Years ago, I asked them that very question just after a debate. They looked petrified that someone was on to them and insisted they would treat highways the same as rail. of course that never happened, but I loved that "deer in the headlights" look in their eyes.

Quote from the Sunday New York Times article "Buffett Plans To Buy Local / Investing Mostly in the U.S.

 

http://query.nytimes.com/gst/fullpage.html?res=9D04EFD8103FF934A15751C0A9679D8B63&scp=1&sq=warren+buffett&st=nyt

 

Mr. Buffett attributed much of the year's success to his acquisition of Burlington Northern Santa Fe railroad, calling it the highlight of 2010. The $26 billion deal, he said, has increased his company's earnings power by more than 30 percent. But Mr. Buffett also trumpeted the benefits of rail travel beyond profits.

 

''Railroads have major cost and environmental advantages over trucking, their main competitor,'' said Mr. Buffett. ''Our country gains because of reduced greenhouse emissions and a much smaller need for imported oil. When traffic travels by rail, society benefits.''

 

He said that the railroad would need to invest in its infrastructure in order to expand its business, and that Berkshire was ready to spend on that.

 

Warren Buffett isn't the only big-name investor interested in railroads....

 

Money

Gates increases stake in CN Railway

By QMI Agency

 

Last Updated: March 7, 2011 4:28pm

 

MONTREAL - Microsoft founder Bill Gates, the largest shareholder in Canadian National Railway Co., spent $8 million through his investment agency to increase his stake in the rail giant, Gates' firm said in a statement.

 

Cascade Investment, LLC., headquartered in Medford, Ore., bought 111,560 CN shares for amounts ranging in value from $71.54 to $71.89.

 

Read more at: http://www.lfpress.com/money/2011/03/07/17526596.html

For something much closer to home, here is an article about some Ohioans refurbishing an old engine to make it more energy efficient. This engine will only be used to move freight cars around in the Ohio Central yard in Newark, although it could be used along Ohio Central tracks in emergencies, or be on OC locals that go out of the yard for short distances.

http://www.newarkadvocate.com/article/20110308/NEWS01/103080304/Central-Ohio-workers-play-part-future-railroad-technology

AAR: Class I’s to invest $12B in 2011 capital expenditures   

Wednesday, March 09, 2011 

 

Stressing that U.S. Class I railroads have committed “the three highest years of capital expenditure on record, in the middle of the greatest recession since the Great Depression,” Association of American Railroads CEO Ed Hamberger on Wednesday said “the individual freight railroads have have announced that they will spend $12 billion on capital expenditures … in the United States.”

 

The commitment by freight railroads, Hamberger noted, dovetails with President Obama’s call for the private sector to commit to job growth, and also shows the industry “is not just on the sidelines; this industry has been in the game.” Hamberger (pictured at left) said the Class I’s expect to hire up to 10,000 employees in 2011, “and these are good jobs” with salaries higher than the national average.

 

Hamberger, addressing the media on a conference call, said, “We’re doing this with private capital, not taxpayer money,” and added, “the railroads own, maintain, improve—and pay taxes!—on our right of way.” Hamberger said 40 cents of every railroad revenue dollar has been put back into railroad infrastructure during the last 10 years. “As I like to say, we invest so the taxpayer doesn’t have to.”

 

Read more at: http://www.railwayage.com/breaking-news/aar-class-i-s-to-invest-12b-in-2011-capex.html

Here's one reason business is growing for the railroads....demand for steel products is growing....

 

Lorain Tubular Operation receives $100,000 grant to improve rail system

Friday, March 11, 2011

 

By RICHARD PAYERCHIN

[email protected]

 

LORAIN — The expansion at U.S. Steel’s Lorain Tubular Operation will get a boost from Ohio’s rail board.

 

The Ohio Rail Development Commission yesterday approved a grant of $100,000 to rearrange the railroad tracks inside the Lorain steel plant, 2199 East 28th St.

 

The money is part of a project worth $400,000 to improve the transportation of materials within the plant. The rail improvements will straighten and add track to make transportation easier inside.

 

“This basically adds track, but it puts it in a strategic location so it shortens the haul,” said Stu Nicholson, spokesman for the ORDC.

 

Read more at: http://morningjournal.com/articles/2011/03/11/news/doc4d7994b41dcb5387417427.txt

ORDC Commissioners OK Rail Upgrades for Lorain’s U.S. Steel

Plant Expansion and Lancaster to Logan Rail Line

Grant Approved for Historic Dennison Depot Mobility Access

 

Columbus (Thursday, March 10, 2011) – Two track projects that will help support the $93-million expansion of U.S. Steel’s Lorain Tubular Operations (LTO) and help create 90 new jobs and preserve 523 existing jobs have been given the go-ahead by ORDC Commissioners.  The Lorain plant is ramping up to produce pipe needed for natural gas exploration and drilling, most notably in the Marcellus shale fields of Western Pennsylvania and Eastern Ohio.  The ORDC grant of $100,000 will leverage company funds to complete the rail project.

 

The two track projects at the LTO plant site will enable more efficient movement of incoming and outgoing freight car loads, as well as to handle an anticipated increase in demand for steel pipe. The plant currently has rail operations that handle up to 20,000 to 30,000 tons a month, or about 220 to 330 rail cars, of inbound pieces of steel called “rounds” that are processed into seamless pipes.

