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ARI: Record earnings in 2013

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Written by: Douglas John Bowen

St. Charles, Mo.-based American Railcar Industries says it recorded record earnings for the full year of 2013, and a 3% rise in consolidated earnings during the fourth quarter compared with a year ago.

ARI's fourth-quarter net earnings for the fourth quarter of 2013 were $24.4 million, or $1.14 per share, equal to the comparable quarter of 2012, the company said. Net earnings were affected by the $5.9 million ($3.8 million after-tax) loss from the sale of the company's investment in Amtek Railcar.

Revenue of $197.2 million was down 5% from the $20.7 million it logged in the year-ago period. The company said the decline was "due to a decrease in direct sale railcar shipments in the fourth quarter of 2013 compared to the fourth quarter of 2012, as a result of building more railcars for our lease fleet. This was partially offset by increased revenues for the railcar services and railcar leasing segments."

For the full year, ARI notched net earnings of $86.9 million, or $4.07 per share, compared to $63.8 million, or $2.99 per share, in 2012. Revenue in 2013 was $750.6 million, up from $711.7 million in 2012.

"We are pleased with another record performance during 2013," said President and CEO Jeff Hollister in a statement Wednesday, Feb. 19, 2014. "Operating earnings improved 24% compared to 2012 as we continue to benefit from strong tank railcar sales that have strong margins, and have generated operational leverage and efficiencies throughout 2013. We believe the hopper railcar market is beginning to recover, as demonstrated by orders we received during the fourth quarter.

"As of December 31, 2013, we had a backlog of approximately 8,560 railcars, of which approximately 2,330 were orders for railcars that will be subject to lease,"Hollister said. "During 2013, we increased our lease fleet by 1,860 railcars, to a total of 4,450 railcars. Our railcar leasing segment has become a significant contributor to our results and we continue to invest in its growth. We obtained additional financing in January 2014 to continue to grow this business."


Fed funds boost LA LRT Regional Connector

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Written by: Douglas John Bowen

Los Angeles County Metropolitan Transportation Authority (LACMTA) officials and other transport personnel welcomed a $670 million federal grant aiding a Downtown Regional Connector, scheduled to open in 2020.

The 1.9-mile connector will unite Metro Blue, Gold, and Expo light rail transit (LRT) lines, with services reaching from the ciurrent 7th/Metro station stop to LA's Union Station.

Los Angeles Mayor Eric Garcetti told local media Wednesday, Feb. 19, 2014, that he was pleased that the Federal Transit Administration is funding just under half of the $1.36 billion project cost. Other funding comes in part from Measure R, a half-penny sales tax approved by Los Angeles County voters in 2008.

Three new train stations in downtown Los Angeles will be added as part of the project: 1st Street and Central Avenue, 2nd Street and Broadway, and 2nd and Hope streets.

In 2011 LACMTA selected a joint venture of AECOM and Parsons Brinckerhoff (PB) to provide conceptual planning and preliminary design for the project.

Freight railroads implement voluntary CBR safety initiatives

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Written by: William C. Vantuono, Editor-in-Chief
North America’s Class I railroads have embarked on a rail operations safety initiative that will institute new voluntary operating practices for moving crude oil by rail. The initiative, which follows consultations between railroads represented by the Association of American Railroads (AAR) and the U.S. Department of Transportation (DOT), including the Federal Railroad Administration (FRA) and the Pipeline and Hazardous Materials Safety Administration (PHMSA), covers steps related to crude by rail operations. Additional issues relating to the safe transport of crude oil, such as tank car standards and proper shipper classification of crude oil, are being addressed separately.

Under the industry’s voluntary efforts, railroads—which already move 99.998% of hazardous materials shipments without incident—will take the following steps:

• Increased Track Inspections: Effective March 25, railroads will perform at least one additional internal-rail-flaw inspection each year above those required by new FRA regulations on main line routes over which trains moving 20 or more carloads of crude oil travel. Railroads will also conduct at least two high-tech track geometry inspections each year on main line routes over which trains with 20 or more loaded cars of crude oil are moving. Current federal regulations do not require comprehensive track geometry inspections.

• Braking Systems: No later than April 1, railroads will equip all trains with 20 or more carloads of crude oil with either distributed power or two-way telemetry end-of-train devices. These technologies allow train crews to apply emergency brakes from both ends of the train in order to stop the train faster.

