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Bombardier gets BART add-on order for 365 cars

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Written by: Douglas John Bowen

Bombardier Transportation said Tuesday, Jan. 7, 2014 it will supply Bay Area Rapid Transit (BART) with an additional 365 rail cars, part of BART's "Fleet of the Future," through a contract worth roughly $639 million.

The contract is part of an option agreed to by the parties in June 2012, Bombardier noted, and brings the number of cars being built to 775, worth about $1.5 billion.

"BART is very pleased to be partnered with Bombardier for this important project to bring a new and improved fleet to the Bay Area," said BART General Manager Grace Crunican. "We look forward to the successful delivery of 775 innovative, reliable, safe and comfortable rail cars."

Said Bombardier Transportation President, Region Americas, Raymond Bachant, "This new order is indicative of BART's satisfaction with our partnership and progress in the design of this new generation of metro cars. The cars will incorporate state-of-the-art, environmentally-friendly technologies and include input from Bay Area citizens who had the opportunity this summer to tour a mock-up of the car and learn about proposed improvements to the interior."

Bombardier said such improvements include: a reconfigured interior layout designed to maximize seating, openness, and comfort; more priority seating for seniors and people with disabilities; wheelchair areas at the end of each car; and bicycle racks in every car.

Other new features include: more comfortable seats; interior and exterior digital displays showing passenger information; a better quality public address system, including automated announcements; more doors to make boarding faster and easier; energy saving lighting; and energy-efficient propulsion and regenerative braking.

Bombardier will assemble the cars at its manufacturing plant in Plattsburgh, N.Y. Ten pilot cars are scheduled for delivery in the spring of 2015, followed by comprehensive testing of the pilot cars on the BART system. The delivery of the 765 remaining production series cars is expected to follow between early 2017 and 2021, Bombardier said.


Virginia/N.C. reps meet to advance HSR

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Written by: Douglas John Bowen

Virginia and North Carolina officials pursuing high speed rail development were scheduled to meet in Washington, D.C. Tuesday, Jan. 7, 2014, to advance HSR between the nation's capital and Charlotte, N.C.

The proposed Southeast High Speed Rail Project (SEHSR) would develop HSR even further south, terminating in Atlanta. Georgia's Department of Transportation (GDOT), on behalf of the Federal Railroad Administration, is leading that portion of the study examining the route between Atlanta and Charlotte.

The primary focus of the meeting of Virginia and North Carolina officials is to identify and pursue federal funding for the project in order to develop HSR. Virginia received about $75 million in federal funding for SEHSR in 2012. Participants are members of each state's legislature.

SEHSR would link with Amtrak's Northeast Corridor (NEC) in Washington – by some modest measures an existing U.S. high speed rail route. As an intermim measure, Virginia has provided state funding for extensions of Amtrak Northeast Regional service south of Washington to points in Virginia, including Norfolk in the southeast Tidewater region and Lynchburg, located in the Appalachian Mountains.

Greenbrier Cos. fiscal 1Q14 results released

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Written by: Douglas John Bowen

The Greenbrier Companies, Inc. on Wednesday, Jan. 8, 2014 reported net earnings of $16 million, or 51 cents per share, for its fiscal first-quarter 2014 ending Nov. 30, 2013, missing Wall Street consensus estimates of 53 cents per share.

First-quarter revenue of $490 million exceeded estimates of $481 million. The company said operating margins "expanded by 240 bps year-over-year and outperformed our model by 70 bps (gross margins outperformed by 20 bps while SG&A margin outperformed by 50 bps)."

The new railcar backlog as of Nov. 30 was 13,500 units with an estimated value of $1.43 billion (average unit sale price of $106,000), compared with 14,400 units with an estimated value of $1.52 billion (average unit sale price of $106,000) on Aug. 31, 2013, the company said.

New railcar deliveries totaled 3,700 units for the quarter, compared with 3,500 units for the quarter ended Aug. 31. Received orders for 2,500 new railcars valued at $230 million during the quarter.

Subsequent to quarter end, Lake Oswego, Ore.-based Greenbrier received orders for another 1,100 units valued at approximately $130 million, the company said.

CN train carrying crude oil derails in Canada

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Written by: William C. Vantuono, Editor-in-Chief

Seventeen cars and one locomotive in a 122-car CN train carrying propane and crude oil derailed and caught fire on Tuesday, Jan. 7, 2014 near the town of Plaster Rock in northwest New Brunswick, Canada. There were no injuries, but about 50 nearby homes were evacuated when the train derailed at approximately 7:00 p.m. EST.

The train originated in Toronto and was headed to an Irving Oil refinery in Moncton, N.B., which is about 185 miles east of the site of the accident, according to Jim Feeny, director of public and government affairs at CN. Among the 17 cars and one unmanned locomotive that derailed were four loads of propane and four loads of crude oil, he said. Unkown at this time is what type of crude oil the train was carrying, though it did originate in western Canada. A fireball was reported but has not been confirmed, and it is unknown at this time whether the fire was oil- or propane-related. 

Feeny said that CN crews plan to conduct an aerial surveillance of the site to determine the source and scope of the fire. He said more information about the blaze is required before crews can go in and start cleaning up the site.

Fire officials said the cars appear to have been mostly empty, except for some propane residue. “They’ll in all probability burn themselves out by morning,” said Sharon DeWitt, emergency measures coordinator for Plaster Rock, soon after the accident. She said there was no danger to residents as the wind was blowing away from Plaster Rock, a village of about 1,000 in a mainly wooded area about 30 miles from the U.S. border and Maine.

The Transportation Safety Board of Canada said the derailment was caused by an “undesired brake application.”

Last November, Canadian Transport Minister Lisa Raitt issued a directive that requires railroads to provide annual information to municipalities on the volume and nature of hazmat materials being transported through their jurisdictions. The move came in response to the derailment and explosion in Lac-Mégantic, Quebec on July 6, 2013,which killed 47 people.

In a similar move last August applying to U.S. operations, the Federal Railroad Administration issued an emergency order “to help prevent trains operating on main line tracks or sidings from moving unintentionally,” specifically, those hauling certain types of hazardous materials, such as crude oil and ethanol.

CN President and CEO Claude Mongeau went to the scene of the accident and, accompanied by New Brunswick Premier David Nathan Alward, conducted a news conference.

Kelley, O’Connor in new roles at Union Pacific

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Written by: William C. Vantuono, Editor-in-Chief
Union Pacific has appointed vice presidents D. Lynn Kelley and Joseph O’Connor to new positions within the organization, effective Feb. 1, 2014.

Kelley (top photo), currently Vice President of Continuous Improvement, will take on the added responsibility of UP’s Supply organization. As Vice President of Supply and Continuous Improvement, she will be responsible for purchasing, strategic sourcing, and the company’s industrial engineering activities. Kelley joined UP in 2011 from Textron, where she was Vice President of Operational Excellence. Prior to joining Textron, Kelley was a professor at the Madonna University School of Business and served as Chief Operating Officer of Doctor’s Hospital in Detroit, Mich.

UP OConnerO’Connor (photo, second from top), currently Vice President of Purchasing, has been named Vice President of Labor Relations. He will lead the organization responsible for negotiating labor agreements and managing the day-to-day relationship with the company’s union-represented employees. O’Connor joined UP in 1987 as a capital planning analyst in the company’s Finance organization. During his career, he held several positions in Finance and Network Design and Integration before being named Vice President of Purchasing in 2003. O’Connor will succeed William (Rick) Turner (bottom photo), Vice President of Labor Relations, who is retiring in March.