 

Lorain Mayor Tony Krasienko calls this “great news for the City of Lorain, U.S. Steel and the State of Ohio.  ORDC’s assistance will greatly improve operations at U.S Steel and enable them to grow both business and jobs for an employer that has been a cornerstone of this community since 1903.”

 

On the heels of approving a $150,000 grant for the first of three phases of a major track rehabilitation of the Indiana & Ohio’s Lancaster to Logan rail line at their January meeting, Commissioners accelerated a second phase of the project with $175,000 grant to leverage matching railroad funds for rebuilding this important Southeast Ohio rail line.  The line currently serves 3 rail-dependent shippers that employ 259 people.  This investment in the rail line will help support further investment and expansion of business that could create between 30 and 50 new jobs.

 

The Logan Line project will bring the rail corridor up to Federal Railroad Administration standards for Class II (25 MPH) operations, enabling the line to handle bigger, heavier rail cars and loads and improving reliable service to customers along the line.  Major shippers on the line include Smead Manufacturing (paper products), General Electric (glass tubes) and Keynes Brothers (wheat milling).  Both Smead and GE are making major investments in their facilities.  In addition, Logan area officials are working to bring new business to the rail-connected former Goodyear plant and a 13-acre industrial development site.

 

“Our local rail system is integral to keeping many local businesses competitive and attracting new businesses to our region”, says Fairfield County Economic Development Director Shane Farnsworth.  “We have seen an increase in the use of rail for shipping and receiving and the improvements to the Logan rail line will allow our region to continue to serve the needs of our local businesses.” 

 

Logan-Hocking County Chamber of Commerce Executive Director Bill Rinehart also sees the project as strengthening a tool for attracting new business and jobs.  “I just got back from a renewable energy trade show and 75 to 80 percent of the companies I spoke with asked about how strong our rail system is in Ohio”, says Rinehart.  “A stronger rail line is a tremendous boost for our local economy by making us more attractive to companies like this, as well as giving our existing employers more reliable and cost-effective shipping service at a time when fuel costs are such a big factor.”

 

Commissioners also voted to approve a modification to a grant agreement with Coshocton Ethanol, which is restarting production after an almost 2 year shutdown due to the economy.  The new agreement reduces the annual car-load requirements tied to original 2005 grant for track work and other rail improvements during the construction of the ethanol plant.  Modifying the agreement will facilitate the re-starting of the plant and the re-hiring of 41 employees to full-time jobs.

 

An $18,000 grant was also approved to assist the Dennison Depot Museum in building a ramp and wheelchair lift for easier access for people whose mobility is limited.  This ramp will enable greater access to the Museum’s popular annual “Polar Express” excursions during the Christmas holiday season.  In 2010, the Museum says around 30 passengers in wheelchairs had to be lifted by hand into the rail passenger cars.  The grant will allow the new ramp and lift to be built for the 2011 season.  The Museum says the excursion trains annually bring over $1.2-million dollars into the local economy.

 

Finally, the Commission approved a staff-recommendation for ORDC to assist the Ohio Department of Transportation in purchasing a small portion of right-of-way needed for a highway bridge replacement that is part of the multi-million dollar and multi-state CSX “National Gateway” intermodal corridor project.  The agreement will enable CSX to reimburse the cost of the right-of-way acquisition to ODOT through the ORDC.  The project will replace two bridge crossings at River Crossing Road and Pawnee Roads with a single bridge that will also meet the height requirements for CSX to operate double-stack container trains.

 

 

For more information contact:

Stu Nicholson, ORDC Communications,

at 614-644-0513 or

[email protected]

 

 

 

 

Cross-posted from the V&M thread.....

 

City Could Rebid V&M Rail Work Soon

April 1, 2011 6:39 a.m.

By George Nelson

 

YOUNGSTOWN, Ohio -- The city should be able to rebid the railroad relocation project tied into V&M Star's $650 million expansion project within the next week and a half.

 

The Federal Highway Administration is reviewing the revised specifications for the project, said Chuck Shasho, the city's deputy director of public works. "We're slightly behind schedule to rebid the rail project," he acknowledged.

 

Last May, the city rejected the initial bids for the work, which involves relocating the Norfolk Southern line and constructing marshalling yards and other infrastructure. The bids substantially exceeded estimates, and the scope of the work was altered to be less expensive. The city rejected the subsequent set of bids in November when the Ohio Rail Development Commission concurred with the city's determination that the apparent low bidder had submitted a nonresponsive bid, and two other bidders indicated they might take legal action.

 

READ MORE AT:

http://business-journal.com/city-could-rebid-vm-rail-work-soon-p18880-1.htm

Cross-posted from the Youngstown-Warren steel industry on the rebound thread....

 

Reactivation of the RG Steel integrated steel mill on Warren's south side (formerly Severstal, formerly Warren Consolidated Industries, formerly LTV, formerly Republic Steel!) has meant some good things for local railroad lines in recent days. It means that the Norfolk Southern branch (mix of former Erie-Lackawanna Latimer-North Warren and Pennsylvania RR North Warren-RG Steel) is back in action! Actually, it restarted last year, but went into hiatus during the winter shut-down of Great Lakes shipping. The first trains of the new season started on Saturday, April 2.