• Use of Rail Traffic Routing Technology: No later than July 1, railroads will begin using the Rail Corridor Risk Management System (RCRMS) to aid in the determination of the safest and most secure rail routes for trains with 20 or more cars of crude oil. RCRMS is a sophisticated analytical tool, developed in coordination with the federal government, including the U.S. Department of Homeland Security (DHS), PHMSA and FRA. Railroads currently use RCRMS in the routing of security sensitive materials. This tool takes into account 27 risk factors—including volume of commodity, trip length, population density along the route, local emergency response capability, track quality and signal systems—to assess the safety and security of rail routes:

1. Volume of hazardous material transported.

2. Rail traffic density.

3. Trip length for route.

4. Presence and characteristics of railroad facilities.

5. Track type, class, and maintenance schedule.

6. Track grade and curvature.

7. Presence or absence of signals and train control systems along the route (“dark” versus signaled territory).

8. Presence or absence of wayside hazard detectors.

9. Number and types of grade crossings.

10. Single versus double track territory.

11. Frequency and location of track turnouts.

12. Proximity to iconic targets.

13. Environmentally sensitive or significant areas.

14. Population density along the route.

15. Venues along the route (stations, events, places of congregation).

16. Emergency response capability along the route.

17. Areas of high consequence along the route, including high consequence targets as defined in §172.820(c).

18. Presence of passenger traffic along route (shared track).

19. Speed of train operations.

20. Proximity to en-route storage or repair facilities.

21. Known threats, including any non-public threat scenarios provided by the Department of Homeland Security or the Department of Transportation for carrier use in the development of the route assessment.

22. Measures in place to address apparent safety and security risks.

23. Availability of practicable alternative routes.

24. Past incidents.

25. Overall times in transit.

26. Training and skill level of crews.

27. Impact on rail network traffic and congestion.

• Lower Speeds: No later than July 1, railroads will operate trains with 20 or more tank cars carrying crude oil that include at least one older DOT-111 car no faster than 40 mph in the federally designated 46 high-threat-urban areas (HTUA) as established by DHS regulations. In the meantime, railroads will continue to operate trains with 20 or more carloads of hazardous materials, including crude oil, at the industry self-imposed speed limit of 50 miles per hour.

• Community Relations: Railroads will continue to work with communities through which crude oil trains move to address location-specific concerns that communities may have.

• Increased Trackside Safety Technology: No later than July 1, railroads will begin installing additional wayside wheel bearing detectors if they are not already in place every 40 miles along tracks with trains carrying 20 or more crude oil cars, as other safety factors allow.

• Increased Emergency Response Training and Tuition Assistance: Railroads have committed by July 1 to provide $5 million to develop specialized crude by rail training and tuition assistance program for local first responders. One part of the curriculum will be designed to be provided to local emergency responders in the field, as well as comprehensive training will designed to be conducted at the Transportation Technology Center, Inc. (TTCI) facility in Pueblo, Colo. The funding will provide program development as well as tuition assistance for an estimated 1,500 first responders in 2014.

• Emergency Response Capability Planning: Railroads will by July 1 develop an inventory of emergency response resources for responding to the release of large amounts of crude oil along routes over which trains with 20 or more cars of crude oil operate. This inventory will include locations for the staging of emergency response equipment and, where appropriate, contacts for the notification of communities. When the inventory is completed, railroads will provide DOT with information on the deployment of the resources and make the information available upon request to appropriate emergency responders.

Railroads will continue to work with the Administration and rail customers to address other key shared safety responsibilities, including federal tank car standards and the proper shipper classification and labeling of oil moving by rail. PHMSA is currently reviewing public comments on increasing federal tank car standards.

“We share the Administration’s vision for making a safe rail network even safer, and have worked together to swiftly pinpoint new operating practices that enhance the safety of moving crude oil by rail,” said AAR President and CEO Edward R. Hamberger. “Safety is a shared responsibility among all energy-supply-chain stakeholders. We will continue to work with our safety partners—including regulators, our employees, our customers, and the communities through which we operate—to find even more ways to reinforce public confidence in the rail industry’s ability to safely meet the increased demand to move crude oil.”

Dallas officials: Oak Cliff streetcar just the start

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Written by: Douglas John Bowen

Dallas city officials continue to stress the establishment of the Oak Cliff streetcar line is just the first step in growing streetcar routes throughout the city, in part to complement existing DART light rail transit operations.

Critics of DART, both pro-rail and anti-rail in nature, have questioned DART's current emphasis on connecting city center to suburban locales at the expense of intracity movement.

