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Jul
23

U.S. intermodal traffic decline slowed in Week 29

U.S. freight railroads reported 481,597 carloads and intermodal units during the week ending July 18, an 8.5 percent decrease compared with volumes during the same week in 2019, according to Association of American Railroads (AAR) data.

Carloads fell 15.7 percent to 214,685 units, while intermodal units dipped just 1.7 percent to 266,912 containers and trailers.

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Jul
23

MTA slashes expenses to address COVID-related losses

Rail News Home Passenger Rail 7/23/2020 Rail News: Passenger Rail
MTA is projecting a deficit of $16.4 billion by 2024.Photo – MTA

The Metropolitan Transportation Authority (MTA) announced yesterday it is undertaking the largest cost-cutting program in the agency’s history to help solve billions of dollars in deficits the agency is facing as a result of the COVID-19 pandemic.  

MTA is projecting a deficit of $16.4 billion by 2024, including $3.2 billion for 2020, $5.8 billion for 2021, $3.5 billion for 2022, and between $1.8 billion and $2 billion for the following two years, MTA officials said in a press release.

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Jul
23

CSX reports lower Q2 revenue across all markets

Rail News Home CSX Transportation 7/23/2020 Rail News: CSX Transportation
CSX Corp. yesterday announced second-quarter net earnings and revenue declines, as the Class I faced lower economic activity due to the COVID-19 pandemic.The company posted net earnings of $499 million, or 65 cents per share, versus $870 million, or $1.08 per share, for the same period in 2019.Second-quarter revenue tumbled 26 percent year over year to $2.26 billion due to volume declines, an unfavorable mix, decreases in fuel recovery, declines in coal pricing and lower other revenue, CSX reported in its financial statement. Those decreases were partially offset by pricing gains in merchandising and intermodal.Operating income plummeted 37 percent to $828 million compared to $1.31 billion in the same quarter in 2019.Expenses fell 19 percent to $1.43 billion, impacted by volume-related reductions, lower fuel costs and continued efficiency gains."I want to extend my gratitude to all of the CSX employees who kept the railroad running well during the most disruptive operating period I have seen in my career," said President and Chief Executive Officer James Foote in a press release.CSX's operating ratio for the second quarter was 63.3 percent, up from 57.4 percent a year ago.In their presentation to analysts, CSX officials said all markets were negatively impacted by the economic effects of the pandemic. By market, quarterly revenue declined year over year by 10 percent in chemicals, 13 percent in agricultural and food products, 9 percent in minerals, 11 percent in forest products, 8 percent in fertilizers, 24 percent in metals and equipment, 72 percent in automotive, 48 percent in coal, 18 percent in intermodal and 19 percent in "other."  

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Jul
23

UP's Q2 revenue, profit plummet on lower volumes

Union Pacific Corp. posted a 24 percent decline in second-quarter operating revenue and a 28 percent decline in net income as the Class I faced a 20 percent drop in volume due to the economic impact of the COVID-19 pandemic.

The Class I reported second-quarter 2020 net income of $1.1 billion, or $1.67 per diluted share, compared with $1.6 billion, or $2.22 per diluted share, a year ago.

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Jul
22

Rail supplier news from ATIX, Leclanche, APTIM, HDR, TransSystems and STV (July 22)

Rail News Home Railroading Supplier Spotlight 7/22/2020 Rail News: Railroading Supplier Spotlight
Andrew BataPhoto – APTIM

American Railcar Industries (ARI) has rebranded as American Industrial Transport Inc. (AITX). “The new name conveys a respect to its longstanding heritage, while showing an ongoing commitment in shaping the modern rail car leasing and repair business,” AITX officials said in a press release. AITX's rail-car repair business now is named AITX Railcar Services LLC in the United States and AITX Railcar Services of Canada Inc. in Canada. The Greenbrier Cos. acquired ARI’s car manufacturing division from ITE Management LP in July 2019.

Leclanche SA earned an International Railway Industry Standard (IRIS) Group certification for the design manufacturing and maintenance of its hybrid and electric locomotive power system drive units and auxiliary systems. The IRIS standard enables railway component suppliers to meet globally recognized levels of quality for their components.

