Traffic picking up....a sign of the economy doing likewise:

 

AAR report: U.S. railroads' weekly carloads reach a 16-month high

 

During the week ending March 27, U.S. railroads originated 293,114 carloads — the highest weekly total since November 2008, according to the Association of American Railroads (AAR). Volume rose 16.5 percent compared with carloads from the same week last year.

 

U.S. roads’ weekly intermodal loads totaled 210,914 containers and trailers, up 12 percent year over year. Total weekly volume jumped 17.4 percent to an estimated 31.7 billion ton-miles.

 

Full story at: http://www.progressiverailroading.com/news/article.asp?id=22922

JPMorgan Fund Bets on U.S. Rail Companies, Follows Buffett

Bloomberg news

By Chris Cooper

 

April 7 (Bloomberg) -- JPMorgan Chase & Co.’s railway fund is betting on U.S. freight companies such as Union Pacific Corp., CSX Corp. and Norfolk Southern Corp., following Warren Buffett’s decision to take over Burlington Northern Santa Fe Corp.

 

The 138 billion yen ($1.5 billion) JPM Global Railway Stock Fund expects the companies to benefit from a move to carrying goods by rail instead of roads to reduce fuel costs and pollution, said Peter Kirkman, the fund’s lead portfolio manager. Railroads burn less diesel than trucks for each ton of cargo carried, giving operators a fuel-efficiency advantage.

 

“Government policy will continue to move toward environmental concerns,” Kirkman, who works for J.P. Morgan Investment Management Inc., said in a telephone interview from New York yesterday. “Moving freight by train rather than road is highly advantageous.”

 

Full story at: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aESYa8xei_b4#

It's back to work for train crews and rolling stock    

 

 

At the depth of the recession, railroads had miles of freight cars and locomotives in storage and thousands of train crew members on furlough. With recovery now well on the way, that picture is fast changing, as figures released this week by CSX Corp. demonstrate.

 

As of the second week in April, CSX had:

 

* Reduced its number of furloughed rail and engine crews froma peak of 2,533 to 1,093.

 

More at: http://www.railwayage.com/breaking-news/its-back-to-work-for-train-crews-and-rolling-stock.html

GE Customers Use More Locomotives

John D. Boyd | Apr 19, 2010 8:48PM GMT

The Journal of Commerce Online - News Story

 

Fewer engines parked, as freight activity grows for North American rails

North American rail freight customers of locomotive builder GE Transportation are reducing the number of train power units they have stored as freight activity grows, GE officials said.

 

In remarks to analysts following GE’s April 16 earnings report, Chief Financial Officer Keith Sherin said “we see some early signs of improvement in . . . rail freight traffic.”

 

Full story at: http://www.joc.com/rail-intermodal/ge-customers-use-more-locomotives

Regional CSX HQ coming to NB

By ERIC SCHAADT, The Courier Local News, April 21, 2010

 

NORTH BALTIMORE — CSX railroad will move a regional headquarters from Chicago to North Baltimore early next year, railway officials said today.

 

Construction is under way on a $175 million intermodal rail yard near North Baltimore. This is slated to be completed next year.

 

According to Rusty Orben, director of public affairs with CSX, a regional headquarters in Chicago oversees the northern division of CSX.

 

"Strategically, North Baltimore is the best location for the northern team," Orben said.

 

--

 

And for something lighter... thank you to the CSX workers who helped make this happen!

 

CSX workers bring smile 
to boy’s face with new bike

11-year-old won’t have to borrow girl’s bike anymore after his was stolen.

Middletown Journal, April 17, 2010

 

MIDDLETOWN — They came to town to repair our railroad tracks.

 

And in the process, they fixed our beliefs in humanity.

 

On Wednesday, April 14, Levi Hensley, a fifth-grader at Amanda Elementary School, saw CSX workers ripping up railroad tracks near his house — and being 100 percent boy — he had to watch.

 

When the CSX workers — who live from Michigan to Miami — met Levi, they struck up a casual conversation and asked why the 11-year-old was riding a girl’s bike. He lowered his head and mumbled the bike belonged to his aunt and his bike was stolen.

U.S. rail carload volume at highest level in 16 months 

 

The Association of American Railroads said Thursday that rail carload volume in the United States last week reached its highest level since the week ended Dec. 6, 2008.

 

U.S. railroads originated 296,599 carloads during the weekended April 17, up 16.1% from the comparable week in 2009, said the AAR. Itnoted, however, that volume was still down 11.6% from the same week in 2008.

 

U.S. intermodal volume in the latest week added up to 209,903trailers and containers, up 14.6% from last year but down 6.3% from 2008.