DART officials, for their part, have acknowledged for some time that more service within the downtown sector is desirable. Last summer DART committed $50 million to replace 1.25 miles of light rail transit track this year on Pacific Ave. and Bryan Street in downtown Dallas. DART cited rapid deterioration of the rail as the prime reason, exacerbated in part by the right-of-way's heavy use by riders of all four DART LRT lines.

Funding remains a factor, and anti-rail voices have railed against the $51 million, two-mile streetcar project linking Dallas Union Station with the Oak Cliff neighborhood, despite strong efforts by that neighborhood itself to put the project into play. Now backed by the city and by DART, planners see the line as just the first step to a wider streetcar system.

"We figured if we could get that piece in, it would be a little easier to get the other pieces in," Keith Manoy, an assistant public works director for the city, told local media.

For their part, DART officials have told Railway Age that while the agency may not lead the charge in any streetcar resurgence, it will do its best to assist any such effort, as it has with the Oak Cliff streetcar project, due to open for service in 2015.

Proposals include extending streetcar service through the center of downtown Dallas, alleviating DART LRT congestion there, and linking with the existing McKinney Avenue trolley, a heritage operation.

Last year Brookville Equipment Corp. won a $9.4 million contract to provide two modern streetcars for the Oak Cliff streetcar project. 

Midwest freight woes spread to Northstar rail

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Written by: Douglas John Bowen

Minnesota's Metro Transit on Monday, Feb. 24, 2014 urged riders of Northstar Line commuter service not to board their trains to head for the Twin Cities, citing delays caused by heavy freight rail traffic caused by ongoing congestion problems.

Similar delays already have disrupted Amtrak's Empire Builder in the past few weeks, due to both severe winter weather and heavy freight activity due to crude-by-rail movements emanating from the Bakken Shield in North Dakota.

Northstar Line service runs from Big Lake, Minn., to Minneapolis. Service began in November 2009

"Expect significant delays (60-90 minutes) due to freight traffic," Metro Transit said in a tweet Monday, reported first by local media. "Consider alternate travel arrangements if possible."

Patrick Watz joins HNTB

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Written by: William C. Vantuono, Editor-in-Chief
Patrick Watz, PE, has joined HNTB Corp. as rail transit practice leader and vice president. Watz has more than 21 years of transportation industry experience, including planning, program management, design, construction management, and project controls services for rail transit systems, highways, bridges, and facilities. Watz is based in the firm’s Minneapolis office and serves clients nationwide.

Prior to joining HNTB, Watz most recently led the engineering services consultant team for the Central Corridor Light Rail Transit project in the Twin Cities. The CCLRT project is an 11-mile LRT line linking the Twin Cities, St. Paul and Minneapolis. At $957 million, the project is the largest public works project in history for the state of Minnesota.

Watz graduated with a Master of Business Administration from the University of Chicago and a Bachelor of Science in civil engineering from the University of California, Berkeley.

“As rail transit practice leader for our Great Lakes Division, Watz will help drive growth for the transit practice, which includes light rail, commuter and intercity rail, bus rapid transit, and streetcar projects,” said HNTB Chair Public Transit Services Liz Rao. “As we are winning new rail transit projects and working with existing clients, Patrick’s experience and technical skills are great assets to HNTB’s growing transit practice. Hisexpertise includes managing design teams, providing project technical leadership, maintaining project cost and scheduling controls, ensuring contract compliance and delivering at the highest quality standards. In addition, he is experienced with the Federal Transit Administration’s Capital Investment Program guidelines and New Starts evaluation criteria.”

CN’s Mongeau to keynote RSI/CMA 2014

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Written by: William C. Vantuono, Editor-in-Chief
CN President and Chief Executive Officer Claude Mongeau will be the keynote speaker at RSI/CMA 2014 on Monday, Sept. 22 in Montréal, Québec.

“Claude Mongeau is a dynamic industry leader, and his keynote speech will be a must-attend event at RSI/CMA 2014,” said RSI President Thomas D. Simpson. “Our members look forward to learning how they can best serve CN and the Canadian rail market.”

RSI/CMA 2014 will take place Sept. 21 -23 at the Palais des congrès de Montréal (Montréal Convention Center). This first-ever Canadian exhibition will combine the exhibits of the Railway Supply Institute (RSI) and the Canadian Association of Railway Suppliers in addition to the technical and educational sessions of the Coordinated Mechanical Associations (CMA). Also, the Canadian Rail Summit hosted by the Railway Association of Canada will be held in conjunction with RSI/CMA 2014.

“Suppliers to the rail industry looking to market their business and products are encouraged to exhibit at RSI/CMA 2014, which will feature space for 140 booths,” said Simpson.