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Jul
22

Rail supplier news from AITX, Leclanche, APTIM, HDR, TransSystems and STV (July 22)

Rail News Home Railroading Supplier Spotlight 7/22/2020 Rail News: Railroading Supplier Spotlight
Andrew BataPhoto – APTIM

American Railcar Industries (ARI) has rebranded as American Industrial Transport Inc. (AITX). “The new name conveys a respect to its longstanding heritage, while showing an ongoing commitment in shaping the modern rail car leasing and repair business,” AITX officials said in a press release. AITX's rail-car repair business now is named AITX Railcar Services LLC in the United States and AITX Railcar Services of Canada Inc. in Canada. The Greenbrier Cos. acquired ARI’s car manufacturing division from ITE Management LP in July 2019.

Leclanche SA earned an International Railway Industry Standard (IRIS) Group certification for the design manufacturing and maintenance of its hybrid and electric locomotive power system drive units and auxiliary systems. The IRIS standard enables railway component suppliers to meet globally recognized levels of quality for their components.

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Jul
22

MTA to rehab Rutgers subway tunnel

Rail News Home Maintenance Of Way 7/22/2020 Rail News: Maintenance Of Way
Crews will work to repair systems and components within the tunnel that were damaged during Hurricane Sandy.Photo – MTA NYCT

The Metropolitan Transportation Authority (MTA) in August will begin rehabilitation work on the Rutgers Tube New York City Transit subway tunnel that allows the F Line to run under the East River between Brooklyn and Manhattan.

Contracted crews from TC Electric LLC will work to repair systems and components within the tunnel that were damaged during Hurricane Sandy in 2012, and replace other parts that have reached the end of their useful lives.

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Jul
22

Portland council sends $5B transit measure to voters

Rail News Home Passenger Rail 7/22/2020 Rail News: Passenger Rail
The measure includes plans to extend the TriMet MAX light-rail system from downtown Portland to Tualatin.Photo – TriMet

Portland, Oregon’s Metro Council last week approved a $5 billion regional transportation investment measure for greater Portland voters to consider on the November ballot.

Known as Get Moving 2020, the measure includes plans to extend the Tri-County Metropolitan Transportation District of Oregon MAX light-rail system from downtown Portland to Tualatin. 

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Jul
22

Class Is employed fewer people in June

Rail News Home Rail Industry Trends 7/22/2020 Rail News: Rail Industry Trends
Year over year, all employment categories showed decreases.Photo – BNSF Railway Co.

Class Is employed 116,128 workers in mid-June, down 2.31 percent from May's employment levels and down 17.99 percent year over year, according to Surface Transportation Board (STB) data.

All employment categories logged month-to-month decreases. They were maintenance of equipment and stores, down 6.13 percent to 19,985 people; transportation (train and engine), down 2.57 percent to 42,536; transportation (other than train and engine), down 1.36 percent to 5,135; professional and administrative, down 0.77 percent to 10,512; executives, officials and staff assistants, down 0.46 percent to 7,591; and maintenance of way and structures, down 0.45 percent to 30,369.

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Jul
22

Metra asks STB to intervene in UP service dispute

Metra yesterday asked the Surface Transportation Board (STB) to issue a preliminary injunction to prevent Union Pacific Railroad from taking steps that the Chicago commuter railroad says would "degrade or halt" service on the three Metra lines operated by UP.

In a separate filing, Metra also asked the STB to determine whether UP has a legal obligation to provide commuter service. UP maintains that it has no such obligation, but Metra "strongly disagrees," Metra officials said in a press release.

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Jul
22

USDOT issues loan to MBTA for PTC project

Rail News Home Positive Train Control 7/22/2020 Rail News: Positive Train Control
The loan was provided under the Build America Bureau's Railroad Rehabilitation and Improvement Financing program.Photo – MBTA

The U.S. Department of Transportation’s (USDOT) Build America Bureau yesterday announced it provided the Massachusetts Bay Transportation Authority (MBTA) a $851.15 million loan for positive train control (PTC) implementation. 

The loan was provided under the bureau’s Railroad Rehabilitation and Improvement Financing program.

