Compiled figures released this week by the Surface Transportation Board show Class I railroads employed 162,810 people in mid-December, up a scant 0.10% from December 2012, but down 0.24% from the previous month of November.

STB's compiled data appears to have nearly caught up with the agency's normal schedule, disrupted by the partial shutdown of the federal government occurring through much of last October.

Only two out of six categories gained ground year-over year, including Transportation (train and engine), up 1.15%, and Maintenance of way and structures, up 0.43%. Transportation (other than train and engine) retreated the most in December, down 1.63%.

But Maintenance of way and structures led the month-over-month decline, down a significant 2.05% in December from November. Transportation (other than train and engine) registered the only other monthly decline, down 0.61%.

Leading the gainers month-over-month was Maintenance of equipment and stores, up 0.48%. Transportation (train and engine) rose 0.36% from November.

Congratulations to the Long Island Rail Road, once again in 2013 the unquestioned largest regional passenger railroad by ridership in the nation. Let's see if it can hold that prize. I'm doubtful.

LIRR, to be sure, held that title for decades at a time until very recently, when upstart sister Metro-North Railroad usurped LIRR's comfortable catbird seat through initiative and daring and creativity. Metro-North got its supposedly deserved comeuppance this year (it's astonishing to this writer how gleeful, how figuratively bloodthirsty, some rail observers were over this) as it suffered derailments and fatalities and power outages and other "outrages." Well, hey, no wonder LIRR is back in the No. 1 slot!

Not exactly. In fact, LIRR, for now, resumes its customary position in part because it's finally acting more like Metro-North, and just a little less than a (push the jargon button now!) "commuter railroad."

Railway Age sister publication Railway Track & Structures dutifully picked up on a Jan. 27, 2014 MTA press release heralding LIRR's triumph (click here). In that release, we find the real nut graph (boldface is this Blogger's emphasis):

"We are seeing an increase in both commuters going to work and occasional riders," said LIRR President Helena Williams. "We had the opportunity to add back some service in 2013 and we are pleased that riders are responding by using the LIRR more often to get to work, as well as for leisure and other travel during the off peak periods. We believe the increase in ridership also reflects an improving Long Island and New York City economy."

The release specifically mentions LIRR ridership boosted by the opening of Barclays Center in Brooklyn, and that's to be both expected and commended. President Williams' own words imply that the "improving" economies of suburb and city may not be the driving factor.

I'd put it in this light: Don't sit around just waiting for the customers to return with the good times. Go out and woo them. I'd add: the way Metro-North has done for decades. The way LIRR – finally! – appears willing to do now, mimicking its younger sister railroad.

It may be tough to praise and defend Metro-North Railroad as I write this; the railroad had a miserable 2013, worse than that of baseball's New York Yankees, a team to which Metro-North by the way delivers customers in stellar and creative style. Tough—but I'll still do it. Metro-North is not a "commuter" railroad; it is a railroad that appeals to customers of varying stripes, at varying times of the day, night, or weekend. And, quite frankly, it's one reason why this observer predicts that No. 1 ranking, whatever it might be worth, may change once more in a year's time.

Indeed, MTA's companion press release issued Jan. 27 for Metro-North acknowledges the railroad's total 2013 ridership slipped from its record (and therefore lower than LIRR's total). But sharp-eyed rail veteran Philip G. Craig quickly pointed out to me that the margin of "defeat" at the hands of the LIRR was "only 5,475 riders"—puny stuff in New York metro territory.

Local New York TV and radio media quickly hypothesized that riders "perhaps" were being scared off by accidents and incidents and federal investigations and political gamesmanship. But given that most of those incidents took place east of the Hudson River, the speculation appears very flawed. "Metro-North's annual east of Hudson ridership last year was the highest in the railroad's history, at 81.8 million, surpassing the previous east of Hudson record of 81.5 million rides that was set in 2008," the MTA press release states. That's even with the power outages, with the sideswipes, with the freight derailment, with the passenger derailment and resultant fatalities.

Where did Metro-North ridership decline? West of the Hudson and north of New Jersey, in the railroad's territory that (ironically?) is most like LIRR's own dominant pattern of suburban sprawl, desperately in need of rejeuvenation. "Metro-North rail ridership in the West of Hudson territory including the Port Jervis and Pascack Valley lines was down, falling 2.3% to 1,576,227 rides in 2013. Individually, ridership on the Port Jervis Line fell 3.6% and ridership on the Pascack Valley Line was essentially unchanged from the previous year."

MTA attributes Metro-North's continued decline West-of Hudson to a weather hangover inflicted by storms Irene (2011) and Sandy (2012). I don't buy that, either, because MTA notes, "West of Hudson ridership peaked in 2008 at almost 2.1 million" three years before any destructive storm paid a visit to West-of-Hudson services.