 

Full story at: http://www.railwayage.com/breaking-news/u.s.-rail-carload-volume-at-highest-level-in-16-months.html

 

--------------------------------------------------------------------------------

On Earth Day, AAR notes rail’s increasing fuel efficiency    

 

The Association of American Railroads Thursday announced that the nation’s freight railroads in 2009 averaged 480 ton-miles to the gallon, up significantly from the benchmark of 426 ton-miles used by AAR, Class I railroads, and freight rail supporters throughout North America in recent month to bolster the mode’s environmental credentials.

 

Ton-miles-per-gallon is the railroad measurement for fuel efficiency, like autos use miles-per-gallon. Overall, freight rail fuel efficiency is up 104% since 1980. In 2009, railroads generated 67% more ton-miles than in 1980, while using less fuel, AAR said.

 

Full story at: http://www.railwayage.com/breaking-news/on-earth-day-aar-notes-rail-s-increasing-fuel-efficiency.html

Rail improvements expected to boost economy

BY KATHIE DICKERSON • Staff Writer • April 24, 2010

 

COSHOCTON -- Stimulus funds awarded for improvements to the state-owned Panhandle Line not only will ensure retention of about 170 jobs at Ohio Central Railroad System, but help businesses along the route remain competitive.

 

The Ohio Rail Development Commission gave Ohio Central the go ahead and released $6.9 million to make the much-needed rail repairs, said Stu Nicholson, public information officer with ORDC.

 

"It's a good investment, certainly since our traffic and business has started to pick back up again after a lean year last year," said Dave Collins, president of Ohio Central Railroad. "We spend a lot of money on the rail, but this will certainly help."

 

Full story at: http://www.zanesvilletimesrecorder.com/article/20100424/NEWS01/4240309/1002/Rail-improvements-expected-to-boost-economy

FedEx Freight May Put Shipments on Rail in Future

William B. Cassidy | Apr 27, 2010 6:12PM GMT

The Journal of Commerce Online - News Story

 

Trucking company FedEx Freight, which has pointedly rejected rail transport in the past, could switch and turn to intermodal in coming years if the price is right and customers want the option.

 

The transportation industry is changing rapidly, and carriers must also be ready to change, Bill Logue told shippers at the NASSTRAC annual meeting this week in Orlando, Fla. "Customers want options," said Logue, president of FedEx Freight.

 

Full story at: http://www.joc.com/trucking/fedex-freight-may-put-shipments-rail-future

Report reinforces freight railroads' 'green' appeal, AAR says

 

Yesterday, the Association of American Railroads (AAR) lauded a report that found about 7,800 “green” U.S. jobs are created for every $1 billion of capital invested in freight rail.

 

Issued by the BlueGreen Alliance and Economic Policy Institute, the report — titled “Full Speed Ahead: Creating Green Jobs Through Freight Rail Expansion” — also determined that freight-rail investments can help reduce carbon emissions and the nation’s dependence on foreign oil. In addition, the report noted that freight railroads reinvest capital four times more than most other U.S. industries. The report’s authors cited standards used by federal and noted labor market analysts to define green jobs.

 

Full story at: http://www.progressiverailroading.com/news/article.asp?id=23209

Study: Freight Rail Investment Creates Green Jobs, Sustainable Economic Growth

4 May 2010

 

FOR IMMEDIATE RELEASE

 

The Nation’s Freight Railroads Now Average 480 Ton-miles-per-gallon

Earth Day Announcement Shows 104 Percent Fuel Efficiency Gains Since 1980

 

WASHINGTON, D.C., May 4, 2010 — The Association of American Railroads today lauded a report that found for every $1 billion of capital investment in freight rail, approximately 7,800 green jobs are created across the U.S. economy. According to a joint report by the BlueGreen Alliance and the Economic Policy Institute titled "Full Speed Ahead: Creating Green Jobs Through Freight Rail Expansion," continued investment in freight rail can create thousands of green jobs, while reducing carbon emissions and our nation’s dependence on foreign oil.

 

"This report affirms the tremendous public benefits that are generated both by freight rail’s inherent fuel efficiency and the industry’s commitment to reinvesting in the nation’s rail network," said AAR President and CEO Edward R. Hamberger.

 

The report noted that freight rail reinvests four times more than most other industries back into building, maintaining and expanding America’s rail network infrastructure, which serves both passenger and freight railroads. These investments ensure rail is a viable alternative mode of transportation that can reduce congestion and improve productivity, thereby significantly reducing energy use and pollution.

 

"Public policy should account for these public returns and supply incentives that will help the industry maintain economic viability while delivering even greater economic and environmental benefits moving forward," the report said.

 

Authors of the report cited standards used by federal and noted labor market analysts that define green jobs. "Freight rail jobs, key to reducing carbon and saving energy in the transportation sector, meet this standard," according to the report.

