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Railcar 4Q production, backlog stay strong

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Written by: Douglas John Bowen

Fourth-quarter railcar orders, deliveries, and backlogs showed robust activity, according to the Railway Supply Institute's American Railway Car Institute Committee (ARCI) data released Thursday, Jan. 23, 2014. Tank cars, in particular, continued to show robust activity.

Industry orders for the fourth quarter were 14,856, of which 4,916 were tank cars and 9,949 were (other) freight cars. That was up 3,799 cars, or 34%, from the 11,066 on order in the fourth quarter of 2012, and also up 2,112 cars, or about 16.5%, from the third quarter 2013 total of 12,753.

Deliveries for the fourth quarter totaled 15,776 railcars, up 3,961 cars, or 33.5%, from the 11,815 delivered in the fourth quarter of 2012, and also up 3,129 cars, or 24.8%, from the third quarter 2013 total of 12,647.

"Within those deliveries, 8,440 were tank cars, while 7,336 were freight cars. That is the largest single-quarter tank car delivery number ever, besting 3Q13's 7,589," noted KeyBanc Capital Markets, Inc. analyst Steven Barger, in a note to clients Thursday breaking down the delivery numbers.

The backlog at the end of the fourth quarter (and the 2013 year) was 72, 937 units, "down 1% sequentially from the 3Q13 backlog of 73,848, although the mix shifted toward freight cars," Barger noted.


Amtrak, CHSRA issue trainset RFP

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Written by: William C. Vantuono, Editor-in-Chief
Amtrak and the California High Speed Rail Authority (CHSRA) on Jan. 24, 2014 jointly issued an RFP (Request For Proposals) for high speed trainsets that will be “essential to meeting Amtrak’s critical short-term need to expand the capacity of its current Northeast Corridor high speed service and meeting the long-term operational needs of both Amtrak and the CHSRA.”

Amtrak is seeking up to 28 high speed trainsets, each with between 400 and 450 seats, that can meet or exceed current Acela Express trip-times on the existing NEC infrastructure between Washington, New York, and Boston. CHSRA is seeking an initial order of 15 trainsets with a minimum of 450 seats that can meet its planned trip-time requirements for service from the San Francisco Bay Area to Los Angeles on what is planned as mostly new infrastructure.

Only current manufacturers of high speed rail equipment, which Amtrak and CHSRA define as “manufacturers with equipment in commercial operation at speeds of at least 160 mph (257 kph) for at least two years,” will be eligible to submit a bid. Proposals are due May 17, 2014. A builder is expected to be selected by year-end 2014.

CHSRA requires operation at speeds of a minimum of 200 mph (324 kph), similar to what Amtrak expects it will need to realize its “Vision for High-Speed Rail” on the NEC. Amtrak said it initially intends to operate the new trainsets at peak speeds of 160 mph “because that is the expected maximum allowable speed permitted by the NEC infrastructure at the time these trainsets will be delivered.”

“A goal of the procurement is to identify whether established high speed rail equipment manufacturers have service-proven designs that can meet both the short-term needs of Amtrak and the long-term operational needs of CHSRA and Amtrak with little or no modification,” Amtrak said. “It is also hoped that the joint procurement of equipment with a large degree of commonality will result in lower unit acquisition and life cycle costs for both Amtrak and CHSRA, while helping expand the U.S. role in high speed rail equipment manufacturing.”

“With packed trains and increasing demand, the need to expand the capacity of Amtrak’s high speed service cannot be overstated,” said Amtrak President and CEO Joe Boardman. “It is absolutely critical that we get more high speed trains as soon as possible to provide more service and meet the growing mobility and economic needs of the Northeast region.”

“This is a major milestone for California’s high speed rail project,” said CHSRA CEO Jeff Morales. “Combining California’s and Amtrak’s orders will help make it worthwhile for manufacturers to locate in the United States, create jobs, and deliver 21st Century, state-of-the art trainsets.”

“Today’s announcement is one more step in our efforts to standardize domestic rail equipment and reinvigorate U.S. manufacturing,” said Federal Railroad Administrator Joseph C. Szabo. “Combining orders between Amtrak and the California High Speed Rail Authority will generate economies of scale and make it more attractive for high speed rail manufacturers to build factories here in the U.S., bringing new high-quality jobs and creating ripple effects throughout our domestic supply chain. The end result means the riding public will have lighter, faster, more energy-efficient passenger rail service.”

Savage expands crude oil logistics services in Western Canada

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Written by: William C. Vantuono, Editor-in-Chief
Savage, a provider of bundled supply chain management services for electric power generation, coal production, oil and gas, refining, agriculture, chemical, mining and manufacturing, has expanded its CBR (crude by rail) and truck transportation for crude oil services in Western Canada.

These services are being offered at two new terminals in Unity, Sask., and Reno, Alberta. The combined crude-by-rail transload capacity of these terminals is 30,000 barrels per day (bpd), with direct access to Class I rail service. “There is a shortage of outbound access for crude produced in Western Canada, making these new terminals and expanded services in high demand by the market,” Savage said.

Savage is now operating the Unity Petroleum Rail. This facility provides direct access to Canadian Pacific and has 45 railcar spots. The terminal currently has the capacity to handle 5,000 bpd and 275 cars per month. Savage is currently transloading crude on a manifest basis with near-term expansion to handle 10,000 bpd and 550 cars per month. Savage said it also has the capability to provide truck transportation for crude oil in and around the Unity region.