 

NS is bringing ore trains south from the Ashtabula docks on the continuously active, former New York Central line to Latimer, then down the branch tracks described previously into RG Steel.

 

And.... (but wait, there's more!) on Saturday, RG Steel took possession of two switcher locomotives from loco-leasing giant LTEX, based nearby in McDonald. To deliver them meant reactivating CSX's Newton Falls-Warren branch, which has been mothballed since the recession forced Severstal's Warren Works to shut down in 2008. The two leased locomotives were hauled to RG Steel from McDonald westward on the old B&O mainline (now CSX's National Gateway Corridor) to Newton Falls (where CSX dumped a sh!tload of cars last week), then northeastward on the Warren branch to RG Steel. How do I know?....

 

I was driving into downtown Warren on US422 on Friday afternoon for a railroad development meeting when I saw the flashers flashing on the CSX branch, next to the vacated Erie-Lackawanna main line and West Market Street. I thought the flashers were malfunctioning until I drove east on Market Street and saw the next crossing's flashers were flashing too. So I pulled up on to where the EL main was to see and photograph this CSX unit pulling the two LTEX leased units...

 

That's good to see. now if we could just resurrect that dormant EL line for Cleveland-Pittsburgh passenger service! :wink:

Another sign of an economy on the rebound.....

 

AAR weekly report:

U.S. railroads rang up most carloads since late 2008

 

To say U.S. railroads has another good traffic week is an understatement. During the week ending April 2, they originated 305,905 carloads, up 5.7 percent — a record gain — compared with volume from the same week last year (which included Good Friday), and the highest carload total since late 2008, according to the Association of American Railroads (AAR). Fifteen of 20 carload commodity groups registered gains.

 

The railroads also originated 234,308 containers and trailers, up 19.4 percent year over year.

 

Read more at:http://www.progressiverailroading.com/prdailynews/news.asp?id=26271

Here's another.......

 

US trucking struggles with diesel prices as railroads snatch market share

13/Apr/2011

 

 

As the US economy continues to recover, freight volumes are showing slow but consistent growth. However, many shippers have expressed concern about the continuing rise in diesel prices. Global oil prices have shot up $20 a barrel in the last three months alone (see Ti Dashboard – Oil Prices). The increases can be attributed to numerous reasons, but most notably to the political and civil unrest in the Middle East and North Africa. The recent earthquake and tsunami in Japan also has the potential to lead to further price hikes as well. This jump in oil rates could likely hinder economic growth and increase operating costs for transportation providers.

 

In what promises to be a banner year for the US trucking industry, increases in diesel prices may stall anticipated growth rates within the industry. After slashing capacity during the 2009 economic downturn, the industry is now raising rates from 3% - 5% to improve margins. In order to recoup fuel costs, the industry is also increasing fuel surcharges which currently average 30% of net charges.

 

In 2010, the trucking industry spent an estimated $101.5bn on diesel fuel, a 28% increase over the previous year. Before the current spike in crude oil prices, the American Trucking Association (ATA) estimated that in 2011, carriers will spend about $20bn more at the pump than they did in 2010.

 

READ MORE AT:

http://www.transportintelligence.com/briefs-feeds/us-trucking-struggles-with-diesel-prices-as-railroads-snatch-market-share/2070/

Proof that this Cleveland-area shortline freight railroad has hit the BIG TIME:  it has its own Facebook page!

 

http://www.facebook.com/pages/Cleveland-Commercial-Railroad/154668174543894

Canadian Pacific operates in Ohio on several routes owned by other railroads....

 

CPR seeks 1,500 hires as shipping 'ramps up'

Edmonton-Red Deer in line for 100 jobs

BY DAVE COOPER, WITH FILES FROM THE CALGARY HERALD APRIL 20, 2011

 

If you love the outdoors and have always wanted to hit the rails, Canadian Pacific may have a job for you.

 

Canada's iconic railway hopes to hire about 1,500 future conductors, locomotive engineers, railcar and diesel mechanics and rail traffic controllers across Canada this spring. Some 300 of those jobs will be in Alberta, including about 100 in the Edmonton-to-Red Deer region.

 

"We are responding to the shipping needs of our customers, and are ramping up resources across our network," spokesman Ed Greenberg said.

 

The hiring push comes after 1,500 workers laid off in the recession of 2009 returned to work in 2010.

 

READ MORE AT:

http://www.edmontonjournal.com/seeks+hires+shipping+ramps/4645188/story.html

FYI: Progressive Railroading is conducting an on-line poll on the question of allowing states to increase truck weights from 80,000 lbs. to 97,000 lbs.  This poll isn’t scientific, but the National Industrial Transportation League (NITL), a vocal supporter of heavier trucks, has notified its membership to vote in support of the heavy truck proposal by voting in this PR poll.  I am asking you to also vote in the poll, but to DISAGREE with the proposition.  The link to the poll is included below.

 

Voting is at http://www.progressiverailroading.com/

 

Please vote by the end of the day Monday April 25. Thanks!