 

The report was released today at the 2010 Good Jobs, Green Jobs National Conference in Washington, D.C., at an event led by BlueGreen Alliance Executive Director David Foster. Also on hand were representatives of the Sierra Club and Sheet Metal Workers’ International Association. The full report is available here:

 

http://www.bluegreenalliance.org/press_room/private_publications?id=0046

 

 

# # #

 

Contact:

Holly Arthur, [email protected], 202-639-2344

Kelly Schwinghammer, [email protected], 612-466-4483

or Eric Steen, 612-466-4488

 

Buffett’s Railroad Gains on Broadest Industry Growth Since 2004

By Andrew Frye and Betty Liu

 

May 5 (Bloomberg) -- Berkshire Hathaway Inc.’s Burlington Northern Santa Fe, the railroad Warren Buffett bought this year as an “all-in wager” on the U.S., said the economy is growing as the industry posted its first across-the-board increase in freight volumes since 2004.

 

“It’s striking,” Matthew Rose, chief executive officer of the Fort Worth, Texas-based railroad, said in a Bloomberg Television interview on the sidelines of the Berkshire annual meeting in Omaha, Nebraska on May 1. “We’re seeing the economy grow.”

 

Full story at: http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a1q_5RqGmNmA#

Intermodal Transit: A Better Way To Ship

Industrial companies are finding intermodal transportation to be an efficient, cost-saving approach that enhances the supply chain process.

Area Development On-Line

John Bell (Apr/May 10)

 

Intermodal transportation describes the transfer of products involving multiple methods of movement — by railroad, truck, or ship.

 

The Intermodal Association of North America (IANA) reports that 17 million to nearly 23 million containers were transported intermodally each year since 2006. Trucking companies, intermodal marketing companies, ocean steamship lines, and railroads provide a cost-effective, efficient, and environmentally friendly way to move freight from origin to destination. Shipments can move directly from a container ship to a truck or train, then arrive at the final destination. Throughout the process, intermodal facilitators or third-party logistics providers arrange each part of the move, from pick-up to drop-off.

 

The railroad industry has readily adopted intermodal transportation. “We work with a wide range of industries touching every sector of the economy,” says John Lanigan, executive vice president and chief marketing officer of the Burlington Northern Santa Fe (BNSF) railroad. “Intermodal is an integral part of the transportation scene.”

 

Full story at: http://www.areadevelopment.com/logisticsInfrastructure/may10/intermodal-transit-better-way01176.shtml

Another sign of an economic turnaround...

 

Owners Bring 18,000 Railcars Back to Service

John D. Boyd | May 13, 2010 3:04PM GMT

The Journal of Commerce Online - News Story

 

Railroads, shippers and leasing firms activated about 18,000 idled railcars of various cargo types during April, a slowdown from the pace of recent months.

 

The Association of American Railroads said that left an estimated 369,090 freight cars in storage, meaning they have been out of revenue service for at least 60 days.

 

That means 23.8 percent of the total available fleet from all owners was sitting unused for lack of demand on May 1, down from 25 percent a month earlier.

 

Full story at: http://www.joc.com/rail-intermodal/owners-bring-18000-railcars-back-service

Makes you appreciate how large the freight car fleet is!

A not-so-subtle dig at Chicago's tangled rail network in this editorial from a Memphis newspaper...

 

Rail proves its worth

Investing in Memphis railroad facilities has raised the status of the industry in national circles.

Staff Reports

 

Wednesday, May 19, 2010

 

Yes, it can be a pain waiting for the train, but the inconvenience has an upside: Memphis has become the envy of the railroad industry.

 

Memphis boosters have long touted the importance of the city's five Class 1 railroads, its intermodal terminals and shipping in general.

 

It's no accident, they say, that major railroads have invested about $1 billion in intermodal facilities here over the last five years, making Memphis one of the country's top two or three rail-to-truck interchanges.

 

Full story at: http://www.commercialappeal.com/news/2010/may/19/editorials-rail-proves-its-worth/

Giving Intermodal the Green Light

 

By John Patton

 

Manufacturers and retailers know moving freight by rail and using trucks on the origin and destination ends -- a combined service approach called door-to-door intermodal -- can help cut logistics costs. What many shippers don't realize is that, in addition to being a more cost-effective method of transporting goods, intermodal offers significant environmental advantages as well.

 

Full story at: http://www.inboundlogistics.com/articles/3plline/3plline0510.shtml

Cross-posted from....

http://www.urbanohio.com/forum2/index.php/topic,6916.0.html

 

 

Bids Come in $5M High on V&M Rail Work

May 28, 2010 2:29 p.m.

By George Nelson

 

YOUNGSTOWN, Ohio The city likely will rebid railroad relocation and site work related to V&M Star's $650 million mill after bids came in substantially higher than its estimate.

 

Opened Friday afternoon, the four bids ranged from nearly $18.2 million to $18.4 million, more than $5 million above the city's estimate of $13 million.

 

Before determining what course of action to take, the city will review the bids, said Charles Shasho, deputy director of public works. It will also need to speak to V&M officials and the Ohio Department of Transportation. Shasho expressed surprise at the bids.

