Railroad News

Green Plains Inc. and Jefferson Gulf Coast Energy Partners have formed a joint venture to construct and operate an intermodal fuels terminal at Jefferson's existing terminal in Beaumont, Texas.

The 50-50 joint venture is expected to invest about $55 million in the project's first phase, which will focus on storage and throughput capabilities for multiple grades of ethanol, according to the companies' press release.

CN's board announced yesterday that incoming President and Chief Executive Officer Luc Jobin has been been named a board director. Jobin will take over the company's top executive position on Friday.

Jobin will succeed Claude Mongeau as president and CEO. As a board director, Jobin replaces Mongeau, who announced earlier this month that he would step down from his post due to health reasons.

CSX will need to submit monthly reports for the next year that detail situations in which grade crossings are blocked by trains on its line in southwest Chicago and adjacent suburbs, the Surface Transportation Board (STB) ruled last week.

The STB ordered that CSX can’t operate trains into or out of the Chicago terminal over the Elsdon Line unless the line is clear, according to the agency's decision.

Union Pacific Railroad last week announced plans to upgrade its infrastructure this year in Minnesota, Wisconsin and Montana.

Between 2011 to 2015, the Class I has invested more than $50 million in Minnesota, $46 million in Wisconsin and $5.8 million in Montana on infrastructure improvements, according to UP press releases.

Lac Megantic, Quebec, city officials have decided they will not pursue legal action against Canadian Pacific for the July 2013 crude-oil train disaster that killed 47 people.

The Lac Megantic city council voted Tuesday to drop all possible charges against the Class I, according to a press release posted on the city's website.

Meridian Speedway LLC, a joint venture between Kansas City Southern and Norfolk Southern Railway, will invest $28 million in construction and improvements on the Vicksburg and Meridian subdivisions, KCS announced yesterday.

The joint venture is a 320-mile rail line between Meridian, Miss., and Shreveport, La., offering end-to-end steel wheel interchange for intermodal customers.

Norfolk Southern Corp. subsidiary Thoroughbred Direct Intermodal Services Inc. and transportation management software provider MercuryGate International Inc. have formed an integration partnership that will allow clients to gain access to the Modal-X web-based portal, MercuryGate announced Monday.

Modal-X provides instantaneous door-to-door intermodal rates for transactional freight opportunities.

Wainwright Industries/TVS Supply Chain Solutions South Carolina plans to build a second facility in Charleston, S.C., to serve increasing demand for third-party logistics and supply-chain services.

Wainwright will build a 212,000-square-foot, CSX-served facility to provide warehousing and logistics for some of the South Carolina Ports Authority's (SCPA) key market segments, including forestry products, which represent 15 percent of the port's cargo volume. Wainwright's existing Ladson facility serves the automotive segment.

Canadian Pacific expects second-quarter revenue to decline about 12 percent compared with the same 2015 period, the railroad announced this morning.

The reasons: lower-than-anticipated volumes in bulk commodities such as grain and potash, the "unexpected and devastating wildfires" in northern Alberta and a strengthening Canadian dollar, CP officials said in a press release.

Union Pacific Railroad recently announced multimillion-dollar infrastructure improvement plans for the states of New Mexico, Utah and Washington.

In New Mexico, UP plans to spend $11.5 million this year — $11 million to maintain track and $196,000 to maintain bridges. A key project: UP has set aside $4 million to replace 22,091 ties and install 7,791 tons of ballast on a line between Lordsburg, N.M., and the Grant-Luna county line.

The BMW Group yesterday held a groundbreaking ceremony in San Luis Potosi for its first auto manufacturing plant in Mexico.

To launch production in 2019, the $1 billion plant will be served by Kansas City Southern de Mexico S.A. de C.V. (KCSM). The facility will be used to build the automaker's best-selling model, the BMW 3 Series Sedan. The plant's annual production capacity is projected at up to 150,000 vehicles.

The Transportation Marketing & Sales Association (TMSA) recently named CN Director of Marketing Innovation Marie-Chantal Savoy its 2016 Marketing Executive of the Year.

The award recognizes a senior-level leader in the transportation and logistics industries who has demonstrated strategic thinking and intelligent execution of marketing initiatives to meet their organization's business goals. The award is part of TMSA's mission to honor the efforts of marketing, sales and communications professionals in the two industries.

Union Pacific Railroad has released its 2016 infrastructure improvement plans for two more states: Nevada and Wyoming.

The Class I plans to spend $28.5 million this year in Wyoming, including $25.9 million to improve track and $2.4 million to maintain bridges. Key allocations include $7.6 million to replace more than 13 miles of rail on a line between Cheyenne and Granite Canon, and $2.6 million to replace nearly four miles of rail on a line between Rawlins and Rock Springs.

CSX Corp. released its sixth annual Corporate Social Responsibility Report yesterday.

Titled “Moving Forward,” the report outlines the Class I’s past performance and future goals in five key areas: business performance and governance; safety and security; employees; environment; and community. The report was prepared in accordance with the Global Reporting Initiative G4 Sustainability Reporting Guidelines, CSX officials said in a press release.

The Canadian Environmental Assessment Agency and the Canadian Transportation Agency are soliciting public input on a draft agreement to establish a review panel for CN's proposed logistics hub in Milton, Ontario.

When finalized, the agreement will help establish the panel's mandate and authority, as well as procedures and timelines for the review under the Canadian Environmental Assessment and Canada Transportation Acts, Canadian government officials said in a press release.

— by Pat Foran, editor

I met Claude Mongeau during a May 2004 visit with CN executives in Toronto. At the time, he was CN’s executive vice president and chief financial officer, and leader of the strategic planning process. I talked with him about a range of subjects, from service-plan discipline to strategic planning to continuous improvement. We also talked about culture, or what it was that made CN “CN.”

By This email address is being protected from spambots. You need JavaScript enabled to view it., Managing Editor

Iron Horse Permian Basin LLC recently took delivery of the largest frac sand unit train in North American history by length and weight at 151 rail cars and 17,469 tons. The train arrived June 2 at the company's Delaware Basin rail terminal in Artesia, N.M.

Union Pacific Railroad returned to using the tracks where a crude-oil train derailed late last week in Mosier, Ore., near the Columbia River Gorge.

A preliminary investigation indicates a fastener that connects the rail tie with the rail caused the derailment, according to a report in The Oregonian.