Exhibit space sales will begin in March. Online registration for RSI/CMA 2014 and hotel room reservations will begin on June 2; combined expected attendance is 1,500.

For more information about exhibiting at RSI/CMA 2014 or to be added to RSI's trade show email list, contact Amanda Patrick (patrick@rsiweb.org | 202-347-4664).

Moorman to USCOC: “Freight rail vital to economic prosperity”

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Written by: William C. Vantuono, Editor-in-Chief
Speaking on Feb. 20, 2014 in Washington, D.C., to a U.S. Chamber of Commerce meeting on infrastructure, Norfolk Southern CEO Wick Moorman said freight railroads are “essential to driving America’s continued economic recovery.”

Moorman said railroad improvements in technology, service, and capacity “provide America with a key competitive advantage in the marketplace and serve to bolster economic prosperity.” He pointed to resurgence in domestic manufacturing, noting, “The freight rail industry will be there to assist companies as they seek to take advantage of these favorable trends.”

Moorman said a balanced regulatory environment is key to the railroads’ ability to continue earning the capital necessary to invest in new markets: “Railroads are an essential partner to government and business in rebuilding America and positioning it for a prosperous future, but we can reach that goal only if we can continue to grow and reinvest. If freight railroads do our job well, the economy grows, and America ultimately prospers—a win for all of us.”


PATH opens WTC Platform A

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Written by: Douglas John Bowen

PATH personnel handed out notices to passengers Tuesday morning, Feb. 25, 2014, heralding the opening of the first permanent (or "modernized") platform at its World Trade Center Station in lower Manhattan.

Platform A will handle passengers traveling between the World Trade Center and Hoboken, N.J., beginning later Tuesday. 

"When complete, the new WTC PATH station wil have several more similar platforms," the PATH notice said. "Moreover, the station will be at the center of the new WTC Transportation Hub, designed by renowned architect Santiago Calatrava."

For now, those using the World Trade Center-Newark service will continue to access PATH trains on temporary tracks 2 through 5, though ongoing work adjacent to and above the station is likely to cause other adjustments even to this location.

PATH said its WTC Transportation Hub "will continue to open in phases through 2015."

PATH earlier this month discontinued weekend service to the World Trade Center for the remainder of 2014, except for holiday weekends, to repair flood damage to the trans-Hudson tubes caused by SuperStorm Sandy in 2012, and also to install CBTC (communications-based train control) on the route between lower Manhattan and Exchange Place in Jersey City, N.J.

MTA sets Safety Committee, Chief Safety Officer

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Written by: Douglas John Bowen

New York's Metropolitan Transportation Authority (MTA) announced Monday, Feb. 24, 2014 it is creating the position of Chief Safety Officer, a new senior management post reporting directly to Chairman and CEO Thomas Prendergast, to ensure safety is a top priority throughout all MTA operations.

Anne Kirsch was named to the post of Chief Safety Officer.

MTA will also create a new Safety Committee on its board to provide focused oversight of safety issues.

As well, each MTA agency – presumably, including the agency's road and bridge subsidiaries – "will ensure its top safety official reports directly to the agency's president, to reinforce that safety is a prime concern for every agency's management. At Metro-North Railroad, where safety and security now report to the same position, the responsibilities will be separated and a new position of Chief Safety Officer will be created," MTA said.

Metro-North's string of incidents during 2013, including a derailment last December that killed four, have drawn intense scrutiny from the local media, the National Transportation Safety Board, and the Federal Railroad Administration.

"The safety of our customers and employees is unquestionably the top priority for the MTA, and these steps will make sure this emphasis on safety is built into the operations of every MTA agency," Prendergast said. "The events of the last year have made clear to everyone in the MTA how important it is to create a culture where all employees act to eliminate risks, and changing our executive structure will ensure safety remains a dedicated agency value."

Train and engine crews push January employment up

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Written by: Douglas John Bowen

Compiled figures released Tuesday, Feb. 25, 2014 by the Surface Transportation Board show Class I railroads employed 162,286 people in mid-January, up a modest 0.15% from January 2013, but down 0.32%, or 524 employees, from the previous month of December.

Only Transportation (train and engine) gained ground in January from a year ago, up 1.15% and countering losses in every other category. Transportation (other than train and engine) fell 2.12% from January 2013; Maintenance of equipment and stores declined 1.36%; Professional and administrative dropped 0.66%; Executives, officials, and staff assistants lost 0.23%; and Maintenance of way and structures slipped 0.11%.

