEO of Railpower. (Railpower - posted 7/31)

HISTORIC REDBIRD SUBWAY CARS ROLL THIS SATURDAY: The historic 'Redbird' cars are going out for a spin! In this annual summer tradition at the New York Transit Museum, we fire up the 1930's and 40's historic fleet and spend the day riding the NYC subway rails. Two fun-filled rides to Far Rockaway and Coney Island were huge successes earlier this season. The final Nostalgia Ride is this Saturday August 2 as the "Train of Many Colors" takes the scenic route from Grand Central to Van Cortlandt Park and back. It's a day you won't want to miss. To make your reservation call (718) 694-1867. Reservations and advance payment required: Adults $30; Museum members $25; Children 3 - 17 $10 (Become a Museum member when you reserve and save $5 on your adult ticket) For reservations call: (718) 694-1867 (Joe Calisi - posted 7/31)

VIA RAIL RESUMES SERVICE AFTER CN DERAILMENT IN KINGSTON, ONTARIO: VIA Rail Canada wishes to advise travellers that following a CN freight derailment in Kingston and an earlier disruption in VIA services, both rail lines between Toronto and Ottawa/Montréal are expected to be opened to rail traffic by CN by this afternoon. As a result, VIA expects to resume most train service between Toronto and Ottawa, and between Toronto and Montréal, later today. Most trains from Toronto to Ottawa and between Montréal and Toronto will operate as of 3:00pm today, albeit with significant delays. One exception, train 46 which operates from Toronto to Ottawa at 3:30pm, will be replaced by bus service. The majority of trains from Ottawa to Toronto will continue to be replaced by buses for the remainder of the day. As a result of the earlier derailment, the required equipment for this route was not able to make it through to Ottawa to accommodate the westbound journeys. Exceptionally, train 49 which departs Ottawa for Kingston and Toronto at 6:15pm, will operate as a train. For passengers using VIA to commute between stops in the Greater Toronto Area, VIA Rail recommends taking GO Transit wherever possible to avoid delays. VIA expects to resume regular train service on all routes tomorrow. VIA sincerely regrets any inconvenience these delays may cause to its passengers. Customers wishing further information may visit our website viarail.ca or call 1 888-VIA RAIL (842-7245). (VIA Rail Canada - posted 7/30)

SEPTA RAIL SCHEDULES CHANGE THIS SUNDAY ON CERTAIN ROUTES: SEPTA R7 Trenton and R8 Chestnut Hill West service will operate with new schedules effective Sunday, August 3. The new schedules include service modifications due to recently completed construction as well as the retiming of SEPTA trains to coincide with New Jersey Transit and Amtrak adjustments. The schedules are currently available online. Passengers will also be able to pick up schedules at Market-East, Suburban and 30th Street Stations and SEPTA sales offices.
  • *R7 Trenton – weekday service has been retimed in order to maintain connections in Trenton with NJ Transit trains and to accommodate Amtrak train adjustments resulting from a concrete cross-tie renewal project. In addition, outbound (to Trenton) midday train service has been adjusted to reflect the completion of the “K” interlocking project on the outbound tracks.
  • *R8 Chestnut Hill West – outbound (to Chestnut Hill West) midday train service has also been adjusted during the weekday to reflect the completion of the “K” interlocking project on the outbound tracks.
During the project, crews have worked to install new track, catenary and a modern signal system in an area, known as “K” interlocking, which is critical to operations for several SEPTA Regional Rail routes. The goal of the project is to upgrade SEPTA train operations by providing passengers with enhanced service reliability as well as more comfort through a smoother and quieter ride. Passengers should pick up new schedules and check for changes to their specific trains. Information on all SEPTA service is available by telephone at 215-580-7800 or online. (SEPTA - posted 7/30)