No matter; Metro-North may be changing its CEO, but I'm hopeful it will remain focused on its mission to serve "passengers" and not just "those people," the all-purpose euphemism used by so many to belittle, degrade, and otherwise marginalize "commuters" and, therefore, all rail riders. Metro-North may be down, but it's not out. It's got plans to increase service to its secondary-market cities; it in fact has a plan for a whole new line, generating that many more origin/destination market pairs (LIRR political partisans notwithstanding). It's even a candidate – a long shot, true, but still a candidate – to assume operations for Connecticut when service on Amtrak's New Haven-Springfield route is bolstered later this decade.

And LIRR? Yes, one sees signs of transit-oriented development slowly taking hold at this or that station, converting or rearranging parking lots that are a monument to Master Builder (particularly of Long Island itself) Robert Moses. But new lines? New city-pair services? I don't myself see much of that yet. Indeed, LIRR seems overjoyed to discover it can actually run trains to its eastern edges beyond traditional summertime boundaries – zounds, verily past Columbus Day! – and generate ridership beyond "those people."

I'll watch 2014 ridership trends for both MTA entities with great interest, and if LIRR remains on top, I'll find a way to eat crow here on these pages. But I don't think that's likely. I think 2013 was a bad year for Metro-North, exacerbated by the very expectations everyone seems to hold that it should do better. Because (unspoken and unacknowledged by so many) for years it has been doing better than almost anyone else in North America that's involved in regional passenger railroading.

Not "commuter." Real regional passenger rail travel, part of the rising expectations for this railroad and, I hope, for many more in the near future.

CN issued its earnings report for the fourth quarter and full-year 2013 after the closing bell on Wall Street Thursday, Jan. 30, 2014, gaining in the quarter over the comparable period in 2012 on record revenue, but reporting full-year earnings lower than that of 2012.

CN fourth-quarter net income was C$635 million, or 76 Canadian cents per diluted share, up from C$610 million, or 71 Canadian cents per diluted share, in the fourth quarter of 2012.The company’s fourth-quarter operating ratio rose by 1.2 points to 64.8%, CN said.

CN touted record fourth-quarter revenue up C$2.74 billion, up 8% from the fourth quarter of 2012. Revenue increased for petroleum and chemicals (up 22%) and intermodal (11%), among others, while coal revenue fell 9%. 

For the full year, net income of C$2.6 billion, or C$3.09 per diluted share, fell short of 2012’s total net income of C$2.7 billion, though that income translated into earnings per diluted share of C$3.06 in 2012. CN’s operating ratio for the full year 2013 was 63.4%, compared with 62.9% in 2012. 

CN President and CEO Claude Mongeau said,  “CN’s agenda of Operational and Service Excellence delivered record volumes and revenues in 2013. Key operating and service metrics remained solid, and we continued to drive incremental improvement in our broad safety record. CN reduced its accident rate per million train-miles by 9% in 2013, the latest sign of long-term gains in safety. In the past 10 years, CN’s main line track accidents have declined by more than 50% despite increased freight volumes.

 “CN sees good opportunities in 2014 in a number of markets, including intermodal, oil- and gas-related commodities, Canadian and U.S. grain, and commodities related to the recovery in the U.S. housing market. With continued supply chain collaboration and solid execution, the CN team is focused on safely and efficiently growing the company’s business at low incremental cost and at a pace faster than the overall economy."

Hauling water by train might sound outlandish to most, but tank cars were routinely used during the steam era to transport and store water in railway operating territories where wells, streams, or other water sources were not available. And well into the modern diesel era, tank cars continued to bring drinking water to remote communities or facilities whose only physical connection to the outside world was the railroad.

Supplying enough water to partially refill depleted reservoirs or irrigation systems in areas that are not already served by aqueducts and that are most vulnerable to California’s worsening drought will require something along the lines of a pipeline. Or, where pipelines don’t exist, a rolling pipeline on rails.

In other words, trains moving as many as 100 carloads of water at a time, which translates to roughly three million gallons of water per train. Much the same way that crude by rail is now moving oil across vast distances where previously there was no reasonable or competitive way to do it. Trains cannot possibly move enough water to enough places to fully substitute for a lack of winter precipitation, but they could at least deliver some measure of relief to specific areas facing the worst water shortages. In the broader context, water by rail could even be a seasonal or long-term solution to chronic drought or exhausted groundwater in almost any state or region.

For California, tank cars of non-potable water could be dispersed among cities and small towns, and even to remote locations reached by rail, to keep on hand as back-up for ground-based firefighting equipment. Food-grade tank cars could deliver potable water to specific communities where municipal systems are at immediate risk of running dry, and to select farms that are deemed vital to the nation’s food supply. Supporting water by rail on a widespread, long-term basis would likely require the manufacture of hundreds of new tank cars dedicated to such service.

