Railroad News

2/16/2017    

Rail News: Safety

2/16/2017    

Rail News: People

2/16/2017    

Rail News: Passenger Rail

2/16/2017    

Rail News: Federal Legislation & Regulation

2/16/2017    

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2/16/2017    

Rail News: Short Lines & Regionals

Rail News Home Passenger Rail February 2017 Rail News: Passenger Rail

As part of its modernization efforts, the MBTA will completely replace its Red Line subway fleet.Photo – CRRC MA Corp. — By This email address is being protected from spambots. You need JavaScript enabled to view it., Associate EditorTwo years ago, a series of unforgiving winter storms pummeled the Boston area. In February 2015 alone, a record 64.8 inches of snow blanketed the region.The storms had a devastating effect on the Massachusetts Bay Transportation Authority's (MBTA) commuter-rail system, which reported an average on-time performance rating of 33 percent that month. The agency's locomotives sustained significant damage as they struggled through the snow.While crews worked to dig out the system, the MBTA ran trains on limited schedules and even shut down service entirely on some segments.After the February storms, it took weeks for the agency's commuter-rail service to return to normal. In the wake of the service disruptions, Beverly Scott resigned as the MBTA's general manager, while Massachusetts Gov. Charlie Baker formed a panel to perform a comprehensive review of the agency. He also established a fiscal management and control board to keep closer tabs on the MBTA's finances.The panel's findings painted a bleak picture of the agency, known locally as The T."The catastrophic winter breakdowns were symptomatic of structural problems that require fundamental change in virtually all aspects of the MBTA," the group's report stated.Those problems included ballooning operating expenses, poor customer service and a general lack of accountability. The MBTA also had failed to use available funding to pay for much-needed infrastructure repairs and improvements, according to the report.Since then, however, the MBTA has made progress on several fronts, including boosting on-time performance, cutting costs and modernizing its system. Although more work remains, agency officials and observers say The T is headed in the right direction."We've seen a series of improvements and also different ways of doing business," says Joseph Aiello, chairman of the MBTA's fiscal control board. "The commuter-rail system is not where we want it to be, but it's significantly better than it was when we stepped in."Staying on scheduleAnd indeed, the metrics are trending in the right direction: For 2016, the commuter-rail system's on-time performance came in at 89 percent across all lines. When adjusted for factors beyond the operator's control, such as trespassers, that figure rose to 94 percent.Hiring additional locomotive engineers and conductors has helped improve performance, says David Scorey, general manager of Keolis Commuter Services, which has a contract to operate The T's commuter-rail system. The company brought on 100 more conductors over the past year.Massachusetts Gov. Charlie Baker called for a comprehensive review of the MBTA after severe service disruptions in early 2015.Photo – MBTA

2/15/2017    

Rail News: Passenger Rail

2/15/2017    

Rail News: Passenger Rail

2/15/2017    

Rail News: Passenger Rail

2/15/2017    

Rail News: Canadian Pacific

2/15/2017    

Rail News: Norfolk Southern Railway

2/15/2017    

Rail News: CSX Transportation

Rail News Home CSX Transportation February 2017 Rail News: CSX Transportation

— By This email address is being protected from spambots. You need JavaScript enabled to view it., Associate EditorE. Hunter Harrison last month retired early as president and chief executive officer of Canadian Pacific in an apparent bid to pursue opportunities at other Class Is — CSX's top post presumably chief among them.His departure, which took effect Jan. 31, came five months ahead of schedule.The leadership situation at CP unfolded after Harrison approached the Class I's board to discuss modifications to his employment arrangements that would allow him to explore other opportunities. A special committee then recommended that CP enter a separation agreement with him, officials from the railroad said in a press release.Making the breakThe decision followed negotiations and careful deliberations, as well as the receipt of independent legal advice, CP officials said.As part of the separation agreement, the Class I agreed to a limited waiver of Harrison’s non-competition obligations, while Harrison agreed to forfeit 118 million Canadian dollars worth of benefits and awards.In addition, Harrison agreed to sell all his CP shares by May 31."CP will have no role in Mr. Harrison’s future endeavors," officials from the Class I said in a statement.Those endeavors might include a takeover of CSX’s CEO position. Harrison has partnered with activist investor Paul Hilal’s new investment fund Mantle Ridge LP, which reportedly has raised more than $1 billion to acquire a stake in CSX, according to a Jan. 18 Reuters article.Mantle Ridge is in talks with CSX to install more than three new board members, the news agency reported.Michael Ward — CSX's current CEO — isn't expected to retire until 2019.Harrison's partnership with Mantle Ridge may improve his chances at getting the top job at CSX, according to a report by Benjamin Hartford, a senior research analyst at Robert W. Baird & Co. Inc."We had initially assigned a low probability of Harrison landing at CSX … but the reported involvement of an activist investor clearly increases this likelihood considerably," Hartford wrote in the report.Although Harrison in early 2016 pushed for a plan for CP to acquire Norfolk Southern Railway, joining CSX would be a "more logical" move, Hartford said. That's because NS CEO Jim Squires is "relatively new" in his job, while Michael Ward has been serving as CEO of CSX since January 2003, he added.A strong track recordDuring his time at CP, Harrison helped reduce operating costs and improve profitability — achievements that may be attractive to CSX shareholders, Hartford said.CSX plans to "actively evaluate" Mantle Ridge's views and discuss its earnings-growth strategy with the firm and all shareholders, spokesman Gary Sease said in a statement."CSX Corp. welcomes the views of all of our shareholders and always considers their thoughts on the company’s business and strategy," Sease said.Meanwhile, Keith Creel succeeded Harrison as CEO of CP. Under the previous arrangement, Creel wasn't slated to take the reins until July.Creel served as president and chief operating officer since February 2013. He joined the railroad’s board in May 2015.
Keywords Browse articles on E. Hunter Harrison Canadian Pacific CSX Michael Ward Class I leadership Class I execs Class I CEOs Benjamin Hartford Robert W. Baird & Co. Inc. Baird Contact Progressive Railroading editorial staff.

2/14/2017    

Rail News: Supplier Spotlight

2/14/2017    

Rail News: Passenger Rail

2/14/2017    

Rail News: Passenger Rail

2/14/2017    

Rail News: CSX Transportation

2/14/2017    

Rail News: High-Speed Rail

2/14/2017    

Rail News: Intermodal