UP Turner“Lynn and Joe have proven themselves as effective leaders at Union Pacific and I am pleased that they have agreed to take on these important roles for our company,” said UP President and CEO Jack Koraleski. “Both of these functions are a key part of our ongoing commitment to creating value for our customers and great financial returns for our shareholders. We all wish Rick Turner the best of luck in retirement. In his 32 years of service to the railroad, Rick has served our company well in a series of key assignments, including Vice President of Premium Operations and Vice President of the National Customer Service Center.”

NS: $2.3 billion in industrial investment in 2013

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Written by: William C. Vantuono, Editor-in-Chief
Norfolk Southern, through participation in the location of 67 new industries and expansion of 25 existing industries along its rail lines in 2013, spurred customer investments of $2.3 billion, creation of 3,100 potential new jobs, and eventual generation of more than 136,000 annual carloads of new rail traffic.

NS assisted state and local government and economic development officials throughout 14 states in helping customers identify ideal locations for new and expanded facilities. “The energy sector has been a significant story for several years and 2013 was no different,” said Assistant Vice President Industrial Development Jason Reiner. “We assisted in the location or expansion of 11 energy-related facilities across our service area. Crude oil transportation and support for natural gas exploration and production accounted for the lion’s share of energy projects, providing 65% of the new rail traffic reported. The energy sector will continue to provide significant growth opportunities in 2014.”

The balance of other projects secured during 2013 was distributed among several of the broad product areas NS serves, with major representation in the metals, agriculture, and automotive sectors.

NS works with state and local economic development authorities on projects involving site location and development of infrastructure to connect customers to its rail system, notes that it provides “free and confidential” plant location services, including industrial park planning, site layout, track design, and supply chain management. During the past 10 years, the railroad’s Industrial Development Department has participated in the location or expansion of 1,024 facilities, representing an investment of $29 billion and creation of more than 44,000 customer jobs in the territory served by the railroad.

UP: New Laredo-Memphis intermodal/automotive service

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Written by: William C. Vantuono, Editor-in-Chief
Union Pacific has initiated a new intermodal service between Laredo, Tex., and Memphis, Tenn., “supporting growing transportation needs for the automotive manufacturing and intermodal marketplaces.”

“This industry-leading, third-morning service connects businesses in the southeastern United States and Mexico, via safe, cost-effective and environmentally friendly rail transportation,” UP said.

“As the automotive industry continues to rebound and shift production to North America, manufacturers increasingly are locating vehicle production and auto parts distribution facilities near where they are most likely to be consumed or purchased,” UP said. “Intermodal shipping primarily involves transporting consumer products, which are increasingly produced in Mexico. The Laredo-Memphis rail service connects manufacturers located in Mexico with retail storefronts and distribution centers in the southeastern U.S.”

“The development of this Laredo-Memphis service lane represents Union Pacific’s commitment to creating innovative products and services to meet the evolving needs of our automotive customers,” said UP Vice President Automotive Linda Brandl. “With a truck-competitive transit time, this service allows our automotive manufacturing customers to convert truck shipments to rail with minimal impact to their on-hand inventory of auto parts and the customized racks required to ship them.”

“The intermodal service between Laredo and Memphis is a great addition to the unparalleled Mexico market access Union Pacific offers its intermodal customers,” said UP Vice President Intermodal John Kaiser. “This new offering combines the industry’s fastest intermodal service with container programs that serve all major U.S. and Canadian markets, providing customers with unmatched service and capacity.”

UP noted that it is the only railroad serving all six Mexico gateways—Laredo, Eagle Pass, El Paso, and Brownsville in Texas; Calexico, Calif.; and Nogales, Ariz. “Our intermodal franchise provides customers with access to more North American markets than any other rail provider.”

Keolis lands MBTA regional rail contract

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Written by: Douglas John Bowen

Massachusetts Bay Transportation Authority has awarded Keolis Commuter Services an eight-year, $2.68 billion contract to operate MBTA regional rail passenger service for the Bay State. Two extension options of two years each could ratchet the total value to $4.3 billion.

MBTA's decision Wednesday, Jan. 8, 2015, had been anticipated, but was still considered significant since the agency did not opt to renew its relationship with Massachusetts Bay Commuter Railroad Co. (MBTC), the operator since 2003.

"Whoever doesn 't get this will be very, very disappointed," Paul Regan executive director of the MBTA Advisory Board, told local media. Regan expressed some concern that the losing bidder might pursue litigation due to the contract's value.

Barring any such action, Keolis is expected to assume operations on July 1.

"Keolis' proposal presents the best combination of technical quality and price, and is more advantageous to the MBTA," said MBTA General Manager Beverly Scott during Wednesday's meeting authorizing the change. "Any delay in initiating mobilization activities could adversely impact the provisions of commuter rail services."

Ron Hartman, executive vice president of Veolia Transportation, Inc., parent company of MBCR, expressed disappointment, saying, "We have been working on a proposal for more than two years," adding, "The result was few questions and little opportunity to discuss our proposal." Veolia Transportation in turn is part of Paris-based Transdev.

Keolis Commuter Services is part of Keolis, also based in Paris, and controlled by French National Railways (SNCF).


Four teams still vie to build Purple Line

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Written by: Douglas John Bowen

Maryland state officials have culled down prospective private consortia willing to build the 16-mile, $2.2 billion Purple Line light rail transit project from six to four.

Maryland Department of Transportation representatives expect to select a wining consortium early next year. Revenue service is projected to begin in 2020.

The "short-listed" teams selected to submit bids are:

• Maryland Purple Line Partners, comprised of Vinci Concessions, Walsh Investors, InfraRed Capital Partners, Alstom Transport and Keolis;

• Maryland Transit Connectors, comprised of John Laing, Kiewit Development and Edgemoor Infrastructure;

• Purple Line Transit Partners, comprised of Meridiam Infrastructure, Fluor Enterprises and Star America Fund; and

• Purple Plus Alliance, comprised of Macquarie Capital and Skanska Infrastructure Development.

The Purple Line project is being advanced as a public-private partnership (3P), similar to that employed by New Jersey Transit's Hudson-Bergen Light Rail (HBLR) operation in northeastern New Jersey. HBLR began initial operations in 2000.

Maryland DOT and state officials seek $500 million to $900 million in commitments from the private sector for the project's construction. In return, the state is offering a design-build-operate-maintain (DBOM) contract lasting possibly as long as 40 years.

The state itself so far has affirmed $750 million for the project.

Two teams that earlier submitted "statements of qualifications" that will not advance include: Plenary Group USA and Bechtel Development Co.; and CSCEC and United Labor Life Insurance.

Cuomo backs Metro-North line to Penn Station

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Written by: Douglas John Bowen

New York Gov. Andrew Cuomo, considered by many to be lukewarm at best in his support for rail transit improvements in the Empire State, emphasized his support Wednesday, Jan. 8, 2014, behind Metro-North New Haven Line access to New York Penn Station.

The governor, giving his State of the State speech in Albany, N.Y., justified the commitment based in part on the positive redundancy such access would offer New York metropolitan area rail service, particularly during emergencies, such as Superstorm Sandy in October 2012. Improved travel access and travel times to Manhattan's West Side, and to Connecticut points, from the northeastern Bronx also were cited as reasons for the support.

Under the plan, some Metro-North New Haven Line trains would access Penn Station via Amtrak's Hell Gate Line, a portion of the Northeast Corridor used by Amtrak trains and some freight service. Metro-North initially would add stations in Co-OP City, Morris Park, Parkchester, and Hunts Point in the Bronx, all northeast of Manhattan, on the way to Penn Station. A Metro-North public presentation to Co-Op City residents in the Bronx in September 2012 suggested that travel time between the huge residential complex and Penn Station would be reduced from nearly an hour, using bus and subway combintations, to just 27 minutes.