Similarly, just two categories advanced from December 2013 employment levels, with Professional and Administrative up 1.17% and Maintenance of equipment and stores eking out a 0.07% advance. Maintenance of way and structures led the month-over-month decliners, down 1.12%, followed by Executives, officials, and staff assistants, and also Transportation (train and engine), both down 0.38%. Transportation (other than train and engine) fell 0.14%.

FTA OKs latest Triangle Transit LRT plan

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Written by: Douglas John Bowen

The Federal Transit Administration has given its approval to conceptual planning of a light rail transit (LRT) starter line linking East Durham, and the University of North Carolina-Chapel Hill, located in North Carolina's Research Triangle.

FRA's formal approval, offered Tuesday, Feb. 25, authorizes Triangle Transit to proceed with plans for a 17-mile LRT line. FTA turned down a proposed 28-mile plan linking Durham and Raleigh, the state capital, in 2006.

"We can now proceed to complete the environmental process, advance our engineering and make final alignment decisions," Triangle Transit General Manager David King said in a statement. "We will also use this time to strengthen our financial plan and work with our municipal and university partners on land use and housing issues around stations. We appreciate FTA's vote of confidence in our work on this project."

An environmental impact statement (EIS) would be issued in early 2016, with engineering work to follow. Construction would absorb at least four more years after that, Triangle Transit said.

Residents, planners and elected officials in Wake, Durham and Orange counties have spent thep ast eight years collaborating and arguing over plans for new trains and beefed-up bus service to serve the fast-growing region.

Durham and Orange counties for nearly a year have collected a half-cent sales tax intended to provide local funds for the LRT line, as part of any match with federal funding for the $1.34 billion estimated cost.

The current 17-mile proposal, with some portions of the route still in flux, would run (west-to-east) from UNC Hospitals Station in Chapel Hill to Alston Ave./North Carolina Central University Station in eastern Durham.

East of that route, Wake County, which includes Raleigh and nearby Wake Forest, so far is not participating in the fiscal or planning effort; Wake County commissioners reportedly so far have refused to take up a transit plan developed in 2011 by Triangle Transit and county officials.

Last autumn Triangle Transit offered a "virtual" tour of the proposed LRT system to area residents, with the video serving as part of the scoping process required as part of the project's environmental assessment.

DOT issues CBR Emergency Order

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

The U.S. Department of Transportation (DOT) on Feb. 25, 2014 issued an Emergency Order requiring crude oil shippers to test product from the Bakken region to ensure the proper classification of crude oil before it is transported by rail, while also prohibiting the transportation of crude oil in the lowest-strength Packing Group. DOT’s action marks the fourth Emergency Order or Safety Advisory on crude oil in the past seven months.

Effective immediately, those who offer crude oil for transportation by rail must ensure that the product is properly tested and classified in accordance with federal safety regulations. The Emergency Order also requires that all Class III crude oil shipments be designated as Packing Group I or II (the most volatile), thereby requiring the use of a “more robust” tank car, such as those built since October 2011 to the AAR’s voluntary industry safety standard, CPC-1232. Packing Group III, a lower risk designation, will not be accepted, until further notice, DOT said.

“Shippers are required to use nine hazard classes as a guide to properly classify their hazardous materials,” DOT said. “Proper classification will ensure that the material is placed in the proper package and that the risk is accurately communicated to emergency responders. Shipping crude oil—or any hazardous material—without proper testing and classification could result in material being shipped in containers that are not designed to safely store it, or could lead first responders to follow the wrong protocol when responding to a spill.”

“Emergency orders are issued to protect the public and environment from the likelihood of substantial harm created by an imminent hazard,” DOT said. “Today’s Emergency Order, the fourth from DOT in less than a year, was issued in response to recent derailments involving trains carrying crude oil from the Bakken region and out of concerns over proper classification that are currently under investigation as part of Operation Classification, also known as the ‘Bakken Blitz.’” In addition to Operation Classification, which includes crude oil spot inspections and investigations, PHMSA (Pipeline and Hazardous Materials Administration) will be in Minot, N.Dak. this week conducting a classification workshop. Field personnel will present training at the 60th Annual State Fire School sponsored by the North Dakota Firefighters Association to provide information about hazmat response, including how to use the Emergency Response Guidebook.

PHMSA and the Federal Railroad Administration have issued several safety advisories related to the safe transport of crude oil by rail, including a Jan. 2 Safety Alert, and are currently engaged in the ongoing rulemaking to improve the design of the DOT 111 tank car. In August 2013, PHMSA and FRA launched Operation Classification in the Bakken region to verify that crude oil was being properly classified and announced the first proposed fines associated with that ongoing investigation last month. Additional activities include unannounced spot inspections, data collection and sampling at strategic locations that service crude oil.