Savage has worked closely with the county of Northern Sunrise in Alberta and will begin operations at the new Northern Sunrise Crude Terminal near Reno, starting Feb. 1, 2014. The terminal provides direct access to CN; its first-phase transloading capacity is 25,000 bpd and 1,500 cars per month of crude on a manifest basis, with the second phase allowing unit train service. The Northern Sunrise terminal offers 160 railcar storage spots with inbound and outbound track access. Savage is providing transload services (direct truck to rail) and has the ability to provide crude truck transportation in and around the area.

The Savage terminals in Unity and Reno provide railcar switching and spotting, transloading, and car storage related to crude handling for rail transport, as well as truck transportation for crude. Both of these terminals offer manifest services, and, as market demand increases, unit train capacity and crude tank storage will be added, Savage said. The transloading services and rail line connections offered at these terminals provide crude coming from Western Canada the flexibility to be delivered to East Coast, West Coast, and Gulf Coast refinery markets.

“These terminals are well-positioned to meet the growing needs of inbound or outbound oilfield materials, as customer needs dictate,” said Savage Senior Vice President, Oil & Gas-Midstream Solutions Group Nathan Savage. “They will provide Western Canadian crude, bound for key refinery markets, access to rail transportation. Oil producers in this region often say their crude is ‘land locked’ due to a lack of transportation options. We believe this new service will help customers in Western Canada solve these logistics challenges.”

FRA amends track inspection regulations

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Written by: William C. Vantuono, Editor-in-Chief
The Federal Railroad Administration (FRA) on Jan. 24, 2014 issued amended regulations contained within its Federal Track Safety Standards that govern rail inspections. The amended regulations “will help identify rail flaws and further eliminate the risk of derailments,” FRA said.

The amended regulations require performance-based inspections, “a process designed to minimize rail defects that will generally result in an increase in tests performed over a designated area of track.” Specifically, FRA said it is “promoting the safety of railroad operations by enhancing rail flaw detection processes. In particular, FRA is establishing minimum qualification requirements for rail flaw detection equipment operators, as well as revising requirements for effective rail inspection frequencies, rail flaw remedial actions, and rail inspection records. In addition, FRA is removing regulatory requirements concerning joint bar fracture reporting.”

FRA said the final rule, published in today’s Federal Register (Docket Number FRA-2011-0058, Notice No. 2), “strengthens existing Federal Track Safety Standards” by:

• “Requiring the use of performance-based rail inspection methods that focus on maintaining low rail failure rates per mile of track and generally results in more frequent testing.”

• “Providing a four-hour period to verify that certain less-serious suspected defects exist in a rail section once track owners learn that the rail contains an indication of those defects.”

• “Requiring that rail inspectors are properly qualified to operate rail flaw detection equipment and interpret test results.”

• “Establishing an annual maximum allowable rate of rail defects and rail failures between inspections for each designated inspection segment of track.”

FRA’s Federal Track Safety Standards require railroads to regularly inspect track conditions, and to also conduct separate rail inspections with hi-rail vehicles. Equipment currently in use employs ultrasonic technology to identify internal rail defects that could potentially lead to an accident. Data is collected in real-time.

“Current rail inspection standards include a maximum number of days and tonnage that can be hauled over a stretch of track between tests,” FRA said. “The new regulations establish internal rail flaw defect standards for each railroad while the technology used will continue to drive down the number of known rail defects over time.”

The final rule implements Section 403(b) of the Rail Safety Improvement Act of 2008 (RSIA). FRA has now completed 30 of the approximately 42 RSIA-mandated final rules, guidance documents, model state laws, studies, and reports. The final rule “also builds upon decades of FRA-sponsored research focused on enhancing rail integrity, and addresses recommendations by both the National Transportation Safety Board (NTSB) and U.S. Department of Transportation’s Office of Inspector General,” FRA noted.

“Our goal is to drive continuous safety improvement and further reduce the risk of broken rails and derailments,” said Federal Railroad Administrator Joseph C. Szabo. “While track-caused accidents have declined by 40% over the past decade, these new standards will better advance the use of technology and achieve the next generation of safety.”

The final rule is effective March 25, 2014. Petitions for reconsideration must be received on or before March 25, 2014. Comments in response to petitions for reconsideration must be received on or before May 9, 2014.

CN, Province of New Brunswick reach accord on Newcastle Subdivision

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Written by: William C. Vantuono, Editor-in-Chief
CN and the Province of New Brunswick have reached an agreement to preserve rail freight service on two sections of the railroad’s Newcastle Subdivision in northern New Brunswick. CN had previously sought to abandon 139 miles of the Newcastle Subdivision, which it acquired as part of its takeover of Quebec Railway Corp. in November 2008.

Under the agreement, the Province of New Brunswick will invest up to $25 million in rail infrastructure improvements to the Newcastle Subdivision. CN will in turn spend a comparable amount to maintain and operate the line, ensuring continued rail freight service for a 15-year period on the northern and southern sections of the line: between Irvco, N.B., and Nepisquit Junction, N.B., in the north, and between Catamount, N.B., and Nelson Junction in the south, where there are active rail freight customers. The province’s investment “will be used to rehabilitate and upgrade the rail line to the operating standards required to efficiently and cost-effectively handle current and projected traffic,” CN said. Work will commence in the spring of 2014.

CN will seek to discontinue rail operations on the 44-mile middle section of the Newcastle Subdivision, between Nelson Junction (milepost 62) and Nepisquit Junction (milepost 106), “due to the significant investments required to maintain the line and the lack of both originating and terminating freight traffic on that section.”