The crucial value of water has been plainly documented, and sometimes hinted at, throughout human history, from the book of Exodus to the movie “Chinatown” to the U.S. Defense Intelligence Agency’s “Global Water Security” report issued in early 2012. “Water is the oil of the 21st century,” Andrew Liveris, CEO of Dow Chemical, told The Economist back in 2008. That same sentiment has been voiced by other executives, military strategists, and think-tankers from across the social and political spectrum.

So I ask those who are better positioned and educated than I to calculate: What logistical challenges could prevent such an undertaking? How many tank cars can be made available, and when? At what point does the value of water approach that of crude, at least in terms of transporting it in bulk, by rail, across hundreds or even thousands of miles? Is there profit or purpose in rail-hauling water to a state that grows much of the nation’s produce, the same as there’s profit in rail-hauling crude oil that ultimately becomes part of that state’s fuel supply? Can railroads actually haul enough water to be of any meaningful impact?

If it can be done, now is the time to begin working out the details. With California already this dry in January, imagine the desperate situation some areas of the state may be facing this summer. Water by rail will need to already be established and operating by the time that worst-case scenario unfolds. And some are already predicting that scenario might continue for years to come.

Tacoma, Wash.'s City Council has informally endorsed a specific route for extending the city's 1.6-mile Link Light Rail (often defined by some as a streetcar) operated by Sound Transit.

The choice, an extension along Stadium Way, mirrors that preferred by a plurality of city residents weighing in on the matter. Voters approved an extension in November 2008.

Sound Transit officials presented an analysis of citizen comments about possible alignments to the City Council earlier this week, local media report. Residents tended to favor an LRT route along Stadium Way instead of via Broadway or St. Helens, largely due to potential cost savings of $20 million and the avoidance of any diruption in theater Square Plaza.

Several council members noted the Stadium Way option had its own problems, including hilly terrain. None appears to be opposed outright to the mode, however, unlike in some other U.S. cities.

If the line traversed Stadium Way, it would then travel south along North First Street, then to Division Avenue and south along Martin Luther King Jr. Way. Little disagreement among council members was voice on an alignment in the Hilltop, local media said.

The City Council could vote on a resolution next week to recommend the alignment, which would extend Link by 2.3 miles, to the Sound Transit board. The council could decide to also forward an a second route as an alternative. Sound Transit, if it approves the alignment, must complete further studies, but has $50 million on hand to advance the project, projected to cost $150 million.

Tacoma's Link Light Rail began revenue operations in August 2003, almost six years before any counterpart Link Light Rail segment opened in Seattle. 

TBT terminals are specialized facilities that allow customers to transfer a large array of commodities between railcars and trucks. Owned by Norfolk Southern, they’re operated by independent contractors NS describes as “industry experts in facilitating safe and efficient bulk transfer and distribution. The facilities allow customers without rail sidings to receive the benefits of rail economics and service quality.”

Less than three miles from downtown Norfolk, Va., with access to Interstates I-264 and I-464 at 1305 Atlantic Blvd., the Chesapeake TBT also has close proximity to rail-serving yards on NS’s high-density main line. The terminal can handle dry and liquid bulk food-grade commodities such as flour, sugar, grains, and plastic pellets, as well as aggregates, sand, and cement. It is located on 40 acres with seven acres of laydown area, with expansion capability to handle lumber and other dimensional products, and accommodate container stuffing. The facility features 104 car spots, a certified truck scale, and is fully paved, fenced, and lighted.

“The Chesapeake TBT is strategically positioned to serve Hampton Roads-served markets as well as markets overseas with its close proximity to nearby container terminals,” NS says.

Norfolk Southern has a network of 32 TBT facilities in 17 states. The new Chesapeake TBT is operated under license by RSI Leasing Inc. More information on NS’s transload network is available at www.nscorp.com/distributionservices.

Canadian National said Friday, Jan. 31, 2014 the Teamsters Canada Rail Conference-Conductors, Trainpersons and Yardpersons has advised the railroad that "the tentative labor agreements negotiated with the union in October 2013 have failed to ratify."

The TCRC-CTY represents approximately 3,000 CN train conductors, trainpersons, yardpersons, and traffic coordinators on CN's network in Canada, CN said.

CN Executive Vice-President and COO Jim Vena said: "Last fall, after extensive negotiations, we reached progressive agreements with the union leadership of the TCRC-CTY representing our Canadian employees. We are disappointed to learn that those agreements failed to ratify.

