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May
08

Metrolinx, IO sign Mosaic Transit to build Finch West light-rail project

Metrolinx and Infrastructure Ontario have signed a CA$2.5 billion contract with Mosaic Transit Group to design, build, finance and maintain the Finch West light-rail project in Toronto.

The contract reflects payments during construction, along with a "substantial completion payment" and monthly service payments during the 30-year maintenance period, IO officials said in a press release.

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May
08

BNSF posts 37 percent gain in Q1 net income

BNSF Railway Co. reported first-quarter 2018 total revenue rose 8 percent to $5.6 billion from $5.2 billion a year ago as a result of a 5 percent increase in unit volume.

First-quarter net income net income soared 37 percent to $1.1 billion from $838 million a year ago, while operating income climbed 11 percent to $1.7 billion from $1.6 billion, BNSF reported in a press release.

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May
07

BLET, CN-IC reach tentative contract

Rail News Home Canadian National Railway - CN 5/7/2018 Rail News: Canadian National Railway - CN
The Brotherhood of Locomotive Engineers and Trainmen (BLET) has reached a tentative contract agreement with CN's former Illinois Central property, union officials announced last week.Ballots, due May 30, have been mailed to BLET members employed by CN-IC who are eligible to vote, according to a BLET press release.The tentative pact governs rates of pay and work rules for 600 BLET members who work in the locomotive engineers' craft. In 1998, CN absorbed the Illinois Central Railroad in a $2.4 billion merger. CN-IC's major north-south route connects Chicago with New Orleans and Mobile, Alabama.

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May
07

LA Metro unveils 2028 mobility plan

Rail News Home Passenger Rail 5/7/2018 Rail News: Passenger Rail
The plan includes improvements to Metro's state-of-good-repair program to help reduce rail and bus service disruptions.Photo – LA Metro

The Los Angeles County Metropolitan Transportation Authority (Metro) has released its Metro Vision 2028 plan, which outlines steps to improve local mobility and quality of life over the next decade.

The plan includes improvements to Metro's state-of-good-repair program to help reduce rail and bus service disruptions. Over the next decade, the agency aims to build a "state-of-the-art, condition-based asset management practice" for maintaining mission-critical assets and upgrading to current technologies, Metro officials wrote in the plan.

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May
07

OSHA solicits input on rail, trucking whistleblower laws

The U.S. Occupational Safety and Health Administration (OSHA) has scheduled a meeting June 12 in Washington, D.C., to solicit input from stakeholders in the railroad and trucking industries on whistleblower issues.

OSHA is looking for comments and suggestions on how it can better deliver "whistleblower customer service," as well as assistance it can provide to better explain the whistleblower laws it enforces. The meeting will be the first in a series requesting public input on the whistleblower program, OSHA officials said in a press release.

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May
07

PATH on track to meet PTC deadline

Rail News Home Positive Train Control 5/7/2018 Rail News: Positive Train Control
PTC is a key part of PATH's comprehensive automatic train control system.Photo – PATH's Twitter account

Port Authority Trans-Hudson (PATH) this month will begin weekend tunnel and station closures to finish installing and testing positive train control (PTC) equipment and software.

The closures will begin May 19 and resume July 7 through October's end. PATH conducted a similar weekend closure program during 2016's second half for the first phase of PTC implementation, which involved equipment and signal installation.

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May
07

Librera named head of NYCT's subways department

Sally Librera has been appointed to lead MTA New York City Transit's (NYCT) department of subways.

She will oversee the development and delivery of a long-term strategy to modernize the system, NYCT officials said in a press release.

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May
07

NTSB issues initial report on fatality at LIRR station

Rail News Home Federal Legislation & Regulation 5/7/2018 Rail News: Federal Legislation & Regulation
The NTSB is conducting a limited investigation of the accident, which resulted in a fatality.Photo – ntsb.gov

The National Transportation Safety Board (NTSB) is investigating a passenger fatality last month involving an MTA Long Island Rail Road (LIRR) train at the station platform in Lynbrook, New York.

The NTSB late last week issued a preliminary report of the April 5 incident, in which a passenger on the platform came into contact with the side of the train, fell and died as the train was leaving the station.