The rail industry is moving ahead on improved tank car safety, without waiting for a DOT rulemaking. BNSF on Feb. 20 announced an RFP for 5,000 new tank cars built to standards stronger than CPC-1232.

UP, Missouri county reach MOU on R-O-W

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Written by: Douglas John Bowen

Jackson County, Mo., and Union Pacific have signed a Memorandum Of Understanding to transfer ownership of 19 miles of UP right-of-way to the county for future passenger rail use.

The agreement was publicly announced by County Executive Mike Sanders, who said, "What this does is make commuter rail for the first time in its history possible."

The MOU, announced Monday, Feb. 24, 2014, would spur proposals to establish a commuter rail line serving Kansas City and county points east of the city. Two right-of-way segments, one 15.5 miles in length and the other 3.5 miles long, might also be used for hiking and biking access.

Rail service is envisioned to connect with Kansas City's streetcar line, now under construction.

Jackson County would pay $59.9 million for both routes, roughly half the initial price sought by UP two years ago. Congressman Emanual Cleaver (D-Mo.) told local media he would seek federal funds to pay for at least a portion of the purchase.

CSX J&L Tunnel project honored

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

CSX’s J&L Tunnel Modification Project in Pittsburgh has won the Project of the Year Award from the Engineers’ Society of Western Pennsylvania (ESWP) and the Diamond Award for Engineering Excellence from the American Council of Engineering Companies of Pennsylvania (ACEC/PA). “These awards recognize the J&L Tunnel Project’s safe completion, sustainability, cost-effectiveness, and community benefits,” CSX said.

Completed in late 2013, the J&L Tunnel Project increased the vertical clearance of a 130-year-old tunnel running through Pittsburgh’s SouthSide Works, a mixed-use residential and commercial development. CSX worked closely with public officials, local businesses and residents to minimize noise and disruption during construction. Upon completion of the tunnel work, CSX restored trees and plantings, and invested in landscaping improvements that left the overlying Tunnel Park a more usable recreational space.

The J&L Tunnel was constructed in the 1880s as part of the Pittsburgh & Lake Erie Railroad to allow trains to run beneath the former J&L Steel Company’s Pittsburgh Works Southside facility. “Today, the tunnel is an important component of CSX’s freight rail infrastructure and a critical transportation link for the Pittsburgh regional economy,” CSX said.

The ESWP Project of the Year Award aims to advance the professions of engineering, architecture, and applied sciences through its activities and commitment to public service, recognizing four exemplary projects across the state each year. The J&L Tunnel Project earned the award in the Commercial category “for its safety, cost-effectiveness, and ability to deliver long-term economic benefits to the local community,” CSX noted. “The Diamond Awards for Engineering Excellence from the ACEC/PA celebrates the achievements of member firms who have demonstrated innovation, a commitment to sustainable practices, economic value, and superior client service.”

“The J&L Tunnel Project is a great example of CSX’s commitment to invest in infrastructure that supports American businesses and growth while respecting the communities in which we operate,” said Randy Cheetham, regional vice president, CSX Transportation. “We have a long history in the Pittsburgh community, and are proud to invest here to keep the Pittsburgh region moving for many years to come.” <p< The J&L Tunnel Project is part of CSX’s National Gateway, a public-private partnership to create a doublestack freight rail corridor between Mid-Atlantic seaports and the Midwest. Through the National Gateway, CSX continues to invest in infrastructure projects that support expected increases in intermodal freight rail traffic.

In Pittsburgh, CSX recently unveiled a $50 million proposal to redevelop the former Pittsburgh & Lake Erie (P&LE) Railroad Yard in McKees Rocks and Stowe Township into a new intermodal rail facility. In Washington, D.C., CSX is working closely with local and federal authorities to evaluate alternatives for the more than 100-year-old Virginia Avenue Tunnel, a major chokepoint on the nation’s rail network.


Next CATS streetcar phase gets FTA nod

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Written by: Douglas John Bowen

The Federal Transit Administration on Wednesday, Feb. 26, 2014, gave approval to Charlotte Area Transit System (CATS) for project development of phase 2 of its Gold Line streetcar.

FTA's nod will allow CATS to apply for federal funding of up to $63 million, or roughly half of the projected cost of the 2.5-mile extension. Last year Charlotte failed to capture any FTA Small Starts funding for the streetcar route. Phase 1 of the Gold Line, totaling 1.5 miles, currently is under construction. CATS seeks an eventual buildout of 10 miles for the Gold Line.