"We have agreed to meet with the TCRC-CTY leaders next week to review the ratification results and discuss solutions on how we move forward from here," Vena added.

The Watertown Urban Mission Food Pantry in upstate New York will undergo a $250,000 renovation this year, thanks to a charity established by the parent company of New York Air Brake, LLC (NYAB).

Knorr-Bremse Global Care said Friday, Jan. 31, 2014 it has approved a NYAB project proposal that will improve the Food Pantry's capabilities to serve a growing number of area families in need. NYAB employs more than 400 workers at its headquarters in Watertown, N.Y.

Munich, Germany-based Knorr-Bremse established the charitable Global Care in 2005 to assist people in need all around the world. The projects it supports represent an investment in an economically independent future for the people concerned, driven by the principle of helping people to help themselves. The company says Knorr-Bremse Global Care has implemented 130 aid projects in 42 countries since its founding, helping more than 350,000 people on four continents.

Renovations at the Watertown site are expected to be completed in September and include: Private meeting areas for assistance interviews and nutrition education programs; more efficient heating and cooling systems, including new ductwork; replacement of the electrical systems; a new loading area with counters and storage for processing donations and food bank deliveries; drywall and insulation to improve energy efficiency and climate control; repair and replacement of flooring, ceilings, and lighting; an emergency exit; and an automatic sprinkler system.

CIT Group said early Monday, Feb. 3, 2014 it has acquired Paris-based Nacco SAS, "one of the largest independent full service railcar lessors in Europe."

New York-based CIT Group says Nacco owns more than 9,500 railcars, and services more than 150 customers in 16 countries.

CIT Senior Vice President and General Manager, Locomotives Dan DiStefano was appointed president of the company, which will market itself as Nacco, A CIT Company. Terms of the transaction were not disclosed.

"Europe has one of the largest freight rail markets in the world and this acquisition supports our efforts to grow our rail leasing business and to be the premier provider of global transportation finance solutions," said Jeff Knittel, president of CIT Transportation & International Finance. "George Cashman, President of CIT Rail, and his team have been studying the European market for a number of years and we are very pleased with this acquisition. It enables us to expand our operating platform outside of North America and offers us a foundation as we look to utilize our best-in-class leasing capabilities throughout Europe."

Said DiStefano, "Nacco is an industry leader that is known for its strong customer relationships. It has built a reputation based on its expertise in the railcar leasing business, a deep understanding of the European market and the ability to meet the needs of its customers. We remain committed to providing Nacco customers with the quality service they have come to expect and will look to build upon its exceptional service and reputation in the marketplace."

Nacco's railcar portfolio consists of tank cars, flat cars, gondolas and hopper cars that service major shippers in the petroleum, chemical and petrochemical industries, as well as those moving fertilizers, minerals, timber, steel, aggregates and agricultural products. Nacco's Paris operations are bolstered by subsidiaries in Hamburg, Germany, and Crewe, United Kingdom.

Deutsche Bank Securities Inc. acted as financial advisor to CIT on this transaction.

The National Basketball Association Sacramento Kings have pledged to provide $500,000 to aid streetcar development in California's state capital as part of a traffic mitigation plan being developed by California's Department of Transportation (Caltrans).

Such support would provide a big boost to the proposed streetcar line, to this point largely driven by efforts from neighboring West Sacramento, Calif., whose residents voted in 2008 to support a tax for a 1.2-mile streetcar line linking that city with Sacramento, including the latter’s light rail transit (LRT) system.

In 2012 Sacramento's City Council unanimously has approved involving the city in a starter streetcar route in cooperation with West Sacramento.  Subsequent planning now extends the proposed streetcar line to a 3-mile route.

The Kings plan to move into a new $448 million arena in Sacramento's Downtown Plaza. Under California environmental law, developers must take reasonable steps to reduce the negative environmental impacts their projects cause, including but not limited to traffic, pollution, and noise.

Local media report that the agreement, still to be finalized, sets a precedent Caltrans seeks to implement elsewhere.

In an email message, Sacramento Kings President Chris Granger said the NBA team is "proud to have worked with the city and Caltrans to identify a mitigation measure that provides substantial funding for the streetcar, which will help circulate people and improve the downtown transportation network."

The two cities have received a $5 million grant from the Sacramento Area Council of Governments to do planning work in preparation for a larger federal grant application next summer. But so far the project has failed to capture any federal funding support from the Federal Transit Administration through New Starts, Small Starts, or TIGER (Transportation Investment Generating Economic Recovery) funding.

Public opinion over the future of Toronto Transit Commission's Scarborough Line apparently continues to vacillate, with a new poll suggesting light rail transit (LRT) once again is favored over a subway extension for the line.