CN said that before this part of the Newcastle Subdivision can be closed “it will be offered for sale in early February to private interests and then to municipal, provincial, and federal levels of government, as per the provisions of the Canada Transportation Act.” There will be a five-month window to submit offers to purchase this section, “should there be a desire to maintain rail service on the segment.”

New Brunswick Premier David Alward joined CN Executive Vice President Corporate Services and Chief Legal Officer Sean Finn in Miramichi, N.B., for the announcement.

“We thank the provincial government for working with us over the past year to develop this agreement that will preserve rail freight service in northern New Brunswick,” said Finn. “This agreement would not have been possible without the commitment of both parties to continuing investments and to the growth of rail freight traffic in the region. CN, the province, and local businesses will continue to work together to increase freight traffic in future years.”

“Freight rail is a critical mode of transportation for industries in northern New Brunswick, and it is a vital lifeline for the jobs and communities that rely on these industries,” said Alward. “Our investment in the rehabilitation of two sections of this railway line ensures that companies in northern New Brunswick can continue to ship their goods to market efficiently and explore new opportunities for growth.”

CSX, David Ragan, Front Row Motorsports re-team for 2014 Sprint Cup season

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Written by: William C. Vantuono, Editor-in-Chief
After a successful season promoting public safety around railroad tracks with David Ragan in 2013, CSX will again partner with the race-winning driver and the Front Row Motorsports’ No. 34 team for the NASCAR 2014 Sprint Cup Series season. The partnership will include primary sponsorship of Ragan’s Ford Fusion for four races—at Daytona International Speedway Feb. 23, Darlington Raceway April 12, Michigan International Speedway Aug. 17, and Richmond International Raceway Sept. 6. Ragan’s car will once again sport CSX’s distinctive blue and gold locomotive colors and “Play It Safe Around Railroad Tracks” graphics.

CSX 20130518dg4248CSX will also be a major associate on the No. 34 at Pocono Raceway Aug. 3 and at Charlotte Motor Speedway Oct. 11. The familiar “I Brake for Trains” bumper sticker will once again be on the back of Ragan’s Ford Fusion for all 36 races of the Sprint Cup schedule.

CSX utilized its sponsorship of Front Row last year to successfully communicate the dangers of trespassing on railroad tracks and the need to “stop, look, and listen” at grade crossings to its target demographic of males age 18 to 34. The 28-year-old Ragan regularly spoke to fans about rail safety through social media, through traditional media interviews, and in person at public appearances, where he often handed out “I Brake for Trains” bumper stickers.

CSX 20130518dg4286“NASCAR provides a highly effective platform to communicate a very powerful safety message, and having a spokesperson who is very likeable and articulate and happens to be in the target demographic we’re trying to reach makes for a winning combination,” said Gary Sease, CSX Corporate Communications Director. “David brings unique credibility to the message that walking on tracks is reckless behavior that can be deadly.”

“The renewal and growth of the CSX-Front Row partnership is further affirmation that the race team is a good fit for companies looking to grow their motorsports presence,” added Sease. “CSX is one of multiple 2013 sponsors returning for 2014 with expanded programs.”

CSX rpm g dragants2 400“We developed a great relationship with CSX last year, and we actually grew together as the season went on,” said team owner Bob Jenkins. “We celebrated our first team win at Talladega with the 34 car (click here to see a video of that race’s thrilling finish), and CSX jumped on the opportunity to celebrate that win by joining us for the All-Star race. And this year the program is even bigger. We’re proud to be partnering with a successful Fortune 500 company and helping to spread their message.”

“Having CSX return and grow with us from one season to the next is evidence of the value Front Row Motorsports can provide to a company with a message to share,” added team Marketing Director Mike Laheta. “We not only appreciate their support, but appreciate their commitment to promoting safety and saving lives.”

CSX 20130518ms2907“It’s going to be a great start to the new season, knowing we have CSX back with us,” Ragan said. “We had a lot of fun last year—I got to get behind the controls of a locomotive and everything. We learned a lot and we shared what we learned with our fans, and we’re going to keep spreading the ‘Play It Safe’ safety message this year.”

The NASCAR Sprint Cup Series season opens with the Daytona 500 in Daytona Beach, Fla., on Feb. 23. The race will be televised live on FOX at 1 p.m. ET. The No. 34 CSX Ford will also be on track throughout the “SpeedWeeks” leading up to the “Great American Race,” including the Budweiser Duels qualifying races, which will be televised live on Feb. 20 at 7 p.m. ET on FOX Sports 1.

DART eyes early access to DFW Airport

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Written by: Douglas John Bowen

Dallas Area Rapid Transit (DART) said it anticipates opening its 4.7-mile Orange Line light rail transit extension to Dallas/Fort Worth International Airport ahead of schedule.

DART made the announcement late Friday, Jan. 24, 2014, after earlier in the day marking the start of construction of its South Oak Cliff Three Line extension.

The Orange Line extension was originally set to open this December. But DART's revised goal foresees opening the new DFW Airport Station at Terminal A in time for the State Fair of Texas®, held in late September.

DART noted test trains on the airport extension could begin operating as early as this spring.

NRC names Field Employee and Rail Construction Project of the Year recipients

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Written by: William C. Vantuono, Editor-in-Chief
The National Railroad Construction and Maintenance Association has named the winners of its 2013 Field Employee and Rail Construction Project of the Year Awards. Both were recognized at the 2014 NRC Conference in Palm Desert, Calif.

