Railroad News

The downward trend in U.S. rail traffic continued in Week 19, with railroads reporting 529,263 carloads and intermodal units, down 3.7 percent compared with the same week last year, according to the Association of American Railroads (AAR).

For the week ending May 11, railroads registered 258,641 total carloads, down 3.1 percent, and 270,622 containers and trailers, down 4.3 percent.

Nevada Gov. Steve Sisolak yesterday signed legislation requiring a minimum crew of two people on Class I and II freight trains operating in the state.

Railroads that violate the law will face fines of $5,000 for a first offense, $10,000 for a second offense within three years and $25,000 for a third offense, according to a press release issued by the SMART-TD labor organization.

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Marmon Holdings Inc. announced the acquisition of Transco Railway Products Inc. from Transco Inc. Financial terms were not disclosed. Transco provides rail tank- and freight-car repair and maintenance, auto-rack certification and hopper car cleaning. The company will operate within Marmon’s rail and leasing sector in the rail-car repair service group, according to a Marmon press release. Bob Nelson, Transco's current president, will continue to lead the business.

Alstom will supply 16 six-car, electric Coradia Polyvalent trains to the Bourgogne-Franche-Comte region in France for about $191 million.The region previously ordered 24 four-car electric trains, 18 of which have been delivered, according to an Alstom press release. In a separate announcement, Alstom will deliver five additional Coradia Polyvalent dual-mode regional trains to Region Sud in France for about $36 million.

Rocky Mountaineer founder and owner Peter Armstrong dedicated one of the company’s new bi-level GoldLead Service rail cars to David McLean, chairman emeritus of CN. 

The announcement marks the eighth rail car dedicated by Rocky Mountaineer since 1990 to acknowledge notable people and their contributions to the rail industry. 

The Coalition for America's Gateways & Trade Corridors (CAGTC) is calling on Congress to approve a minimum federal investment of $12 billion annually to support the nation's freight infrastructure through a multimodal competitive grant program.

Experience has shown that grant programs such as the Infrastructure for Rebuilding America (INFRA) and Better Utilizing Investments to Leverage Development (BUILD) spur innovation and creative funding and financing arrangements that leverage the federal dollar, CAGTC officials said in a press release.

The New Orleans Public Belt Railroad Corp. (NOPB), a subsidiary of the Port of New Orleans, has named M.D. "Mike" Stolzman general manager.

Stolzman previously served in leadership roles managing operations, budgets and rail lines during times of change, port and railroad officials said in a press release.

The Southern California Regional Rail Authority (SCRRA) has awarded a $138.9 million contract to a Talgo-SYSTRA joint venture to rebuild 121 Bombardier rail cars used by Metrolink.

The base order is for 50 cars, which will be increased by 71 cars if funding becomes available, according to a Talgo press release.

The Prince Rupert Port Authority earlier this week completed a master plan for expanding container terminal capacity and development at the Port of Prince Rupert in British Columbia, Canada. 

Completed in partnership with AECOM, the plan identifies the long-term potential to develop 6 million to 7 million 20-foot equivalent unit (TEU) capacity by developing multiple terminals at the port, authority officials said in a press release.

Amtrak and New Jersey Transit yesterday announced a joint $31 million investment to improve railroad infrastructure along the Northeast Corridor (NEC) in New Jersey and conduct renewal work throughout spring and summer. 

As part of the investment, Amtrak crews on May 20 will begin a block tie replacement program at Newark Penn Station. Crews will replace 95 feet of ties on Track 1 and 1,100 feet of ties on Track 4. The existing wooden have deteriorated and will be replaced by concrete ties, according to a press release from New Jersey Gov. Phil Murphy's office.

The League of Railway Women (LRW) is calling for nominations of rail industry women to serve on its board for a term that extends from October 2019 to September 2021.

Run by an all volunteer board, the LRW represents women who work for railroads and the rail supply industry.

The Soy Transportation Coalition (STC) and the Panama Canal Authority recently extended their memorandum (MOU) of understanding that calls for joint promotions and information exchanges.

Signed by STC Chairman Mike Bellar and authority Chairman Jorge Quijano, the MOU extends a partnership between the two organizations that serves to raise awareness of the canal's role as a "key link in the agricultural supply chain," according to an STC press release.

The Regional Transportation District of Denver (RTD) will open the 2.3-mile Southeast light-rail extension on May 17. 

An extension of RTD's E, F and R lines, the line will extend service south from Lincoln Station to RidgeGate Station in Lone Tree, Colorado. 

Toronto Transit Commission (TTC) crews earlier this week completed installation of an upgraded automatic train control (ATC) system between St. Patrick and Dupont subway stations, restoring full service on the line ahead of schedule.  

The nine month process to upgrade the section to a modern signaling system included installation of more than 100,000 feet of cables and over 500 trackside components, according to a TTC press release.

The ports of Los Angeles and Long Beach both reported record-breaking cargo volumes last month.

The Port of Los Angeles handled 736,466 20-foot equivalent units (TEUs), the busiest April in the port's history. The volumes reflected a 4.4 percent increase from April 2018's levels and is 3 percent more than the previous April record set in 2017, port officials said in a press release.

A Sound Transit committee met last week to discuss the possible location of a 30-acre operations and maintenance facility to expand light rail farther south, according to a KIRO 7 news report.  

The System Expansion Committee voted unanimously to recommend advancing a former landfill site in Kent, Washington, and two sites in Federal Way to the draft environmental impact statement study phase. The board will take a final vote to confirm the recommendation on May 23, according to the report. 

Last week, hundreds of railroaders, contractors, suppliers and rail shippers visited 350 congressional offices to discuss political issues of concern to the industry during the annual Railroad Day on Capitol Hill.

Among the topics discussed with dozens of U.S. senators, congressmen and congressional staffers included an extension of the short-line tax credit; ratification of a new trade agreement between the United States, Canada and Mexico; opposition to increases in truck size or length; the preservation of balanced economic regulation of the rail industry; and support for comprehensive infrastructure legislation.

The Seven County Infrastructure Coalition's (SCIC) board voted to select Drexel Hamilton Infrastructure Partners LP for a public-private partnership to finance, develop and construct the proposed Uinta Basin Railway in Utah.

The Uinta Basin Railway is a new freight-rail line proposed by SCIC to connect the Uinta Basin to the national rail network and make it possible to economically transport goods in and out of the region, according to the project's website. 

Last month, two western (well, west of the Mississippi) railroads reported above-consensus first-quarter earnings: Kansas City Southern, which grew year over year (YOY) by 18 percent (adjusted, versus Street estimates of around 10 percent); and Union Pacific Railroad, in its weather-dominated quarter, by 15 percent YOY (versus around 12 percent). KCS lowered its operating ratio by 160 basis points (bps) to (adjusted) 64.2, and UP lowered its OR by a point — having absorbed a 160bps weather impact — to 63.6. It was also noted that “at Union Pacific, we do not include real estate sales in our OR.” Zing! But more than the results — it was the differing tones and tenors of the earnings' webcasts that struck me.