 

READ MORE AT:

http://business-journal.com/clients/business-journal/bids-come-in-m-high-on-vm-rail-work-p16595.htm?twindow=Default&smenu=1&mad=No

Top Seven Railroads Increase Jobs in April

 

Third straight month for rail employment gains since bottoming in January

John D. Boyd | Jun 2, 2010 9:11PM GMT

The Journal of Commerce Online - News Story

 

The U.S. operations of all seven top-tier North American railroads expanded their workforce in April, the first time that has happened since rail employment bottomed in January.

 

The Class I railroads told the Surface Transportation Board they employed 149,749 workers during the mid-April pay period -- up 1.21 percent from March – which marks three consecutive months that the Class Is have increased their headcounts.

 

The Class I U.S. workforce total for April was up by 4,140 workers or 2.84 percent from January, which was the low point for the recession.

 

Full story at: http://www.joc.com/rail-intermodal/all-top-seven-railroads-increase-jobs-april

AAR weekly report:

U.S. roads' intermodal volume reaches another 18-month high

 

 

U.S. railroads brought May to a close by setting another 18-month high for intermodal volume. During the week ending May 29, they originated 225,111 containers and trailers, up a whopping 35.5 percent compared with volume from the same week last year and 10.3 percent compared with the total from the same week in 2008, according to the Association of American Railroads (AAR). However, the comparative weeks in 2009 and 2008 included Memorial Day.

 

U.S. railroads also originated 286,665 carloads, up 21.9 percent year over year. All 19 carload commodities tracked by the AAR posted gains vs. 2009 totals and three registered increases vs. 2008 levels.

 

Full story at: http://www.progressiverailroading.com/news/article.asp?id=23478

Port of Indiana-Jeffersonville boosts rail volume

 

The Port of Indiana-Jeffersonville recently reported a freight increase through the first five months of 2010.

 

Rail traffic moving in and out of the port soared more than 70 percent, while river barge shipments increased 35 percent.

 

More at: http://www.progressiverailroading.com/news/article.asp?id=23575

The freight railroads are almost back to their pre-recession intermodal traffic levels...

 

Intermodal up 17.7% from '09, closing in on '08

Thursday, June 17, 2010 

 

The Association of American Railroads reports that for the week ended June 12, intermodal traffic on U.S. railroads totaled 223,075 trailers and containers, up 17.7% from last year and down only 2.3% from pre-recession 2008.

 

U.S. carriers originated 288,973 carloads in the latest week, up 10.5% from the comparable week in 2009 but still down still down 10.3% from the same week in 2008.

 

Sixteen of 19 carload commodity groups were up from last year, led by an 88.9% jump in metals. Strong increases were also seen inmetallic ores, 57%; coke, 49.2%; motor vehicles and equipment, 36.5%; and waste and scrap materials, 32.4%. Groups posting decreases included pulp, paper and allied products, down 7.5%; farm products, down 5.1%; and grain mill products, down 0.7%.

 

READ MORE AT:

http://www.railwayage.com/breaking-news/intermodal-loads-up-17.7-from-09-closing-in-on-08.html

So, I don't know if anyone follows the B&O SW or the CincyRails Yahoo group, but the once-forgotten Indiana Sub from Cincinnati towards North Vernon (which had no through traffic) is being completely rehabilitated. New jointed rails, jointed sidings, new ballast, new ties... anyone know what's going on? Many of the sidings, which were full of stored cars, are now being cleared.

 

I wonder if we'll see the new covered CPL signals that CSX now uses. The existing B&O signals are very old and not functional.

Note the last couple of paragraphs and an interesting suggestion for future development officials.....

 

Freight rail key to Atlanta growth; economic spinoff includes jobs

By Shaun Sutner TELEGRAM & GAZETTE STAFF

[email protected]

 

ATLANTA —  This city is built on big business.

 

Worcester officials who toured freight rail yards and met with business leaders last week to assess how big freight yards affect the community want their own piece.

 

If all goes according to plan, Worcester within two years will host New England's largest train and truck freight yard once CSX Corp. — which has four major freight yards in the Atlanta area — doubles the size of its so-called intermodal complex in Worcester.

 

Once named “Terminus” because so many rail lines converged on the city, modern day Atlanta is still a major national transportation hub; it boasts the nation's busiest airport and it is the rail capital of the South, with seven CSX freight main lines.

 

Full story at: http://www.telegram.com/article/20100620/NEWS/6200517/1101&Template=printart

So, I don't know if anyone follows the B&O SW or the CincyRails Yahoo group, but the once-forgotten Indiana Sub from Cincinnati towards North Vernon (which had no through traffic) is being completely rehabilitated. New jointed rails, jointed sidings, new ballast, new ties... anyone know what's going on? Many of the sidings, which were full of stored cars, are now being cleared.