Craig Almont 0046Craig Almont of Hamilton Construction (pictured) was named Field Employee of the Year. Almont joined Hamilton Construction two years ago from the Central Washington University Construction Management program. “Craig consistently exudes enthusiasm while demonstrating a strong work ethic,” NRC said. “One year after his hiring, Hamilton Construction sent Craig to a job in Idaho where he not only exceeded the company’s project goals and expectations, but he also immersed himself into the community and joined the coaching staff of the struggling local high school football team, which was in need of inspiration. Craig managed to keep the project on time and on budget while turning a losing football program into the fourth best team in the state. A local resident even sent Hamilton Construction a handwritten note praising Craig: ‘Craig Almont has been so good to donate his hours after work to our local high school football team . . . the boys loved him and all the things he taught them this Fall.’ Craig is a dedicated worker who represents both Hamilton and the entire industry well.”

The Rail Construction Project of the Year award went to the Delta Railroad Construction Dulles Corridor Metrorail Project. “The Dulles Corridor Project proves that large projects conducted in adverse conditions can be completed on time and on budget when a strong safety culture is embraced,” said NRC. “The project required inventive solutions, which Delta delivered through both custom-built equipment and construction practices, as well as special safety considerations for both employees and the public given the urban work environment. The strong safety record it achieved is commendable, especially in a congested location with difficult access and a tight schedule. Delta’s collaboration and coordination with multiple partners and stakeholders, along with its commitment to safety, significantly contributed to the overall success of the project.”


INRD promotes Le Dune, Jonaitis

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Written by: William C. Vantuono, Editor-in-Chief
The Indiana Rail Road Company (INRD) has promoted Brian Jonaitis to Director, Sales, and Shae LeDune to Executive Assistant to the President, with new supervisory and community affairs responsibilities.

In his new role, Jonaitis is responsible for overseeing INRD’s sales and marketing staff while managing more than 20 customer accounts of his own. The railroad said he has been instrumental in developing business at INRD’s new Odon (Ind.) Transload facility and at the company’s truck-to-rail transload near downtown Indianapolis.

Jonaitis is a 2003 graduate of Indiana University’s Kelley School of Business and a Crown Point, Ind., native. He joined INRD’s sales and marketing staff in 2005 after a two-year stint with trucking firm Knight Transportation, where he gained experience in personnel management, operations, and sales.

“Indiana Rail Road was named Railway Age magazine’s “Regional Railroad of the Year” in 2012 largely based on customer testimonials pointing to our excellent service and the customer-first philosophy of our entire organization,” said INRD Senior Vice President, Operations and Business Development Bob Babcock. “That customer contact starts with our sales and marketing team, and Brian has earned the opportunity to lead our day-to-day efforts.”

IRR-Shae LeDuneLeDune, a graduate of Indiana State University and an Evansville, Ind., native, is now in charge of INRD’s community grant program, which supports in-classroom education and public safety endeavors throughout the railroad’s operating territory. She is also taking on additional leadership roles at INRD’s north-side Indianapolis headquarters, including administrative staff and office management.

“Shae’s leadership and organizational skills are regularly on display at our many customer and employee events,” said INRD President and Chief Executive Officer Tom Hoback. “But her efforts in the past year to coordinate the grand opening of our Indianapolis Intermodal Terminal, Odon Transload, and Locomotive Maintenance Facility, all the while managing a lengthy list of corporate administrative duties, have shown how invaluable she is to this company.”

NRHS sets RailCamp 2014 agenda

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Written by: William C. Vantuono, Editor-in-Chief
The National Railway Historical Society each summer sponsors RailCamp, a venue that gives hands-on contemporary railroading and railroad preservation experience to high school students, allowing them to interact directly with rail employees, learn what it takes to be a railroader, and explore career opportunities. In its 15-year history, RailCamp has hosted nearly 500 high school boys and girls. NRHS has announced the agenda for RailCamp 2014, for which limited space remains.

RailCamp 2014 will be held in two locations, on the East Coast and West Coast. Among this year’s rail industry partners are Amtrak, short line Tacoma Rail, and the Strasburg Rail Road.

RailCamp East will be held July 6-11, 2014, and be based in Newark, Del., with some activities in Strasburg, Pa. RailCamp Northwest will take place July 27-Aug. 2, 2014, in Tacoma, Wash.

At RailCamp East, longtime partner Amtrak will host campers at its National Operations Center and High-Speed Rail Training Facility in Wilmington, Del., where they will be immersed in daily operations. Students will also spend two days at the Strasburg Rail Road and the Railroad Museum of Pennsylvania in Strasburg, where they will learn about restoring steam locomotives and vintage passenger equipment. The railroad museum will also teach campers about the unique history and culture of Pennsylvania’s railroads. Lodging and meals will be provided at the University of Delaware in Newark.

RailCamp Northwest will include a day with Amtrak at the newly renovated King Street Station in Seattle and its adjacent maintenance facility. Students will visit the operations center of Tacoma Municipal Belt Line (Tacoma Rail) and participate in a working intermodal operation. Other locations include the Northwest Railway Museum at Snoqualmie, Wash., and the Mount Rainier Scenic Railroad at Mineral, Wash., where campers will help with preservation activities, physical plant maintenance, and train operations. New to the program is a day at Seattle’s Sound Transit facility to explore commuter train and light rail transit operations. Students will be housed at the University of Puget Sound in Tacoma.

RailCamp 2014 East Schedule

Sunday: An opening presentation from the Railroad Museum of Pennsylvania exploring the history of railroading in Pennsylvania and today’s industry.

