Railroad News

Norfolk Southern Corp. will spend $8.2 million to expand its corporate headquarters in Norfolk, Va., as part of a plan to consolidate its corporate offices in Norfolk and Atlanta and close its Roanoke, Va., office building, Virginia Gov. Terry McAuliffe announced late last week.

With the expansion of the NS headquarters, the Class I will add 165 employees to the Norfolk facility, according to a press release issued by McAuliffe's office.

Poor track conditions and maintenance delays led to the May 2014 derailment of a CN train near Fort Frances, Ont., the Transportation Safety Board of Canada announced earlier this week.

The train was traveling from Winnipeg, Manitoba, to Chicago along the Fort Frances Subdivision when it derailed May 23, 2014, according to a TSB press release and the TSB report.

BNSF Railway Co. has rolled out more of its 2016 state-by-state capital expenditure plans, with the latest programs announced for Texas, Illinois and Kansas.

In Texas, BNSF will spend $210 million this year to replace and upgrade rail, rail ties and ballast, BNSF officials said in a press release.

CSX announced yesterday that it would lay off employees and trim costs in Russell, Ky., in response to declining coal volumes, a spokeswoman for the Class I said yesterday.

CSX will lay off 101 union and management employees in the transportation and mechanical departments at the rail yard and mechanical car shop in Russell, Ky., CSX spokeswoman Melanie Cost said in an email. About 430 employees work in Russell.

An agricultural truck hit rail track and shifted it 12 to 14 inches a day before an Amtrak train derailed Monday at the location in southeast Kansas, the National Transportation Safety Board (NTSB) said in a media briefing on the incident yesterday.

The Chicago-bound Amtrak Southwest Chief Train 4 derailed about 125 miles west of Wichita shortly after midnight on Monday, Amtrak officials said. There were 131 passengers and 14 crew members on board. The incident sent 32 people to the hospital.

An Amtrak Southwest Chief train derailed early this morning about 20 miles west of Dodge City, Kan., on track owned and maintained by BNSF Railway Co.

The train, which was carrying 128 passengers and 14 crew members, was traveling from Los Angeles to Chicago, Amtrak officials said in a press release.

Canadian Pacific Railway filed a preliminary proxy statement with the U.S. Securities and Exchange Commission that outlines the shareholder resolution that the railroad wants considered at Norfolk Southern Corp.'s upcoming annual meeting.

The resolution will ask shareholders to approve the resolution that would require the NS board to promptly engage in good faith discussions with CP regarding the Canadian railroad's merger proposal.

Kansas City Southern has promoted Jeffrey Songer from senior vice president engineering and chief transportation officer to executive VP and chief operating officer, the Class I announced yesterday.

In addition to his responsibilities for transportation and engineering, he is now responsible for the mechanical function. Songer reports to KCS President Patrick Ottensmeyer, according to a KCS press release.

BNSF Railway Co. yesterday unveiled a new site certification program aimed at identifying optimal rail-served sites for customer development along the Class I's network.

To develop the program, BNSF drafted a list of candidates and conducted in-depth reviews of 10 economic development criteria to determine if the industrial sites meet the railroad's readiness standards. The standards are intended to minimize development risks customers may face, BNSF officials said in a press release.

The U.S. Environmental Protection Agency (EPA) and U.S. Department of Justice recently reached an agreement with BNSF Railway Co. over oil spill incidents in three states and the railroad's response plans in Colorado, Wyoming, North Dakota and South Dakota, the agencies have announced.

Reached late last month, the agreement resolved alleged violations of the Clean Water Act and the Oil Pollution Act at several locations in the four states, according to an EPA press release.

Paradigm Energy Partners LLC announced yesterday that its Paradigm Midstream Services-ND LLC has finalized an agreement with a private company to construct a new gathering system for crude oil in North Dakota.

Under the proposed agreement, which is secured through an acreage dedication, the 23-mile gathering system will deliver 17,000 acres of production from the Ross Field in northern Mountrail County to Paradigm's joint venture rail terminal in Palermo, N.D., according to a company press release.

Canadian Pacific and the city of Vancouver, British Columbia, have agreed to terms for the railroad's sale of the Arbutus Corridor to the city for $55 million.

CP has been talking with city officials for many years about the corridor's future, said CP President and Chief Operating Officer Keith Creel in a press release.

Union Pacific Railroad employees set an all-time reportable personal injury rate record in 2015, improving 11 percent from 2014 to 0.87, UP announced today.

The injury rate makes UP the safest Class I in the United States based on Federal Railroad Administration (FRA) data, according to a UP press release.

Canadian Pacific is considering all of its legal options in response to major U.S. railroads that have publicly stated their opposition to its proposed takeover of Norfolk Southern Corp., CP announced Wednesday.

Other Class I railroads are working collectively to block CP's effort to "create a pro-customer, competition-enhancing combination" with NS, CP officials said in a prepared statement.

CSX has appointed three new engineering leaders following the announcement that Vice President-Engineering John West will retire April 1, the Class I announced yesterday.

Ricky Johnson has been named VP-engineering as of April 1; Greg Mellish, formerly chief engineer of maintenance of way (MOW) south, has moved into the role of chief engineer MOW north; Lee Moss, most recently serving as assistant chief engineer, has been appointed chief engineer MOW south; and Eric Pachman, previously director of network modeling and analytics, has been named assistant chief engineer, according to a CSX press release.

Canadian Pacific has petitioned the U.S. Surface Transportation Board (STB) for a declaratory order that would confirm the voting trust structure the railroad has proposed as part of its attempt to acquire Norfolk Southern Corp., CP officials announced yesterday.

The Class I filed the petition in response to CP and NS shareholder requests that the STB clarify its views on the voting trust model ahead of any formal application that CP would file, said CP Chief Executive Officer E. Hunter Harrison in a press release.

The derailment of a CSX crude-oil train two years ago in Lynchburg, Va., was likely the result of a broken rail caused by a reverse detail fracture with evidence of rolling contact fatigue, the National Transportation Safety Board (NTSB) concluded in its accident report issued yesterday.

The train derailed April 30, 2014, sending three of the 17 derailed cars into the James River. One car was breached and released 29,868 gallons of crude oil into the river, some of which caught fire, according to the report.

Norfolk Southern Corp. announced yesterday that it would consolidate from three operating regions into two segments as part of a previously announced five-year strategic plan to cut $650 million from annual expenses by 2020.

The consolidation, which will take effect March 15, will make the Class I a faster and more profitable railroad, said Executive Vice President and Chief Operating Officer Mike Wheeler in a press release.

David Garza, chairman and chief executive officer of Maquinaria Diesel SA de CV (MADISA), has been elected to serve on Kansas City Southern's board, the railroad announced yesterday.

Garza was chosen to join the board after a thorough search process that lasted throughout 2015, said KCS Chairman Robert Druten in a press release.

Canadian Pacific has received more than 80 letters from shippers in support of its proposed takeover of Norfolk Southern Corp., CP announced yesterday.

Sixty-two of the letters have been posted on the Surface Transportation Board (STB) website. The total number of letters to shippers in support of the proposed merger is now more than three for every one shipper letter in opposition, CP officials said in a prepared statement.