"Entering into Phase 2 is a step in the right direction to increasingly serve the public with transit services that promote a thriving community," CATS CEO Carolyn Flowers said to local media.

Charlotte City Council last month approved spending $12 million in local funds to conduct additional planning. CATS officials say that if they land the $63 million grant, part of that money will be used to repay the city's $12 million investment. A similar approach was used to advance the second phase of CATS Blue Line light rail transit (LRT), also now under construction.

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President proposes infrastructure package

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Written by: Douglas John Bowen

President Obama on Wednesday, Feb. 26, 2014, called for a four-year, $302 billion investment in U.S. infrastructure, primarily targeting repair and rehabilitation of existing assets.

A fact sheet released earlier in the day by the Obama Administration suggested that the plan would increase dedicated funding for transit more than funding for highways.

The President formally unveiled the plan in St. Paul, Minn.'s recently restored Union Depot, expected to host Amtrak's Empire Builder later this year and also a terminus for Metropolitan Council's 11-mile Green Line light rail transit (LRT), set to open June 14, 2014, connecting downtown St. Paul with Minneapolis.

The proposal must meet approval from the Republican-held House of Representatives, making its prospects uncertain, though House Republicans also seek to address transportation funding, as the nation's Highway Trust Fund verges on insolvency.

Prior to the President's announcement Wednesday, the White House released a statement saying, in part, "If Congress doesn't act to ensure critical transportation programs continue to be funded and do not expire later this year, more than 700,000 jobs will be put at risk."

In response to President Obama’s announcement, Amtrak President and CEO Joe Boardman issued the following statement:

“Passenger rail is indispensable to helping the United States meet national goals of competitiveness, job creation and economic growth. Having a predictable and dedicated federal funding source for passenger rail is the right policy for America. A multi-year planning and construction program for high-performing, high-capacity passenger rail will connect key regions and unleash our nation’s economic potential now trapped by clogged highways and airports.

“Nowhere is the connection between passenger rail and economic growth stronger than in the Northeast Corridor, where demand for rail service is at record levels, but dependent on century-old infrastructure. A world-class economy needs a world-class transportation system, and passenger rail is the solution that our global competitors have already figured out.

“It is entirely appropriate that a portion of any revenue generated from tax reform be dedicated for improving passenger rail. Just as a modern and efficient tax code is important to business competitiveness, so too, is a modern and efficient national passenger rail network.”

Weather, wrecks, mechanical mayhem mar CSX, David Ragan Daytona debut

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weather-wrecks-mechanical-mayhem-mark-csx-david-ragan-daytona-debut
Written by: William C. Vantuono, Editor-in-Chief
In NASCAR Sprint Cup competition at Daytona International Speedway, drivers and fans alike are always on the lookout for “The Big One,” that massive wreck-fest that takes drivers out of contention during The Great American Race and its preliminary events. At the 2014 edition of NASCAR’s season-opening event, bad weather scored a big one, and major mechanical failure as well as a wreck took its toll on David Ragan and the no. 34 CSX “Play It Safe Around Railroad Tracks” Front Row Motorsports Ford Fusion.

CSX PIT MontageRagan started the Daytona 500 from the rear of the field, 43rd position, after a last-lap wreck in his Gatorade Duel race three nights prior totaled his primary racecar and forced him into a backup car for Sunday’s 500. Always a strong performer at superspeedways like Daytona, Ragan managed to gain several positions in his CSX locomotive-scheme-inspired blue and gold Ford before torrential rain and a tornado watch in central Florida brought out the red flag, halting the action for more than six hours.

When the rains came, Ragan and his team had flashbacks to May 2013 at Talladega Superspeedway, when a similar scenario resulted in Front Row Motorsports’ first win. But the events of last season would not repeat. After the green flag waved around 9:00 p.m., restarting the race, the No. 34 was struck with a mechanical issue. During a Lap 88 (of 200) pit stop, the car’s four-speed gearbox failed, forcing the team to take the stricken Ford Fusion to the garage. The FRM crew was able to replace the racecar’s blown transmission and return Ragan to the track to gain some points. In a race filled with numerous wrecks, including two “Big Ones” near the end, attrition worked on the No. 34 team’s side, with Ragan gaining eight spots to finish 34th.

“Well, it was a long Daytona 500,” David Ragan said. “Our CSX Play It Safe team had a good car and a fast car, but we had a transmission go out and we had to come to the garage and change it. We were able to get back out and collect a few points, but it was definitely not the Daytona 500 we all hoped for. We’ll try to diagnose what the problem was and learn from it, and we’ll look forward to Phoenix.”