Monday-Tuesday: RailCamp students will explore Amtrak’s Training Facility and use it themselves. They will learn about long-distance operations, dispatching, and equipment management. Campers will also spend time in the Wilmington Training Center with the simulators used to teach those skills, and take a class on air brake systems. The visit will conclude with a walk-through tour of operations at Wilmington Station.

Wednesday: At the Strasburg Rail Road and the Railroad Museum of Pennsylvania, students will see examples of steam locomotive restoration, tour museum facilities, and begin a special project. A special event will be a one-of-a-kind “Scavenger Hunt” on the museum property.

Thursday: During a day at the steam-powered Strasburg Rail Road, students will perform hands-on yard operations: switching, coupling, and brake tests, and shadow the train crew as they perform a pre-trip inspection. In the shops, wooden car restoration will be under way. Students will also operate the railroad’s 15-inch-gauge live steam train.

Friday: Students will return to the Railroad Museum of Pennsylvania to complete a special project and give an interpretive presentation, which they will have prepared the previous night. After lunch, they will ride the Strasburg Rail Road to Lehman Junction and back. They will also have time to explore both yards at the museum and the Strasburg Rail Road, in full safety gear.

RailCamp 2014 Northwest Schedule

Sunday: RailCamp Northwest will begin with an evening presentation about how Tacoma became the railroading hub of the Northwest Coast.

Monday: Students will travel to Seattle by train to spend a day with Amtrak, learning how long-distance passenger trains are serviced and prepared for outbound trips. They will learn about station operations in the newly-restored King Street Station, plus get a close-up look at the Talgo technology used in the Cascades trains that run between Vancouver, B.C. and Eugene, Ore. They will return to Tacoma via Talgo train.

Tuesday: At Tacoma Rail, students will experience the assembly of container trains, from unloading containers off ships and onto railcars to assembling full trains, followed by servicing the locomotives and delivering them to train crews. The day ends with a freight yard barbecue.

Wednesday: At the Northwest Railway Museum in Snoqualmie, students will join in restoring historic passenger cars and build a special project to take home. Campers will learn the necessary steps to decide if a railroad artifact should be cosmetically restored or fully refitted for service, and view and discuss examples.

Thursday: A day with the Mount Rainier Scenic Railroad will include steam locomotive restoration, track maintenance, and tourist operations. Students will inspect a steam locomotive before it enters service, and possibly fire up a steam locomotive from cold boiler to full pressure. Every student gets to operate a locomotive under the supervision of the railroad’s chief mechanical officer.

Friday: Students will visit Sound Transit in Seattle, where they’ll learn how rail transit agencies move people in an urban environment. They will also tour the maintenance shops and dispatching facility.

Saturday: Students will work two of the three scheduled tourist trains on the Mount Rainier Scenic Railroad, including pre-trip inspections, brake tests, loading and unloading passengers, taking tickets, and passenger service en route.

Registration forms and news updates for RailCamp 2014 can be found at www.nrhs.com/program/railcamp, as well as the society’s Facebook page at https://www.facebook.com/RailPreservation. E-mail the society with questions at info@nrhs.com.

Founded in 1935 in Lancaster, Pa., the National Railway Historical Society preserves and raises awareness of America’s railroad heritage. NRHS operates historic rail excursions and tours throughout North America and supports more than 150 regional chapters. Since 1991, the non-profit organization has awarded nearly $600,000 in railroad preservation grants. The late Robert G. Lewis, Railway Age’s long-time publisher (who joined Simmons-Boardman Publishing Corp. in 1947 and worked there until his retirement in 1995), was in 1935 a founding member of the NRHS Philadelphia Chapter, which today is among the society’s largest.

CP 4Q, full year set numerous records

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Written by: Douglas John Bowen

Canadian Pacific said it set numerous records for both its fourth quarter and full-year 2013, and offered guidance suggesting continued improvement in 2014.

Calgary, Alberta-based CP Wednesday, Jan. 29, 2014 reported fourth-quarter earnings of C$82 million, or 42 Canadian cents per diluted share, compared with C$15 million, or 8 Canadian cents per share, in the fourth quarter of 2012, and a record.

CP's fourth-quarter operating ratio also set a record, at 65.9% an 890 basis point improvement, the company said.

Revenue for the quarter was C$1.6 billion, up 7% from the fourth quarter of 2012 and setting another quarterly record.

CP said its full-year 2013 results included adjusted net income of C$1.1 billion, or C$6.42 per diluted share, up 48% from 2012, on revenue of C$6.1 billion, up 8% from 2102 and yet another company record. CP's operating ratio for 2013 was 69.9%, up 710 basis points and, again, "an all-time record."

"Once again, Canadian Pacific and its outstanding team of railroaders delivered solid results this quarter, closing a historic year with record-setting operational and financial performance," said CP President and CEO E. Hunter Harrison

"This journey is far from complete," Harrison added. "Riding this positive momentum, I fully anticipate that 2014 will be another year of solid returns for our shareholders." CP expects earnings per share to rise 30% above 2013 levels, on expected revenue growth of 6% to 7%, and also expects to achieve an "operating ratio of 65% or lower."

Where does the buck stop on HSR and Amtrak?

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Written by: Frank N. Wilner

That President Obama mentioned not a word on high speed rail or Amtrak in his State of the Union speech reflects on the rather dreadful manner in which his administration has pursued the presidential vision in support of expanded rail passenger service.