Metro-North M-8 electric multiple-unit (EMU) trains would likely require adjustable third-rail shoes to traverse a portion of Long Island Rail Road (LIRR) right-of-way. LIRR trains utilize "overrunning" third-rail shoes, while Metro-North M-8 cars use "underrunning" shoes, as well as pantographs on most of the New Haven Line. Amtrak's Hell Gate Line is also under wire.

Protests by some LIRR advocates, as well as silence from LIRR itself, have put the proposal at some political risk in recent years. But supporters of the plan suggest it is in essence a quid pro quo for LIRR's own looming entry into Grand Central Terminal through East Side Access, and in any event is a more efficient use of existing rail infrastructure.

Railroader of the Year: All Aboard with Joe Boardman

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Written by: William C. Vantuono, Editor-in-Chief
Railway Age’s 51st Railroader of the Year, Amtrak President and Chief Executive Officer Joseph H. Boardman, is the first Amtrak chief executive since the legendary W. Graham Claytor Jr. in 1989 to be so honored.
Boardman, who came to Amtrak after his tenure as Federal Railroad Administrator, has been chief executive for the past six years, far longer than any of his post-Graham Claytor predecessors. Under his watch, Amtrak has posted record ridership and revenue, ordered a new fleet of electric locomotives for the Northeast Corridor and new single-level long-distance cars, developed a long-term strategy for additional new rolling stock acquisitions, and is effectively administering major capital programs. Boardman has a sustainable vision for the future of U.S. intercity passenger rail, which includes higher-speed services. He will be honored on March 11, 2014, at Chicago’s Union League Club.

On Dec. 16, 2013, Boardman and Railway Age Editor-in-Chief William C. Vantuono got together aboard Amtrak Amfleet business car 10001, the Beech Grove, for a “moving” interview between Washington, D.C. Union Station and Penn Station New York.

RAILWAY AGE: You are the first Amtrak president since the legendary W. Graham Claytor Jr. was selected way back in 1989. Your thoughts?

BOARDMAN: I never knew Graham Claytor, but he certainly is a memory here. There’s still a love for and an understanding and respect for Claytor. I’m humbled that I’d be selected for something like this. I’m not an awards type of guy naturally. I know a lot of people aren’t, but I appreciate the fact that it’s really about the railroad. The women and the men here really get the job done. We’re making improvements on a regular basis and that’s a good thing for Amtrak.

RA: You’ve seen steady improvement—as you well know, record ridership numbers, record revenues, and demand for the service is growing and growing.

BOARDMAN: People today, I think, are ahead of their politicians. I’m really kind of quoting our former chairman Don Carper when I say that he really saw in Illinois the demand, the change, that was happening in the mobile Midwest for delivering something really new for the people, a different mobility. We’re really happy about being part of that.

RA: You are from upstate New York, originally from a farming community?

BOARDMAN: That’s right. A place called Tabor, N.Y., which is just outside of Rome, where I still have my home, my family, in that whole area. I grew up with five brothers and two sisters. We operated a commercial dairy farm, my dad and my mother and my grandparents and the whole line of family, so I really learned how to work early. You became productive in your single digits and then really began to do an adult’s work by the time you were 11 or 12 years old.

RA: So from that background tell us how you transitioned from there to transportation. You’ve spent most of your career in transportation.

BOARDMAN: It’s my whole career other than the farming time and the military service. Let me tell you one story. My dad walked one day with me out of the barn and we looked at Route 69, which goes by our farm. A Greyhound bus went by. There weren’t many people on it, and I thought, that’s kind of a waste of money. My dad, who had grown up in the city of Rome, really said you need to understand that there are a lot of people that need to get around that don’t have a car, that don’t have a way to get around, and it got me thinking about that fact and the necessity for connections. In 1992, after I had been living all over the place and moved back to Rome, it really was because we had a canal, we had a railroad, we had a bus system, we had connectivity to the rest of the world. So that really had me interested right from the beginning in transportation. My wife says, anything with a motor and wheels and Joe’s interested. It can be trains or trucks, whatever. My college years saw me driving a bus after I got out of the military. That really started me in transportation.

RA: In what branch of the military did you serve?

BOARDMAN: I was in the Air Force. I volunteered when I was 17, in 1966. I think it was in large part because I didn’t want to do the haying that summer on the farm.

RA: Your college background?

BOARDMAN: I returned from Vietnam in 1970 and applied to Cornell University. I decided if I didn’t get accepted there I would become a state trooper instead of being a college-educated kid. Darn, they accepted me—which was wonderful! My grandfather and uncles had all gone to Cornell. They were veterinarians so I went there to be a veterinarian.

RA: You went from veterinary medicine to transportation. How did that happen?

BOARDMAN: Well, it took me a year to tell my family that I wasn’t going to become a veterinarian, since they were all proud of that. But I really enjoyed driving a truck and a bus part-time for the Cornell campus bus service while I was in college. I changed, after my first semester, to an economics degree, and my degree is in agricultural economics. It was that experience that led me to become the manager of the Rome Transit System when I was finished with college.

RA: And that eventually evolved into Commissioner of Transportation for New York State?

BOARDMAN: Quite a few years in between, but yes. Transit—putting butts in seats—has occupied most of my career. Safety is the other piece. Eventually, I started my own company. I was my own first employee in 1988 in Duchess County, N.Y. We started a connection to the railroad in Duchess County, and by 1995, when George Pataki became governor, I was the Assistant Transportation Commissioner for Transit, and then moved up to Commissioner. I stayed there until I got a call from the Bush Administration to be the Federal Railroad Administrator, when we got involved with Amtrak rebuilding the Turboliners. So I came down to Washington to do something different with the FRA.

RA: What would you say were your most important accomplishments at the FRA?

BOARDMAN: Any time you come into a job like that you need to understand where you are, where things are going, how you provide the leadership that’s necessary. I looked at a fantastic staff that really knew what they wanted to do, whether it was Grady Cothen or somebody else in the operation; Peggy Reid, who’s with me at Amtrak at this point in time; or DJ Stadtler. The folks that really produced for FRA had an agenda. That agenda was safety. What I found when I got there was a surprise—I wasn’t going to be the appointee to the Amtrak Board like I had thought. The Transportation Secretary at the time, Norman Mineta, had somebody else on the Amtrak Board. So I set myself in a different direction, and that was safety. I paid close attention to the safety agenda. One of the pieces of that agenda came true with Positive Train Control and the 2008 safety legislation. When Mary Peters, who I’ve known for years, became Transportation Secretary, she appointed me to the Amtrak Board as her representative.

RA: Was it your aspiration to some day run Amtrak? There seems to be a natural progression here.

BOARDMAN: I’m a very private person generally and don’t tell people what my plans are, but I’ll be 65 on Monday (December 23). I didn’t expect it when it occurred. I thought that I was ending my career with New York State DOT, then I thought I was ending my career with the end of the Bush Administration with FRA, but here I am, still part of delivering something I think is important to America.

RA: You’ve been at it for five years.

BOARDMAN: Five years on the 26th of November. I started in 2008 the day before Thanksgiving. I stayed on the ground at Amtrak during Thanksgiving Day.

RA: I remember that.

BOARDMAN: It was a good thing. It was a positive thing. Amtrak has great people.