 

I wonder if we'll see the new covered CPL signals that CSX now uses. The existing B&O signals are very old and not functional.

 

Interesting. Keep us posted and send some links!

I've been working the line for the past week. As of Saturday, the former Big Four/PRR (now I&O) line is looking in worse shape with each passing year. Weeds are growing around the tracks, and the ties are not in the best of shape. The crossings are almost all rough. It's the one closest to US 50.

 

The B&O Indiana Sub, now CSX, has been rehabilitated westward towards Anderson Ferry. I can't remember where the track work stopped at. The track realignment between Stoors Yard and Oklahoma is progressing nicely. The new base is all down, and tracks are being installed. It looks like they will be finished with the realignment this year. Then the viaduct in Lower Price Hill can be demolished.

 

Further west, towards Lawrenceburg and Indiana, the tracks are in decent shape. Newer CPL's from CSX have been installed by the Hollywood Casino. The CSX Indiana Sub. still has older B&O lighting west.

 

As a side note, there is a rail trail on part of the old Cincinnati & Lawrenceburg (not to be confused with the Cincinnati, Lawrenceburg and Aurora interurban), which is the line closest to the Ohio River between Lawrenceburg and Aurora. There is one older bridge that has been restored as part of the trail, and one small segment in use to serve a grain silo. Some old remnants here and there, including an older Big Four/PRR overhead lighting bridge that is extremely rusty. I don't think any of the lights work.

Growing Great Lakes ‘mega-region' becoming landmark for nation

by Doug Donnelly , last modified June 26. 2010 11:12PM

 

DUNDEE — Monroe County is in the heart of an emerging "mega-region" of the nation that could someday be the hub for freight moving to and from just about everywhere in the United States.

 

Warren Henry, the vice president of transportation at the Toledo Metropolitan Council of Governments, made a presentation last week to about 50 transportation policy leaders from southeast Michigan and northwest Ohio. He said about $1 billion has been or will be invested in the TMACOG area, making it a vital cog in the mega-region that stretches from Pittsburgh to Detroit to Louisville and St. Louis.

 

There are about 10 of these so-called mega-regions in the country, such metropolitan areas as New York, Long Beach/Los Angeles or Dallas-Fort Worth.

 

READ MORE AT:

http://www.monroenews.com/apps/pbcs.dll/article?AID=/20100627/NEWS01/706279999/-1/news

Railroads to Outpace Truckers in Recovery

Moody’s cites capital spending, ability to meet spikes in demand

Joseph Bonney | Jun 30, 2010 7:20PM GMT

The Journal of Commerce Online

 

U.S. railroads will reap the benefits of the economic recovery more quickly than truckers, Moody’s Investors Service said in a report.

 

“We expect railroad sales growth to outpace growth for truckers into the second half of 2010,” the report said.

 

“U.S. truckers were devastated by the recession, which constrained their ability to invest in new fleet and infrastructure. Consequently, their fleets may be less able to accommodate spikes in demand,” the report said.

 

Full story at: http://www.joc.com/trucking/railroads-outpace-truckers-recovery

AASHTO report: Nation needs to boost freight transportation capacity, dependability

 

The nation’s freight transportation system is facing a crisis that could result in more trucks moving on more congested highways within 20 years, according to a report released last week by the American Association of State Highway and Transportation Officials (AASHTO).

 

Titled “Unlocking Freight, an Analysis of America’s Freight System,” the report states that railroads, highways, ports, waterways and airports require investments well beyond current levels to maintain and improve freight mobility. The report identifies key projects in 30 states that would improve freight delivery and dependability, and outlines a three-point plan for relieving freight congestion, generating jobs and improving productivity.

 

Full story at: http://www.progressiverailroading.com/news/article.asp?id=23797

If you want a good snapshot of the current "state of rail" in Ohio, here's a great link...

 

http://www.aar.org/incongress/railroadsstates.aspx

http://toledoblade.com/apps/pbcs.dll/article?AID=/20100714/NEWS16/7140330

--------------------------------------------------------------------------------

Article published July 14, 2010

 

$9.7M released for South Toledo railyard expansion

By DAVID PATCH

BLADE STAFF WRITER

 

A state agency has given a green signal to a $12.3 million expansion of a Norfolk Southern Railway railyard in South Toledo, a project intended to boost the region's capacity for handling intermodal freight and generate hundreds of transportation-sector jobs.

 

The Ohio Rail Development Commission said Tuesday it had given notice to proceed on the project, thus releasing nearly $9.7 million in state and federal grants and loans to expand and reconfigure the Airline Junction Intermodal Terminal to improve capacity and reduce congestion.

 

Extended tracks, new signals, and new equipment and machinery for the terminal are all part of the plans. The rail development commission said its announcement gives Norfolk Southern the authority to buy construction materials with grant and loan funds.