Extraordinary visions compel exceptional architects, constructors, and superintendents. Presidential visions of Lincoln to mend a nation divided, Wilson for a League of Nations, Eisenhower to construct our Interstate Highway system, Kennedy to reach the Moon, and Reagan to reduce nuclear arsenals and end the Cold War with the Soviet Union required and benefited from exceptional subordinates.

A grand vision absent intrepid and indomitable teamwork is but a pretentious hallucination, as we are seeing with President Obama's aspiration to advance high speed trains and extend passenger rail opportunities throughout the nation.

Obama handed the baton to his then-Secretary of Transportation Ray LaHood, who The Wall Street Journal said had "no particular qualifications for the job," notwithstanding LaHood having been a member of the House Transportation & Infrastructure Committee during much of his 14-year tenure as an Illinois Republican congressman from Peoria.

There were, of course, other credible candidates for the post, but Obama chose LaHood, a fellow Illinois politician who, while a Republican, had a big-spender reputation in Congress. From the get-go, LaHood caused eyes to roll, championing bicycles over automobiles ("This is the end of favoring motorized transportation at the expense of non-motorized," he said, creating a sarcastic "pedal parity" marque); and then by sending Toyota stock-share prices tumbling by advising, following a Camry recall, that Toyota owners to "stop driving" (a comment he later sought to retract).

It was LaHood's shambling superintending of Obama's high speed rail vision that most defines his tenure as the nation's 16th transportation secretary. The bumbling helped to slow considerably, if not derail, Obama's vision: "Within 25 years, our goal is to give 80% of Americans access to high speed rail, which could allow you go places in half the time it takes to travel by car. For some trips, it will be faster than flying — without the pat-down. As we speak, routes in California and the Midwest are already under way."

In fact, LaHood failed to explore with the governors of Florida, Ohio, and Wisconsin the details of the Obama vision -- if there were, in fact, any details besides LaHood having dominion over $8 billion of taxpayer funds earmarked for high speed rail. In short order, the three governors embarrassed the White House by announcing they wanted not a penny of the money, as they saw no positive result in their already cash-strapped states of such federal spending, which was but pennies on the dollar of what high speed rail would actually cost to build and require in future operating subsidies, with further questions whether it would, in fact, be high speed.

LaHood went on to sprinkle billions more, accompanied by glowing press-release rhetoric -- "a strategy better suited to currying political support than addressing real infrastructure needs," said Slate magazine — and delivering scant results other than something far less than high speed rail in Illinois, where a project will increase Amtrak average speeds between Chicago and St. Louis from 53 mph to 63 mph.

California, where LaHood counted 55 electoral votes up for grab in the 2012 presidential election, received $3.2 billion for a proposed high speed rail project now on life support. Amtrak's Northeast Corridor, already America's fastest rail speedway, received the bum's rush from LaHood.

Should we expect better from transportation secretaries? Yes, we should. Although there has been ineptitude in the past, there have been secretaries displaying a combination of aggressiveness and effectiveness that advanced a White House agenda to the applause of history.

President Johnson looked to Undersecretary of Commerce for Transportation Alan Boyd to erect the scaffolding creating the DOT, and then named Boyd its first secretary. Boyd's credentials were notable. As a member of the Florida Railroad & Public Utilities Commission, Boyd explored the effects of economic regulation in that state, leading him to conclude there should be a greater reliance on competitive market forces in the setting of rates and service levels. As a congressman, he warned that if profit-squeezed freight railroads were not allowed out of the passenger business, the passenger train "may take its place in a transportation museum along with the stagecoach and steam locomotive." Later was born Amtrak. As transportation secretary, Boyd administered the nation's first high-speed ground transportation program, and later became Amtrak's third president.

President Carter entered office with a vision of eliminating burdensome economic regulation and subjecting all modes of transportation more to market forces. Carter's secretary of transportation, Brock Adams, a former Democratic congressman from Washington state, endorsed a private enterprise solution for railroad financial problems, becoming co-author of the Regional Rail Reorganization (3-R) Act that directed a massive federal seizure and reorganization of the Northeast's bankrupt railroads, and creation of the U.S. Railway Association (the genesis of federally owned Conrail and its eventual return to private ownership).

As transportation secretary, Adams' support for rail mergers, easing of requirements for abandoning unprofitable lines and greater reliance on market forces helped to contruct the path toward passage of the Staggers Rail Act. As for Amtrak, Adams fretted that Congress' addition of so-called political trains following creation of Amtrak had caused Amtrak's per passenger deficit to almost triple, and recommended, in an effort to preserve Amtrak, scaling back the route structure by 43% (with Congress agreeing to a 14% reduction).

Obama chose as LaHood's successor the mayor of Charlotte, N.C., Anthony Foxx, whose knowledge of railroads is mostly an empty slate. In a recent test, as reported by Politico, Foxx chaired a meeting with the Association of American Railroads and the American Petroleum Institute (API) to discuss tank-car safety improvements to make the transport of crude oil by rail safer. The Railway Supply Institute, whose members build and retrofit tank cars, complained it had been excluded from the meeting -- that "its request to attend the meeting was denied by DOT" -- while the API disputed Foxx's public characterization of what took place at the closed meeting.

In a prepared statement following Obama's State of the Union speech, Foxx, as had Obama, declined to mention high speed rail or Amtrak, saying only he would be "working thorough the year from the federal to the local level to build more infrastructure while growing jobs now and making more jobs possible with first-rate transportation networks." He provided no details.