 

# # #

Bill Gates Ups Investment IN Canadian National Railroad

Becomes Largest Shareholder

 

read more at: http://www.theglobeandmail.com/report-on-business/bill-gates-largest-shareholder-in-canadian-national/article1997052/

R.J. Corman's short-line trains chug into the future

By Amy Wilson, Lexington Herald Leader, May 9, 2011

 

ABOARD A HELICOPTER BETWEEN LEXINGTON AND LOUISVILLE — Rick Corman was making his second pass, maneuvering his helicopter about 300 feet above Interstate 64 so he could get an even better look at a long, red train filled with cargo on an overpass near Frankfort.

 

On what seemed to be the only cloudless day in all of April, the train gleamed under the shimmering sun.

 

Corman, founder and owner of the Nicholasville-based R.J. Corman Railroad Group, liked what he saw.

Great story. Thanks!

I'll post more about RJ Corman - one of my favorite short-lines in the states. Has done fantastic reconstruction work on lines damaged by Hurricane Katrina - bringing some tracks back up to speed in a matter of days, not weeks. They are also keeping many lines active and booming - what CSX or NS would have otherwise discarded and thrown away. Now if they can only revive the NS Portsmouth Sub. from Claire/Cincinnati east to Portsmouth, where there are plenty of customers but a lack of initiative by NS...

That's what I like about short-lines. They'll knock on doors to generate business whereas the Class 1 wait for you to call them. And unless you can generate a train-load of business for them to do a hook-and-haul, chances are the Class 1s won't be interested.

 

In fact, I forwarded your article on to some friends at a short-line who I'm trying to interest in reactivating a rail line to serve some sand/gravel pits. They are interested, but it would be a big project for them. So anything that can motivate them or reassure them that it's doable will be helpful, including that article.

MAY 23, 2011.

The Future of Rail

By DANIEL MACHALABA

for the Wall Street Journal

 

What is in store for U.S. freight railroads?

 

Once a dying industry, railroads have made a strong comeback and are poised to become busier places in the years ahead. Forecasts for freight growth are substantial, prompting railroads to plan capacity additions. At the same time, the federal government is looking to railroads to handle more and faster passenger trains and install an extensive anticollision system known as positive train control.

 

The Wall Street Journal recently held an email discussion about the future of rail with panelists from the private and public sides of the business. Participating were Jim McClellan, vice president of railroad consulting firm Woodside Consulting in Virginia Beach, Va.; Bill Rennicke, a consultant at Oliver Wyman Group in Boston; Francis P. Mulvey, a commissioner of the Surface Transportation Board in Washington; and Joseph C. Szabo, head of the Federal Railroad Administration in Washington. Here are edited excerpts of the conversation:

 

Read moe at: http://online.wsj.com/article/SB10001424052748703834804576301230350030512.html?KEYWORDS=staggers

Train crew numbers continue to rise

Friday, June 17, 2011

 

A steady increase in carload and intermodal traffic means an increased need for train crews, and employment numbers released Thursday by the Surface Transportation Board underscore the connection.

 

Transportation (train and engine) employment rose to 63,078 in mid-May, up 6.67% from a year ago and 0.33% higher than in April this year.

 

Total U.S. Class I railroad employment increased to 157,522 in May, up 4.38% from May 2010 and up 0.48% from April 2011.

 

READ MORE AT:

http://www.railwayage.com/breaking-news/train-crew-numbers-continue-to-rise-3236.html

AAR: Freight rail investments support U.S. jobs

Wednesday, June 22, 2011

 

The Association of American Railroads (AAR) on Tuesday told the Surface Transportation Board (STB) that the current rail economic regulatory framework allows freight railroads to sustain billions of dollars in private capital investments in the nation’s rail network each year and support more than 1.2 million jobs throughout the U.S.

 

Testifying at a hearing on freight rail competition regulations, AAR President and CEO Edward R. Hamberger (at left) said today’s rail regulations have created a competitive freight marketplace that encourages private investment in railroads, rather than relying on the federal government to fund the nation’s rail infrastructure.

 

“Freight railroads today spend more than $20 billion in private funds each year to keep our nation’s rail network the envy of the world and American businesses competitive in the global marketplace,” said Hamberger. “These are private investments made by railroads so that taxpayers don’t have to.”

 

READ MORE AT:

http://www.railwayage.com/breaking-news/aar-freight-rail-investments-support-u.s.-jobs-3250.html

Business is booming for railroads to the point where a major training center for railroad jobs is having to  move to larger quarters...

 

Railroad academy eyes relocation to B.G.

Training school currently located in Calif.

Mike Salsbury

 

A private, nonprofit railroad academy might relocate from California to Battle Ground to take advantage of the county’s short-line railroad, Clark County commissioners learned Wednesday.

 

Commissioners were having a work session with railroad coordinator Jon Holladay on the 33-mile Chelatchie Prairie Railroad when Holladay introduced David Rangel, founder of the Modoc Railroad Academy.

 

Rangel said the vocational school, which trains engineers, brakemen and conductors, has grown too big at its current location outside of Sacramento.

 

“We are an elephant in a closet,” Rangel said.

 

He said the school has seven instructors and 24 students at any one time; students take eight-week conductor courses or 20-week engineer courses.

 

Read more at: http://www.columbian.com/news/2011/jul/06/railroad-academy-eyes-relocation-to-bg/

Newark (OH) railroad yard to get major upgrade

5:12 PM, Jul. 12, 2011 

Written by Kent Mallett

 

NEWARK — The Ohio Central Railroad’s Newark yard, which moved through 110,000 car beds of material last year, has received funds for a $2.3 million upgrade of the busy facility.