An opinion poll by Leger found 64% of those questioned now favor LRT, a mode rejected by current (and beleaguered) Toronto Mayor Rob Ford, who has championed a subway extension for the route. Slightly more than 24% still favor a subway extension, while "Who cares, just build something" garnered almost 12%.

Modal preference reportedly varied little depending on whether respondents lived in downtown Toronto or in Scarborough, east of downtown. Scarborough was incorporated politically into greater Toronto in 1998.

The poll results, posted Monday, Feb. 3, 2014 on the City News Toronto website, counter a similar poll by Leger in 2011 tallying a 52% majority favoring a subway line. TTC's 4-mile Scarborough Line (pictured above left) currently runs as an advanced rapid transit operation, employing linear induction rail technology similar to Vancouver's Skytrain.

Toronto mayoral candidate David Soknacki has said that if elected, he will reverse Ford's current stance to build a Scarborough subway and go back to LRT. Ford is running for re-election.

Montreal-based Leger is a polling, research, and strategic marketing firm with operations in Canada, the U.S., and Switzerland.

The Surface Transportation Board announced Monday, Feb. 3, 2014 that it will hold a public hearing on March 25-26, 2014 "in Petition for Rulemaking to Adopt Revised Competitive Switching Rules, EP 711, to explore issues surrounding The National Industrial Transportation League's (NITL) petition to modify the Board's standards for mandatory competitive switching."

NITL has proposed that certain captive shippers located in terminal areas be granted access to a competing railroad if there is a working interchange within a reasonable distance (30 miles, under NITL's proposal), STB notes. STB has received numerous comments in response to NITL's proposal, and has scheduled the hearing to explore the issues.

The hearing will begin at 9:30 a.m. Eastern time on both days in the Board's Hearing Room at the agency's headquarters at 395 E Street, S.W., Washington, D.C. The hearing will be open for public observation. The Board has already received notices of intent to participate and summaries of testimony, as the upcoming hearing is a rescheduling of a postponed October 22, 2013 hearing on this matter.

STB's notice may be viewed at STB's website, filed under "E-LIBRARY / Decisions & Notices/02/03/14."

“In 2015, weakness in both the coal markets and a lack of current demand for intermodal equipment will level deliveries to 60,500 cars,” EPA said. “Beginning in 2016, annual railcar assemblies will expand very moderately from 60,300 units to 62,500 cars and platforms in 2019.”

For the longer term, EPA said that stronger economic activities should provide support for certain railcar assemblies, while an improvement in the financial environment, high gasoline prices, and strong government backing stimulate greater demand for ethanol and DDG cars. Replacement pressures and technological advances as well as legislative measures will also play a role in promoting the demand for a variety of railcars.

Construction activities are expected to continue to advance, “which should support movements of aggregates and structural steel products,” EPA said. “Continued expansion in demand for crude oil, petroleum products, chemicals, and food and beverages will prop up haulings of a variety of liquid products and the demand for tank cars. Growing worldwide nutritional needs and expanding exports will pressure the current grain service cars as we proceed through the longer term, while long neglected segments such as equipment to haul waste, aggregates, and limestone show signs of revival and should add to the railcar delivery mix in the years to come. However, the most dynamic element in the long-term railcar environment will be tank cars to transport ever-increasing volumes of oil and petroleum products.”

“Total railcar orders rebounded in the fourth quarter primarily due to a surge in hi-cube covered hopper demand” EPA noted. “A significant number of petrochemical plants in the Gulf, other parts of Texas, and the East Coast (New Jersey) are starting up. Furthermore, we have been informed that more equipment will be needed as we proceed through 2014 and into 2015.

“Most other car types recorded various degrees of increases in fourth quarter orders, with the notable exceptions of coal cars, which continue to be dampened by Environmental Protection Agency regulations and a slowing in export markets, and intermodal equipment.

“Aside from coal cars, we are impressed by the broadening of demand for rolling stock. Tank car orders, which comprised 80.6% of total orders in the first quarter, 46.8% of orders in the second quarter, and 40.4% in the third quarter, only accounted for 33.1% of the orders in last year’s closing quarter. While it is true that a very substantial amount of hi-cube equipment could have shifted the balance, as noted above, fourth-quarter orders were received for a vast array of car types. We still believe that oil service tank cars will lead the parade in future orders. To be sure, recent [crude by rail] rail mishaps . . . are turning attention to tighten legislation to protect the population from severe future mishaps.

“Currently, there is a drive for tougher standards for oil rail shipments, including better testing of potentially explosive ultra light shale crude and the development of improved rail tank car standards. Tank cars produced before 2011 have been cited dangerously prone to puncture. Whether these developments result in major retrofitting projects or future purchases of new equipment remains to be seen. However, the fact of the matter remains that we have little alternative but rail to transport the bulk of our oil. And, our oil needs will continue to expand at a healthy clip.