Could Obama have chosen a more qualified transportation secretary to succeed the problematic LaHood?

Notwithstanding his ability to test sorely the attention of the most patient Catholic priest with his discursive oratory, former House Transportation & Infrastructure Committee Chairman Jim Oberstar (D-Minn.), now departed from Congress, has a most extensive and encyclopedic understanding of aviation, highway, rail and transit issues. Alternating as the committee's chairman, and senior Democrat when Republicans were in control, Oberstar's ability to reach across the aisle to create bipartisan alliances is legendary. In concert with former Republican Transportation & Infrastructure Committee Chairman Bud Shuster (R-Pa.), Oberstar supervised the writing of surface transportation authorization with minimal partisan bickering.

Also available to succeed LaHood was now retired nine-term Republican Congressman Steve LaTourette of Ohio (recall LaHood is a Republican), who chaired the House Rail Subcommittee, has been a supporter of high-speed rail, Amtrak funding and positive-train control. When he departed Congress, LaTourette's name briefly surfaced as a candidate for the top lobbying job at the Association of American Railroads (since filled). However, his confirmation by the Senate may have been problematic, as LaTourette was a vocal critic of Tea Party Republicans; and, in 2005, he criticized the Bush administration's appointees to the Amtrak board, which fired former Amtrak President David Gunn. LaTourette also questioned whether that Bush-nominated board was legally constituted. Nonetheless, LaTourette's qualifications for the job are plentiful.

Trains will continue to run, transit will continue to operate, highways will continue to be built, and the Air Traffic Control System will continue to function under Secretary Foxx, as they did under Secretary LaHood. A president, as a baseball general manager, fields the team he considers the most effective to carry out his agenda. In the end, the criticisms — as does the "buck" — stop at the president's desk.

Case in point is Bill Clinton. His 1994 budget proposal recommended an Amtrak appropriation three times that recommended by George H.W. Bush. But his 1996 budget proposed a 23% cut in that budget. Flip, flop. Clinton's transportation secretary those years was Federico Pena, a former mayor of Denver, who had been a transportation adviser to the Clinton presidential run and who lopped 11,000 jobs from DOT after being named transportation secretary. Pena was Obama's national campaign co-chair prior to Obama's 2008 election.

And that's the way it is in Washington, D.C. Go figure. It's the nation's capital's most popular pastime.

Baton Rouge crafts streetcar plan

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Written by: Douglas John Bowen

Louisiana's state capital, Baton Rouge, is considering a plan for streetcar operations as part of a city and parish (county) plan, FuturEBR.

The plan, being developed by Portland, Ore.-based consultant John Fregonese, would if implemented make Baton Rouge the second city in the Bayou State to operate streetcars, joining venerable standout New Orleans, 80 miles to the southeast. The plan is expected to be unveiled for public comment this April.

Fregonese told local media plans call for a three-mile streetcar line traversing Nicholson Drive from Louisiana State University to North Boulevard Town Square in the city's downtown. "There is an amazing set of opportunities that present themselves right there," Fregonese said. A proposed second phase would extend streetcar operations from Town Square to the State Capitol building.

Cost of the project's first phase is estimated to be $60 million, with the project estimated to take three years to construct.

Baton Rouge last saw streetcar service in April 1936.

Charlotte funds streetcar engineering work

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Written by: Douglas John Bowen

Hoping to leverage a local funding commitment to obtain federal funds, Charlotte, N.C. has approved $12 million for engineering work on a 2.5-mile streetcar extension, expected to cost $126 million.

Work on Phase 1 of Charlotte' Gold Line streetcar already is under way.

City Manager Ron Carlee has asserted to local media that Charlotte must commit some of the $63 million in city funds identified for the project in advance of any federal funding, to demonstrate to the Federal Transit Administration that Charlotte is committed to the plan. Carlee says Charlotte already has employed this approach in advancing its initial Lynx Blue Line light rail transit line, as well as the Blue Line extension to University City, now ongoing.

Last year Charlotte failed to capture any FTA Small Starts funding for the streetcar route, but the city plans to apply again for a grant in federal fiscal year 2015.

Trinity Industries closes railcar sale

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Written by: Douglas John Bowen

Dallas-based Trinity Industries, Inc. on Tuesday, Jan. 28, 2014 said it had closed the sale of the second tranche of leased railcars to Element Financial Corp., under the newly formed strategic railcar alliance announced last month.

Trinity subsidiary Trinity Industries Leasing Co. will act as servicer of the railcars sold to Element per the terms of the alliance, operating as TrinityRail Asset Management Co., or TRAMCO.

The sale consisted of a portfolio of existing leased railcars from Trinity's lease fleet with a value of approximately $396 million. The profit recognized from the sale in the first quarter of 2014 is expected to be between $1.00 and $1.10 per share. Trinity said it will not have any remaining ownership interest in the leased railcars sold to Element.

Combined with the first sale of leased railcars executed last month, Trinity has sold a portfolio of leased railcars with a value of approximately $501 million from its lease fleet under the alliance. As previously disclosed, Element is expected to purchase an additional $500 million of leased railcars this year primarily consisting of new TrinityRail manufactured railcars, the majority of which are in Trinity's current leasing order backlog.


Gainesville, Fla., weighs streetcar line

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Written by: Douglas John Bowen

Consultants are working with a Streetcar Project Advisory Committee in Gainesville, Fla., to prepare a proposal for a line linking the city's downtown with the University of Florida.