 

State Rep. Jay Hottinger, R-Newark, announced Monday that the State Controlling Board voted to release $1.5 million from the Ohio Department of Development for a logistics and distribution stimulus loan to the Columbus and Ohio River Rail Road Company, which is part of the Ohio Central system.

 

The railroad will add $650,000 and the Ohio Rail Development Commission expects to add a $150,000 grant for the project, ORDC spokesman Stu Nicholson said.

 

 

Read more at: http://www.newarkadvocate.com/article/20110712/NEWS01/110712008/Newark-railroad-yard-get-major-upgrade?odyssey=nav%7Chead

Don’t Let Freight Economy Run off the Rails

Moderate Public Investment in Freight Rail Industry Will Keep This Job Creator Chugging

By Julia Kantor, Donna Cooper | July 20, 2011

   

Even as the U.S. economy shed more than 3.3 million jobs during 2009 and 2010, railroad employment shot up by 5.2 percent—a trend industry experts expect will continue.

 

That’s why budget cuts recently proposed by the head of the House Transportation and Infrastructure Committee come at an especially bad time. In particular, Rep. John Mica’s (R-FL) proposed elimination of a surface transportation grant program could have dire consequences.

 

Eliminating the $1.5 billion TIGER program (for Transportation Investment Generating Economic Recovery), which has provided a crucial boost to freight rail transportation, threatens the momentum of this job-creating industry at a critical moment for our national economic recovery.

 

Read more at: http://www.americanprogress.org/issues/2011/07/freight_economy.html

Hopefully some of these projects could be implemented. Unfortunately, wherever you see CSX involved, chances are you won't see a financial contribution from them, which means the project is unlikely to advance. I say that because the Vickers Crossing separation in Toledo, and Fourth Main in Cincinnati's Mill Creek valley reportedly were nixed because CSX wasn't interested in contributing to them....

 

http://www.dot.state.oh.us/groups/tft/Appendix%20B/Public%20Investment%20Articles/Ohio%20Choke%20Point%20Study.pdf

Top Railroads Hit Highest Employment Since 2009

John D. Boyd | Jul 22, 2011 7:14PM GMT

The Journal of Commerce Online - News Story

 

Class I railroads added 1,818 workers to their U.S. payrolls from mid-May to mid-June

 

The seven largest freight railroads added 1,818 workers to their U.S. payrolls from mid-May to mid-June, the largest increase this year.

 

In reports compiled by the Surface Transportation Board, all seven Class I carriers said they increased their workforce in that period, bringing the total to 159,340.

 

READ MORE AT: http://www.joc.com/rail-intermodal/top-railroads-hit-highest-employment-2009

Railroads preparing for hike in cargo shipping

They can raise their rates faster than inflation, possibly boosting profits

 

Sunday August 7, 2011 8:18 AM

 

NEW YORK — Railroads girding for North America’s busiest shipping season are being buoyed by pricing power that allows them to raise rates faster than inflation even as the economic recovery cools.

 

Carriers such as Union Pacific and CSX, the biggest publicly traded U.S. railroads, are moving more cargo usually hauled by trucks, blunting the effect of slowing growth in gross domestic product, said Paul Broussard, president of freight-services provider Broussard Logistics in Houston.

 

Read more at: http://www.dispatch.com/content/stories/business/2011/08/07/railroads-preparing-for-hike-in-cargo-shipping.html

 

All aboard! Railroads are hiring

By Erin Golden

WORLD-HERALD STAFF WRITER

 

If there's a good indicator of how things are going for the rail industry, it might be all the new faces showing up at Union Pacific.

 

They belong to dispatchers and engineers, train conductors and signal workers, administrative assistants and diesel mechanics.

 

Just two years ago, the Omaha-based railroad was laying off thousands of workers, taking engines off the tracks and holding off on big projects. Now U.P.'s hiring has picked up to its highest rate since before the recession. The vast majority of the 5,300 workers who were furloughed have been given the chance to return to work. By year's end, the company hopes to have boosted its workforce by an additional 1,500 people.

 

 

Read more at: http://www.omaha.com/article/20110807/NEWS01/308079988/-1

Yes sir, and so is Norfolk Southern. A lot of job openings - this is probably one of the best times to get in!

Economic problems? What economic problems....

 

AAR: U.S. freight traffic makes “modest” gains

Thursday, August 11, 2011

 

U.S. freight carload traffic for the week ending August 6, 2011, was up a “modest” 0.4% compared with the same week last year, the Association of American Railroads reported Thursday. U.S. intermodal volume for the week improved somewhat more, up 1.9%, compared with the same week last year.

 

AAR said 13 of its 20 carload commodity groups posted increases from the comparable week in 2010, led by iron and steel scrap, up 37.6%, metal and products, up 14.2%, and farm products excluding grain, up 13.6%. Groups showing a decrease in weekly traffic included: grain, down 22.5%, and waste and nonferrous scrap, down 14.2%.

 

Canadian freight carload volume for the week advanced 2.3% compared with the same week last year, but intermodal fell 4.3%. Mexican freight carload volume rose 1.6% compared with a year ago, while intermodal charged ahead 23.9%.