RA: It has been observed by many that the presidency of Amtrak is maybe the toughest job in railroading, because you have so many constituents. You have your passengers. You have your employees. You have Congress, which may or may not cooperate, and you have an Administration that may or may not be favorable to passenger rail. Would you agree with that assessment?

BOARDMAN: It’s interesting. I’ve taken lot of jobs where there were major challenges, whether it was FRA or whether it was some of the transit systems I operated and managed over the years. Each one had a set of circumstances that really gave me a lot of learning opportunities and understanding. I’m really glad that I wasn’t at Amtrak as the CEO when I was a lot younger than I am now because now I have a certain element of freedom in what I need to do. I don’t think about where I might go in the future. That has helped me understand all the different pressures and directions, and the number of people that we have to satisfy or try to satisfy, number one being the Amtrak customer.

Safety is the foundation of any transportation system, because if people don’t trust the safety of our operation, our company, customers aren’t going to flock to the trains. I also have a very important role in increasing revenues and reducing cost. Congress wants that; so does the public. They want to see a system that really produces efficiencies and provides a better service. Those are difficult things to do but they’re not insurmountable, and we’re seeing that today. We’re buying equipment, we’re increasing our revenues, we’re increasing our ridership, we’re changing our direction, we have a strategy. There was a necessity to have somebody here long enough. When you think about the fact that, at five years, I’m the second-longest-term CEO at a 43-year-old company, which indicates that there was way too much turnover in that period of time. Graham Claytor was here long enough to establish a direction and make improvements. That’s what Amtrak has really needed, with the work that the women and men have done, with the other senior leaders, and the Board. I have a great board, one committed to making changes. There are going to be some future opportunities because our debt is really to the future—not to the past. We often look at the age of our infrastructure, like the Baltimore & Potomac tunnels, built right after the Civil War. Or the Canton Viaduct, built around 1835. These are things that were invested in for the future of railroading, and we’re still using them. We need to make those investments here for the future.

RA: When you came to Amtrak five years ago—and of course you had exposure to Amtrak as FRA Administrator and in your previous positions in New York—what did you see as things you wanted to accomplish? What did you see that needed to be changed or improved?

BOARDMAN: When you first come on board you have a different impression than you have as you move along. I think that’s true in any role that one steps into. I certainly wanted to increase ridership. One of the things that I had been advocating for during the Bush years was to increase the investment and get all of the equipment that was on the sidelines back on the track. In 2007/2008 there was a crisis that we had to deal with as a nation, our financial crisis, but also a fuel cost crisis, and those kinds of things seem to keep recurring. Our service was in demand, but could we deliver it? So one of the first things I did when President Obama made some additional money available was to rebuild everything I could possibly rebuild, everything at Beech Grove, our long-distance shop, and at Bear and Wilmington (Del.) for our Northeast Corridor services, so that we could increase the capacity for our trains. We accomplished that goal under the deadline of the stimulus program, and we also met a deadline of rebuilding some of the bridges and other infrastructure along the Northeast Corridor. The other thing was my desire to get Positive Train Control done. My expectation is that this company will meet the 2015 PTC deadline, because we made early decisions when I got here to make that happen. For ACSES (Advanced Civil Speed Enforcement System on the NEC), we are adding another 1,200 miles of track, and also making sure that it’s operable with ETMS, the GPS based-system for the freight railroads.

RA: You have to equip your locomotive fleet with ETMS-compatible technology. How is that going?

BOARDMAN: We’re moving along with it. We’ll make the deadline on our own services, and we need to make sure we’re doing it right with the freight railroads, to the extent that they get the radio spectrum, which is still in question at this point in time, and whether they can get all the equipment lined up logistically in a timely fashion and make those investments.

RA: And your overall relationship with the freight railroads?

BOARDMAN: We have an excellent relationship with the freights. They go far beyond for us in many cases. We fight with them about on-time performance and we want to be running first like we’re supposed to be and all those kinds of things, but we’ve got good solid people in these freight railroads that understand our needs, that look at what we need to get done, and what they need to get done, and work with us.

RA: Would you say that your biggest challenge with running on the freight rail system is dealing with their own problems in trying to add enough capacity? Because, like Amtrak, their services are in growing demand. Just look at all the oil trains on the BNSF northern corridor. That business has increased exponentially, and no one really expected it. BNSF goes from almost nothing to 650,000 barrels of oil a day. How do you deal with it?

BOARDMAN: At your conference, Passenger Trains on Freight Railroads, I was listening to [BNSF Director-Passenger Train Operations] Rich Wessler talk about the transit operation in Minneapolis, and whether they would agree to that today had they known they were going to have that kind of growth. One of the biggest challenges for freights is continuing to have the relationship they had with Amtrak in 1971 when we took over their passenger services, which helped the freight railroads at that point in time. The new leaders at the freights don’t really understand that they were not just a freight railroad back then, which is how they think of themselves today. There is still a national need to have connectivity with passenger railroads coast-to-coast and border-to-border. That relationship, that partnership, with the freight railroads is a continuing challenge. There are have good leaders coming up in the freight railroads, and we need to make sure that they understand that connection, that relationship, still needs to be strong.

RA: Your relationship with the states: Under PRIIA, there’s been a major change where the states are expected to pay most of the operating costs. It took a while to get there, and it’s a big change for Amtrak, but it seems as though it has worked out well.

BOARDMAN: The states are going to pay about 85% of [operating] costs. There’s still going to be about a 15% subsidy, if you want to call it that, or “availability payment” from the feds into our state operations. With a difficult transition I think it’s important that we move with the states beyond that at this point in time and that we do our jobs well for the customer. Our partnership with the states had some strains. I had to be the bottom-line guy at the end, making sure this happened, and that required me to take some pretty strong positions at times. I had a great staff, with DJ Stadtler and Joe McHugh really working in trying to satisfy all the concerns. One of the main challenges for Amtrak is that everybody that we deal with is sovereign except Amtrak in terms of their demands upon us. Whether it’s a state or one of the Congressional committees, everybody has an expectation, and we can’t really deliver every expectation for everybody. We’re not doing too badly in delivering good service for the states and good service for Congress. What they don’t get is that, at 88%, we are probably number one in the world on covering our operating costs. That includes auxiliary revenues from real estate.

With technology, there probably isn’t anybody else that has e-ticketing. We worked with Apple Computer to make that happen with their devices. Our board chairman, Tony Coscia, went to France and visited with SNCF. He was surprised that, at the time, they didn’t have e-ticketing, and they’re one of the global leaders in passenger rail.

We in this nation have become so darn negative in tearing down institutions, whatever they are, and are expert at it. We don’t recognize that we need to stop that and join in common cause to move forward on the debt we owe to the future—our grandkids and beyond our grandkids.

RA: You had a great piece in today’s USA Today where you talked about that very subject within the context of PTC. A lot of us feel there’s too much negativity. Everybody talks about what is wrong but not what needs to be done.

BOARDMAN: It’s not just PTC and improvement in rail. It’s a new air traffic control system. It’s the need to rebuild the bridges in this nation. We’ve got 200,000 bridges with 140,000 of them that need repair and replacement. Those are things that we need to get at and do together. We need to improve our ports. My understanding is that when the Panama Canal opens [to bigger cargo vessels], the equipment at East Coast ports to unload containers off ships is not going to be sufficiently long enough to reach out and grab them. So we’re talking about the necessity to think about a balanced transportation system—highways, railroads, aviation, ports. Our nation is not well-served by those who are lobbying and demanding for only one source, one piece of the infrastructure that needs to be rebuilt. You can add in the water systems, the sewer systems, the electric grid. We need to build infrastructure to grow this nation and grow our economy and it’s not just railroads.