The study is funded with $100,000 authorized last year by the Gainesville City Commission, while the advisory committee, including city and county planners and local business leaders, have mapped proposals for a 2.2-mile starter route, with an estimated cost of $128 million.

Other Florida cities, including Miami and Fort Lauderdale on Florida's Gold Coast, are working on streetcar or light rail transit projects, but Gainesville, though the largest city in north central Florida, would be in many ways an outlier, with a modest city population of roughly 126,000.

Tampa, Fla.-based Tindale-Oliver & Associates, along with Parsons Brinckerhoff, are the consultants involved, also including a Bus Rapid Transit study in the mix, according to local media.

Gainesville Mayor Ed Braddy reportedly opposes any streetcar effort, citing the "extraordinary cost" of the mode, and its alleged potential to siphon ridership for existing bus routes.

San Antonio streetcar plan survives threat

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Written by: Douglas John Bowen

Texas's attorney general will not appeal a judgment affirming the right of San Antonio's VIA Metropolitan Tarnsit to sell bonds for several projects, including two downtown transit depots to serve as hubs for a streetcar system.

Attorney General Greg Abbott, who is running for governor, waived the appeal option as part of an agreement with VIA that was signed by Travis County District Court Judge Stephen Yelenosky earlier this week. The order also prohibits the filing of any other lawsuits challenging the bonds.

Abbott himself had challenged VIA, saying funding any downtown transit centers would be equivalent to spending directly on the proposed streetcar system itself because the two were so closely connected. VIA denied that, saying the streetcar was a separate project, paid for by separate funds. Others noted the transit centers would also serve the city's bus network.

Last month VIA Metropolitan Transit planners recommended the launch of a north-south streetcar route first, with a complementary east-west alignment to be added later.

FEC taps GE Transportation for 24 locomotives

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Written by: Douglas John Bowen

Jacksonville,Fla.-based Florida Florida East Coast Railway, LLC (FEC) announced Thursday, Jan. 30, 2014 it will acquire 24 new ES44C4 locomotives from Erie-Pa.-based GE Transportation.

The new locomotives will be used in thru-freight, heavy haul service on the regional railway's 351-mile mainline route between hugging the Atlantic coast between Jacksonville and Miami.

"These locomotives will provide the fuel efficient power we need to support the current operations and future growth of the railroad," said FEC Senior Vice President of Mechanical, Engineering and Purchasing Fran Chinnici.

The ES44C4 locomotive, part of GE's Evolution® Series, is designed to meet US EPA Tier 3 emissions requirements using advanced engine technology that lowers fuel consumption and operating costs. These locomotives provide the benefits while controlling NOx and particulate matter (PM) emissions.

"We're excited to have our Evolution Series locomotives join FEC's fleet. This locomotive model is the most fuel-efficient locomotive in the North American heavy-haul market today," said GE Transportation Vice President of Global Sales Dave Tucker.

GE Transportation is a subsidiary of Fairfield, Conn.-based General Electric Co. FEC is owned by New York-based private equity firm Fortress Investment Group.

More BiLevel coaches for GO Transit

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Written by: Keith Barrow

Metrolinx, the agency overseeing the Greater Toronto and Hamilton Area in Ontario, said it has awarded Bombardier Transportation a contract to supply an additional 65 double-deck coaches for GO Transit rail services, with options for a further 75 vehicles.

The coaches will be assembled at Bombardier's Thunder Bay, Ontario, plant;the initial batch of 65 vehicles will be delivered between June 2016 and July 2017, taking GO Transit's double-deck fleet to 743 vehicles. The total value of the contract will be C$481 million (US$430 million) if all options are exercised.

"More and more people are using Go Transit and that trend has grown consistently over the last few years," says GO Transit President Greg Percy. "These new coaches will allow us to continue meeting our growth needs and support our plans for eventual two-way, all-day service on all of our rail lines."

Metrolinx is currently expanding  rail capacity on GO Transit's Kitchener Line with the C$1.2 billion Georgetown South project, which will allowr rail services to be increased from 19 to 29 trains per day from 2015, while also providing capacity for UP Express services to Toronto's Lester B. Pearson International Airport. The project, which is part of Metrolinx' Big Move investment program, involves the construction of two additional tracks in the northern half of the GO Georgetown South Corridor, and one additional track to the south.

Another good week for U.S. freight traffic

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Written by: Douglas John Bowen

U.S. freight carload traffic and U.S. intermodal volume advanced for the second week in a row, and third week in four marking 2014's start, during the week ending Jan. 25, 2014, the Association of American Railroads reported Thursday, Jan. 30.

U.S. freight carload traffic rose 5.6% measured against the comparable week in 2013, AAR said, while U.S. intermodal volume moved up 3% compared to last year. Total combined U.S. weekly rail scored a healthy 4.4% gain compared with the same week in 2013.

Seven of the 10 carload commodity groups AAR measures on a weekly basis posted increases compared with the same week in 2013, including grain, up 24.4%, and petroleum and petroleum products, up 13.1%. Among the three declining commodities, metallic ores and metals fell 1.8%.

Canadian railroads freight carload traffic fared less well, down 1.6%, but Canadian intermodal volume rose 1.7% during the week ending Jan. 25. Mexican freight carload traffic rose 8.9% for the week compared with 2013, while Mexican intermodal also gained ground, up 6.7%.

Combined North American freight carload traffic for the first four weeks of 2014 on 13 reporting U.S., Canadian, and Mexican railroads totaled remained down a fractional 0.2% compared with the same period in 2013. Combined North American intermodal volume, by contrast, was up 1.3%.

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