 

READ MORE AT:

http://www.railwayage.com/breaking-news/u.s.-freight-traffic-notches-modest-gains-aar-3401.html

 

And........

 

Strong pricing boosts rail earnings

Thursday, August 11, 2011

 

The seven U.S. Class I railroads earned net income totaling $2.76 billion in the second quarter of 2011, up 15.6% from the prior-year quarter, on revenue ton-miles that increased 3.45% to 425.1 billion.

 

In reporting these and other results, the railroads cited strong pricing as a factor.

 

Total railroad operating revenues increased 17.5% to $16.88 billion compared with the second quarter of 2010. Net railway operating income rose 15.4% to $2.93 billion.

 

For the 12-month period that ended June 30, the U. S. Class I's earned total net income of $9.93 billion, an increase of 22.2% over the year-ago period on revenue ton-miles that were up 9.7% to 1.723 trillion. Total operating revenues increased 19.7% to $63.14 billion, and net railway operating income increased 23.% to $10.6 billion.

 

READ MORE AT:

http://www.railwayage.com/breaking-news/strong-pricing-boosts-rail-earnings-3398.html

Analysis: Rails, not pipes, may tame twisted oil market

By Joshua Schneyer

 

NEW YORK | Tue Aug 23, 2011 4:08pm EDT

 

NEW YORK (Reuters) - U.S. crude oil shipments by railroad could help to end gaping price distortions in world oil markets faster than most traders have been expecting.

 

Rail shipments of crude from the landlocked and oversupplied Midwest to refiners in the Gulf Coast appear set to surge next year, to nearly double the volume now flowing in congested pipelines between the regions.

 

The shipments, which were rare until this year, have already grown to around 100,000 barrels per day (bpd) in recent months, industry sources told Reuters. Two rail terminals in St. James, Louisiana are receiving much of the crude, while other sites like Houston are taking additional crude.

 

Read more at: http://www.reuters.com/article/2011/08/23/us-oil-rail-analysis-idUSTRE77M4MJ20110823

Bulk Rail Traffic Hits New 2011 High

John D. Boyd | Aug 25, 2011 6:34PM GMT

The Journal of Commerce Online - News Story

 

Bulk carload traffic at major North American railroads rose 2.8 percent in week ending Aug. 20 from a week earlier, setting a new volume peak for 2011.

 

The large railroads originated 392,743 carloads in the third week of August, a gain of 10,856 from the seven days ending Aug. 13.

 

A big jump in coal traffic led the increase, but carriers also loaded more railcars with automobiles and saw smaller but broad increases across a range of industrial cargoes.

 

Read more at: http://www.joc.com/class-i-railroads/bulk-rail-traffic-hits-new-2011-high

 

Intermodal Rises, Outpaces Year-Ago Volume

John D. Boyd | Aug 25, 2011 6:17PM GMT

The Journal of Commerce Online - News Story

 

Major railroads in the U.S., Canada and Mexico picked up 1.3 percent more intermodal containers and trailers last week than the week previous, for their second-highest total of 2011.

 

The Aug. 20 volume also put box hauls by major railroads 1.8 percent ahead of the same week last year, after year-over-year gains of 1.6 percent in the Aug. 13 week and 1.4 percent for Aug. 6.

 

The Association of American Railroads said the Class I and large regional carriers it tracks loaded 300,194 intermodal units in the week ending Aug. 20, nearly 4,000 loads more than in the second week of this month. That included 265,665 ocean and domestic containers, and 34,529 trailers.

 

Read more at: http://www.joc.com/intermodal-shipping/intermodal-rises-outpaces-year-ago-volume

Ports Open After Irene, Trucks and Rails Resume Service

Light damage seen in early assessment of storm's impact on infrastructure

 

JOC Staff | Aug 29, 2011 1:10PM GMT

The Journal of Commerce Online - News Story

 

Major East Coast ports re-opened Monday and trucking and railroad companies slowly resumed services as they began making a full assessment of damage to transportation operations that took the impact of Hurricane Irene's march up the coast. 

 

The ports of New York-New Jersey, Baltimore, Norfolk, Morehead City and Wilmington reopened after facing winds of up to 88 miles per hour during the weekend, according to Customs and Border Protection.

 

The Virginia Port Authority had four container ships at berth at Norfolk Monday morning and other shipping up the East Coast was returning to normal. "There was plenty of wind and rain but we did not suffer major damage," said VPA spokesman Joe Harris. "The cranes and berths all came through it fine."

 

Read more at: http://www.joc.com/portsterminals/ports-reopen-railways-restart-service-after-irene

Cross-posted from the Marcellus/Utica thread. The reason why is because many of the byproducts of and supplies to a gas cracker plant (or, as is casually referred to in this article, more than one plant!) require vehicular transport, not pipelines. And given the scale of these cracker plants, we're probably talking the need for restoring rail infrastructure. And there are a lot missing railroad pieces in the region, torn out after 30+ years of industrial abandonment....

__________________

 

 

Pa., W.Va., Ohio vie for huge new Shell gas plant

By KEVIN BEGOS Associated Press

Posted: 09/03/2011 09:17:28 AM PDT

 

PITTSBURGH—Big industry may be coming back to the northeast United States.

 

Shell Oil Co. is nearing a decision on where in the Appalachians to build a huge new petrochemical refinery—a project that could bring thousands of construction and production jobs and change the face of the region for decades.