CN COMMENTS ON REGULATOR'S DRAFT ENVIRONMENTAL REVIEW OF PROPOSED EJ&E RAILWAY ACQUISITION: CN said today that the Draft Environmental Impact Statement (DEIS) issued on July 25, 2008, by the Section of Environmental Analysis (SEA) of the Surface Transportation Board (STB) on the company’s proposed acquisition of the principal lines of the Elgin, Joliet & Eastern Railway Company (EJ&E) is an important step in the regulatory process. The DEIS outlines the environmental effects of the transaction on local communities and potential mitigation. The agency established a 60-day period for public comments on the DEIS, including eight public hearings, which will be followed by SEA’s preparation of the final Environmental Impact Statement (EIS) and a final regulatory decision by the STB. E. Hunter Harrison, president and chief executive officer of CN, said: “CN welcomes the issuance of the DEIS and we are pleased that the STB has provided a 60-day period for comments by interested parties. CN is studying the DEIS very carefully and will be an active participant in the hearing and comment process. “The DEIS confirms our view that the environmental impacts of the transaction can be reasonably mitigated. CN stands ready to continue to negotiate with affected communities and reach voluntary mitigation agreements. We are confident that appropriate mitigation solutions can be developed that would allow this transaction to move forward, for the benefit of the majority of the communities in the Chicago region, the regional and national rail transportation system, and our customers.” Harrison also noted that the DEIS clearly showed that issues related to future Amtrak service in Chicago, the proposed Metra STAR Line or other Metra operations, and the expansion of Gary/Chicago International Airport are not adversely affected by the proposed EJ&E transaction. “It is clear that the only significant issues remaining to be resolved in this proceeding relate to reasonable mitigation of impacts of increased train traffic in communities along the EJ&E line.” “CN has been in discussions for the past several months with communities along the EJ&E line on appropriate measures for reducing adverse impacts,” said Harrison. “CN welcomes the STB’s direction for the parties to negotiate realistic, balanced mitigation solutions to the environmental impacts of the transaction. At the end of the day, that approach is in the public interest and it will benefit both community stakeholders and CN.” Harrison, however, expressed disappointment with certain aspects of the DEIS, especially the road crossing analysis and approach to mitigation. “Among other things, the analysis does not adhere to the criteria previously used by the STB for measuring crossing impacts and questionably suggests lowering well-established STB thresholds for determining what crossings may require grade separations and applying federal guidelines designed for another purpose as the basis for mitigation analyses. The DEIS also uses data projections which do not appear to comport with those of regional planners, does not fully take into account the nature and implications of preexisting conditions at crossings along the line – which has existed in its present location for more than a century – and suggests mitigation which may be unreasonable or beyond the STB’s authority.” Nonetheless, he noted that, “despite these apparent issues in the analysis and recommendations, the number of grade crossings that the DEIS identifies as substantially affected is small compared to the total number of grade crossings along the EJ&E line. As part of its comprehensive voluntary mitigation plan, CN committed to work with communities to improve any grade crossings in accordance with established funding precedent.” “Likewise, we are disappointed that the DEIS did not fully identify the benefits that our proposed transaction would bring to the Chicago region.” He noted that, by shifting CN’s trains in downtown Chicago to the underutilized EJ&E line, dozens of communities in the urban core of Chicago would experience reductions in train traffic and congestion. “This transaction would provide mirror image benefits – for every community along the EJ&E line that would see increased train traffic, nearly double that number along other lines would experience a traffic decrease.” In a separate decision issued on July 25, 2008, the STB, in response to CN’s May 13, 2008, petition to the agency, established a 60-day timetable for interested parties to submit comments on the DEIS and a range within which the STB may reach a final decision on whether to approve the transaction. Last year the STB designated the transaction as a “minor” one because it would not raise anti-competitive issues. Such transactions are supposed to be reviewed within 180 days under the statutory standards for “minor” transactions. CN and United States Steel Corporation announced Sept. 26, 2007, an agreement under which CN will acquire most of the EJ&E for US$300 million, subject to regulatory approval by the STB. CN plans to spend US$100 million to upgrade EJ&E infrastructure, and US$40 million on a range of reasonable environmental mitigation measures. More information on the transaction, including a map of the areas served by the EJ&E and CN, is available by clicking on the EJ&E Acquisition icon on the About CN section of its website www.cn.ca/about/en_about.shtml (CN - posted 7/29)