RA: When people talk about Amtrak and operating or capital support they use the word subsidy, which has a negative connotation. I like to think of it as an investment. How do you bridge that gap and perception? That’s always been a struggle.

BOARDMAN: I attended a couple of hearings in Congress. One was a T&I Committee hearing where we talked about the Northeast Corridor and the investment in high speed rail and the future of using public-private partnerships and private investment. The argument that kept going back and forth with Congress was that if there was an expectation for private investment, the private investor would need to make sure that it knew how much revenue was going to come in. If that revenue didn’t come in—let’s say it’s based on the total number of passengers or trains or whatever—then there would have to be an availability payment to make sure that the private investor didn’t lose any money. So, there would be an availability of service that wasn’t being used by the public but would still need to be paid for. That’s another way of saying subsidy.

When we’re talking about the need we have for an operating subsidy, or operating availability payments, it’s for long-distance service, the connectivity across our nation. Those who support long-distance trains argue that the Northeast Corridor needs as much subsidy as the long-distance trains. That’s not the right argument. The Northeast Corridor needs [capital] investment in its infrastructure for the future. For the long-distance services, those investments in most cases are being made by the freight railroads. Those freight investments are in the billions. We need that investment since we operate on those railroads and we pay the private railroads for the use of their tracks, plus incentives for on-time performance. They argue that we ought to be paying more. I understand that. Yet, what Congress and the public need to get together on is the fact that Amtrak has about 525 stations across the country, and at more than 300, we’re the only [public transportation] service into those communities. The economy in those communities are dependent in many ways upon connectivity to rail.

To lead, you have to have logic and compassion, and a clear direction of where you’re going. What isn’t always expressed is the fact that the middle of our country in a lot of ways today needs an ability for those in my generation—I’ll be 65—and those in front of me in age to be able to travel other than on Interstate highways, because the buses aren’t there and the ability to go see their kids on one of the coasts or their grandkids or their great grandchildren is brought to them by Amtrak. Their neighbors can take them 100 miles to an Amtrak station, but they can’t drive them the 600 or 800 or 1,000 miles to the coast. So there’s a great deal of value that we’re adding to this nation. It’s just like when we brought electrification to rural farms, understanding that it was never going to pay for itself in of itself but it brought a much better life to the rural communities across this country. Amtrak does much the same thing.

RA: Capital investment looking forward five years or so: Amtrak has a long-term plan for equipment and facilities. What can the rail supply industry look forward to? They know what to expect from the freight railroads. What can they expect from Amtrak in terms of investment beyond what you’ve already done with the electric locomotives and some of the improvements being made on the Northeast Corridor and elsewhere?

BOARDMAN: Before we can get to 220 mph we’ve got a lot of building to do. We also have to begin to supplement and then replace the Acela Express trains, which are our high speed trains today, so you’ll see an RFP going out within the next few weeks for up to 28 new trainsets for the Northeast over the next five or six years. There’s a major investment we believe we can pay for, frankly, with money that comes from the Northeast Corridor, both on the investment that we can make in those trains and also in the ability to get future revenue that really is going to provide not just a payback for the investment, but also an additional dollars to make more capital investments in the Northeast Corridor. One of the things we’d like to do if we could sooner rather than later is to undercut the railroad between Washington and New York, which we believe is getting rougher than it should be. It hasn’t been done in a while. We’ll completely undercut the main lines, the high speed lines, for about $200 million dollars. It would take three to four years to get it done because when you rebuild these things you’ve got to run the railroad while you’re doing it. Penn Station New York is the biggest bottleneck on the Northeast Corridor. We only get 55 hours of downtime per week to maintain or replace anything in that station. That’s from Friday night to Monday morning. The next big thing other than undercutting the railroad is to advance what we call the Gateway Project.

RA: The two additional tunnels and Portal Bridge.

BOARDMAN: The entire right-of-way from Newark to New York. After the recent problems that we’ve seen in Connecticut, the state’s property run by Metro North, I’m hearing from the business community that we have to figure out the least expensive way to reduce the time travel between New York and Boston—fix 58 miles of railroad so that we can run at 110 miles per hour. We’ve got bottlenecks going into New York from the north and south. That’s got to get fixed. Everybody wants to be in New York, the financial capital of the world. If they’re going to stay there this has got to get fixed.

New Jersey Transit is a big player. We had a lot of excess capacity back in 1976. We don’t have that today. The Long Island Rail Road’s dwell time in the station is pretty short in the morning because they go to Westside Yard and park their trains. New Jersey Transit doesn’t have a yard other than Sunnyside, which is Amtrak’s yard, and we share that space. We only have the two tunnels under the Hudson River, and we’ve got four going into Long Island and into Sunnyside yards [under the East River], so we really need to have those two new tunnels. We need high density signal systems in the East River tunnels. We’ve got a good partnership with the MTA, with [Chairman] Tom Prendergast. He was at our last board meeting. We’re talking about how we can work together. The railroads have not always worked well together, and that’s absolutely critical for the future, especially on the passenger side, and for passenger with freight. It’s a necessity for our nation to begin to find ways to work together, to advance what we know is going to be needed for the future.

RA: We’re about to go into the second tunnel in Baltimore.

BOARDMAN: These are the tunnels that were built just after the Civil War. We can make major improvements here, but those are major dollars well into the billions. We’re in the planning stages, working with Maryland and Baltimore to make those changes in the tunnels, in the station, in the connections. All throughout the Northeast Corridor there’s an interest in improving rail.

RA: A lot of people talk about maximum speed, but my perception—and this goes back to pre-Acela days when Amtrak was looking at high speed trainsets for the Northeast Corridor. The mantra was, it’s not about speed, it’s about trip time. The passenger really doesn’t care how you’re fast you’re going. Most people are concerned about the convenience, the comfort, the safety, and the amenities on board, but also just that trip time.

BOARDMAN: It’s trip time and reliability. The worry I have continually is about safety and reliability. We can knock off a few minutes from time to time, but making connections is where we get the biggest frustration from folks. I get direct email from customers that are held up on our trains. Many times I’m the first one that hears that the train is stopped. If somebody has my email and they’re on that train they let me know right away, and then I go looking to see if we can make some improvements. People do want to make sure that they get to places at the time that we say we’re going. We know that for the future we can reduce the time traveled on a continuing basis as we improve the railroad. We know that in order to get to 220 mph there needs to be a major change in the U.S. government policy of making investments in railroads whether it’s here or whether it’s in California or wherever. But we can’t stop improving the existing railroad.

The most important thing, bar none, is safety, and you’ll keep hearing that from me. Something that culturally needed to be changed when I came here was how we addressed the unions, the engagement of the workforce, to bring something different in for safety. Our behavioral safety program, which we call Safe to Safer, is really critical because it also helps develop leaders, those who begin to notice things that could be changed and make a different commitment for the future.

RA: Your personal style: I perceive you as being as being very strong, very resolute, but at the same time a little bit low key. Would you agree with that?

BOARDMAN: Well, I guess you can say it that way. Over the years I’ve learned that you have to forgive. I know that if I don’t forgive I won’t be forgiven, and I’ll make lots of mistakes. As you grow up you do make mistakes, and one of the difficulties with the culture that we’re in today is that we don’t generate a lot of forgiveness. One of the values that we developed as a part of our strategy was forgiveness. Now, forgiveness is not the same as not being held accountable. You are held accountable for the mistakes you make. There’s no question about it, but if you’re not forgiven for them how are you going to improve for the future? How are you going to give the opportunity for the future? Trust has to come back into relationships. With forgiveness you have that, so part of my style is to understand others and try to forgive others and go through my roster of what do I need to forgive. I can be liberated from the necessity of having an argument with somebody about something I’ve already forgiven them for, and I look for the same from others. We have strong values on integrity and transparency. A lot of people misunderstand that what I’m talking about is humility.