“With regard to other car types, we continue to be concerned about the underwhelming growth of the economy as manufacturers, oil and gas producers, and coal companies struggle with the increasing number of government regulations dampening our economic potential. Hopefully, our economy can eventually embark on a stronger path of growth, which will improve railroad traffic, revenue, and investments, leading to continued healthy growth in railcar demand.

We have recently noted an estimated 3.2% increase in our fourth-quarter GDP, a smaller advance than the third quarter. From this point on, we look for continued growth in demand for boxcars and grain cars, along with a pickup in demand for small-cube covered hoppers and mill gondolas, and continued rapid expansion in tank car demand.

Even with an anticipated rebound in coal hauling this year, we remain relatively negative on the outlook for coal cars, primarily because we have heard that customers prefer to rebuild rather than purchase new equipment in the currently dismal coal environment. We now expect assemblies of GT gondolas and hoppers to amount to 1,750 units this year and 2,750 cars (primarily replacements) in 2015. Longer term, assemblies of GT gondolas and hoppers will expand very modestly to 5,500 units in 2019.

In spite of declines in agricultural products and coal, the Class I’s reported good revenues and profits in 2013. The railroads also continue to mention investments in track, facilities, and equipment. The solid income base of the railroads should serve to support railcar demand in the years to come. Also, they are indicating strong capital spending plans for 2014 as they prepare for continued growth in oil, chemical, light vehicle, and intermodal movements. And, the investments will be well founded as we witness future growth in these categories.

We continue to remain leery on the future course of auto sales through the next two years. Until the economy is on more solid footing, employment advances at a more significant pace, and consumer income growth increases, we expect quarterly auto sales to remain relatively flat at high levels during 2014 and 2015. After a 7.5% advance in motor vehicle sales to 15.62 million units in 2013, we expect more modest growth to 15.80 million vehicles in 2014 and 16.38 million units in 2015. Led by strong production gains in the U.S., Canada, and Mexico, motor vehicle carloadings advanced 16.5% in 2012. However, motor vehicle movements moderated to a 5.1% gain last year. This year, we expect a marked slowing in motor vehicle retail sales and North American production to result in a 2.6% increase in motor vehicle haulings, followed by a 2.3%advance in 2015. From 2016 through 2019, motor vehicle carloadings are expected to advance approximately 2.0% per year. We look for only moderate quarterly advances in factory output through 2014 and into 2015.

“Consumer spending will be sluggish, the job markets are weak, confidence has dropped, and consumers are looking to improve their balance sheets, rather than purchase more products. The export markets have slowed considerably over the past year and we expect further weakening in 2014, before there is some bounce back in global economic activities in 2015. And, the steel markets are reflecting the slowing in industrial activities. According to the American Iron and Steel Institute, domestic steel shipments through November of 2013 were running 0.8% below the previous year while steel imports were 4.6% lower in the first eleven months.

“As anticipated, exports of corn, wheat, and soybeans picked up in the fourth quarter of last year. More important, the USDA anticipates further gains in our crop exports this year, which should boost grain movements. Based on increased production, consumption, and exports, we expect a rebound in grain haulings this year and next. After an 8.0% drop last year, we expect grain haulings to increase 3.1% this year and 2.1% in 2015.”

Connecticut Gov. Dannel Malloy on Monday, Feb. 3, 2014, announced that the Connecticut Department of Transportation (ConnDOT) will oversee a $10 million project to upgrade Metro-North Railroad's power supply for the New Haven Line, the most heavily-used stretch of passenger railroad in North America.

The project is being emphasized as one seeking to prevent the kind of power failure –deemed "catastrophic" by Connecticut—that seriously disrupted New Haven Line service last year.

Gov. Malloy also announced his plans to meet with the new President of Metro-North, Joe Giulietti, and with MTA Chairman and CEO Thomas Prendergast, on Feb. 13, to discuss operational concerns on the New Haven Line. The New Haven Line carried a daily average of more than 106,000 riders in 2013, according to MTA records.

"In anticipation of adding even more service on this state owned rail corridor, we want to ensure riders have as safe and reliable a commute as possible and prevent the major system interruptions that we experienced in September," Malloy said in a statement.

Metro-North will manage the project in conjunction with Connecticut Light & Power (CL&P), which has been contracted to do the work and will install new transformers to replace four aging transformers to ensure reliability and safe operation of the electric supply that powers New Haven Line trains, as well as Amtrak Northeast Corridor trains traveling on much of the route between New York and Boston.

CL&P and Metro-North have developed an accelerated schedule for replacing two transformers. Replacement of the first transformer began Monday and is expected to be completed within 16 days. Replacement of the second transformer will begin immediately thereafter and be finished by Mid-March.