 

The plans are driven by the vast natural gas reserves discovered in the Marcellus Shale, a deep formation that lies beneath New York, Pennsylvania, Ohio, West Virginia and parts of other states.

 

The scale of the multibillion-dollar project is unlike anything seen for decades in the region, said David Hounshell, a professor of technology and social change at Carnegie Mellon University.

 

READ MORE AT:

http://posttrib.suntimes.com/business/7448671-420/radical-shift.html

^That sounds like Ravenna Arsenal should be high on their list.

^That sounds like Ravenna Arsenal should be high on their list.

 

It won't be for two reasons:

 

1. The Ohio National Guard is using most of the arsenal for its Camp Ravenna Training & Logistics Center.

2. I just heard this morning that Shell wants a spot along the Ohio River. Shell also wants this site to be served by two or more  railroad companies to keep shipping rates down.

Wow, is that Shell plant going to get its own thread? It seems like Ohio would be the prohibitive favorite.

Wow, is that Shell plant going to get its own thread? It seems like Ohio would be the prohibitive favorite.

 

We'll see. The plant's location will be announced by the end of the year. I was using Google and Bing to search along the Ohio River for sites that meet Shell's requirements and found two so far -- Browns Island which is in Weirton, WV and the floodplain that hosts the Moundsville, WV golf course. Both are, of course, across the river from Ohio, so if those sites are picked Ohio will plenty of benefit, too.

 

And to bring this back around to the topic of this thread, some rail infrastructure will be needed at these and other locations, including bridges, railyards, servicing facilities and more. And if that "more" includes direct access to the Marcellus/Utica shale industrial service center that Youngstown-Warren are developing, then some trackwork is required in Alliance to re-activate a direct rail link between the Mahoning Valley and the Ohio/WV part of the Ohio Valley.

Good news to hear on that front KJP. I know from an environmental perspective that the Marcellus shale drilling has had adverse impacts on the groundwater but that is for another topic.

Interesting read regarding what can happen when a company has access to only one rail line.

 

http://features.blogs.fortune.cnn.com/2011/09/13/showdown-on-the-railroad/?iid=HP_LN

 

Railroads: Cartel or free market success story?

 

With 90% of U.S. rail freight now controlled by only four companies, shippers claim the giants have unfairly banded together. Unapologetic railroads refuse to back down. An epic battle of business vs. business.

 

From the roof of M&G Polymers' factory in Apple Grove, W.Va., the freight trains on the ground look like children's toys. Several hundred cars wait to be filled with tiny pellets destined to become plastic containers. Every evening, M&G workers send the loaded cars to the main tracks operated by the freight carrier CSX. There they latch onto long trains like dancers joining a conga line. Looking down, the traffic appears seamless -- a quick handoff between producer and transporter.

 

On the ground, though, the relationship is far more fraught.

I could never imagine CSX doing this....

 

BNSF launches website for rail advocates

Tuesday, September 13, 2011

 

BNSF Railway announced Tuesday that it has launched a website—“Friends of BNSF”—that will provide exclusive content to advocates interested in BNSF or freight rail transportation. The URL is https://www.friendsofbnsf.com/.

 

“Friends of BNSF will allow us to keep the community informed about issues that are important to freight rail transportation and its role in the U.S. economy,” said John Ambler, BNSF vice president, Corporate Relations. “Railfans, freight rail advocates, members of communities in which BNSF operates, and of course our employees and retirees are all welcome at Friends of BNSF.”

 

He said those who join the website be able to view “special news articles and videos, explore a one-of-a-kind resource library packed with company information, and download exclusive wallpaper, ringtones, and a screensaver.”

 

READ MORE AT:

http://www.railwayage.com/breaking-news/bnsf-launches-website-for-rail-advocates-3494.html

Opportunity on the rumbling rails

Article by: , Star Tribune

Updated: September 18, 2011 - 7:02 PM

 

It didn't take much to persuade Anthony

Weis to apply for a job on the railroad.

 

"It just seemed like the kind of thing I'd want

to do. I love being outdoors," said Weis, who

works part time at Flying Cloud Airport.

 

Weis became so determined to work for

Canadian Pacific Rail (CP) that he applied for

eight jobs, joined a railroad chat group and

hit the gym. Then, he drove recently from St.

Louis Park to Detroit for a job interview, just

so he could meet the company's recruiters

in person.

 

Last week, he took his railroad physical and

spent some time aboard Engine No. 4510 in

CP's Humboldt Yard in Minneapolis with 40-

year train master Pat Siverling. Now Weis is

waiting to hear if he will be hired. "I think it's

a great opportunity," he said.

 

Read more at: http://www.startribune.com/business/130000873.html?page=all&prepage=1&c=y#continue

High-tech railroads

Columbus benefiting as companies upgrade their facilities, expand capacity and ease connectivity

By  Marla Matzer Rose

The Columbus Dispatch Thursday October 6, 2011 5:18 AM

 

 

Railroads are going high-tech, and central Ohio stands to benefit from the improvements to a mode of transportation more commonly associated with the 19th century.

 

CSX is in the midst of a $59 million upgrade and expansion of its Buckeye Yard intermodal facility on the Far West Side, which connects to the company’s new $175 million National Gateway terminal in North Baltimore, located north of Findlay in northwestern Ohio.