When I’m tough in a business deal somebody would say, well, I don’t see the humility, and I understand that. The humility I’m talking about has three parts. First is collaboration. I found very difficult union relationships when I walked into Amtrak—the worst I had ever seen anywhere during more than 30 years of leadership responsibility in small to large systems. People weren’t listened to. It was a culture of blame, so the necessity was to really listen. There’s a big difference between somebody having a say and having a vote, so we really took the opportunity to listen to people and let them have their say and still make decisions. We’ve allowed people to contribute in a way that others hadn’t. You have to trust others as you grow in life.

When it comes to an engineering decision, I don’t make them. I look for my chief engineer and his staff to do that, and you’re not going to find a more collegial group of people, generally speaking, than engineers. They all have their opinion on how things should be done, and so the second piece of humility is really about being collegial, finding ways to use others’ expertise to get to a decision that’s the right one, that’s logical, that can move forward.

The final piece of humility is the debt you owe to the future. It’s those that are going to follow you and stand on your shoulders, that are going to improve passenger rail in the future by having benefited from what you’ve done now. The debt you owe to the future is the people you select now, the processes you put in place, the strategy you have now, the values you’ve developed, the culture change you’re looking for to provide for the future. It’s all part of trying to be responsive to those who are sometimes overly critical and looking for a knee-jerk response so they can be justified in what they’ve decided to do. They’re wrong, but they’re looking for the emotional reaction they need to be justified. We all slip from time to time, but we have to be mature about it.

RA: Union-management disagreements are sort of traditional to railroads, but from what I’ve observed in the past few years I think things are better. Would you agree with that? I find just talking to various people around the railroad that you as a chief executive are highly respected and well-liked.

BOARDMAN: I continue to tell employees the truth about where we are, what we’re doing, what we want to do for the future. We put offers on the table in the same way. I came from the Bush Administration, so the expectation was that I was going to be negative for labor, and that’s just not true. It never was true, but our employees needed to find that out through their own experience. When they did, there were changes. One of those changes—let me go back to something I said already—I forgave everything they said. There were some negative feelings. I understand those. I believe that people have to have a right to express themselves. I ask them to do it courteously but that doesn’t always happen.

We have union leaders here that are truly leaders. They understand they’re not perfect. They also understand they have an obligation to defend things they wish they didn’t have to defend at times. We all do, but if you’re willing to collaborate, to sit down with them and listen to their point of view—even if you don’t agree with it—at least you show them the respect that they deserve because they are leaders, the people who operate our trains. A few years ago, I would hear worries about the idea of subcontracting or selling the Northeast Corridor and what would happen to jobs. I said, who do you think is going to run the trains? You think that there is going to be somebody else that comes in and steps into your job? Stop worrying about that. You’re going to have a job. They could call us peanut butter if they wanted to, or Amtrak, but we’re going to run this railroad, and it’s the people that run it now that will run it in the future. We knew when we put this high speed rail plan together the idea was that we would have all sorts of foreign railroads from Japan, France, etc., coming over here and looking at [the Northeast Corridor]. Nobody coming here would want to operate the railroad without the people that are already operating it. Maybe without the CEO, that’s OK, but not without the people that know what they’re doing.

RA: There’s something to be said for customer loyalty and obviously we’re seeing that.

BOARDMAN: Yes. We see in our ridership. We see it in Amtrak Guest Rewards. We see it in a number of people that are sincerely interested in presenting their issues or what they see could be better. I see it in the emails I get sometimes. I got a pretty rough one the other night from a young woman who was upset about not catching the last Acela Express out of Washington going to New York. She had some pretty negative things to tell me about me and management. I understood her point of view and I responded to her right away. I understood her anger and talked to staff afterwards about the issue. We have to take a special care of somebody if we’re trying to build a service for a new, last later Acela getting out of Washington. This customer got closed out at the gate with two minutes left; she thought she could get on the train and the gate agent wouldn’t let her. I explained to her it was because of safety. But at the same time, we need to make sure that our customers are given that extra special effort to make sure they get on that last Acela going out of town, to meet the profile of riders that we’re trying to attract. So we’re thinking about customers, we’re talking about that. We still make mistakes and we’ll continue to make them because we’re human, but we’ll try to fix them as best we can and change our culture into one that provides better customer service.

RA: What’s next for Joe Boardman? Are you thinking about that?

BOARDMAN: When you get an award like this, and people know you’re 65, they say, well, he’s on his way out. That’s not my plan. I made a commitment to the board, to my family, and to myself. I’m staying and will sign up for at least a couple more years if they’d like that. I made a commitment to my health. I made some changes in lifestyle that allowed me to lose weight. I’ve got two grandchildren now. One is in North Carolina and one is in New York. I can get to both places on the railroad.

I plan on being here for as long as I can contribute. I want to help provide for mentoring and succession for those behind me. I’ve got a great team, people who are really delivering at a senior level, changing our culture, getting into something very different for the future that will deliver a better railroad and a better experience for our customers, maintain our safety, and improve our bottom line.

New Year starts right for U.S. freight traffic

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Written by: Douglas John Bowen

For the first week of 2014 ending Jan. 4, 2014, both U.S. freight carload traffic and U.S. intermodal volume gained ground over the comparable week in 2013, the Association of American Railroads reported Thursday, Jan. 9.

Should that set the tone for 2014 in total, the year will prove better than 2013, as AAR also noted U.S. freight carload volume for 2013 fell shy of 2012 levels, though U.S. intermodal volume, not surprisingly, ended with a solid gain.

U.S. freight carload volume for the first week of 2014 rose 2.1% measured against th comparable week in 2013, while U.S. intermodal volume growth continued its winning streak, up 4.8% for the week. Total combined U.S. traffic for the first week of 2014 was up 3.2% from 2013's first week.

Seven of 10 carload commodity groups AAR tracks on a weekly basis posted increases compared with the same week in 2013, including petroleum and petroleum products, up 20.2%, nonmetallic minerals and products, up 17.8%, and chemicals, up 13%. Declining commodity groups included motor vehicles and parts, down 27%, and metallic ores and metals, down 10.7%.

Canadian freight carload volume during the first week of 2014, by contrast, dropped 7.4%, and Canadian intermodal volume, while gaining, did so modestly, up 0.4%. Mexican freight carload volume for the week ending Jan. 4 rose 3.4%, but Mexican intermodal volume plunged 12.7%.

Combined North American freight carload traffic for the first week of 2014 on 13 reporting U.S., Canadian, and Mexican railroads edged up 0.1% when measured against its 2013 counterpart. Combined North American intermodal volume advanced 3.5%.

AAR also noted December U.S. rail traffic was mixed, mirroring the full year's results, with freight carload traffic down 0.9% compared with December 2012, but intermodal up 8% from the year-ago period.

AAR emphasized that U.S. intermodal volume for 2013 was "the highest on record," up 4.6% over 2012 levels. U.S. freight carload volume, hampered by declining coal shipments, slipped 0.5%.

Petroleum and petroleum products led the yearly gainers, up 31.1%. Also doing well were crushed stone, gravel and sand, up 8.3%, motor vehicles and parts, up 5.1%, and waste and nonferrous scrap, up 9.1%. Coal led the decliners, down 4.3%, joined by grain, down 8%, and metallic ores, down 9.9%.