One New York-area rail advocate, while welcoming Connecticut’s announcement and the effort, notes the New Haven Line, particularly the portion within Connecticut itself, has traditionally been underfunded relative to other Metro-North infrastructure, though funding has improved in recent years.

HDR, Inc. has been hired to revive a streetcar plan for Grand Rapids, Mich., using a six-year-old study as a baseline for the new effort.

Omaha-based HDR has been awarded a contract worth roughly $294,000 to determine the capital and operating costs of a streetcar line, originally envisioned as a 3-mile route.

"We're going to build on that (2008 study)," John Logie, a former Grand Rapids mayor who is chairman of an advisory committee for the project, told local media. "We think the timing is right. The economy is coming back."

If built, the streetcar line would be the first such modern introduction of the mode in Michigan.

HDR, Inc. is no stranger to streetcar projects, having overseen a feasibility study for Atlanta's initial streetcar line, scheduled to open this year. HDR also landed a $3.6 million contract for the final design of the main components of the streetcar line in Kansas City, Mo., now under construction.

Washington, D.C.'s District Department of Transportation (DDOT) issued a Request for Qualifications (RFQ) Monday, Feb, 3, 2014 "to firms interested in submitting Statements of Qualification (SOQs) to design, build, operate, and maintain [DBOM] an integrated premium transit system."

DDOT seeks a DBOM approach to implement an "integrated premium transit (IPT) system" including streetcars, buses, and "both existing and new transit facilities." It envisoned the IPT to be "developed in phases and is comprised of 22-miles of dual/single track fixed guideway, related equipment and facilities, and potentially up to 15 additional miles of fixed guided track," as well as "all local bus services within the District."

"This design-build-operate-maintain procurement is an innovative way to deliver the integrated premium transit vision we have for the District in an affordable and efficient manner," said DDOT Director Terry Bellamy. "This delivery method allows us to continue providing innovative, safe and high quality and integrated transportation solutions to the District."

The procurement will be conducted as a two-step process, with an RFQ followed by an Request for Proposals (RFP). Prospective proposers will be short-listed based upon their SOQ submissions evaluated against the extensive qualification criteria in the SOQ. The specific limits of the IPT will be further specified in RFP, which will be issued to the short-listed responding teams.

DDOT will host a pre-SOQ workshop for interested proposers on Feb. 18, though attendance is optional. It adds that any questions regarding the RFQ may be submitted as indicated in the RFQ itself, which can be found here: http://ocp.dc.gov/. SOQs are due by 2 p.m. on March 21, 2014.

CBRL operates the Coos Bay line through a management agreement between the Oregon International Port of Coos Bay and ARG Transportation Services Inc. of Eugene. The port is responsible for infrastructure investments in the rail corridor, while CBRL is responsible for train operations and day-to-day maintenance activities.

Former CBR General Manager Tom Foster, who now serves as Vice President Marketing for ARG Transportation Services, said he was pleased with the upturn in rail traffic and the work of the CBRL employees. “We’ve got hardworking and enthusiastic employees who work safely and make every effort to meet the rail transportation needs of Coos Bay rail line shippers,” he said.

Foster expects another significant increase in revenue carloads in 2014, and points to new infrastructure that will help generate additional commodity movements. One project currently under construction is the Greenhill Siding in west Eugene, where a new multimodal facility is under development. “We expect to see commodities move inbound and outbound from that operation,” he said.

CBRL now serves more than a dozen shippers. While forest products and wood fiber are the dominant commodities, other goods such as fertilizers and organic dairy feed are increasing in volume.

“This growth far outpaces the growth of other short line and regional railroads this year, which was about 5%,” notes owner/founder and CEO Andrew Muller. “Although the export market for anthracite coal was weak in 2013, our railroad showed double-digit gains in domestic coal movements and merchandise, which includes woodpulp, paper, metals, food products, plastics, and frac sand for Marcellus Shale drilling.”

In terms of industrial development in 2013, R&N opened two new rail terminals to handle inbound metals for local customers. “These new facilities took significant truck traffic off the roads and helped support the local industries depending on this business, which employ 1,200 people in Schuylkill and Luzerne counties,” Muller says. “We also continued our unique practice of investing in off-line coal terminals by partnering with a terminal on the Ohio River to increase the movement of anthracite coal by barges.”

R&N is currently working on at least four industrial development site searches along its system, and has recently rehabilitated its rail infrastructure to provide service to the newly expanding Cambridge Lee manufacturing facility in Leesport, which employs approximately 400 people in Berks County.