 

Intermodal terminals are designed to transfer goods seamlessly from one transport method to another, in this case, from railway to truck.

 

Work on the Columbus expansion began in late August. It will increase the size of the yard slightly. But more importantly, it will add high-tech, computer-controlled “wide-span” cranes that allow double-decker stacking of containers. The work will be completed by the end of next year.

 

Read more at: http://www.dispatch.com/content/stories/business/2011/10/06/high-tech-railroads.html

Interesting article. Reportedly Ohio coal is getting exported to China and elsewhere, but is being shipped to the East Coast to be loaded on to ships. I was hoping a Great Lakes port could handle it instead. Anyway...

 

 

Seeking a Pacific Northwest Gateway for U.S. Coal

Stacey Schultz in Bellingham, Washington

For National Geographic News

Published October 20, 2011

 

Bellingham, Washington, is admired for its green power purchases, its innovative building efficiency program, and the "buy local" ethos of its bustling Saturday farmers' market.

 

But the fossil energy world now has its eye on this small coastal city just 20 miles (32 kilometers) south of the Canadian border (map).

 

Plans are under way for a $500 million marine terminal that would make Bellingham a gateway to energy-hungry Asia for the U.S. coal industry. As many as 18 new freight trains per day would run back and forth from the Powder River Basin of Wyoming and Montana to carry coal to the new port. The tracks pass just a few hundred yards from the craft and vegetable stands of the Bellingham farmers' market.

 

READ MORE AT:

http://news.nationalgeographic.com/news/energy/2011/10/111020-coal-port-pacific-northwest/

Get ready with rail in the Valley

October 30, 2011

Editorial Board ([email protected]) , Tribune Chronicle | TribToday.com

 

While there are strong indications that the Warren-Youngstown area will enjoy an explosion of manufacturing and other jobs because of the Marcellus and Utica shales, one way to further ensure this robust future would be to invest in rail restoration.

 

The good news pours in frequently and it's difficult to comprehend. Take Carroll County, a mere 40 miles from Trumbull County. Carroll sold the mineral rights to a county park for $1.1 million. One proposal is to use the money to purchase a former resort and lease it to a hotelier because soon there won't be nearly enough houses, apartments, hotels and motels to accommodate all of the workers. Unemployment would virtually cease to exist.

 

....One way to fully capitalize on the economic potential would be to shore up northeast Ohio rail lines, especially what is known as the Ravenna Connector. When industry declined, railroads made cuts. Now that industry is rebounding, gaps in rail corridors and poor track conditions could interfere.

 

The Ravenna Connector is a gap in a rail line critical to link the Mahoning Valley with Cleveland and Lake Erie.

 

READ MORE AT:

http://www.tribtoday.com/page/content.detail/id/563481/Get-ready-with-rail-in-the-Valley.html?nav=5007

Cross-posted from the Cleveland-Pittsburgh rail thread:

 

Here's a presentation on the history of the Ravenna Connection and present/future need for restoring this track connection (aka "The Missing Mile")....

 

RAVENNA CONNECTION PRESENTATION (30 pages):

http://freepdfhosting.com/bc2061f930.pdf

 

 

 

Nov. 3, 2011, 12:01 a.m. EDT

 

Oil aboard! Railroads shipping more Alberta crude

By Bill Mann, MarketWatch

 

PORT TOWNSEND, Wash. (MarketWatch) — Will there be “Stranded oil” in Alberta’s tar sands if the Keystone-XL pipeline isn’t built? That’s what Canada’s Financial Post worries. But an unusual solution is emerging, or at least a partial one: It’s being called a “pipeline on rails.”

 

A year ago, almost no Alberta crude traveled by rail. Now, Canadian railroads can’t find enough cars to ship the gooey stuff. That’s part of the reason Canada’s two biggest railroads, CN (Canadian National Railway) and CP (Canadian Pacific Railway) are wrapping up the year on an upswing. CN’s third-quarter profit climbed 19 percent.

 

Read more at: http://www.marketwatch.com/story/oil-aboard-railroads-shipping-more-alberta-crude-2011-11-03

From the Youngstown-Warren area which is enjoying some of the fastest growth in manufacturing jobs in the United States according to U.S. Bureau of Labor Statistics.....

 

New Development Could Get Rail Lines Back on Track

Last Update: 11/10 7:53 pm

 

We often hear the Valley's location is a key to attracting new economic growth, with experts pointing to the network of highways crisscrossing the area.

 

But those who study the Valley's potential for growth said there's another resource we tend for forget: Rail. While railroad advocates claim there's not enough promotion for the miles of freight line running through the area, others argue it's more a matter of using the assets that have been in service for decades.

 

"That was always there during the time of the steel mills and stayed there, so there's activity in the corridor servicing businesses right now. It's a question of under-utilization rather than not being there," said Dan Mamula, director of the Mahoning River Corridor Initative. "But what drives rail development is demand for rail services. I mean, developers know we have rail. That's what developers do. Site selectors know where the assets are."

 

READ MORE AT:

http://www.wytv.com/content/news/local/story/New-Development-Could-Get-Rail-Lines-Back-on-Track/pRFZ_Zsyv0meRNNa4N-lyA.cspx