The commodities with the largest carload declines in 2013 compared with 2012 were: coal, down 256,751 carloads or 4.3 percent; grain, down 81,309 carloads or 8 percent, and metallic ores, down 37,068 carloads or 9.9 percent.

"2013 ended the way it began — strong intermodal, weak coal, and mixed performance for other commodities, resulting in a year for rail traffic that could have been much better but also could have been much worse," said AAR Senior Vice President John T. Gray. "A variety of indicators seem to be saying that the economy is slowly strengthening; a trend we expect to continue in 2014."

Amtrak CEO holds to focus on the future

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Written by: Frank N. Wilner, Contributing Editor
To economists and financial analysts whose obsession is return on investment, opinion leaders advocating smaller government, and corporate executives captivated by stock prices, Amtrak President Joe Boardman is surely a curiosity.

Yes, Boardman maintains a focus on income statements and balance sheets, but he is not single-minded. He considers equally important a responsibility to provide affordable and reliable intercity rail mobility to rural families, college students, vacationers, an aging population, city dwellers without automobiles, and a growing number of citizens now signaling that they clearly prefer public transportation.

While such concerns are lost on lawmakers awash in political campaign contributions from those demanding lower taxes and greater profits—“the feeding of Wall Street while dismantling Amtrak,” he calls it—Boardman is relentless in educating members of Congress on public opinion polls, validated by Amtrak ridership gains, that voters even in hard-core conservative districts are supportive of federal financial support for Amtrak.

Boardman’s unswerving message to lawmakers is that the “most essential debt to be paid down is a moral obligation to the future”—a conviction he believes is lacking among many politicians, whom he says ignore a lesson of history that made America a shining city on a hill.

Boardman advocates they recommit themselves to advance and fund public works projects that have been the foundation of America’s financial, cultural and global strength—transcontinental railroads, inland waterways, an interconnected air travel network, urban transit, the Interstate Highway System, and, of course, a world-class national intercity rail passenger network.

BoardmanTo understand Boardman requires knowing the principles and pragmatism making him pulse—the kid who left the dairy farm in upstate New York to enlist in the Air Force at the height of the Vietnam war; the matured veteran who returned home to earn undergraduate and master’s degrees in agricultural economics and management science; the entrepreneur who built small upstate New York motor coach operations into a 300-bus fleet; and the fully matured adult, the public-service flame still burning fiercely, who left the more lucrative private sector to become a New York State transportation commissioner before being drafted as George W. Bush’s Federal Railroad Administrator, and, in 2008, Amtrak’s 10th president.

“There is today a political inability to avoid being distracted by issues of the moment rather than the issue of the century, which is not to rebuild other nations, but to rebuild and expand our domestic infrastructure that is literally crumbling,” Boardman says. He bristles at those who ignore the capital construction and reconstruction requirements of all modes of transportation and, instead, wallow in the negativity of tearing down institutions such as Amtrak and public transit.

His vision is absolute: A modern, world-class multimodal transportation system is as essential to Americans’ well-being as are the unclogged arteries of their bodies.

Boardman advocates Congress create a multi-year, multimodal trust fund in a single bill rather than the current individual-mode funding exercise. “It’s people, not the horses of Wall Street, on which Congress should focus,” says Boardman, who spends disproportionate time trudging to Capitol Hill begging annual subsidies, always short of capital needs, and trailing inflation, amidst a stampede of negative reactions toward public works.

Amtrak, he says, “has been living on investments made as far back as the Civil War.” Its tunnels beneath Baltimore and the Hudson River date to the 19th and early 20th centuries, and much of Amtrak’s Northeast Corridor electrification can be traced back to the 1930s.

Congress and state legislatures “know our nation’s infrastructure is falling apart and they must find the courage to figure out a solution to 21st century needs,” Boardman says.

Amtrak, he says, is a global leader in recovering the costs of transportation it provides, recovering 88% of its operating costs from revenue while running 300 trains daily, serving more than 500 communities.

He adds, “Mobility means connecting Americans in rural and urban areas to the rest of the nation and globe.”

While he agonizes whether today’s lawmakers have the conviction to begin paying down the moral obligation on the future, Boardman remains undeterred in educating, advocating, and coaxing them to refocus on funding America’s multimodal infrastructure.

Giulietti named new Metro-North president

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Written by: Douglas John Bowen

Metropolitan Transportation Authority Chairman and CEO Thomas F. Prendergast announced Thursday, Jan. 9, 2014, the appointment of Joseph J. Giulietti as Metro-North Railroad president, succeeding Howard Permut, who will retire Jan. 31.

Prendergast's announcement affirmed earlier press reports of Permut's departure. Permut, who helped found Metro-North in 1983, served as the railroad's president for five years.

Giulietti has served as executive director of the South Florida Regional Transportation Authority (SFRTA) for more than 14 years, but also served as a Metro-North executive for 15 years starting at the railroad's inception, and is therefore familiar with the railroad.

"I am pleased to welcome Joe Giulietti back to Metro-North, where he will take the reins at a critical moment. Joe began his railroad career as a brakeman and assistant conductor on the Penn Central Railroad, and has honed his operational and leadership skills through positions of increasing responsibility. I am confident Joe will quickly focus on enhancing Metro-North's strong operational standards and safety practices, while continuing to develop the railroad's future as a critical link in the region's transportation system and economy," Prendergast said.

"Howard Permut's career spans the entire history of Metro-North, a time in which the railroad enhanced its service to double its ridership and carry more customers than any other railroad in the nation. I want to thank him for his service to the railroad and to the people of New York and Connecticut during his distinguished career," Prendergast said, acknowledging Metro-North's evolution into the largest regional passenger railroad in the U.S.

Giulietti began his career in 1971 with Penn Central while attending Southern Connecticut State University, where he received his bachelor's degree in history and English. In 1978 he became a road foreman with Conrail, where he advanced to become assistant manager for operating rules. He joined Metro-North in 1983 as superintendent of transportation, and later became engineer of track for the Harlem and Hudson lines, assistant director of transportation and schedule coordination, and director of a project to reduce operational inefficiencies and increase productivity.

Giulietti joined the agency now known as the South Florida Regional Transportation Authority in 1998 as deputy executive director, and was named executive director two years later. SFRTA operates the Tri-Rail commuter rail system through Palm Beach, Broward and Miami-Dade counties, as well as other regional transportation services.

"Having worked at Metro-North when it began operations 31 years ago, I'm honored to have the opportunity to lead a railroad that is such a vital part of life for the people it serves," Giulietti said. "Metro-North's customers have learned to have high expectations of their railroad, and I want to ensure it always performs safely, efficiently and effectively for the future."

Permut, who began his MTA career in 1979, said, "I am proud of all that Metro-North has accomplished over the past 31 years, and glad to have had the opportunity to direct the railroad's progress as president." He added, "The tragedies and challenges of the past year have deeply affected me as well as all Metro-North employees. We have implemented many steps to address these issues, and I know the railroad will continue to work aggressively to ensure Metro-North customers will always have a safe and reliable ride."

Interview with Joe Boardman, Railway Age’s 2014 Railroader of the Year

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Written by: William Vantuono

Amsted presented_by In a wide-ranging conversation with Editor-in-Chief William C. Vantuono, Railway Age’s 2014 Railroader of the Year, Amtrak President and CEO Joseph H. Boardman, talks about his lifelong career in transportation, his tenure at Amtrak, and his views on not only the company’s future, but on the importance of transportation to the U.S. economy and the nation’s standing in the global economy. Video sponsored by Amsted Rail.Video produced by the Amtrak Corporate Communications Department exclusively for Railway Age.