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Jul
22

CP reports lower Q2 revenue, record low operating ratio

Rail News Home Canadian Pacific 7/22/2020 Rail News: Canadian Pacific
Canadian Pacific today announced second-quarter revenue fell 9.6 percent to CA$1.79 billion from CA$1.98 billion a year ago, as the Class I dealt with the COVID-19 pandemic's impact on volume.However, the Class I's precision scheduled railroading operating model helped the company adapt to the unusually challenging conditions, CP officials said in a press release.CP posted diluted earnings per share (EPS) of $4.66, down 10 percent from last year, and adjusted EPS of $4.07, down 5 percent. Operating income for the quarter was CA$770 million, down 6.3 percent, while net income was CA$635 million, down 12 percent.The company's operating expenses totaled CA$1 billion in the quarter, down 11.5 percent.CP's operating ratio reached a second-quarter record of 57 percent compared to 58.4 percent a year ago. "While economic uncertainty remains, we're controlling what we can control — our costs," said President and Chief Executive Officer Keith Creel. "Our strong bulk franchise, which included record movements for Canadian grain and potash in the first half of the year, helped to offset some of the declines we experienced in other lines of business."Given its cost control measures, execution of PSR and improved clarity on the volume environment, the company now expects positive adjusted diluted EPS growth for the year, Creel said.CP also continues to expect capital expenditures of CA$1.6 billion and a mid-single-digit decline in revenue ton miles.In addition, the Class I's recent acquisition of the Central Maine and Quebec Railway, combined with a "continuing pipeline of unique growth opportunities," provides optimism for the remainder of 2020 and into 2021, Creel said.

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Jul
22

CN revenue falls 19 percent in Q2, announces plan to acquire 1,500 grain cars

Rail News Home Canadian National Railway - CN 7/22/2020 Rail News: Canadian National Railway - CN
CN yesterday reported second-quarter revenue fell 19 percent to CA$3.2 billion from nearly CA$4 billion a year ago, as financial results reflected lower volumes due to the COVID-19 pandemic. The Class I posted Q2 operating income of CA$785 million, down from CA$1.68 billion a year ago; net income of CA$545 million, down from CA$1.36 billion; and diluted earnings per share of 77 Canadian cents per share, down from CA$1.88. Adjusted earnings per share were CA$1.28, down from CA$1.73.CN's logged an adjusted operating ratio of 60.4 percent for the quarter, up from 57.5 percent a year earlier.Operating expenses for the quarter climbed 6 percent to CA$2.4 billion, mainly driven by a loss on assets held for sale resulting from the decision to market for sale for on-going rail operations, certain non-core lines, partly offset by lower fuel and and labor costs. Excluding that one-time charge, operating expenses fell 15 percent compared with Q2 2019's expenses.The revenue decrease was attributed primarily to lower volumes across most commodity groups caused by the pandemic and lower applicable fuel surcharge rates, which were partly offset by increased shipments of Canadian grain, higher Canadian coal exports and freight rate increases."By being adaptable, we were able to swiftly rightsize our resources and continue to provide our essential transportation services to our customers, the economy and the communities we serve," said President and Chief Executive Officer JJ Ruest in a press release.CN reaffirmed its CA$2.9 billion capital investment plan for 2020 and announced plans to purchase 1,500 new high-capacity covered hopper cars to expand its grain export business. Delivery is expected to start in January 2021."Our strategic long-term approach to investments, together with our continued focus on cost and deployment of innovative technology, as well as our commitment to enabling trade, position us to keep delivering long-term value to our stakeholders," Ruest said. 

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Jul
21

BLET ratifies new contract with WNYP

Rail News Home Labor 7/21/2020 Rail News: Labor
The agreement runs thorough 2025 and provides wage increases of about 25 percent over the life of the contract.Photo – Brotherhood of Locomotive Engineers and Trainmen

The Brotherhood of Locomotive Engineers and Trainmen (BLET) has ratified a new collective bargaining agreement with the Western New York & Pennsylvania Railroad LLC (WNYP), the union announced today.

The contract, which governs a dozen members, was approved unanimously, BLET officials said in a press release.