ERIE LACKAWANNA DINING CAR PRESERVATION SOCIETY CANCELLED In early July, we began selling ticket for the August 16 excursion over NJ Transit's former-Erie Lackawanna commuter lines. We decided to run this trip based on the demand displayed from an earlier, informal email sent out by us to this list. We had planned to sell 55 tickets for the trip, and priced out the trip based on the price quote we received from New Jersey Transit to run the trip. While ticket sales have been brisk and successful, we received late word from New Jersey Transit on July 24th that our cost for the trip had more than doubled overnight. This was an unanticipated move by NJ Transit, and caused us to make a tough decision. Although we could have increased capacity on the trip to 80 passengers, even that would result in an overall loss for ELDCPS. While we wanted to run this trip as a fun experience over the former Erie Lackawanna railroad, we also had the desire to raise funds towards the restoration of our cars. Because of the new economics sprung on us suddenly by New Jersey Transit, ELDCPS has decided to cancel the August 16 trip. All members and friends who have already made payment will be contacted individually, and a refund will be arranged. Additionally, those who have purchased tickets for the August 16 trip will receive a discount and first notice on additional excursions that we will be operating in the Fall. We have several excursions currently in the planning stages, none of which are on New Jersey Transit, and as such should not be affected by this decision. We deeply regret any inconvenience this has caused to our members and friends, and we are also saddened that it came to this. We hope to see you on one of our excursions in the future, and thank all of you for supporting ELDCPS and The Lake Cities Project. ( Michael Steinberg/ ELDCPS - posted 7/29)

NORFOLK SOUTHERN CONVEYS ABANDONED ENOLA BRANCH TO LANCASTER COUNTY MUNICIPALITIES: Norfolk Southern today conveyed a 23-mile abandoned portion of its Enola Branch rail line to six townships in southern Lancaster County, Pa. The transfer of the property culminates an effort that began in 1989 when Conrail, Norfolk Southern’s predecessor-in-interest, filed to abandon the property with the U.S. Interstate Commerce Commission (now the U.S. Surface Transportation Board). The abandonment was approved by the ICC in 1993, and subsequently became the subject of numerous legal actions. “We are pleased finally to convey this abandoned portion of the Enola Branch to the townships. It is long overdue,” said Blair Wimbush, Norfolk Southern’s vice president real estate and corporate sustainability officer. “We are grateful for the active participation and patience demonstrated by the numerous local officials who have been involved in this process over the years.” As part of the transfer of the property, Norfolk Southern and the municipalities will implement a 1997 Order of the Pennsylvania Public Utility Commission, which requires certain payments to be made to the townships, and several overhead railroad structures to be removed. The six townships to which the property is being conveyed are Bart, Conestoga, Eden, Martic, Providence, and Sadsbury. Norfolk Southern Corporation - posted 7/28)

CSXT APPOINTS MIKE SMITH, VICE PRESIDENT - NETWORK OPERATIONS: CSX Transportation today announced that Mike Smith, assistant vice president - crew management, has been appointed vice president - network operations, replacing Jim Snyder, who officially retires August 1, 2008. "This change recognizes the significant contributions that Mike has made to our Operations team and the leadership he has provided," said Tony Ingram, executive vice president and chief operating officer, CSX Corporation. "This change in leadership in the CSXT Network Operations team is designed to build on the consistent, continuous improvements underway in safety and service." Smith's areas of responsibility will include network, train dispatching, coal, bulk and locomotive operations as well as crew management. He will report to David Brown, vice president and chief transportation officer. "Our team is looking forward to Mike's leadership and cross-functional experience," said Brown. "His wide range of experience within CSX will serve CSXT and its customers well." Smith began his career in 1973 as an operator with the Chessie System in Baltimore, Md., before becoming a dispatcher in 1981. Other past leadership positions include general manager - network operations and assistant division manager for the Jacksonville Division. He became assistant vice president - crew management in 2007. "We wish Jim Snyder the best as he moves into retirement," said Ingram. "He has given many years of dedicated service to the industry and will be greatly missed." Snyder began his railroad career in 1975 as an operator at Hagerstown, Md., and has held numerous field and dispatching roles as well as positions in network operations and car management. He became vice president - network operations in 2005. (CSX - posted 7/28)