Wabtec lands MARC PTC contract

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Written by: Douglas John Bowen

The Maryland Board of Public Works has approved a $13 million contract with Wabtec Corp. subsidiary Wabtec Railway Electronics to install Positive Train Control (PTC) equipment on MARC regional passenger railcars.

The contract, announced Wednesday, Jan. 8, 2014, includes the installation of PTC hardware on 32 MARC locomotives and 30 cab cars, as well as maintenance of the equipment through 2017.

"We're all for it," John Hovatter, MARC's director, told local media. "Anything to make our trains safer for our passengers and for the railroad, that's what we want to do."

MARC operates over the Brunswick Line, linking Washington, D.C. with Frederick, Md., and with a separate leg terminating in Martinsburg, W. Va., and the Camden Line, linking the nation's capital and Baltimore. Both rail routes operate over right-of-way owned by CSX Corp. MARC's Penn Line traverses Amtrak's Northeast Corridor (NEC) from Washington through Baltimore to Perryville, Md. Amtrak's Advanced Civil Speed Enforcement System (ACSES) is already active on much of the NEC, and Amtrak says the entire corridor will be covered by ACSES by the congressional deadline of Dec. 31, 2015.

For its own part, "Our goal here at MARC was to beat that deadline with the part that we had to take care of, and we're going to do that," Hovattaer said.

Amtrak and MARC plan to build test track north of Perryville, to test MARC equipment's compatibility with ACSES at speeds above 79 mph, using a $700,000 grant from the Federal Railroad Administration, Hovatter said.

Milwaukee seeks streetcar right-of-way change

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Written by: Douglas John Bowen

Milwaukee, facing stiff anti-rail opposition from its namesake county and the state of Wisconsin, continues pursuing an initial $65 million starter streetcar line, focusing on limiting costs of utility relocation, which opponents have seized on as one way to kill the plan.

City officials have asked the Federal Transit Administration to approve running part of the line on two separate parallel streets, North Milwaukee and North Broadway, instead of placing both tracks on Broadway, according to local media.

The request to FTA comes after FTA gave approval to the project a year ago, necessitating an amendment to FTA’s Finding of No Significant Impact (FONSI). The city asserts the route change will not significantly alter the project’s goals or potential impacts.

Federal funding of $54.9 million has been approve for the project. The proposed adjustments could reduce the potential costs of utility relocation by up to $10 million, the city has said.

North Dakota U.S. Senators seek CBR safety

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Written by: Douglas John Bowen

North Dakota's two U.S. Senators met in Washington, D.C. Thursday, Jan. 9, 2014, with federal officials to advance improved freight rail safety measures in tank car construction and operation.

Sen. John Hoeven and Sen. Heid Heitkamp, both Democrats, met with federal Transportation Secretary Anthony Foxx and with Pipeline and Hazardous Materials Safety Administration (PHMSA) chief Cynthia Quarterman on the matter.

A press release issued by Hoeven's office Jan. 9 emphasized Hoeven's efforts to "follow up on a letter Hoeven wrote a year ago asking Quarterman to expedite rules governing construction of new, safer tanker cars." Federal officials hope to make good on that following several high-profile incidents involving crude-by-rail (CBR) trains, including within North Dakota's Bakken region, where oil production continues to grow.

The release also noted, "Quarterman told Hoeven and Heitkamp that PHMSA has gathered samples of crude from the Bakken as well as from sites in Texas to help them determine a standard for rail car construction. The results of that test are expected within a couple of weeks, she said."

Foxx has pledged to visit the Bakken region to see the situation on the ground, Hoeven said following the meeting.

MCBR plans new maintenance facility in contract-renewal bid

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Written by: William C. Vantuono, Editor-in-Chief
The Massachusetts Bay Commuter Railroad Co., contract operator for MBTA commuter trains, says it will build a $65 million train maintenance facility on the south side of South Station to allow for more efficient equipment repairs and serve as a job training center.

The facility would be located at 100 Meadow Road in Hyde Park, Mass., a 200,000-square-foot site adjacent to the railroad, and the site of a former Stop & Shop supply facility, according to the Boston Globe. “That proposal, plus a plan to move MBCR’s downtown headquarters to Roxbury, was included in documents submitted to MBTA as part of the bidding for the commuter rail contract,” the Globe reported on Dec. 28, 2013. MBCR is competing against Keolis Commuter Services, which operates Virginia Railway Express commuter rail service in the Virginia suburbs of Washington, D.C.

According to the Globe, MBTA, “which has a policy to refrain from commenting on the commuter rail proposals, is expected to make a recommendation for the winning bidder in January to the board of directors of the Massachusetts Department of Transportation.”

“If selected, MBCR will move forward with innovative infrastructure solutions, while ensuring that diversity and inclusion continue to be fostered on the commuter rail,” MBCR spokesman Scott Farmelant said in a statement when asked about the project outlined in the documents, which are not public, but were provided to the Globe.

When asked about elements of MBCR’s proposal, Keolis spokesman Alan Eisner told the Globe that the company planned to adhere to the “code of silence” called for in MBTA’s procurement guidelines, and “accus[ed] MBCR of leaking the information to build momentum for its proposal and sway decision-makers,” the Globe quoted him as saying. “‘This not only represents a blatant disregard for the procurement process, but is yet another attempt by the incumbent to unduly influence the outcome,’ Eisner said. ‘Keolis will continue to honor the integrity of the procurement process by not disclosing any information contained in its proposal to any entity other than the MBTA.’”

“In the past, Keolis has provided only a few general hints of what the company’s proposal contains, including a planned partnership with local community colleges to provide first-in-the-nation, specialized degrees in transportation,” reported the Globe.

According to the Globe, MCBR’s proposal says that the new maintenance facility “would fill a vital role, as trains must currently be taken to a maintenance center in Somerville for inspections and significant repairs, adding time, fuel costs, and labor expenses to routine maintenance. A facility on the south side of the train system would allow staff to more quickly and efficiently make repairs on train lines that radiate south from Boston. This new maintenance facility will provide MBCR with the ability to effectively maintain all locomotives and coaches . . . a critical step toward achieving our goal of enhanced operation efficiency. The $65 million facility, which would be LEED-certified and include a $3 million green power system, would train locomotive engineers, with two locomotive simulators. “This new facility will become MBCR’s cornerstone of organization-wide training and workforce development.”

MBCR, which is currently based at 89 South Street, close to South Station, said it would also move its offices to a location close to Roxbury Community College and Ruggles Station. “Both construction projects would be in partnership with Richard Taylor, Massachusetts’ first black state transportation secretary and one of the partners of Tubman Transit, a real estate development company,” the Globe reported. “Taylor said that though officials have not pinned down an exact site, they would probably erect a building larger than their needs, serving as an anchor tenant and renting the remainder of the space.”

Interview with Joe Boardman, Railway Age’s 2014 Railroader of the Year

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Written by: William Vantuono

Amsted presented_by In a wide-ranging conversation with Editor-in-Chief William C. Vantuono, Railway Age’s 2014 Railroader of the Year, Amtrak President and CEO Joseph H. Boardman, talks about his lifelong career in transportation, his tenure at Amtrak, and his views on not only the company’s future, but on the importance of transportation to the U.S. economy and the nation’s standing in the global economy. Video sponsored by Amsted Rail.

Video produced by the Amtrak Corporate Communications Department exclusively for Railway Age.

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