Regardless of the outcome, CSX’s important “Play It Safe Around Railroad Tracks” public safety message reached tens of thousands of fans at Daytona International Speedway during the week-long SpeedWeeks activities at the world-famous racetrack.

CSX’s partnership with David Ragan and FRM includes primary sponsorship at three more Sprint Cup races this season—Darlington Raceway April 12, Michigan International Speedway Aug. 17, and Richmond International Raceway Sept. 6. Ragan’s car will sport CSX’s distinctive blue and gold locomotive colors and “Play It Safe Around Railroad Tracks” graphics.

CSX 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 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.

“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. CSX is one of multiple 2013 sponsors returning for 2014 with expanded programs.”

“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), 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.”

Chinese railway interests—in Mexico?

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chinese-railway-interests—in-mexico?
Written by: William C. Vantuono, Editor-in-Chief
A Mexican legislator who happens to be a member of the nation’s opposition National Action Party (PAN) has said that the Chinese government is interested in participating in the country’s railroad system, should its structure be drastically altered under a bill now being considered in the Senate (upper chamber) of Mexico’s Congress.

Earlier this month, Mexico’s lower chamber overwhelmingly approved a reform of the country’s existing rail freight legal framework that would force open access upon two concession-holders: Grupo Mexico, which operates Ferromex and Ferrosur, and Kansas City Southern de Mexico. Under the terms of the bill, Grupo Mexico and KCSM would be forced to share their lines or risk losing them. They would also have to publish rates they charge customers for interconnections with routes owned by other companies.

According to a report filed Feb. 26, 2014 by Reuters, National Action Party member Juan Carlos Muñoz, who also heads the lower house of Congress’ transport commission, said Chinese rail companies (as well as some U.S. firms) have expressed interest in the Mexican rail freight market if the reform bill, which seeks to open up the sector to more companies, is approved. He did not disclose any names.

“What’s this proposal aiming to do? Bring new players into the market,” Muñoz told Reuters. “There’s an interest in China to enter Mexico’s rail market, the United States and China.” He said any potential newcomers would benefit from a recently approved overhaul of Mexico’s energy sector, which is looking for foreign investment.

“Rail freight is crucial for Mexico’s fast-growing auto production and manufacturing sectors, which are key to economic growth, and the energy reform is also expected to boost sales,” Reuters said. “However, some customers, like steel producers, say the lack of competition makes for exorbitant freight prices.” (Editor’s note: Sounds a lot like the complaints of so-called “captive shippers” in the U.S.)

“U.S. railroad companies already have investments in Mexico,” Reuters noted. “KCSM is owned by Kansas City Southern, while Union Pacific Corp owns about a quarter of Ferromex.”

Muñoz said the pending bill “could allow these companies to set up their own businesses, without local partners. Union Pacific ... has a great opportunity to separate itself, to become a new concession-holder without being involved with Ferromex. It opens an impressive opportunity for them.”

Muñoz said that if the bill is approved, large industrial companies, like cement producer Cemex, could build their own lines, use their own cars and locomotives, and pay the current concession-holders for access. Muñoz added that he expected the Senate to make certain changes to counter the argument made by the current concession-holders that the proposed bill sets a bad precedent as Mexico tries to lure new investors into its oil and gas sector. “[We’re] certainly looking to give legal certainty in all international areas,” he said. “We don't want to generate a bad impression abroad.”

Ferromex and KCSM are now considering legal challenges to the bill, which they say ignores a concession granting exclusivity for another 14 years.

Colorado Springs group pursues BNSF yard sale

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Written by: Douglas John Bowen

Supporters of a plan to initiate streetcar service in Colorado Springs, Colo., said Wednesday, Feb. 26, 2014 they had reached a verbal agreement in principle with BNSF to acquire a rail yard located downtown.

But the plan still requires money for it to take place, and the Pikes Peak Historical Street Railway Foundation still lacks the funds, though it reportedly has the rights to operate streetcars on the city's roadways.

Efforts to return streetcars to Colorado Springs have been ongoing for at least 20 years.

BNSF "has agreed to sell us a part of or all of the property, subject to certain conditions," Foundation President Dave Lippincott told local media. Lippincott did not divulge the purchase price, but did note the Foundation must come up with a down payment of 10% before a contract can be finalized. The deal does allow time for the volunteer organization to raise funds.

Streetcar service in Colorado Springs ended in April 1932.

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