NTSB DETERMINATION CONCERNING 2006 TRAIN ACCIDENT IS FAULTY, SAY NORFOLK SOUTHERN: Norfolk Southern Railway Company said it strongly disagrees with the National Transportation Safety Board's determination of probable cause contained in its Accident Report released today for the New Brighton, Pa., derailment. The NTSB said that the Oct. 20, 2006, derailment was caused by an "inadequate rail inspection and maintenance program." According to Norfolk Southern, its rail inspection and maintenance program complies with all applicable regulations, and even the NTSB concedes that Norfolk Southern tested more frequently than required by Federal Railroad Administration (FRA) regulation. Norfolk Southern will file a formal petition for reconsideration and modification that will rely, in part, on newly available inspection data supplied to the NTSB last month, but not addressed in the Accident Report. Norfolk Southern's petition will defend the adequacy of its rail inspection and maintenance program and will seek to correct the record before the NTSB and any misconceptions on the part of the NTSB about that program and its consistency with the regulations. "We take strong exception to any contention that we failed to perform a continuous search of our rail for internal defects or that our inspection and maintenance program is inadequate. In fact, many of our procedures exceed FRA standards," said Tim Drake, NS vice president engineering. "Norfolk Southern used the best available track inspection technology and procedures at the time and used an expert rail defect detection contractor to inspect its rails at a frequency that exceeds FRA requirements. It is highly unlikely that any changes to NS' technology and procedures could have uncovered the flaw that caused the derailment," Drake added. The New Brighton accident resulted in an ethanol spill and fire on a nearby river. There were no injuries. The train's crew and mechanical condition were not factors, and the railroad's emergency response system was deemed effective and appropriate. "Norfolk Southern has the lowest track-caused accident rate among all Class 1 railroads," Drake said. "Any suggestion that we short-cut track safety goes against the facts and is counter to our policy and practice." (Norfolk Southern Corporation - posted 7/25)

GRAIN, COAL LEAD WAY IN UP WEEK FOR RAIL FREIGHT TRAFFIC: Thanks to sharp increases in loadings of coal and grain, freight traffic on the nation's railroads was up during the week ended July 19 in comparison with the corresponding week last year, the Association of American Railroads (AAR) reported today. Carload freight in the week totaled 328,634 cars, up 2.3 percent from last year. Volume was up 6.3 percent in the West but down 3.0 percent in the East. Intermodal volume, which is not included in the carload data, totaled 233,516 trailers or containers, down 2.4 percent from a year ago. Trailer volume was up 1.1 percent while container traffic slipped 3.3 percent. Total volume was estimated at 34.5 billion ton-miles, up 3.9 percent from the 29th week of 2007. Grain volume was up 10.0 percent from the comparable week last year while coal loadings rose 8.6 percent and metals gained 10.9 percent. Among 14 carload commodities reporting declines were motor vehicles and parts, down 24.0 percent, farm products other than grain, down 23.7 percent, and lumber and wood products, down 18.9 percent. Cumulative volume for the first 29 weeks of 2008 totaled 9,387,661 carloads, up 0.4 percent from 2007; 6,420,590 trailers or containers, down 3.1 percent; and total volume of an estimated 971.9 billion ton-miles, up 1.7 percent from last year. On Canadian railroads, during the week ended July 19 carload traffic totaled 72,527 cars, down 5.1 percent from last year while intermodal volume totaled 51,798 trailers or containers, up 3.1 percent from last year. Cumulative originations for the first 29 weeks of 2008 on the Canadian railroads totaled 2,152,057 carloads, down 4.0 percent from last year, and 1,373,957 trailers and containers, an increase of 4.2 percent from last year. Combined cumulative volume for the first 29 weeks of 2008 on U.S. and Canadian railroads totaled 11,539,718 carloads, down 0.4 percent from last year, and 7,794,547 trailers and containers, a 1.9 percent decrease from last year. The AAR also reported that carload freight on the Mexican railroad Kansas City Southern de Mexico (KCSM) during the week ended July 19 totaled 10,116 cars, down 3.4 percent from last year. KCSM reported intermodal volume of 4,709 trailers or containers, up 2.2 percent from the 29th week of 2007. For the first 29 weeks of 2008, KCSM reported cumulative volume of 304,263 cars, down 3.3 percent from last year, and 136,851 trailers or containers, up 9.4 percent. Railroads reporting to AAR account for 89 percent of U.S. carload freight and 98 percent of rail intermodal volume. When the U.S. operations of Canadian railroads are included, the figures increase to 96 percent and 100 percent. The Canadian railroads reporting to the AAR account for 91 percent of Canadian rail traffic. Railroads provide more than 40 percent of U.S. intercity freight transportation, more than any other mode, and rail traffic figures are regarded as an important economic indicator. AAR is the world's leading railroad policy, rese