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May
07

Railroad earnings Q1 2018: Curious & curiouser — by Tony Hatch

Rail News Home Financials May 2018 Rail News: Financials

Tony Hatch is an independent transportation analyst and consultant, and a program consultant for Progressive Railroading’s RailTrends® conference.
By This email address is being protected from spambots. You need JavaScript enabled to view it.Who’da thunk it? Despite railroads' well-publicized service issues, their first-quarter earnings matched a strong market’s 20 percent year-over-year (YOY) gain. While the major railroads didn’t hit the broader market’s 80 percent rate of beating consensus estimates, they came so close (4-1-1 so far). And — curiously — it was those with the most famous service issues (CSX) or the most inexplicable ones (Union Pacific and, especially, Norfolk Southern) that were the leaders in “beating the Street” earnings estimates. It’s enough to make one wonder: Is the high (operating and capital) cost of service even worth it? Ah, but that’s a short-term answer — for while we know some of the operating costs from congestion (some $43 million for UP and up to $52 million for NS), only one railway system (Genesee & Wyoming) attempted to assess the cost of equipment slowdown on the volume side ... and no one has attempted to analyze the opportunity (and reputational) cost at a time of true share gain prospects.Service versus earnings? Let’s set CSX aside for a moment — CSX essentially has declared that its “apology tour” is o-v-e-r, and in fact is supporting its 53 percent YOY earnings increase; and its 500 basis point (bps) reduction in the operating ratio (OR) to Group Best (let that sink in) by far. CSX also was the only major railroad to report an increase (only 4 percent but still, an increase) in velocity. NS, playing the Joker in this movie, showed the second-best earnings jump (31 percent) and OR reduction (130bps), but the worst system velocity: -16 percent, a point worse than the much-lamented CN! Yet, NS still showed a 3 percent volume gain, led by domestic intermodal, the most service-sensitive commodity of all! Overall, with that 20 percent average earnings gain, a flattish OR and 3 percent volume gains came despite a 6 percent decline in network velocity (for simplification reasons, and because the service issues are ones of fluidity, I am using “velocity” as a service proxy — all of the metrics deteriorated).Why did this happen? That’s the 15 percent to 23 percent question (the numbers being the range in percent of revenues dedicated to capex by the major rails). One carrier essentially said it was due to OR obsession; the recent reduction in non-PTC capex must have played a role (and the benefits of the tax cut seem to be mostly going to more share buybacks). For CSX, it was self-imposed (Precision Scheduled Railroading) and mostly over. For CN, it was extreme growth last year ... which points to the evergreen problem of demand planning. But for the others? Who knows? Intermodal growth and spending on crews/training, power and rolling stock and network “pinch points” all combine to show the way out, but I would be more confident if I knew what led to the problems in the first place.There is almost too much demand — for the current network conditions. But network conditions are improving. Will it be in time? All of the rails point to improving conditions over the next three quarters. The driver shortage and highway congestion, combined with steady but broad economic growth, have combined to create one of the best share opportunities in years or even decades — even as service sensitive business takes up a higher percentage of rail revenues and that of the overall economy (Amazon has now passed UPS as the leading intermodal shipper on some rails). This is the time for rails to make a stair-step forward in share and reputation, with the side effects of pushing back political and regulatory threats. The downside is not only the biggest lost opportunity in a generation (with technology threats in on the horizon and trade issues unresolved), but increased political/regulatory threats, likely starting with truck size and weight. The race is on.

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May
07

Rail expansion slated for crude-oil transload facility

Rail News Home Intermodal 5/7/2018 Rail News: Intermodal
BNSF Railway Co. serves the transload facility.Photo – bnsf.com

Murex LLC and Cetane Energy LLC have agreed to a major capacity expansion of a crude-oil transloading facility in Carlsbad, New Mexico.

Expected to be completed in the third quarter, the expansion will include a 100,000-barrel tank, additional lease automated custody transfer units for offloading trucks and expansion of the existing rail-car loading rack, Murex and Cetane officials said in a press release.

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May
07

Amtrak, Texas Central OK ticketing agreement

Amtrak and high-speed rail developer Texas Central have reached an agreement that will enable passengers to use Amtrak's reservation system to buy tickets for the future Dallas-to-Houston bullet train.

The "through-ticketing" option is aimed at facilitating transfers between the high-speed route and Amtrak stations in the area, Texas Central officials said in a press release.

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May
04

Tensar hosts U.S. Rep. Scott for plant tour

U.S. Rep. David Scott (D-Ga.) earlier this week joined representatives of Tensar International Corp., Genesee and Wyoming Inc., and other transportation stakeholders for a tour, product demonstration and transportation policy discussion at Tensar's plant in Morrow, Georgia.

Tensar Chief Executive Officer Mike Lawrence and Executive Vice President Global Operations Mark Koepsel led the tour of the company's production and research and development facility, which is located close to the Atlanta Hartsfield-Jackson Airport.

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May
04

Rail supplier news from Railinc, FreightCar America, ARI, Koppers and CIT Group (May 4)

Railinc Corp. has joined the Blockchain in Transport Alliance (BiTA), a consortium of more than 250 transportation and logistics companies aiming to create a forum for the development of blockchain technology standards and education. Blockchain is a digital ledger technology capable of recording transactions and storing data in blocks across a distributed network. The technology "presents interesting opportunities for the freight-rail industry," said Railinc President and Chief Executive Officer Allen West in a press release. BiTA was formed in 2017. BNSF Railway Co. and Kansas City Southern recently became the first Class Is to join BiTA.