 

Full story at link above:

Someone needs to give the Toledo Blade writers geography lessons. Airline Yard is more west of Toledo than south.

South Toledo is a specific neighborhood and this is definitely in South Toledo, not West Toledo which is further north.

Then whoever named the neighborhood needs geography lessons!  :-P

Another sign of both a recovering economy and growth in rail traffic...

 

STB: U.S. Class Is add workers in June

 

At 2010’s midpoint, the U.S. Class Is’ traffic uptick was evident in employment figures. As of mid-June, they employed 151,527 workers, up 0.4 percent from May’s total and 1.3 percent from June 2009’s level, according to Surface Transportation Board (STB) employment data.

 

The transportation (train and engine) workforce of 59,641 rose 0.9 percent vs. May’s count and jumped 7.6 percent vs. June 2009’s level. Professional and administrative staff who totaled 13,382 as of mid-June increased 0.6 percent and 0.8 percent on a month-over-month and year-over-year basis, respectively.

 

Full story at: http://www.progressiverailroading.com/news/article.asp?id=23880

FREIGHT Act companion bill enters House

 

The FREIGHT Act now is in the House, too. On July 30, Reps. Albio Sires (D-N.J.), Steve Cohen (D-Tenn.), Laura Richardson (D-Calif.) and Adam Smith (D-Wash.) introduced the Focusing Resources, Economic Investment and Guidance to Help Transportation Act of 2010, or FREIGHT Act (H.R. 5976).

 

A companion measure to the FREIGHT Act (S. 3629) introduced July 22 by Sens. Frank Lautenberg (D-N.J.), Patty Murray (D-Wash.) and Maria Cantwell (D-Wash.), H.R. 5976 proposes to help transform the nation’s transportation policy by directing  more federal investments to the nation’s freight system.

 

The bill also complements freight improvement provisions in the transportation authorization bill introduced last year by House Transportation and Infrastructure Committee Chairman James Oberstar (D-Minn.), according to the Green Transportation Group.

 

Full story at: http://www.progressiverailroading.com/news/article.asp?id=23995

FOR IMMEDIATE RELEASE

 

 

AAR Lauds Senate Freight Rail Infrastructure Capacity Expansion Act of 2010

Bipartisan Bill Recognizes Rail’s Vital Role in U.S. Economy, Global Competitiveness

 

 

WASHINGTON, D.C. – Aug. 6, 2010 – The Association of American Railroads (AAR) today praised the introduction of the Freight Rail Infrastructure Capacity Expansion Act of 2010 (S.3749) by Senators Kent Conrad (D-N.D.) and John Ensign (R-Nev.). This bi-partisan measure is aimed at encouraging private capital investments that can generate tremendous public benefits through expanded rail network capacity needed for moving more people and goods by rail.

 

The bill provides two tax incentives for greater private investment in expanding the nation’s freight rail infrastructure capacity:

 

 

1. a 25 percent tax credit for capacity expansion expenditures on new freight infrastructure, and

 

2. the ability to expense all qualifying rail infrastructure capital expenditures, thereby accelerating the availability of capital necessary to expand capacity.

 

“America has great expectations for our nation’s railroads – to provide not only the vital connection for U.S. business to the global marketplace, but also the underlying network for expanded intercity passenger and high-speed rail,” said AAR President and CEO Edward R. Hamberger. “This bill offers incentives for our highly capital-intensive business, and will ensure freight rail can continue to meet these expectations.”

 

The inherent fuel efficiency and cost-effectiveness of rail has increased the demand to move more people and goods by rail. According to a recent report from the American Association of State Highway and Transportation Officials, the demand for freight will double in the next 40 years – with the demand for rail expected to increase by 38 percent from today’s levels.

 

Unlike trucks, barges and airlines, America's freight railroads operate almost exclusively over infrastructure that they build and maintain with their own private funds. From 1980 to 2009, America's freight railroads invested more than $460 billion — more than 40 cents out of every rail revenue dollar — to maintain and improve their rail network infrastructure and equipment.

 

Railroads will continue to reinvest heavily in the years ahead. However, more rail investment is needed to take full advantage of freight rail’s unparalleled potential to promote economic recovery, provide much-needed jobs, take trucks off the highways, save fuel, and reduce CO2 emissions.

 

The incentives in the bill are available not only to railroads, but also to any taxpayer making such expenditures – including other rail network users such as shippers, trucking companies and ports. Qualifying expenditures can include track, grading, tunnels, signals, train control devices, locomotives, bridges, yards, terminals and intermodal transfer and transload facilities.

 

The bill is a companion to H.R. 1806, introduced last year by U.S. Rep. Kendrick Meek (D-Fla.), which today has more than 100 cosponsors in the House. For more information on freight rail capacity investments, please visit www.aar.org.

 

Interesting story about railroad jobs.  Most furloughed railroad workers have now been called back and the railroads are once again hiring....