Overall, the R&N serves 41 on line customers that provide jobs for more than 8,000 people.”Our railroad gets high marks for customer service because we run a scheduled railroad,” says Muller. “We provide each customer with a two-hour service window, and in 2013 our ontime performance was 98%.”

In 2013, the R&N embarked on an “unprecedented” capital expenditure program. “Our philosophy is to buy when other people are selling,” says Muller. “We are doing very well and now is the perfect time to reinvest in our railroad.”

“In 2013 we purchased and installed 35,000 ties,” said R&N President Wayne Michel. “We also purchased four locomotives, 105 coal cars, a number of trucks and electric cars for our fleet, and a prime piece of industrial property near our headquarters for potential development. All of these purchases were made with future growth in mind.”

Reading & Northern, with corporate headquarters in Port Clinton, is a privately held company serving major businesses in nine Eastern Pennsylvania counties (Berks, Bradford, Carbon, Columbia, Lackawanna, Luzerne, Northumberland, Schuylkill, and Wyoming). It also offers steam-powered passenger excursions. The railroad runs about 320 miles from Reading to Mehoopany and also operates a seven-mile line from Towanda to Monroeton in Bradford County. In 2012, the railroad entered into an agreement with CAN DO to purchase the rail assets of Humboldt Industrial Park in Hazleton, the region's largest rail-served industrial park. R&N, which currently employs more than 150, is scheduled to take over service to Humboldt in 2017, at the latest.

The largest component of the capital plan is $2.3 billion for the railroad’s core network and related assets. In addition, approximately $1.6 billion has been allocated for locomotive, freight car and other equipment acquisitions; $200 million for continued installation of positive train control (PTC); approximately $900 million for terminal, line, and intermodal expansion and efficiency projects; and more than $900 million for expansion and maintenance in BNSF’s Northern Corridor.

“BNSF handled more than 50% of the volume increases for the rail industry in 2013,” the railroad said. “The growth was led by an 8% increase in domestic intermodal units, an 11% increase in Industrial Products volumes led by crude-by-rail (CBR) related traffic, a 3% increase in coal volumes, and a fourth quarter surge in agricultural products. This growth is on top of a 2012 total volume base of more than 9.6 million units. Much of the capacity expansion in the 2014 capital plan is for infrastructure investment in our Northern Corridor to put the company in position to meet all customer service expectations, including Amtrak.”

In recent months, the ontime performance of Amtrak’s Empire Builder and other passenger rail services has been impacted by huge increases in CBR traffic.

“BNSF’s expansion and efficiency projects will be primarily focused on line capacity improvements to accommodate growth in agricultural products, intermodal, automotive, and industrial products volumes related to crude oil production, and other terminal improvements to enhance productivity and velocity,” said President and CEO Carl Ice. “Our capital plan continues to focus on improving our ability to meet our customers’ service expectations, increasing our capacity where there is growth, and strengthening our railroad to help ensure it remains the safest means of ground transportation for freight. Our capital investments are an integral part of making sure our network is well prepared for the demand for freight rail service in the U.S. and helps ensure the continued integrity and reliability of our network.”

Connecticut officials demanding meetings and answers from Metro-North Railroad and parent Metropolitan Transportation Authority (MTA) might pause before leveling bombast, if a new report by the Regional Plan Association carries any weight.

The RPA report, Getting Back on Track: Unlocking the Full Potential of the New Haven Line, suggests that New Haven Line riders, upset by several incidents during 2013, could face 20 more years of similar disruptions if basic maintenance needs and capital infrastructure improvements are not addressed.

RPA's report, released Feb. 4, 2014, urges $3.6 billion in investments during the next seven years. It recommends 8% of that amount, or $300 million, to target power system replacement and repairs, with another $330 million, or 9%, recommended for expansion and modernization of Metro-North's New Haven rail yard.

The largest capital cost – repair or replacement of several moveable bridges – is estimated to cost $2.8 billion, or 78% of the funds recommended.

The Connecticut Department of Transportation's (ConnDOT) 2013-2017 capital plan at present identifies $962 million to the New Haven Line, or 26. 7% of the needs identified by the RPA report, or a rate of replacement stretching two decades, though that percentage does not factor in New York State's contribution to its smaller portion of the New Haven Line, stretching from New Rochelle to Grand Central Terminal in Manhattan.

Rail advocates and even some rail industry officials have previously if quietly noted Connecticut's funding commitment to the New Haven Line has been, at best, uneven over the years, prone to surges of support following disruptive events and fading as conditions improve.

Despite the New Haven Line's woes during 2013, the route still set a ridership record of 39 million rides, retaining its status as the busiest rail passenger line in terms of ridership within North America.

Connecticut officials earlier this week said they plan to meet with MTA and Metro-North officials on Feb. 13.