FreightCar America Inc. reported a first-quarter 2018 net loss of $6.4 million compared to net income of $600,000, or 5 cents per diluted share, in Q1 2017. Revenue in the quarter fell to $83 million from $140 million a year ago. FreightCar America delivered 1,094 rail cars in Q1 2018 compared with 1,525 rail cars Q1 2017. Although challenging industry dynamics "continue to put pressure on pricing," the company continues to focus on areas it can control, said President and CEO Jim Meyer in a press release. That includes implementation of its "back-to-basics" operational excellence program that began in Q4 2017. The company also is observing increased demand for rebuild capabilities as it relates to coal-car conversions, Meyer said.

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May
04

NYCT inks contract for paint, repair work along Flushing Line

Rail News Home Maintenance Of Way 5/4/2018 Rail News: Maintenance Of Way
The Flushing Line carries NYCT 7 route trains.Photo – MTA

MTA New York City Transit (NYCT) has awarded a $45 million contract to Ahern Painting Contractors Inc. to perform structural steel repair work and overcoat painting along a segment of the Flushing Line in Queens.

The work, which will take place between 72nd and 104 streets, involves the capture and removal of paint, dirt, grease and grime from the elevated structure, NYCT officials said in a press release. That will be followed by painting of all structural steel surfaces.

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May
04

Ohio panel OKs grade crossing work by CSX

Rail News Home Safety 5/4/2018 Rail News: Safety
The Public Utilities Commission of Ohio (PUCO) this week approved construction authorization from the Ohio Rail Development Commission (ORDC) directing CSX to install lights and gates at a grade crossing in Hardin County.CSX must complete the project by Feb. 2, 2019. The grade crossing is located at Locker Road/County Road 60 in Hardin County, according to a PUCO press release.Federal funding for the project is provided through the ORDC. Funding for such projects comes from Ohio's State Grade Crossing Safety Fund. The PUCO evaluates Ohio's public grade crossings to determine the need for installing active warning devices.

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May
04

Pierce, Pruitt and Joynt elected to Teamsters Rail Conference leadership roles

Rail News Home Labor 5/4/2018 Rail News: Labor
(From left to right) John Murphy, David Joynt, Dennis Pierce and E. Lee PruittPhoto – Teamsters Rail Conference

Dennis Pierce was re-elected to a third term as president of the Teamsters Rail Conference at its Fourth Quadrennial Convention held in Las Vegas this week.

He serves as national president of the Brotherhood of Locomotive Engineers and Trainmen (BLET).

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May
04

Meyer named UTA's interim executive director amid agency restructuring

The executive committee of the Utah Transit Authority's (UTA) board on Tuesday recommended appointing Steve Meyer as interim executive director.

The agency's full board will review his appointment on May 23, UTA officials said in a press release.

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May
04

Amtrak issues RFQ for Philadelphia station

Rail News Home Amtrak 5/4/2018 Rail News: Amtrak
Amtrak recently invested more than $85 million on capital projects at the station.Photo – Amtrak.com

Amtrak has issued a request for qualifications (RFQ) from master developers interested in making improvements to the railroad's 30th Street Station in Philadelphia.

With the release of the RFQ, Amtrak begins a two-phase process that will result in the selection of a preferred developer that will assist in introducing new customer amenities, reinvigorating the retail and commercial potential of the station, enhancing transit and pedestrian circulation, and expanding the station's concourses to accommodate anticipated increases in ridership, Amtrak officials said in a press release.

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May
04

First Nations, private firm agree to acquire Hudson Bay rail line

Rail News Home Short Lines & Regionals 5/4/2018 Rail News: Short Lines & Regionals
The port and the rail line are crucial to the existence of all First Nations in northern Manitoba, First Nations leaders say.Photo – portofchurchill.ca

A group of Manitoba First Nations — through a newly formed partnership with private Canadian company iChurchill Inc. — has entered into an acquisition agreement with OmniTRAX Inc. and the Port of Churchill to acquire the Hudson Bay Railway Co. in Manitoba.

The rail line, which operates between Gillam and Churchill, has been inoperable since portions of it were washed out by floods in May 2017.

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May
04

First Nations, private firm agree to acquire Hudson Bay rail line, port

Rail News Home Short Lines & Regionals 5/4/2018 Rail News: Short Lines & Regionals
The port and the rail line are crucial to the existence of all First Nations in northern Manitoba, First Nations leaders say.Photo – portofchurchill.ca

(Editor's note: This story was updated at 4:32 p.m. Friday with a statement from OmniTRAX.)

A group of Manitoba First Nations — through a newly formed partnership with private Canadian company iChurchill Inc. — say they have entered into an acquisition agreement with OmniTRAX Inc. to acquire the Hudson Bay Railway Co. and Port of Churchill in Manitoba.

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