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Jul
21

Volkswagen opens process center at Baltimore port

Rail News Home Intermodal 7/21/2020 Rail News: Intermodal
The port will be responsible for the import of 120,000 vehicles per year from European and Mexican production facilities.Photo – Tradepoint Atlantic

Volkswagen Group of America Inc. yesterday began operations at the Tradepoint Atlantic Inc. vehicle terminal at the Port of Baltimore.

Volkswagen's port operations were made official with the arrival of the first vehicle transport vessel delivering 797 vehicles from Europe.

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Jul
21

Padgette elected state-Amtrak committee chair

Rail News Home Railroading People 7/21/2020 Rail News: Railroading People
Rob PadgettePhoto – CCJPA

The State-Amtrak Intercity Passenger Rail Committee (SAIPRC) last month elected Capitol Corridor Joint Powers Authority Managing Director Rob Padgette as chair.

Padgette will oversee the committee’s annual work plan to support growth of the nation’s intercity passenger-rail network, and support collaboration among its 20 member agencies in 17 states, Amtrak and the Federal Railroad Administration.

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Jul
21

Metra selects engineering, design firms for 75th Street Corridor projects

Rail News Home Passenger Rail 7/21/2020 Rail News: Passenger Rail
The Chicago Region Environmental and Transportation Efficiency Program (CREATE) announced this month that Metra has selected Jacobs Engineering Group and Ardmore Roderick Group to provide engineering and design services for two projects related to the 75th Street Corridor Improvement Project (CIP).Metra tapped Jacobs Engineering to provide design and engineering services for the Rock Island Connection part of the 75th Street CIP. Jacobs' work will apply to a double-track flyover structure that will connect the Metra Southwest Service mainline tracks to the Rock Island Line, which will enable Metra SouthWest trains to terminate at LaSalle Street Station in Chicago.The 75th Street CIP will lead to faster and more reliable passenger-rail service on the Metra SouthWest Service line and Amtrak Cardinal service, CREATE officials said in a press release.Meanwhile, Ardmore Roderick will provide structural engineering and design for the modification and raising of two spans of Bridge 87 on the Rock Island Line near 79th Street. The work is a necessary step for the 75th Street CIP, they said.The CREATE Program is a partnership between the U.S. Department of Transportation, the Association of American Railroads, state of Illinois, Cook County, city of Chicago, Amtrak, Metra and freight railroads that operate in the region.The partners are investing billions of dollars in critical infrastructure improvements designed to improve rail transportation in the Chicago area. 

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Jul
21

Reading & Northern hires Laubenstine as VP of coal marketing

Reading & Northern Railroad yesterday announced it's expanding its coal marketing department with the hire of Karl Laubenstine as vice president of coal marketing and sales.

Laubenstine joins the railroad from the Atlantic Carbon Group Inc., an anthracite mining and processing company in Hazleton, Pennsylvania, where he was responsible for marketing, sales and logistics. During his tenure, the company logged a 39 percent increase in tons sold to the domestic steel industry and export markets.

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Jul
21

WMATA to restore rail service to near pre-COVID levels

Rail News Home Passenger Rail 7/21/2020 Rail News: Passenger Rail
WMATA will add 15 hours more of service per week on the Metrorail.Photo – WMATA Facebook

The Washington Metropolitan Area Transit Authority (WMATA) will restore most service to pre-COVID levels starting Aug. 16, the agency announced yesterday. 

WMATA will add 15 hours more of service per week on the Metrorail, return opening times to normal and close two hours later in anticipation of potential ridership increases after Labor Day, WMATA officials said in a press release.

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Jul
21

DCTA wins federal grant for TOD planning

Rail News Home Rail Industry Trends 7/21/2020 Rail News: Rail Industry Trends
The TOD study area is a separate right-of-way for freight rail and is proposed for commuter-rail service that would connect to DCTA and DART.Photo – DCTA

The Federal Transit Administration (FTA) awarded the Denton County Transportation Authority (DCTA) a $600,000 grant to conduct preliminary planning for a transit-oriented development (TOD) along a 25-mile segment of a Kansas City Southern line in Denton County, Texas.

The planning will help determine if the KCS corridor could provide mobility and economic opportunity, DCTA officials said in a press release. The study area is a separate right-of-way for freight rail and is proposed for commuter-rail service that would connect to DCTA's A-train and Dallas Area Rapid Transit. 

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