 

Region's railroads have job openings

Representatives for both Norfolk Southern and for a CSX union say increased traffic has spurred hiring.

By Duncan Adams

Roanoke Times

 

Norfolk Southern Corp. might want you.

 

If you qualify.

 

The railroad company had 51 openings in Roanoke for hourly jobs as of Friday, and was seeking conductors, machinists, boilermakers, pipe fitters and more. These union jobs typically pay a higher wage than many other hourly positions in the region.

 

The hiring reflects increases in freight traffic and "a strengthening in the economy," said Robin Chapman, a spokesman for Norfolk-based Norfolk Southern. He said no hourly workers remain on furlough in Roanoke, whose historical course has traveled steel rails.

 

Full story at: http://www.roanoke.com/news/roanoke/wb/256191

 

Rail employment to rise in Iowa

Des Moines Register

 

Union Pacific Railroad chief executive Jim Young said the Omaha-based carrier, the largest in Iowa, is bringing furloughed employees back to the fulltime workforce.

 

Young said the number of furloughed workers system-wide at UP has been reduced from 5,300 a year ago, about ten percent of the total workforce, to about 2,000 this year.

 

“We’ll be bringing back more as time goes along,” Young said in a visit to Des Moines. UP has 1,640 workers in Iowa.

 

The furloughs last year were caused by a slowdown in UP’s business, which Young attributed to the fact that “railroads are a perfect economic indicator.”

 

Full story at: http://blogs.desmoinesregister.com/dmr/index.php/2010/08/06/rail-employment-to-rise-in-iowa/

There is a big push on by the trucking industry in ohio and nationwide for heavier trucks.  It's been pretty well established that it could have a huge impact in $$$ due to damage to highways.

 

Heavier trucks may be allowed on Ohio’s roads in bid to help exporters

Business First of Columbus - by Adrian Burns

 

State transportation officials want to allow more trucks exceeding weight limits on Ohio highways, but some believe that’s a bad idea.

 

The Ohio Department of Transportation has proposed a new exception that would allow trucks with sealed containers headed for export to take to the roads at a weight of up to 94,000 pounds, 17.5 percent above the 80,000-pound limit for other tractor trailers. Officials said that would cut costs for manufacturers and farmers sending goods out of the country because it would allow them to top off shipping containers instead of leaving them partially empty to stay within an 80,000-pound limit.

 

“Spreading the shipping cost over more bushels is really the only limiting factor that keeps Ohio from being competitive in the international market,” said Tadd Nicholson, director of government affairs for the Ohio Corn Growers Association, which worked with other agricultural groups to lobby for the permits.

 

Full story at:

 

http://columbus.bizjournals.com/columbus/stories/2010/08/16/story1.html?b=1281931200^3795041

Does anyone have a link to the still-recent ODOT report showing how much trucks underpay (er, receive subsidy) their cost responsibility to maintain highways in comparison to the damage they do to them? I believe the figure was $55 million per year, but please correct me if that's incorrect.

Heavier trucks should pay exponentially higher fees.  Not only do they significantly increase road wear, they're more dangerous.  They will stop slower and further outweigh passenger vehicles.

Train crews called back as traffic increases    

Friday, August 20, 2010 

 

The U.S. Class I railroad workforce grew to 153,046 in July, up 1.76% from July 2009 and 1% from June 2010. But those figures do not reflect the extent of railroad traffic growth, which on a revenue ton-mile basis was up 6.4% in this year’s first six months.

 

Full story at: http://www.railwayage.com/breaking-news/train-crews-called-back-as-traffic-increases.html

The Economist had a great article recently on US rail freight being the envy of the world. I'll try to find it sometime.

I thought it was a lousy article because it argued that freight rail would be hurt by the expansion of passenger rail. That's a view that dominated from the 1960s up until the mid-1990s.

 

Most of the freight railroads don't have that view anymore. So you know what was the most ironic part of the Economist article?

 

No freight railroad officials (or even their industry group the Association of American Railroads) were interviewed for it!! So how did the Economist come to that conclusion?!?!?!

I thought it was a lousy article because it argued that freight rail would be hurt by the expansion of passenger rail. That's a view that dominated from the 1960s up until the mid-1990s.

 

Most of the freight railroads don't have that view anymore. So you know what was the most ironic part of the Economist article?

 

No freight railroad officials (or even their industry group the Association of American Railroads) were interviewed for it!! So how did the Economist come to that conclusion?!?!?!

I was referencing the facts and figures behind the piece that showed how well freight rail has worked out.  It's take on passenger rail wasn't anti-, just a warning that freight rail could be impacted negatively if done incorrectly.

 

Here's the piece: http://www.economist.com/node/16636101

CSX site to create thousands of jobs        

Written by By PETER KUEBECK Sentinel Staff Writer   

Friday, 20 August 2010 09:15 

 

PERRYSBURG - The Northwest Ohio Intermodal Terminal in North Baltimore will feature impressive technology and is slated to help create thousands of jobs, according to Peter Craig, terminal superintendent with CSX Intermodal Terminals Inc.

 

He spoke at the August luncheon meeting of the Perrysburg Area Chamber of Commerce held Wednesday at the Carranor Hunt and Polo Club.

 

Craig described the $175 million facility as the "cornerstone" of the National Gateway, a public-private partnership noted on its Web site as "a double stack cleared, state-of-the-art rail corridor linking the East Coast's international deepwater ports and major consumption markets with the population and manufacturing centers of the Midwest." Work began on the project in 2009, and 210,000 man-hours have been expended on it thus far.

 

Full story at: http://www.sent-trib.com/trib/index.php?option=com_content&view=article&id=18687:csx-site-to-create-thousands-of-jobs&catid=1:fp&Itemid=115

 

BTW: CSX estimates the gateway will create $22 in benefits for each public dollar spent on the overall National Gateway Project.

 

http://www.progressiverailroading.com/news/article.asp?id=24166

Two from yesterdiddy...

 

Intermodal continues leading freight rebound: AAR  

Thursday, August 26, 2010 

 

The Association of American Railroads said Thursday U.S. rail intermodal volume for the week ending Aug. 21, 2010 set a new 2010 record for the second consecutive week, up 22.4% from the same week in 2009, and up 2.6% compared with 2008.

 

AAR also noted weekly container volume, a subset of intermodal, was the highest on record, also for the second consecutive week, up 24.2% compared with the same week in 2009, and up 11.5% with the same week in 2008. Trailer volume, the other intermodal subset, rose 12.4% compared with the same week in 2009, but was down 30.5% from the comparable 2008 period.

 

READ MORE AT:

http://www.railwayage.com/breaking-news/intermodal-continues-leading-freight-rebound-aar.html

 

 

 

And if any of you wonder why freight railroads need public investment too, it's because they don't earn enough revenue to leverage private investment only. The STB says railroads need to have a ROI of at least 11.5 percent...

 

BNSF, UP post double-digit returns on investment

Thursday, August 26, 2010 

 

Recovering from the worst business downturn in nearly 80 years, U.S. Class I railroads earned an average rate of return on net investment of 9.60% in the 12 months ended June 30, 2010, compared with a year-ago ROI of 9.47%.

 

The nation's two largest railroads had returns in the low double-digits. BNSF Railway earned 10.25% vs.10.20% a year ago, closely followed by Union Pacific, with a return of 10.02% compared with 9.15% in the prior 12-month period.

 

...Norfolk Southern earned an ROI of 9.44% in the latest 12-month period vs. 10.89% a year ago; CSX earned 8.54% vs. 8.59%; Kansas City Southern earned 8.43% vs. 6.79%; and Grand Trunk Western, 7.84% vs. 7.39%.

 

READ MORE AT:

http://www.railwayage.com/breaking-news/bnsf-up-post-double-digit-returns-on-investment.html

AAR's Rail Time Indicators report: U.S. carloads, intermodal loads climbed in August

 

In August, U.S. rail carloads rose 5.7 percent compared with August 2009’s total but declined 11.6 percent compared with August 2008’s level, according to the Association of American Railroads’ (AAR) Rail Time Indicators report for September. August’s weekly average of 294,862 carloads climbed to the highest level since November 2008.

 

Meanwhile, intermodal traffic in August jumped 19.7 percent vs. August 2009 and dipped slightly (by 0.3 percent) vs. August 2008.

 

Full story at: http://www.progressiverailroading.com/news/article.asp?id=24262

Projects will speed rail freight, create jobs

Tracks to be lowered under bridge; spur line to factory fixed

Saturday, September 11, 2010  02:58 AM

By Marla Matzer Rose

 

Two railroad projects approved yesterday promise to enhance central Ohio's ability to move freight, and in one case, directly help create jobs.

 

The Ohio Rail Development Commission agreed to be part of a project lowering CSX tracks under the Front Street bridge in the Arena District. That modification will make it possible for trains carrying double-stacked rail cars to make their way through town.

 

To help fund the project, the rail commission will serve as sponsor for a $750,000 grant that CSX seeks from the Mid-Ohio Regional Planning Commission. CSX has pledged to invest $250,000 of its own in the project.

 

 

Full story at: http://www.dispatch.com/live/content/business/stories/2010/09/11/projects-will-speed-rail-freight-create-jobs.html?sid=101

Kasich in his debate with Strickland mentioned pushing freight rail more and the need for a better "multimodal" transit system.

If he really cared so much about freight rail, he wouldn't oppose the 3C.  The majority of dollars will go into track, signal and other right of way improvements that will benefit the host freight railroads.  He's blowing nothing but a lot of political smoke.